PACCAR Inc cash flow to debt ratio of 28.24% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

PACCAR Inc's free cash flow has increased 4.62% from $2.90B last year to $3.03B, signaling increasing performance

PACCAR Inc's debt to equity ratio is 0.72, which means that the company's assets are unhealthy financed, signaling financial risk.

PACCAR Inc's debt has decreased relative to shareholder equity from 0.91 last year to 0.72 today, signaling strengthened financials

PACCAR Inc has a net debt to EBITDA ratio of 1.46x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

PACCAR Inc's interest coverage ratio of 125.65 indicates that earnings with good margin can cover interest payments on company debt

PACCAR Inc's profit margin has decreased (25.73%) in the last year from 12.36% to 9.18%, signaling decreasing performance

PACCAR Inc's short-term assets of $34.34B exceed its short-term liabilities of $11.16B

PACCAR Inc's return on assets of 5.69% is higher than the 5.00% threshold, indicating efficient asset utilization

PACCAR Inc's return on equity of 12.73%, is lower than 15.00%, indicating bad performance

PACCAR Inc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

PACCAR Inc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

PACCAR Inc has positive free cash flow, indicating the company generates cash after capital expenditures

PACCAR Inc has a free cash flow yield of 4.39%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

PACCAR Inc's yearly earnings has decreased 42.92% since last year from $4.16B to $2.38B, signaling decreasing performance

PACCAR Inc's yearly revenue has decreased 15.47% since last year from $33.65B to $28.44B, signaling decreasing performance

ROIC 5.87% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

PACCAR Inc's 3-year revenue CAGR of -0.44% is negative, indicating declining revenue over the past 3 years

PACCAR Inc had revenue growth in 3 out of 5 years, indicating consistent revenue performance

PACCAR Inc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

PACCAR Inc is overvalued relative to its fair value price of 119.84 based on Discounted Cash Flow model

PACCAR Inc has an earnings yield of 3.62%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

PACCAR Inc is overvalued relative to its fair value price of 73.47 based on EBITDA multiple model

PACCAR Inc has an EV/EBITDA ratio of 17.92x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

PACCAR Inc is overvalued relative to its fair value price of 130.43 based on Earnings Fair Value model

PACCAR Inc has a PEG-ratio over 1 which is considered overvalued

PACCAR Inc has a price-to-book ratio of 3.40x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

PACCAR Inc has a price-to-sales ratio of 2.54x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue