I’ve been keeping an eye on PACCAR Inc (NASDAQ:PCAR) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe PCAR has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a an impressive history of performance. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my high-level commentary, read the full report on PACCAR here.
Solid track record with excellent balance sheet and pays a dividend
Over the past year, PCAR has grown its earnings by 60%, with its most recent figure exceeding its annual average over the past five years. This strong performance generated a robust double-digit return on equity of 24%, which is an notable feat for the company. PCAR is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that PCAR manages its cash and cost levels well, which is a crucial insight into the health of the company. PCAR appears to have made good use of debt, producing operating cash levels of 0.29x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
PCAR’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 5.8%.
For PACCAR, I’ve compiled three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for PCAR’s future growth? Take a look at our free research report of analyst consensus for PCAR’s outlook.
- Valuation: What is PCAR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PCAR is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PCAR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.