PCAR (PCAR) Stock Analysis

Verdict: HOLD

Cyclical revenue contraction (-10.6%) and weak operating margin (9.8%) cap valuation upside despite solid $3.03B free cash flow.

Investment score: 47/100

PACCAR faces cyclical freight headwinds that drove 2025 revenue down 10.56% and TTM operating margins to 9.8%. While FCF generation remains robust at $3.03B and balance sheet cash sits at $6.31B, execution miss history (3 of last 4 quarters) and insider selling favor waiting for clearer freight recovery.

Peers

PeerP/EP/BP/SEV/EBITDAROIC %Net margin %
CAT34.2318.974.9223.360.14
CMI26.735.652.0915.620.08
WAB37.564.223.9421.870.11
ALSN18.835.012.6812.450.14
OSK16.542.010.859.190.05

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