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
| Peer | P/E | P/B | P/S | EV/EBITDA | ROIC % | Net margin % |
|---|---|---|---|---|---|---|
| CAT | 34.23 | 18.97 | 4.92 | 23.36 | — | 0.14 |
| CMI | 26.73 | 5.65 | 2.09 | 15.62 | — | 0.08 |
| WAB | 37.56 | 4.22 | 3.94 | 21.87 | — | 0.11 |
| ALSN | 18.83 | 5.01 | 2.68 | 12.45 | — | 0.14 |
| OSK | 16.54 | 2.01 | 0.85 | 9.19 | — | 0.05 |