Paccar (PCAR, Financial) recently released its fourth-quarter and full-year 2024 financial results, resulting in a 2.42% decline in its stock price. This movement contrasts with a 0.9% gain in the S&P 500 index. The stock price is currently at $107.25.
In the fourth quarter, Paccar reported a total revenue of just over $7.9 billion, a decrease from nearly $9.1 billion during the same period in 2023. Net income also saw a drop, with figures at $872 million, or $1.66 per share, compared to $1.4 billion the previous year. While Paccar exceeded analyst revenue estimates of $7.6 billion, it fell short of the expected $1.70 earnings per share.
The decline in revenue was largely due to a 14% drop in key segments such as trucks, parts, and other operations, leading to a reduction in revenue to under $7.4 billion. Although the financial services segment experienced a 12% increase in revenue, reaching $544 million, it was insufficient to counterbalance the downturn in core business areas.
For the upcoming period, Paccar has not provided financial guidance for the current quarter or the full year 2025. However, the company has projected North American truck sales to range between 250,000 to 280,000 units in 2025, slightly up from 268,000 in 2024. European sales are expected between 270,000 and 300,000 units, down from 316,000 in 2024. South American truck sales are anticipated to be between 115,000 to 125,000 units, compared to 119,000 in 2024.
Currently, Paccar (PCAR, Financial) is categorized as modestly overvalued according to its GF Value, which stands at $86.20. The company's valuation metrics show a price-to-earnings (P/E) ratio of 11.98, price-to-book (P/B) ratio of 3.01, and a price-to-sales (P/S) ratio of 1.62. Its operating margin is reported to be expanding, a positive sign of profitability. The company also boasts a strong Altman Z-score of 3.88, indicating solid financial health.
Paccar has a robust market cap of $56.23 billion and has demonstrated revenue growth of 1.6% over the past year. Its financial strength is supported by an Altman Z-score, with the debt level being manageable despite the issuance of $5.8 billion in new debt over the past three years. Furthermore, its dividend growth metrics are favorable, with a one-year growth rate of 12.1% and a five-year rate of 6.1%.
