Paccar Valuation

Paccar, the American large commercial trucks manufacturer is undervalued, according to Wolfteam Ltd.

With 28.82 billion USD revenue, growing at 22.52 % and net profit margin of 10.45 % for the calendar 2022, Paccar's intrinsic worth is 63 billion USD, according to Wolfteam Ltd.'s projections and estimates.

An excerpt from Paccar's third quarter 2023 report:

PACCAR achieved net income of $1.23 billion ($2.34 per diluted share) in the third quarter of this year, 60% higher than the $769 million ($1.47 per diluted share) earned in the same period last year. Third quarter revenues were $8.70 billion, 23% higher than the $7.06 billion reported in the third quarter of 2022.

PACCAR reported net income of $3.18 billion ($6.07 per diluted share) for the first nine months of 2023, including a $446.4 million after-tax, non-recurring charge related to civil litigation in Europe, compared to $2.09 billion ($3.99 per diluted share) earned in same period last year. Excluding the non-recurring charge, the company earned adjusted net income (non-GAAP)¹ of $3.63 billion ($6.92 per diluted share) in the first nine months of 2023. Net sales and financial services revenues for the first nine months of 2023 were $26.05 billion, compared to $20.69 billion achieved last year.

Quarterly Dividend

PACCAR’s Board of Directors declared a regular quarterly cash dividend of twenty-seven cents ($.27) per share, payable on December 6, 2023, to stockholders of record at the close of business on November 15, 2023. PACCAR has delivered annual dividends, including regular quarterly and extra cash dividends, totaling approximately 50% of net income for many years.

Financial Highlights – Third Quarter 2023

Highlights of PACCAR’s financial results for the third quarter of 2023 include:

• Net sales and revenues of $8.70 billion.
• Record net income of $1.23 billion.
• Truck, Parts and Other gross margins of 19.5%.
• Global truck deliveries of 50,100 units.
• PACCAR Parts revenues of $1.58 billion.
• PACCAR Parts pretax income of $412.3 million.
• PACCAR Financial Services pretax income of $133.8 million.
• Cash generated from operations of $1.34 billion.
• Stockholders’ equity of $16.0 billion.

All in all, Paccar is undervalued, according to Wolfteam Ltd.'s corporate view.