PACCAR INC

PCARdata completeness 75%19 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

PACCAR INC earns about 21% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $59.24 and $278.83 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$23.5B1$28.8B2$35.1B3$33.7B3$28.4B3
Net income$1.87B4$3.01B5$4.6B6$4.16B6$2.38B6
Operating cash flow$2.19B7$3.03B8$4.19B9$4.64B9$4.42B9
Capital expenditure$559.1M10$525M11$695M12$838.7M12$743M12
Free cash flow (derived)$1.63B7$2.5B8$3.5B9$3.8B9$3.67B9
Total debt
Cash & equivalents
Diluted shares522.7M523.4M525.0M526.6M526.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$365.68
your share of equity
Profit it earned you last year
$45.1
Free cash flow it threw off
$69.72
Debt you’d be carrying

10 shares is a claim on $365.68 of net worth that earned you $45.1 and generated $69.72 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
21% avg · 5y
FY21 16%FY22 23%FY23 29%FY24 24%FY25 12%

It earned about 21% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $59.24 and $278.83 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$278.83
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth14.7%
  • fcfBase$3.67B
DCF · Growth Exit 5Y
$184.3
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth14.7%
  • fcfBase$3.67B
Earnings Power Value
$59.24
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$3.01B
  • growthAssumed0.0%
Graham Number
$60.92
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years14.7%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $184.3
The three cases
Bear0.0%$99.61
Base14.7%$184.3
Bull19.7%$224.3

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 14.7%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0000950170-24-017900 (Revenues)
  2. 10-K · period ending 2022-12-31 · accession 0000950170-25-023145 (Revenues)
  3. 10-K · period ending 2023-12-31 · accession 0001193125-26-057025 (Revenues)
  4. 10-K · period ending 2021-12-31 · accession 0000950170-24-017900 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0000950170-25-023145 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001193125-26-057025 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0000950170-24-017900 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0000950170-25-023145 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001193125-26-057025 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0000950170-24-017900 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0000950170-25-023145 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001193125-26-057025 (PaymentsToAcquirePropertyPlantAndEquipment)