1.46%
8.59%
7.25%
15.93%
10.34%
81.50%
121.87%

Company Description

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, Mexico, South America, Australia, and internationally.It operates through three segments: Truck, Parts, and Financial Services.The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods.


It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates.The Parts segment distributes aftermarket parts for trucks and related commercial vehicles.The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers.


This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers.In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment.The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates.


PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

Market Data

Last Price 112.51
Change Percentage 1.46%
Open 111.09
Previous Close 110.89
Market Cap ( Millions) 58989
Volume 2812625
Year High 125.5
Year Low 90.04
M A 50 110.78
M A 200 105.38

Financial Ratios

FCF Yield 4.71%
Dividend Yield 3.44%
ROE 30.97%
Debt / Equity 0.00%
Net Debt / EBIDTA 0.00%
Price To Book 112.75
Price Earnings Ratio 14.21
Price To FCF 21.25
Price To sales 1.78
EV / EBITDA 10.89

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> Truck

Expected Growth : 3.5 %

What the company do ?

PACCAR Inc's trucks are a range of commercial vehicles, including Kenworth and Peterbilt, known for their durability, performance, and innovative technology.

Why we expect these perspectives ?

PACCAR Inc's 3.5% growth in truck sales is driven by increasing demand for freight transportation, fueled by e-commerce growth and a strong US economy. Additionally, the company's focus on innovative technologies, such as electric and autonomous vehicles, is attracting environmentally conscious and tech-savvy customers. Furthermore, PACCAR's diversified portfolio of brands, including Kenworth and Peterbilt, is helping to expand its market share.

Segment nΒ°2 -> Parts

Expected Growth : 2.8 %

What the company do ?

PACCAR Inc's parts segment offers a range of aftermarket parts for its Kenworth, Peterbilt, and DAF trucks, including engines, transmissions, and other components.

Why we expect these perspectives ?

PACCAR Inc's 2.8% growth in parts is driven by increasing truck sales, rising average revenue per unit, and expanding aftermarket opportunities. Additionally, the company's focus on digitalization, telematics, and connected services is enhancing customer experience, leading to higher parts sales. Furthermore, PACCAR's strategic acquisitions and partnerships are expanding its global footprint, contributing to growth in the parts segment.

Segment nΒ°3 -> Financial Services

Expected Growth : 4.2 %

What the company do ?

PACCAR Inc's Financial Services segment provides financing and leasing options for customers and dealers of its trucks and parts, offering retail loans, wholesale financing, and floor plan financing.

Why we expect these perspectives ?

PACCAR Inc's Financial Services segment growth of 4.2% is driven by increasing truck sales, rising demand for financing and leasing services, and expansion into new markets. Additionally, the company's strong brand reputation, diversified revenue streams, and strategic partnerships contribute to its growth momentum.

Segment nΒ°4 -> Other

Expected Growth : 2.5 %

What the company do ?

The 'Other' segment from PACCAR Inc includes businesses that manufacture and distribute industrial winches, hydraulic and pneumatic components, and other specialized products.

Why we expect these perspectives ?

PACCAR Inc's 'Other' segment growth of 2.5% is driven by increased demand for its winch and hoist products, as well as its growing presence in the Australian market. Additionally, the company's focus on expanding its aftermarket parts business and introducing new products, such as its electric vehicle charging systems, are contributing to this growth.

Paccar Inc Products

Product Range What is it ?
Kenworth Trucks Kenworth is a leading manufacturer of heavy-duty and medium-duty trucks, offering a range of models for various applications, including on-highway, vocational, and municipal use.
Peterbilt Trucks Peterbilt is a premium brand of trucks, offering a range of models for on-highway, vocational, and medium-duty applications, known for their durability and performance.
DAF Trucks DAF is a European brand of trucks, offering a range of models for on-highway, vocational, and construction applications, known for their fuel efficiency and reliability.
PACCAR Parts PACCAR Parts is a global provider of aftermarket parts and services for commercial vehicles, offering a range of products and solutions for truck owners and operators.
PACCAR Financial Services PACCAR Financial Services provides financing and leasing solutions for commercial vehicles, offering flexible financing options for truck owners and operators.
PACCAR Digital PACCAR Digital is a suite of digital solutions for commercial vehicles, offering telematics, data analytics, and connectivity solutions for truck owners and operators.

PACCAR Inc's Porter Forces

PACCAR Inc. faces moderate threat from substitutes due to the availability of alternative modes of transportation, such as air and rail, which can be used for certain types of cargo.

PACCAR Inc.'s customers, primarily trucking companies and logistics providers, have limited bargaining power due to the company's strong brand reputation and diverse product offerings.

PACCAR Inc. faces moderate bargaining power from its suppliers, including component manufacturers and raw material providers, due to the company's large scale of operations and diversified supply chain.

The threat of new entrants in the heavy-duty truck manufacturing industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles.

The heavy-duty truck manufacturing industry is highly competitive, with several established players, including Daimler, Volvo, and Navistar, competing for market share and customer loyalty.

Capital Structure

Value
Debt Weight 47.52%
Debt Cost 4.50%
Equity Weight 52.48%
Equity Cost 8.70%
WACC 6.70%
Leverage 90.54%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

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REVG REV Group, Inc. designs, manufactures, and distributes specialty vehicles, and related aftermarket parts and services in the United States, Canada, Europe, Africa, and internationally. It operates through three segments: Fire …
TDG TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. Its Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
112.51$
Current Price
112.51$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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