PACCAR Inc (PCAR) presents a balanced outlook with a market capitalization of $63.5 billion and a trailing P/E ratio of 25.73, supported by a trailing EPS of $4.69. Despite a quarterly revenue decline of 8.9% year-over-year to $27.8 billion TTM, the forward P/E of 20.83 suggests potential undervaluation relative to earnings momentum, positioning the stock as moderately bullish for value-oriented investors focused on industrial recovery.
Key catalysts include PACCAR's strong position in medium- and heavy-duty trucks via brands like Kenworth, Peterbilt, and DAF, alongside financial services and parts distribution that drive recurring revenue. Recent analyst ratings show 1 strong buy and 5 buys against 13 holds, with a target price of $126.37, while the upcoming dividend date of June 3, 2026, at a 1.08% yield provides income support amid earnings stabilization post the March 2026 quarter.
Risks stem from macroeconomic headwinds in construction and trucking demand, evidenced by the negative revenue growth, plus competitive pressures in the global truck market and potential regulatory shifts on emissions. Mitigations include PACCAR's diversified operations, low beta of 0.99 indicating market resilience, and focus on powertrain innovation to navigate cycles, with institutional ownership at 76% providing stability.
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PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.
Fundamental Snapshot
Revenue
27.7796B
EBITDA
3.2166B
Gross Profit
3.7733B
Operating Margin
10.4%
Profit Margin
8.9%
ROE
13.1%
Book Value
$37.54
Beta
0.992
52-Wk High
$131.13
52-Wk Low
$90.19
Avg Volume
4.4261M
PEG Ratio
1.244
Trading Data
Open
$121
Previous Close
$121.68
Day Range
$119.54 – $121.83
Volume
4.4666M
Shares Outstanding
526.286M
Analyst Target
$126.37
Frequently Asked Questions
What is PACCAR's business model?
PACCAR designs, manufactures, and supports light-, medium-, and heavy-duty trucks under brands like Kenworth, Peterbilt, Leyland, and DAF, while also providing financial services, IT solutions, and truck parts distribution. This integrated model generates revenue from vehicle sales, aftermarket parts, and financing, with TTM revenue of $27.8 billion.
What are PACCAR's main revenue sources?
Primary revenue comes from truck manufacturing and sales, supplemented by parts distribution, financial services, and powertrain components. TTM revenue stands at $27.8 billion, with gross profit of $3.77 billion, though quarterly revenue growth was -8.9% YoY as of the latest quarter ending March 2026.
What competitive advantages does PACCAR have?
PACCAR benefits from a global brand portfolio, vertical integration in powertrains, and a robust dealer network for customer support. Its low beta of 0.99 and 76% institutional ownership underscore stability, with a book value per share of $37.54 supporting a price-to-book ratio of 3.24.
What are the key risks for PCAR stock?
Key risks include cyclical demand in trucking and construction, regulatory changes on emissions, and competition from other heavy machinery makers. The stock's 52-week range of $90.19 to $131.13 reflects volatility, with a trailing P/E of 25.73 and forward P/E of 20.83 indicating sensitivity to earnings surprises.
What is the growth outlook for PACCAR?
Growth is supported by analyst target of $126.37 and 6 buy ratings, with EPS of $4.69 and a 1.08% dividend yield payable June 3, 2026. Despite recent revenue contraction, forward P/E compression and parts/services recurring revenue suggest recovery potential into 2026.
