Parker-Hannifin Corporation PH

Competitive advantage analysis · industrials

Corporate Default
Overall moat score
77/100
Strong

About Parker-Hannifin Corporation

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for aerospace and defense, in-plant and industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets in North America, Europe, Asia Pacific, and Latin America. The company operates through two segments: Diversified Industrial and Aerospace Systems. It offers various motion-control systems and components, such as active and passive vibration … Full PH analysis →

Competitive advantage assessment

Key strengths

  • ROIC Sustainably Above Peers ROIC at 89.6th percentile exceeds peers and WACC, demonstrating superior capital allocation.
  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.71), demonstrating pricing resilience across cycles.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.27), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
73

Where PH ranks in Specialty Industrial Machinery

Parker-Hannifin Corporation ranks #7 of 82 scored companies in Specialty Industrial Machinery by moat score — the top 9%. The widest moat in the group is Graco Inc. (GGG) at 86/100.

Moat scores for companies ranked near PH in Specialty Industrial Machinery
# Company Moat score Rating
3 Illinois Tool Works Inc. ITW 79/100 Strong
4 AMETEK, Inc. AME 79/100 Strong
5 Enerpac Tool Group Corp. EPAC 77/100 Strong
6 Watts Water Technologies, Inc. WTS 77/100 Strong
7 Parker-Hannifin Corporation PH 77/100 Strong
8 CSW Industrials, Inc. CSWI 76/100 Strong
9 Nordson Corporation NDSN 76/100 Strong
10 Pentair plc. PNR 75/100 Strong
11 IDEX Corporation IEX 74/100 Moderate

See every General Corporate company ranked by moat score →

How PH scores on the Corporate Default defenses

Pricing Power

Score 73 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 88 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 90 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 82 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 57 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 74 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding PH's moat

What is Parker-Hannifin Corporation's moat score?

Parker-Hannifin Corporation (PH) scores 76 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #7 of 82 scored companies in Specialty Industrial Machinery, the top 9%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 81 companies in Specialty Industrial Machinery. Its strongest defense is Customer Stickiness (90/100) and its weakest is Resilience (57/100).

How does Parker-Hannifin Corporation compare with other Specialty Industrial Machinery companies?

Parker-Hannifin Corporation ranks #7 of 82 scored companies in Specialty Industrial Machinery by moat score. The widest moat in Specialty Industrial Machinery is Graco Inc. (GGG) at 86/100. The companies ranked closest are Watts Water Technologies, Inc. (WTS) at 77 just above it and CSW Industrials, Inc. (CSWI) at 76 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 81 companies in Specialty Industrial Machinery. The defenses are then weighted to produce the overall score out of 100.

Why is Parker-Hannifin Corporation scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Parker-Hannifin Corporation?

The Corporate Default template measures 6 defenses, and PH scores: Pricing Power (73), Cost Advantage (88), Customer Stickiness (90), Capital Efficiency (82), Resilience (57), Scale & Market Position (74). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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