PCAR  Paccar Inc.

Exchange

NASDAQ

Sector

Capital Goods

Industry

Auto Manufacturing

Market Cap.

24145.70B

Vuru Grade

30.36/100

Current Price

$68.85
+0.13 (+0.19%)

Growth Price

$33.39
Overvalued by 51.50%

Stability Price

$19.49
Overvalued by 71.69%

Company Metrics

  • P/E 46.52
  • P/S 1414.88
  • P/B 3.56
  • EPS 1.48
  • Cash ROIC 8.77%
  • Cash Ratio 0.61
  • Dividend 0.96 / 1.40 %
  • Avg. Vol. 2.02M
  • Shares 355.60M
  • Market Cap. 24145.70B

Company Description

PACCAR Inc, together with its subsidiaries, designs, manufactures, and distributes light-, medium-, and heavy-duty trucks and related aftermarket parts primarily in the United States and Europe. It markets its heavy-duty diesel trucks under the Kenworth, Peterbilt, and DAF nameplates. The company sells its products for use in over-the-road and off-highway hauling of freight, petroleum, wood produc... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

A New Kind of Stock Chart: PACCAR Inc (NASDAQ:PCAR) Critical Pivot Points
CML News - Feb 10, 2017
This is a real time view of the critical technical pivot points for PACCAR Inc (NASDAQ:PCAR) . The technical pivot points we look at all surround the stock price movement from the last 10-trading days through the last year.
The PACCAR Inc. (PCAR) Raised to “Hold” at the Vertical Research
DailyQuint - 8 hours ago
Vertical Research upgraded shares of PACCAR Inc. (NASDAQ:PCAR) from a sell rating to a hold rating in a research report report published on Friday, The Fly reports.
PACCAR Inc. (PCAR) Shares Sold by Aberdeen Asset Management PLC UK - BBNS
Dividend Growth of PACCAR Inc.(PCAR) - Highland Mirror
Form 4 PACCAR INC For: Feb 07 Filed by: Quinn T. Kyle
StreetInsider.com - Feb 16, 2017
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). 1. Name and Address of Reporting Person *. Quinn T. Kyle. (Last), (First), (Middle). 777 106TH AVENUE NE. (Street). BELLEVUE, WA, 98004 ...
PACCAR Inc. (PCAR) CEO Sells $2139252.54 in Stock
Sports Perspectives - Feb 8, 2017
PACCAR logo PACCAR Inc. (NASDAQ:PCAR) CEO Ronald E. Armstrong sold 31,326 shares of PACCAR stock in a transaction on Friday, February 3rd.
Today's Brokerage Rating: Biogen Inc. (BIIB), PACCAR Inc (PCAR) - StockNewsJournal
The PACCAR Inc. (PCAR) Rating Reiterated by Credit Suisse Group - DailyQuint
PACCAR Inc (PCAR) Rises 2.55% for January 25
Equities.com - Jan 25, 2017
Among the biggest risers on the S&P 500 on Wednesday January 25 was PACCAR Inc ($PCAR), popping some 2.55% to a price of $68.40 a share with some 2.29 million shares trading hands.
PACCAR Inc (PCAR) Moves Higher on Volume Spike for February 01
Equities.com - Feb 1, 2017
PACCAR Inc (PCAR) traded on unusually high volume on Feb. 01, as the stock gained 1.96% to close at $68.63. On the day, PACCAR Inc saw 3.05 million shares trade hands on 27,414 trades. Considering that the stock averages only a daily volume of 1.94 ...
PACCAR bounces after earnings call comments on European strength - Seeking Alpha
PACCAR (PCAR) Q4 Earnings Miss on Low Truck Deliveries - Yahoo Finance
Analyst Buzz: PACCAR Inc. (NASDAQ:PCAR)
FactsReporter - Feb 15, 2017
PACCAR Inc. on 01/31/2017 reported its EPS as $0.82 with the analysts projecting the EPS of the stock as $0.86. The company beat the analyst EPS Estimate with the difference of $-0.04.
PACCAR Inc. (PCAR) Position Increased by Aviva PLC - Sports Perspectives
The PACCAR Inc. (PCAR) Scheduled to Post Earnings on Tuesday - DailyQuint
Gary Lee Moore Sells 22742 Shares of PACCAR Inc. (PCAR) Stock
Sports Perspectives - Feb 9, 2017
PACCAR logo PACCAR Inc. (NASDAQ:PCAR) insider Gary Lee Moore sold 22,742 shares of PACCAR stock in a transaction on Friday, February 3rd.
PACCAR Inc. (PCAR) To Go Ex-Dividend on February 10th - BBNS
Ronald E. Armstrong Sells 31326 Shares of PACCAR Inc. (PCAR) Stock - Community Financial News
PACCAR Inc. (PCAR) Insider Michael T. Barkley Sells 881 Shares of Stock
The Cerbat Gem - Feb 10, 2017
PACCAR logo PACCAR Inc. (NASDAQ:PCAR) insider Michael T. Barkley sold 881 shares of PACCAR stock in a transaction on Tuesday, February 7th.
Johnson Investment Counsel Inc. Purchases Shares of 356484 PACCAR Inc. (PCAR) - Sports Perspectives
Insider Trading at PACCAR Inc.? - BBNS
PACCAR Inc. (PCAR) Given “Hold” Rating at Credit Suisse Group
Sports Perspectives - Feb 5, 2017
Credit Suisse Group restated their hold rating on shares of PACCAR Inc. (NASDAQ:PCAR) in a research note issued to investors on Sunday.
PACCAR Inc. (PCAR) Receives Hold Rating from Credit Suisse Group - BBNS
PACCAR Inc. (NASDAQ:PCAR) Mean Price Target At $68.25 - Equities Focus
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PCAR to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PCAR's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$68.85 Current Price

$33.39 Growth Price (DCF)

Overvalued by 51.50%


Growth Rate Assumed by Market: 28.87%


Future Free Cash Flow Growth Rate: -2.1%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$19.49 Stability Price (EPV)

Overvalued by 71.69%


Discount Rate: 15.0%

$1.46 NCA Price

Overvalued by 97.88%

$60.64 Book Price

Overvalued by 11.92%


Poor Cash Return on Invested Capital over the past 5 years

PCAR has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PCAR has only created $8.77 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 1.25B -284.40M 502.90M 586.30M 830.80M
divided by
Invested Capital 4.08B 10.36B 12.43B 11.93B 11.93B
Cash ROIC 30.68% -2.75% 4.05% 4.91% 6.97%

Excellent Return on Equity over the past 5 years

Over the past 5 years, PCAR has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

PCAR has generated $19.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 1.04B 1.11B 1.17B 1.36B 1.60B
divided by
Stockholders' Equity 5.36B 5.85B 6.63B 6.75B 6.94B
Return on Equity 19.43% 19.01% 17.66% 20.12% 23.11%

Good Business Performance over the past 10 years

It's likely PCAR has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is PCAR has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

PCAR has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 898.40M 788.00M -245.10M 1.25B 1.38B 1.25B -284.40M 502.90M 586.30M 830.80M

Weak Balance Sheet

PCAR's financial position is not ideal. The key is to check whether PCAR is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 2.67B 2.64B 2.13B 2.13B 2.49B 3.02B 2.47B 3.02B 3.01B 3.46B
Current Assets 12.79B 13.07B 11.74B 10.04B 9.93B 4.95B 12.78B 13.97B 14.32B 14.69B
Total Assets 16.11B 17.23B 16.25B 14.57B 14.23B 17.17B 18.63B 20.73B 20.62B 21.11B
Current Liabilities 7.20B 6.87B 5.65B 7.61B 7.08B 10.08B 5.80B 5.28B 5.68B 5.72B
Total Liabilities 11.65B 12.22B 11.40B 9.47B 8.88B 11.81B 12.78B 14.09B 13.87B 14.17B
Stockholder' Equity 4.46B 5.01B 4.85B 5.10B 5.36B 5.36B 5.85B 6.63B 6.75B 6.94B
Current Ratio 1.78 1.90 2.08 1.32 1.40 0.49 2.20 2.64 2.52 2.57
TL-to-TA 0.72 0.71 0.70 0.65 0.62 0.69 0.69 0.68 0.67 0.67

Consistent Reinvestment of Profits over the past 10 years

PCAR has consistently retained profits. This may put PCAR in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, PCAR can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings 4.03B 4.26B 4.72B 4.64B 4.85B 5.17B 5.60B 6.17B 6.86B 7.54B
Retained Earnings Growth - 5.82% 10.89% -1.78% 4.43% 6.78% 8.15% 10.16% 11.33% 9.81%

Competitive Industry over the past 10 years

PCAR is likely operating in an industry with medium to low barriers to entry. This may mean that PCAR doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that PCAR invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.51 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 1.50B 1.23B 1.02B 111.90M 457.60M 1.04B 1.11B 1.17B 1.36B 1.60B
divided by
Revenue 16.45B 15.22B 14.97B 8.09B 10.29B 16.36B 17.05B 17.12B 19.00B 19.12B
Net Profit Margin 9.09% 8.06% 6.80% 1.38% 4.45% 6.37% 6.52% 6.84% 7.15% 8.39%

Inconsistent Gross Profit Margins over the past 10 years

PCAR has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$27.38 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 2.68B 3.30B 3.24B 1.60B 2.09B 16.07B 3.14B 3.22B 3.52B 3.82B
divided by
Revenue 16.45B 15.22B 14.97B 8.09B 10.29B 16.36B 17.05B 17.12B 19.00B 19.12B
Gross Margin 16.29% 21.71% 21.61% 19.82% 20.35% 98.24% 18.43% 18.82% 18.51% 20.00%

High Capital Intensity over the past 10 years

PCAR spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

104.58% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 954.30M 1.27B 1.55B 127.70M 168.40M 340.70M 1.80B 1.87B 1.54B 1.73B
divided by
Net Income 1.50B 1.23B 1.02B 111.90M 457.60M 1.04B 1.11B 1.17B 1.36B 1.60B
Capital Expenditure Ratio 63.79% 103.27% 152.27% 114.12% 36.80% 32.69% 162.23% 159.89% 113.14% 107.56%

Very Strong Dividend History over the past 10 years

PCAR has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests PCAR is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid 530.40M 736.70M 629.20M 232.10M 251.70M 217.40M 809.50M 283.10M 623.80M 680.50M
divided by
Shares Outstanding 377.10M 373.30M 365.90M 364.90M 366.20M 364.40M 355.80M 355.20M 356.10M 355.60M
Dividend Paid Per Share 1.41 1.97 1.72 0.64 0.69 0.60 2.28 0.80 1.75 1.91
Price at Year End 39.10 52.10 26.67 35.56 56.33 37.31 44.43 58.84 68.80 48.02
Dividend Yield 3.60% 3.79% 6.45% 1.79% 1.22% 1.60% 5.12% 1.35% 2.55% 3.99%

Strong History of Stock Buybacks over the past 10 years

PCAR has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 377.10M 373.30M 365.90M 364.90M 366.20M 364.40M 355.80M 355.20M 356.10M 355.60M
Stock Bought Back - 1.02% 2.02% 0.27% -0.35% 0.49% 2.42% 0.17% -0.25% 0.14%
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