# Paccar Inc (PCAR) — Stock CV

Paccar Inc is a $56.6B consumer company. Revenue shrank 10.6% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~1.7 years of free cash flow. It trades at 22.7× earnings — in the most expensive third of its own history.

> Paccar is a leading manufacturer of medium- and heavy-duty trucks under the premium nameplates Kenworth and Peterbilt, which are primarily sold in the Americas and Australia, and DAF, which primarily services Europe and South America.

## Identity

- **Ticker**: PCAR
- **Sector**: Consumer Cyclical
- **Industry**: Motor Vehicles & Passenger Car Bodies
- **Headquarters**: BELLEVUE, WA
- **Employees**: 25 900
- **Website**: https://www.paccar.com
- **Market cap**: $56.6B
- **Last price**: $107.48
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $27.8B
- **Net income**: $2.50B
- **Free cash flow**: $3.70B
- **Net debt**: $6.26B
- **P/E**: 22.7
- **Revenue growth (YoY)**: -10.6%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 52 |
| Growth | 49 |
| Profitability | 49 |
| Health | 73 |
| Quality | 65 |
| Moat | 69 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [ ] Revenue growing — -10.6% YoY
- [x] Profitable — $2.50B TTM
- [x] Profit growing — +5.5% YoY
- [x] Generates cash — $3.70B TTM
- [x] Debt under control — ~1.7y of cash flow to repay
- [x] Established company — $56.6B market cap
- [ ] Not printing shares — +51.6% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [x] Financially stable — Altman Z 3.3 — safe
- [x] Pays a dividend — yield 2.53%
- [x] Valuation not extreme — P/E 22.7

## Experience (career milestones)

- **FY2023** — Best year on record: $4.60B net income
- **FY2018** — Revenue crossed $10B: $23.5B for the year
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $3.01B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **1992** — Paccar Parts was created in 1992 in Renton, Washington
- **1986** — The Pacific Car and Foundry subsidiary in Renton was renamed to Paccar Defense Systems Division
- **1980** — Paccar Technical Center was established in 1980 in Mount Vernon, Washington
- **1970** — Pacific Car created an overseas manufacturing facility at Bayswater, Melbourne, Australia, producing…
- **1960** — Peterbilt became a division of the company
- **1956** — Kenworth lost independent status and became a division directly under Pacific Car and Foundry
- **1954** — Paccar acquired the Dart Truck Company and Peterbilt Motors Company
- **1945** — Paccar purchased the Kenworth Motor Truck Corporation
- **1944** — It was bought by Pacific Car and Foundry in 1944
- **1917** — It merged with a Portland firm, Twohy Brothers, which was its only competitor on the west coast at the time…

## Strengths

- Could repay net debt from ~1.7 years of free cash flow
- Interest covered 5.2× by operating earnings
- Altman Z-Score 3.28 — low bankruptcy-risk zone

## Watch-outs

- Revenue shrinking 10.6% year over year

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $23.5B | $1.85B | $1.63B |
| FY2022 | $28.8B | $3.01B | $2.50B |
| FY2023 | $35.1B | $4.60B | $2.93B |
| FY2024 | $33.7B | $4.16B | $3.80B |
| FY2025 | $28.4B | $2.38B | $3.67B |

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Source: https://stockcv.com/PCAR — derived from company filings; may be delayed or incomplete. Information, not investment advice.