Parker-Hannifin: A Great Business Rightfully Commanding A Premium Price

Summary

• Parker-Hannifin Corporation has successfully integrated acquisitions, deleveraged its balance sheet, and thrived with a decentralized structure, yet I seek a pullback to the low $500s to invest.
• PH has grown sales from $12 billion to $20 billion in a decade period of time, driven by strategic M&A, including LORD, Exotic Metals, and Meggitt.
• Despite recent muted organic growth, Parker-Hannifin's strong financials reduced net debt, and consistent dividends make it a solid long-term investment, trading at 21 times adjusted earnings.
• I see the appeal in Parker-Hannifin but prefer to deploy capital elsewhere for now, reserving funds to invest if PH shares drop to the low $500s.