Paccar is incredibly well-managed, with margins and returns superior to its peers. This owes to its premium product offering and strong number-two position in North America. Paccar justifies its pricing power by offering higher-quality and more fuel-efficient products that reduce total cost of ownership. Management maintains a fortress balance sheet with a huge net cash hoard, no debt, and a conservatively capitalized finance subsidiary. While some could call the balance sheet somewhat “lazy,” this approach has clearly contributed to the company’s strong performance through the ups and downs of the truck cycle.