Since January 2026, Parker-Hannifin has been in a holding pattern, posting a small return of 3.4% while floating around $960.
Is now the time to buy PH? Find out in our full research report, it’s free.
Why Does PH Stock Spark Debate?
Founded in 1917, Parker Hannifin (NYSE: PH) is a manufacturer of motion and control systems for a wide variety of mobile, industrial and aerospace markets.
Two Positive Attributes:
1. Operating Margin Reveals a Well-Run Organization
Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development.
Parker-Hannifin has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 18.8%. This result isn’t too surprising as its gross margin gives it a favorable starting point.
2. Outstanding Long-Term EPS Growth
Analyzing the long-term change in earnings per share (EPS) shows whether a company’s incremental sales were profitable — for example, revenue could be inflated through excessive spending on advertising and promotions.
Parker-Hannifin’s EPS grew at 18.5% compounded annual growth rate over the last five years, higher than its 9.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
One Reason to Be Careful:
Slow Organic Growth Suggests Waning Demand In Core Business
Investors interested in Gas and Liquid Handling companies should track organic revenue in addition to reported revenue. This metric gives visibility into Parker-Hannifin’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.
Over the last two years, Parker-Hannifin’s organic revenue averaged 3.2% year-on-year growth. This performance was underwhelming and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. 
Final Judgment
Parker-Hannifin has huge potential even though it has some open questions, but at $960 per share (or 29× forward P/E), is now the right time to buy the stock? See for yourself in our in-depth research report, it’s free.
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