PCARNASDAQ— PACCAR Inc Price & Analysis

PACCAR Inc

INDUSTRIALS — FARM & HEAVY CONSTRUCTION MACHINERY

$124.70

+$0.19+0.15%

Market Cap: $65.54B; Large Cap
P/E Ratio: 25.73; Fwd: 16.69
EPS (TTM): $4.84
Div. Yield: 1.10%

Technical Summary

RSI (14)42.57Neutral

SMA (50)$127.59Bearish

SMA (200)$119.09Bullish

MACD-1.3598Bearish

Bollinger$121.87 – $134.14Mid

Stochastic23.11Neutral

Theo Outlook

PACCAR Inc presents a moderately bullish outlook with a trailing P/E of 26.25, market capitalization of $65.64 billion, TTM revenue of $27.82 billion (up 0.5% YoY), and EPS of $4.75. The forward P/E of 16.98 signals expected earnings expansion, supported by a 4.2% YoY quarterly earnings growth and a stable 1.08% dividend yield, positioning the stock as reasonably valued for a cyclical industrial leader amid recovering heavy-truck demand. Key catalysts include sustained momentum in North American Class 8 truck orders, geographic expansion through DAF and Leyland brands in Europe, and growth in PACCAR's financial services and aftermarket parts segments, which benefit from a large installed base. Recent quarterly results show operating margins at 12% and return on equity of 12.8%, with analyst consensus targeting $143.47, implying upside from current levels near the 52-week high of $138.87. Risks center on macroeconomic headwinds such as elevated interest rates pressuring fleet purchases, intensifying competition from electric vehicle entrants, and tightening emissions regulations that could raise compliance costs. These are mitigated by PACCAR's diversified product lineup, strong balance sheet with $3.27 billion EBITDA, low beta of 0.97, and proven ability to navigate cycles through cost discipline and aftermarket revenue stability. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 7, 2026.

Company Overview

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: $27.82B
EBITDA: $3.27B
Gross Profit: $3.81B
Operating Margin: 12.0%
Profit Margin: 9.0%
ROE: 12.8%
Book Value: $38.61
Beta: 0.99
52-Wk High: $138.87
52-Wk Low: $90.03
Avg Volume: 1.64M
PEG Ratio: 1

Frequently Asked Questions

What is PACCAR's business model?

PACCAR designs, manufactures, and supports medium- and heavy-duty trucks under brands like Kenworth, Peterbilt, DAF, and Leyland, while also providing financial services, powertrains, and aftermarket parts. This integrated model generates recurring revenue from a large installed base, with TTM revenue of $27.82 billion and a 9% profit margin.

Where does PACCAR generate most of its revenue?

The majority comes from truck manufacturing and sales in North America and Europe, supplemented by financial services and parts distribution. TTM revenue reached $27.82 billion, with gross profit of $3.81 billion and EPS of $4.75, reflecting a balanced mix across new vehicles and high-margin aftermarket.

What are PACCAR's key competitive advantages?

PACCAR benefits from premium brand recognition, a global dealer network, and vertical integration in powertrains and financing. Its 12.8% return on equity, 0.97 beta for stability, and 26.25 trailing P/E (16.98 forward) highlight efficient operations and resilience in the cyclical heavy-truck industry.

What are the main risks for PCAR investors?

Key risks include cyclical demand tied to economic conditions, regulatory changes on emissions, and competition in electrification. The 1.08% dividend yield and $65.64 billion market cap provide some buffer, but investors should monitor quarterly revenue growth (currently 0.5% YoY) and macro indicators.

What is the growth outlook for PACCAR?

Analysts see upside with a $143.47 target price, driven by truck fleet renewal and aftermarket expansion. With forward P/E at 16.98, 4.2% earnings growth, and next dividend date around September 2026, the outlook supports moderate expansion from current levels near the $138.87 52-week high.