Parker Hannifin Current Valuation vs. Return On Asset
| PAR Stock | EUR 619.80 1.20 0.19% |
For Parker Hannifin profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Parker Hannifin to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Parker Hannifin utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Parker Hannifin's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Parker Hannifin over time as well as its relative position and ranking within its peers.
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Parker Hannifin Return On Asset vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Parker Hannifin's current stock value. Our valuation model uses many indicators to compare Parker Hannifin value to that of its competitors to determine the firm's financial worth. Parker Hannifin is rated below average in current valuation category among its peers. It is regarded fourth in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for Parker Hannifin is about 678,045,208,925 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Parker Hannifin's earnings, one of the primary drivers of an investment's value.Parker Current Valuation vs. Competition
Parker Hannifin is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Diversified Industrials industry is at this time estimated at about 547.58 Billion. Parker Hannifin holds roughly 47.94 Billion in current valuation claiming about 9% of equities under Diversified Industrials industry.
Parker Return On Asset vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
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| = | 47.94 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
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| = | 0.0707 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Parker Return On Asset Comparison
Parker Hannifin is regarded third in return on asset category among its peers.
Parker Hannifin Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Parker Hannifin, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Parker Hannifin will eventually generate negative long term returns. The profitability progress is the general direction of Parker Hannifin's change in net profit over the period of time. It can combine multiple indicators of Parker Hannifin, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. Parker-Hannifin Corporation was founded in 1918 and is headquartered in Cleveland, Ohio. PARKER HANNIFIN is traded on Frankfurt Stock Exchange in Germany.
Parker Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Parker Hannifin. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Parker Hannifin position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Parker Hannifin's important profitability drivers and their relationship over time.
Use Parker Hannifin in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Parker Hannifin position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Parker Hannifin will appreciate offsetting losses from the drop in the long position's value.Parker Hannifin Pair Trading
Parker Hannifin Pair Trading Analysis
The ability to find closely correlated positions to Parker Hannifin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Parker Hannifin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Parker Hannifin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Parker Hannifin to buy it.
The correlation of Parker Hannifin is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Parker Hannifin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Parker Hannifin moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Parker Hannifin can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Parker Hannifin position
In addition to having Parker Hannifin in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Conservative Funds Thematic Idea Now
Conservative Funds
Funds or Etfs that invest using buy-and-hold investment strategy in companies with consistent growth over many years of operation. The Conservative Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Conservative Funds Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Parker Stock
When determining whether Parker Hannifin offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Parker Hannifin's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Parker Hannifin Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Parker Hannifin Stock:Check out Your Equity Center. For more detail on how to invest in Parker Stock please use our How to Invest in Parker Hannifin guide.You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
To fully project Parker Hannifin's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Parker Hannifin at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Parker Hannifin's income statement, its balance sheet, and the statement of cash flows.