PACCAR Inc (PCAR)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
PACCAR Inc (PCAR) trades at $119.50 with AI Score 60/100 (Grade B+). PACCAR Inc. designs, manufactures, and distributes commercial trucks and related parts and services. The company operates globally, with a significant presence in North America and Europe. Market cap: $62.89B, Sector: Industrials.
Price live · AI analysis from May 9, 2026Analyst Coverage for PCAR: PCAR does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates PCAR against Industrials peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
PCAR: 1/1 perspectives are bullish.
How is this calculated? →PACCAR Inc (PCAR) Industrial Operations Profile
PACCAR Inc. is a global leader in the design, manufacture, and distribution of high-quality commercial trucks under the Kenworth, Peterbilt, and DAF nameplates. With a strong focus on aftermarket parts and financial services, PACCAR serves diverse customer needs across multiple geographies, maintaining a robust market position in the industrials sector.
What Is the Investment Thesis for PCAR?
PACCAR Inc. presents a compelling investment case driven by its strong market position, diversified revenue streams, and efficient operations. With a P/E ratio of 24.26 and a dividend yield of 2.38%, the company demonstrates financial stability and shareholder value. A key growth catalyst is the increasing demand for commercial vehicles, supported by economic growth and infrastructure development. PACCAR's established brands, extensive dealer network, and robust aftermarket parts business provide a competitive edge. However, potential risks include economic downturns impacting truck demand and increasing competition in the commercial vehicle market. Investors should monitor these factors to assess the long-term sustainability of PACCAR's performance.
Based on FMP financials and quantitative analysis
PCAR Key Highlights
- Market Cap of $62.89B reflects PACCAR's significant presence and investor confidence in the commercial vehicle market.
- Profit Margin of 9.1% indicates efficient operations and strong pricing power in a competitive industry.
- Gross Margin of 15.1% demonstrates PACCAR's ability to manage production costs and maintain profitability.
- Dividend Yield of 2.38% provides a steady income stream for investors, highlighting PACCAR's commitment to shareholder returns.
- Beta of 1.06 suggests PACCAR's stock price volatility is similar to the overall market, indicating moderate risk.
Who Are PCAR's Competitors?
PCAR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CMI Cummins Inc. | $661.70 | -3.02% | $91.31B | 74 |
| CNI Canadian National Railway (CNI) | $121.56 | +1.45% | $73.74B | 54 |
| GWW W.W. Grainger, Inc. | $1342.98 | +0.35% | $63.41B | 94 |
| LHX L3Harris Technologies, Inc. | $302.07 | +3.37% | $56.27B | 59 |
| URI United Rentals, Inc. | $1098.59 | -1.18% | $68.82B | 72 |
| DE Deere & Company | $621.27 | -1.01% | $167.70B | 52 |
| SNYYF Sany Heavy Equipment International Holdings Company Limited | $0.89 | +0.00% | $2.92B | 52 |
| TEX Terex Corporation | $68.16 | -0.79% | $4.99B | 50 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PCAR's Key Strengths?
- Strong brand recognition (Kenworth, Peterbilt, DAF)
- Extensive dealer network
- Diversified revenue streams (trucks, parts, financial services)
- Strong financial performance
What Are PCAR's Weaknesses?
- Cyclical demand for commercial trucks
- Dependence on economic conditions
- Exposure to raw material price fluctuations
- Potential impact from regulatory changes
What Could Drive PCAR Stock Higher?
- Launch of new electric and autonomous truck models, expected in late 2026, will drive revenue growth and enhance PACCAR's brand image.
- Expansion of aftermarket parts and service business will provide a stable revenue stream and enhance customer loyalty.
- Geographic expansion into emerging markets will diversify PACCAR's revenue base and reduce its dependence on mature markets.
- Investments in fuel efficiency and emissions reduction technologies will attract environmentally conscious customers and gain a competitive advantage.
What Are the Key Risks for PCAR?
- Economic downturns could significantly reduce demand for commercial trucks, impacting PACCAR's revenue and profitability.
- Increasing competition in the commercial vehicle market could put pressure on pricing and market share.
- Regulatory changes related to emissions and safety could increase compliance costs and require significant investments in new technologies.
- Fluctuations in raw material prices could impact PACCAR's production costs and profitability.
- Disruptive technologies, such as alternative transportation solutions, could pose a long-term threat to the commercial truck market.
What Are the Growth Opportunities for PCAR?
- Growth opportunity 1: Expansion of Electric and Autonomous Truck Technologies: PACCAR is investing in the development of electric and autonomous truck technologies to meet evolving customer demands and regulatory requirements. The global market for electric commercial vehicles is projected to reach $200 billion by 2030, presenting a significant growth opportunity. By leveraging its engineering expertise and strategic partnerships, PACCAR can capture a substantial share of this market, enhancing its long-term competitiveness and sustainability.
- Growth opportunity 2: Strengthening Aftermarket Parts and Service Business: PACCAR's aftermarket parts and service business provides a stable revenue stream and enhances customer loyalty. The global market for commercial vehicle aftermarket parts is estimated at $300 billion annually. By expanding its distribution network, enhancing its online platform, and offering value-added services, PACCAR can increase its market share and profitability in this segment, mitigating the impact of cyclical truck sales.
- Growth opportunity 3: Geographic Expansion in Emerging Markets: Emerging markets, such as South America and Southeast Asia, offer significant growth potential for PACCAR's commercial vehicles. These regions are experiencing rapid economic growth and increasing demand for transportation infrastructure. By establishing local manufacturing facilities, developing tailored products, and building strong relationships with local dealers, PACCAR can capitalize on these opportunities and diversify its revenue base.
- Growth opportunity 4: Leveraging Financial Services to Drive Truck Sales: PACCAR's Financial Services segment plays a crucial role in supporting truck sales by providing financing and leasing solutions to customers and dealers. By offering competitive rates, flexible terms, and value-added services, PACCAR can enhance customer affordability and loyalty. The global market for commercial vehicle financing is estimated at $500 billion annually, presenting a substantial opportunity for PACCAR to increase its market share and profitability.
- Growth opportunity 5: Innovation in Fuel Efficiency and Emissions Reduction: With increasing regulatory pressure and customer demand for environmentally friendly vehicles, PACCAR is investing in technologies to improve fuel efficiency and reduce emissions. This includes developing advanced engine designs, aerodynamic enhancements, and alternative fuel systems. By leading the way in sustainable transportation solutions, PACCAR can enhance its brand reputation, attract environmentally conscious customers, and gain a competitive advantage in the market.
What Opportunities Does PCAR Have?
- Expansion into emerging markets
- Development of electric and autonomous truck technologies
- Growth in aftermarket parts and service business
- Leveraging financial services to drive truck sales
What Threats Does PCAR Face?
- Intense competition in the commercial vehicle market
- Economic downturns impacting truck demand
- Increasing regulatory pressure on emissions
- Disruptive technologies
What Are PCAR's Competitive Advantages?
- Brand Recognition: Kenworth, Peterbilt, and DAF are well-established and respected brands in the commercial truck market.
- Dealer Network: Extensive network of independent dealers provides broad geographic coverage and customer support.
- Aftermarket Parts Business: Recurring revenue stream from the sale of aftermarket parts and services.
- Financial Services: Captive financing arm supports truck sales and enhances customer loyalty.
What Does PCAR Do?
Founded in 1905 and headquartered in Bellevue, Washington, PACCAR Inc has evolved into a global leader in the design, manufacture, and distribution of light, medium, and heavy-duty commercial trucks. The company operates through three primary segments: Truck, Parts, and Financial Services. The Truck segment is responsible for designing, manufacturing, and distributing trucks for both over-the-road and off-highway hauling, marketed under the Kenworth, Peterbilt, and DAF brands. These trucks are sold through an extensive network of independent dealers. The Parts segment focuses on distributing aftermarket parts for trucks and related commercial vehicles, ensuring ongoing support and maintenance for PACCAR's products. The Financial Services segment provides full-service leasing operations under the PacLease trade name, along with finance and leasing products tailored to customers and dealers. This includes equipment financing, administrative support for franchisees, and retail loan and leasing services for various commercial trucking companies and owner/operators. Additionally, PACCAR manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates, further diversifying its product offerings. PACCAR's commitment to quality and innovation has solidified its position as a key player in the global commercial vehicle market.
What Products and Services Does PCAR Offer?
- Designs and manufactures light, medium, and heavy-duty commercial trucks.
- Distributes trucks under the Kenworth, Peterbilt, and DAF nameplates.
- Provides aftermarket parts for trucks and related commercial vehicles.
- Offers full-service leasing operations under the PacLease trade name.
- Provides finance and leasing products and services to customers and dealers.
- Manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates.
How Does PCAR Make Money?
- Truck Sales: Generates revenue through the sale of commercial trucks to independent dealers and direct customers.
- Parts Sales: Distributes aftermarket parts for trucks and related commercial vehicles, providing a recurring revenue stream.
- Financial Services: Offers leasing and financing solutions, earning interest income and fees.
- Winch Manufacturing: Manufactures and markets industrial winches, diversifying its product portfolio.
What Industry Does PCAR Operate In?
PACCAR Inc. operates within the agricultural machinery industry, which is influenced by economic cycles, infrastructure development, and regulatory standards. The industry is characterized by intense competition, with companies vying for market share through product innovation, service offerings, and geographic expansion. Market trends include the increasing adoption of electric and autonomous vehicles, as well as a growing emphasis on fuel efficiency and emissions reduction. PACCAR's established brands and diversified product portfolio position it well to capitalize on these trends, but it faces challenges from competitors such as Cummins Inc. (CMI) and other global truck manufacturers.
Who Are PCAR's Key Customers?
- Commercial trucking companies: Large, medium, and small companies that require fleets of trucks for transportation.
- Independent owner/operators: Individual truck drivers who own and operate their own vehicles.
- Dealers: Independent dealers who sell and service PACCAR's trucks and parts.
- Other businesses: Companies that use trucks for various commercial purposes.
How PACCAR Inc Is Valued
PACCAR Inc carries a market capitalization of $62.89B, placing it in the large-cap category. Relative to its peer group, PCAR's quantitative score of 60/100 is below the peer average of 71/100.
ROE 13%Key Financial Metrics
Return on equity for PACCAR Inc stands at 12.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 5.7%, showing how much profit it generates from its asset base. PCAR trades at a trailing price-to-earnings ratio of 24.89, below the Industrials sector average of ~30x. Its free cash flow yield is 5.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.11 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 5/9Financial Health
PACCAR Inc's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 3.68 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project PACCAR Inc revenue of about $28.85B for fiscal 2026, with EPS near $5.67. The estimate reflects 9 contributing analysts.
PCAR Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- PACCAR's reputation for quality and durability in its trucks resonates strongly with fleet operators, suggesting continued demand even if the economy softens.
- Recent insider buying activity, if any, could signal management's confidence in the company's future prospects, influencing overall market perception.
- Positive community sentiment indicates strong brand loyalty and belief in PACCAR's long-term strategy, which could drive sustained investor interest.
- PACCAR's focus on innovation, particularly in electric and autonomous vehicles, positions them well to capitalize on future industry trends, potentially attracting forward-thinking investors.
Bear Case
- Concerns about a potential economic slowdown could dampen demand for new trucks, impacting PACCAR's sales and profitability.
- Negative community sentiment, if present, might reflect worries about supply chain disruptions or increased competition in the trucking industry.
- Increased scrutiny on emissions regulations could raise production costs and potentially limit PACCAR's market reach in certain regions.
- Any significant insider selling activity could raise questions about management's outlook on the company's near-term performance, potentially triggering a sell-off.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · February 2026
From the Earnings Call
“This year, we are planning capital investments in the range of $725 million to $775 million and R&D expenses in the range of $450 million to $500 million as we continue to invest in key technology and innovation projects.”
— Kevin D. Baney, President
“We estimate parts sales to grow by about 3% in the second quarter and be in the range of 3% to 6% for the full year.”
— Kevin D. Baney, President
PCAR Q1 FY2026 earnings call transcript · 2026-04-28
PCAR Latest News
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Paccar (PCAR) Stock Moves -1.44%: What You Should Know
Zacks · Jul 2, 2026
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Paccar (PCAR) Stock After Recent Pullback Are Future Returns Already Priced In?
Simply Wall St. · Jun 24, 2026
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Paccar (PCAR) Dips More Than Broader Market: What You Should Know
Zacks · Jun 23, 2026
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PACCAR Recognizes 10 PPM Quality Award Winners
Business Wire · Jun 16, 2026
PCAR Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PCAR.
Price Targets
Wall Street price target analysis for PCAR.
PCAR MoonshotScore
What does this score mean?
The MoonshotScore rates PCAR's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Paccar (PCAR) Stock Moves -1.44%: What You Should Know
Paccar (PCAR) Stock After Recent Pullback Are Future Returns Already Priced In?
Paccar (PCAR) Dips More Than Broader Market: What You Should Know
PACCAR Recognizes 10 PPM Quality Award Winners
Leadership: R. Preston Feight
Chief Executive Officer
R. Preston Feight serves as the Chief Executive Officer of PACCAR Inc. He has extensive experience in the commercial vehicle industry, having held various leadership positions within PACCAR. His career includes roles in engineering, product development, and operations. He brings a deep understanding of the company's products, markets, and customers. Feight is known for his strategic vision and focus on innovation.
Track Record: Under R. Preston Feight's leadership, PACCAR has continued to strengthen its market position, expand its product portfolio, and enhance its operational efficiency. He has overseen the company's investments in electric and autonomous truck technologies, as well as its expansion into emerging markets. Feight's leadership has contributed to PACCAR's strong financial performance and shareholder value.
PCAR Industrials Stock FAQ
What does PACCAR Inc do?
PACCAR Inc. designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks globally under the Kenworth, Peterbilt, and DAF brands. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment focuses on manufacturing and distributing trucks, while the Parts segment distributes aftermarket parts. The Financial Services segment provides leasing and financing solutions. PACCAR also manufactures and markets industrial winches. The company's products and services cater to a diverse range of customers, including commercial trucking companies, independent owner/operators, and dealers.
What do analysts say about PCAR stock?
Analyst consensus on PCAR stock is generally positive, reflecting the company's strong market position, diversified revenue streams, and efficient operations. Key valuation metrics, such as the P/E ratio and dividend yield, are closely monitored. Growth considerations include the increasing demand for commercial vehicles, the expansion of aftermarket parts and service business, and the development of electric and autonomous truck technologies. Analysts also consider potential risks, such as economic downturns and increasing competition.
What are the main risks for PCAR?
The main risks for PACCAR include economic downturns that could reduce demand for commercial trucks, increasing competition in the commercial vehicle market, and regulatory changes related to emissions and safety. Fluctuations in raw material prices and disruptive technologies also pose potential risks. These factors could impact PACCAR's revenue, profitability, and market share. Investors should carefully monitor these risks to assess the long-term sustainability of PACCAR's performance.
What are the key factors to evaluate for PCAR?
PACCAR Inc (PCAR) holds an AI score of 60/100 (moderate). Not financial advice.
How frequently does PCAR data refresh on this page?
PCAR prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PCAR's recent stock price performance?
PACCAR Inc (PCAR) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong brand recognition (Kenworth, Peterbilt, DAF). See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PCAR overvalued or undervalued right now?
Valuing PACCAR Inc (PCAR) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying PCAR?
Before investing in PACCAR Inc (PCAR), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.