PACCAR Inc
PACCAR Inc Fundamental Analysis
PACCAR Inc (PCAR) shows weak financial fundamentals with a PE ratio of 28.28, profit margin of 8.35%, and ROE of 12.57%. The company generates $28.4B in annual revenue with weak year-over-year growth of -4.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PCAR's fundamental strength across five key dimensions:
Efficiency Score
WeakPCAR struggles to generate sufficient returns from assets.
Valuation Score
ModeratePCAR shows balanced valuation metrics.
Growth Score
WeakPCAR faces weak or negative growth trends.
Financial Health Score
ExcellentPCAR maintains a strong and stable balance sheet.
Profitability Score
WeakPCAR struggles to sustain strong margins.
Key Financial Metrics
Is PCAR Expensive or Cheap?
P/E Ratio
PCAR trades at 28.28 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PCAR's PEG of -2.41 indicates potential undervaluation.
Price to Book
The market values PACCAR Inc at 3.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 19.55 times EBITDA. This signals the market has high growth expectations.
How Well Does PCAR Make Money?
Net Profit Margin
For every $100 in sales, PACCAR Inc keeps $8.35 as profit after all expenses.
Operating Margin
Core operations generate 10.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.57 in profit for every $100 of shareholder equity.
ROA
PACCAR Inc generates $5.36 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PACCAR Inc produces operating cash flow of $4.41B, showing steady but balanced cash generation.
Free Cash Flow
PACCAR Inc generates strong free cash flow of $3.03B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.76 in free cash annually.
FCF Yield
PCAR converts 4.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.36
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.70
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How PCAR Stacks Against Its Sector Peers
| Metric | PCAR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.28 | 26.76 | Neutral |
| ROE | 12.57% | 1300.00% | Weak |
| Net Margin | 8.35% | -29570.00% (disorted) | Weak |
| Debt/Equity | 0.00 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.70 | 10.68 | Neutral |
| ROA | 5.36% | -1545134.00% (disorted) | Weak |
PCAR outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PACCAR Inc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.11%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
72.65%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
60.72%
Industry Style: Cyclical, Value, Infrastructure
High Growth