Parker-Hannifin Corporation

$19.00

SKU: PH Category:

Description

In the fourth quarter, Parker-Hannifin achieved a decent performance across all aspects of its operations. Safety remained a top priority, with a remarkable 20% reduction in recordable incidents, placing the company in the top quartile for safety. Sales for the quarter reached a record-breaking $5.1 billion, marking a substantial 22% increase compared to the previous year, with organic growth contributing to 6% of this growth. This quarter marked the second consecutive period with sales exceeding $5 billion. Backlog coverage remained resilient at 55%, demonstrating a 1% sequential increase. The successful implementation of the Win Strategy and portfolio changes contributed significantly to a strong finish for the year. Parker-Hannifin’s transformational journey over the past eight years has strategically reshaped its portfolio, doubling the presence in aerospace, filtration, and engineered materials. Looking forward, the company is poised for further growth, with approximately 30% of the portfolio in aerospace and defense, driven by the Meggitt integration. Capital expenditure reinvestment addresses past underinvestment and strengthens the supply chain, resulting in increased equipment spending and higher automation levels. Innovation efforts, such as new product blueprinting tools and Simple by Design principles, have led to a higher product vitality index, supporting faster growth and aligning with secular trends. The company remains dedicated to achieving its FY 2027 targets, including growing EPS from $21.55 to $30 and reaching a 25% adjusted segment operating margin. The fiscal year 2024 has begun on a solid foundation, with guidance reflecting continued progress toward these goals and a positive outlook for achieving 4% to 6% organic growth over the cycle.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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