PACCAR Inc.

Valuation Analysis

About the Company

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Australia, Mexico, Europe, Central and South America, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods; and diesel engine products. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing prod

PACCAR Inc. Stock at a Glance

PACCAR Inc. (PCAR) is currently trading at $118.52 with a market capitalization of $62.4B. The trailing P/E ratio stands at 25.16x, with a forward P/E of 17.5x. The 52-week range spans from $90.05 to $131.88; the current price is 10.1% below the yearly high. Year-over-year revenue growth stands at -8.9%. The net profit margin stands at 8.91%.

💰 Dividend

PACCAR Inc. pays an annual dividend of $1.40 per share, representing a yield of 1.18%. The payout ratio stands at 28.09%.

📊 Analyst Rating

16 analysts rate PACCAR Inc. (PCAR) on consensus: Buy. The average price target is $126.12, implying +6.42% from the current price. Analyst price targets range from $109.00 to $140.00.

PACCAR Inc.: The Investment Case in Detail

PACCAR Inc. (PCAR) operates in the Industrials — specifically Farm & Heavy Construction Machinery — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bear Case

Revenue is contracting at -8.9% year-over-year — until that trend reverses, valuation is exposed to further downgrades.

Valuation in Context

The PEG ratio at 1.21 sits in the reasonable zone — the price tag is roughly aligned with the company's growth profile, neither punishing nor euphoric.

What to Watch Next

• The forward P/E of 17.5x is meaningfully below the trailing 25.16x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior.

Trading Data

💵 Dividend Info

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