On the stock market since 1980, it operates in the world of heavy industry. It has 25,900 employees. Now — the numbers.
This is an established company with proven profits.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
No real growth (5% a year).
The gap is $6.1B. In times of high interest rates, a gap like that can squeeze a company.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit indicators sit around the sector average.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
The price isn’t cheap next to earnings — that’s why this grade sits in the middle.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
It pays out $2.74 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales fell about 0% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The growth engine is running at low revs right now. Report-card grade: 28/100.
As the slice kept from each sale thins out, so does the profit.
On our five-subject report card, PCAR sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: PCAR is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.