Parker-Hannifin Corporation (PH): fair value, margin of safety and Wheel Score

Is PH undervalued?

Parker-Hannifin Corporation (PH) closed at 956.32 on 16 Oct 2026, 83% above the GLS average fair value of 522.10. 9 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.

The 9 models disagree widely: DDM gives 111.83 while Payback Time gives 889.87. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files PH under Quality / Blue-Chip: a high moat score and a high health score together.

Nine valuation models for PH

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health PH scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 9.2 out of 10, built from ten years of revenue, earnings, margins, cash flow, share count and returns on capital scored for consistency - a high reading that points to a durable business.

Returns on capital are high - ROIC 15.3%, ROE 23.7%, ROA 11.8% - with debt at 0.55 times equity and a free-cash-flow yield of 3.2%.

The dividend yield is 0.79% with a payout ratio of 44% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Diversified Industrial 67%, Aerospace Systems 33% (quarter Q4 FY2026).

Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 2/10 on the GLS smart-money scales.

Wheel Score 71: Good

PH scores 71 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 0/25), Piotroski health (20/20), the GLS moat (14/15), the option premium on offer (19/20) and how easily the stock trades (17/20). Value (0/25) is the part holding the score back.

Implied volatility is 34% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (19 of 20 points). Chain open interest is 8,476 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 711k shares a day on a market cap of $120.6B, with a beta of 1.12; the Stability part of the Wheel Score gives that 17 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Industrial - Machinery

The 12 companies below are the closest to Parker-Hannifin Corporation by market cap within the Industrial - Machinery industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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