Paccar Inc
Exchange: NASDAQSector: IndustrialsIndustry: Farm & Heavy Construction Machinery
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR vehicles combine state-of-the-art diesel and zero-emissions powertrains with comprehensive PACCAR charging solutions and infrastructure support. PACCAR also provides financial services and information technology, and distributes truck parts related to its principal business.
Did you know?
Net income compounded at -0.1% annually over 6 years.
Current Price
$127.19
+0.11%GoodMoat Value
$122.17
3.9% overvaluedProfile
Valuation (TTM)
Market Cap$66.80B
P/E28.12
EV$66.16B
P/B3.47
Shares Out525.20M
P/Sales2.35
Revenue$28.44B
EV/EBITDA17.34
Paccar Inc (PCAR) Stock Analysis
GoodMoat Analysis
Paccar is a high-quality manufacturer of heavy-duty trucks with a durable competitive moat, but its current valuation appears full. The stock trades near its estimated fair value, offering a minimal margin of safety for a value investor.
Read full analysis
Paccar is a leading global manufacturer of heavy-duty trucks under the Kenworth, Peterbilt, and DAF brands. Applying the GoodMoat framework, the company demonstrates a durable competitive advantage. Its moat is built on strong brand and culture, as Kenworth and Peterbilt are iconic names with deep loyalty in the North American trucking industry, and proprietary technology leadership in efficient powertrains. The business also benefits from significant scale in manufacturing and parts distribution, creating a cost advantage. Financially, it is a quality operator with a strong balance sheet (Debt/Equity of 0.81) and consistent profitability, as evidenced by its ROE of 12.3% and solid free cash flow yield of 5.0%. However, the company is currently in a cyclical downturn, with revenue declining 13.7% year-over-year. The valuation assessment is key. With a P/E of 25.7 and the GoodMoat target price of $122.17, the stock trades at a marginal premium to the current price, implying a margin of safety well below the 20% threshold required for a 'favourable' rating in the Decision Framework. While Paccar is a strong business that passes the Moat & Quality gate, the current price does not provide a compelling discount to intrinsic value, making further investigation for a value investor a decision to be made 'with caution' pending a more attractive entry point. Analysis based on data as of 2024-05-15.
Market Cap$66.80B
Current Price$127.19
P/E Ratio28.12
Forward P/E—
PEG Ratio-0.78
EPS$4.51
Book Value$36.68
P/B Ratio3.47
PCAR Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 22.7% FCF growth (CAGR)
Cash vs Debt
Net Debt: 9.3B
Revenue
25.6B
FY19
18.7B
FY20
23.5B
FY21
28.8B
FY22
35.1B
FY23
33.7B
FY24
28.4B
FY25
Net Income
2.4B
FY19
1.3B
FY20
1.9B
FY21
3.0B
FY22
4.6B
FY23
4.2B
FY24
2.4B
FY25
PCAR 52-Week Range
$84.65
$129.48
50-Day MA: $121.49200-Day MA: $106.19
Did you know?
Net income compounded at -0.1% annually over 6 years.
Paccar Inc (PCAR) Financial Summary
Paccar Inc (PCAR) is a Industrials company in the Farm & Heavy Construction Machinery industry, listed on NASDAQ. The stock currently trades at $127.19 with a market capitalization of $66.80B.
Key valuation metrics include a P/E ratio of 28.12, price-to-book ratio of 3.47, and EPS of $4.51. The company reports a profit margin of 8.4% and return on equity of 12.3%.
PCAR Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $66.80B |
| P/E Ratio | 28.12 |
| EPS | $4.51 |
| P/B Ratio | 3.47 |
| P/S Ratio | 2.35 |
| EV/EBITDA | 17.34 |
| Dividend Yield | 3.39% |
| Profit Margin | 8.4% |
| Return on Equity | 12.3% |
| Debt/Equity | 0.81 |
PCAR Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $25.60B | $2.39B |
| FY20 | $18.73B | $1.30B |
| FY21 | $23.52B | $1.87B |
| FY22 | $28.82B | $3.01B |
| FY23 | $35.13B | $4.60B |
| FY24 | $33.66B | $4.16B |
| FY25 | $28.44B | $2.38B |
Paccar Inc (PCAR) Valuation
Based on GoodMoat's DCF model, Paccar Inc has a fair value estimate of $122.17. At the current price of $127.19, the stock appears 4.1% overvalued relative to our intrinsic value estimate.
PCAR Quality Indicators
Paccar Inc maintains a profit margin of 8.4% and an operating margin of 13.2%. Return on equity stands at 12.3%. The current ratio is 2.55. Debt-to-equity ratio is 0.81.
About Paccar Inc
PACCAR is a global technology leader in the design, manufacture and customer support of high-quality light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. PACCAR vehicles combine state-of-the-art diesel and zero-emissions powertrains with comprehensive PACCAR charging solutions and infrastructure support. PACCAR also provides financial services and information technology, and distributes truck parts related to its principal business.
PCAR Free Cash Flow
Paccar Inc generated $3.03B in trailing twelve-month free cash flow, representing an FCF yield of 4.53%. This moderate FCF yield indicates reasonable cash generation.
PCAR Shares Outstanding
Paccar Inc has 0.53 billion shares outstanding at a share price of $127.19, giving it a market capitalization of $66.80B.
PCAR Recent Insider Trades
Recent insider transactions at Paccar Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Poplawski Brice J (Sr. Vice President & CFO) | SELL | 2,200 | $286902.22 |
| Gryniewicz Craig R (Vice President) | SELL | 8,748 | $1.13M |
| FEIGHT R PRESTON (CHIEF EXECUTIVE OFFICER) | SELL | 9,258 | $1.20M |