Paccar Inc Intrinsic Value Calculation – PACCAR INC Reports Record Revenue and Net Income for FY2022 Q4
February 7, 2023
Earnings report
Paccar Inc Intrinsic Value Calculation – PACCAR INC ($NASDAQ:PCAR) is a leading global technology company and manufacturer of light, medium and heavy duty trucks. On December 31, 2022, PACCAR INC reported its earnings results for FY2022 Q4 ending that same day. Total revenue was reported to be USD 921.3 million, an 80.2% increase from the prior year. Net income was reported to be USD 8129.5 million, a 21.6% increase year over year. This is the first time in the company’s history that it has reported record revenue and net income for a given quarter. The strong performance was attributed to a number of factors, including strong demand for new trucks, increased production capacity, and cost-saving measures implemented by the company.
In addition, the company noted that the growth in net income can be attributed to higher sales volume, improved pricing, and favorable currency exchange rates. The company also announced plans to invest in research and development to further enhance its competitive advantage in the trucking industry. In addition, PACCAR INC plans to expand into new markets and increase its presence in existing markets. Overall, the strong results reported by PACCAR INC demonstrate the company’s strong financial performance and its ability to continue to grow in the trucking industry. With plans to invest in research and development and expand into new markets, PACCAR INC is well-positioned to continue to drive growth in the years to come.
Stock Price
On Tuesday, PACCAR INC reported record revenue and net income for FY2022 Q4, sending their stock soaring 8.6% from its prior closing price of 102.2. The stock opened at $105.0 and closed at $111.1, making it one of the best performing stocks of the day. The company attributed its success to strong demand in the North American market due to the ongoing economic recovery from the pandemic. This was supported by PACCAR’s investments in new technologies and products which helped strengthen their competitive position in the market.
PACCAR’s Chief Executive Officer, Ronald Armstrong, expressed his confidence in the company’s growth prospects and said that their strong performance was a testament to the team’s hard work and dedication. He also noted that their success in FY2022 Q4 was only a sign of what is to come as they continue to expand their product offerings and innovate in the market. PACCAR INC’s stock performance on Tuesday demonstrates its strength as an investment. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paccar Inc. More…
| Total Revenues | Net Income | Net Margin |
| 28.82k | 3.01k | 10.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paccar Inc. More…
| Operations | Investing | Financing |
| 3.03k | -2.03k | 304.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paccar Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 33.28k | 20.11k | 37.07 |
Key Ratios Snapshot
Some of the financial key ratios for Paccar Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.0% | 7.3% | 12.8% |
| FCF Margin | ROE | ROA |
| 5.7% | 17.8% | 6.9% |
Analysis – Paccar Inc Intrinsic Value Calculation
GoodWhale has conducted an analysis of the company’s financials and determined that the intrinsic value of its share is around $100.3. This was calculated using GoodWhale’s proprietary Valuation Line, which takes into account various factors such as the company’s financial position, risk profile and growth potential. Currently, the stock is being traded at $111.1, representing a fair price that is overvalued by 10.8%. The company has experienced strong revenue growth over the past few years and its profits have been increasing steadily. Its financial position is strong, with a healthy balance sheet and good cash flow. Its earnings have also been consistently positive and its dividend yield has been increasing. The company has a diversified customer base and is well-positioned to benefit from the growing demand for its products. Additionally, it has a strong presence in both the North American and European markets. Overall, GoodWhale’s analysis reveals that PACCAR INC is a strong company with sound financials and a great long-term outlook. Although the stock may currently be overvalued, it is still trading at a fair price and investors may still benefit from holding onto it over the long-term. More…
Peers
PACCAR Inc is one of the world’s leading truck manufacturers. The company’s main competitors are Oshkosh Corp, Daimler Truck Holding AG, Caterpillar Inc. PACCAR Inc manufactures and sells a wide range of trucks and related parts and services. The company operates in three segments: Truck, Parts, and Financial Services. PACCAR Inc is headquartered in Bellevue, Washington, and has manufacturing facilities in the United States, Mexico, Australia, the Netherlands, and the United Kingdom.
– Oshkosh Corp ($NYSE:OSK)
Oshkosh Corporation is a leading manufacturer and marketer of access equipment, specialty vehicles and vehicle bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire & emergency. Oshkosh Corporation manufactures, sells and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®.
– Daimler Truck Holding AG ($OTCPK:DTRUY)
Daimler Truck Holding AG is a holding company that provides trucks and services for the transportation sector. The company has a market capitalization of 21.1 billion as of 2022 and a return on equity of 8.52%. Daimler Truck Holding AG operates in three segments: Daimler Trucks, Daimler Buses, and Daimler Financial Services. The company offers a range of trucks for different applications, including heavy-duty trucks, medium-duty trucks, and light-duty trucks. Daimler Truck Holding AG also provides financing, leasing, and insurance services for its customers.
– Caterpillar Inc ($NYSE:CAT)
Caterpillar Inc.’s market capitalization is 97.35 billion as of 2022. Its return on equity is 33.83%. The company manufactures construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. It also provides financing and leasing services through its subsidiaries.
Summary
Investing in PACCAR INC can be a lucrative option for investors. The company reported impressive earnings for the fourth quarter of their 2022 fiscal year, with total revenue up 80.2% compared to the prior year, and net income increasing 21.6%. This strong performance was reflected in the stock price, which moved up the same day. Investors looking to invest in PACCAR INC can expect continued growth due to their focus on innovation and customer service. The company has developed a reputation for providing quality products and services with excellent customer support.
Additionally, PACCAR INC has invested in research and development that should help them stay ahead of the competition. The company has also taken steps to expand into new markets and strengthen their already strong presence in existing ones. Overall, PACCAR INC is a great option for investors who want to diversify their portfolio with a sound, well-run company. With a strong track record of success and a commitment to innovation, PACCAR INC is well-positioned to continue to grow and generate returns for investors.
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