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Park Electrochemical Corp. (PKE)
NYSE:PKE
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Park Electrochemical
(NYSE:PKE)
74Outperform
Park Electrochemical (PKE) vs. S&P 500 (SPY)
Market Cap
$253.85M
Dividend Yield3.92%
Average Volume (3M)50.95K
Price to Earnings (P/E)35.4
Beta (1Y)0.87
Revenue Growth15.45%
EPS Growth-22.33%
CountryUS
Employees123
SectorIndustrials
Sector Strength66
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.36
Shares Outstanding19,925,243
10 Day Avg. Volume55,705
30 Day Avg. Volume50,946
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.49
Price to Cash Flow (P/CF)25.30
P/FCF Ratio25.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Park Electrochemical Business Overview & Revenue Model
Company DescriptionPark Electrochemical Corp. operates in the advanced composite materials industry, serving sectors such as aerospace, defense, and industrial markets. The company specializes in designing, manufacturing, and distributing high-performance composite materials, which are used in a variety of applications including aircraft structures and components.
How the Company Makes MoneyPark Electrochemical generates revenue primarily through the sale of its advanced composite materials. These materials are sold to aerospace manufacturers, defense contractors, and industrial companies who use them in the production of various high-performance products. The company's revenue streams are largely driven by contracts and long-term supply agreements with key players in these sectors. Additionally, Park Electrochemical may benefit from strategic partnerships and collaborations that enhance its market reach and technological capabilities.
Park Electrochemical Financial Statement Overview
Summary
Park Electrochemical presents a robust financial profile with strong profitability and stability. The company demonstrates efficient operations with solid profit margins and low leverage, positioning it well within the Aerospace & Defense industry. Despite some fluctuations in net income and capital expenditures, the company maintains a healthy financial position, suggesting continued growth potential.Income Statement
Park Electrochemical shows a strong performance in its income statement with a gross profit margin of approximately 27.9% for TTM, and a net profit margin of 11.9%. The company has experienced revenue growth from the previous annual period, indicating a positive trajectory. EBIT and EBITDA margins are also robust, showcasing efficient operations and profitability. However, the slight decline in net income from the previous year suggests room for improvement in cost management.82
Very Positive
Balance Sheet
The balance sheet is solid with an impressive equity ratio of 86.4% for TTM, indicating a strong equity position relative to total assets. The debt-to-equity ratio is low at 0.003, reflecting minimal leverage and financial stability. Return on equity is slightly lower at 6.8%, suggesting room to enhance returns for shareholders. Overall, the company's balance sheet demonstrates financial strength and low risk.88
Very Positive
Cash Flow
The cash flow statement reveals positive free cash flow growth and a healthy operating cash flow to net income ratio of 1.24. The free cash flow to net income ratio is also strong at 1.18, indicating efficient cash generation relative to net income. However, the volatility in capital expenditures over the years poses a potential risk in maintaining consistent free cash flow.75
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 61.42M | 56.00M | 54.05M | 53.58M | 46.28M | 60.01M | Gross Profit |
| 17.14M | 16.53M | 16.47M | 17.92M | 13.19M | 18.67M | EBIT |
| 9.12M | 8.38M | 9.95M | 11.41M | 7.50M | 10.74M | EBITDA |
| 10.46M | 9.89M | 11.09M | 12.80M | 8.65M | 12.29M | Net Income Common Stockholders |
| 7.31M | 7.47M | 10.73M | 8.46M | 4.86M | 9.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 262.91M | 77.21M | 105.44M | 110.36M | 116.54M | 122.36M | Total Assets |
| 366.34M | 132.31M | 159.33M | 160.89M | 163.51M | 171.79M | Total Debt |
| 0.00 | 135.00K | 182.00K | 227.00K | 119.00K | 420.00K | Net Debt |
| -124.30M | -6.43M | -105.26M | -110.13M | -116.42M | -121.94M | Total Liabilities |
| 28.43M | 19.39M | 43.40M | 25.25M | 27.57M | 30.11M | Stockholders Equity |
| 337.91M | 112.91M | 115.93M | 135.63M | 135.94M | 141.68M |
| Cash Flow | Free Cash Flow | ||||
| 8.62M | 3.76M | 5.44M | 3.83M | 5.52M | -1.63M | Operating Cash Flow |
| 9.04M | 4.41M | 6.49M | 8.20M | 13.01M | 5.22M | Investing Cash Flow |
| 13.84M | 31.39M | -7.02M | -29.56M | 32.96M | -42.51M | Financing Cash Flow |
| -14.30M | -33.47M | -8.05M | -7.43M | -9.79M | -28.30M |
Park Electrochemical Technical Analysis
Negative
12.74
Price Trends
13.86
Negative
14.17
Negative
13.61
Negative
Market Momentum
-0.06
Negative
44.05
Neutral
15.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKE, the sentiment is Negative. The current price of 12.74 is below the 20-day moving average (MA) of 13.47, below the 50-day MA of 13.86, and below the 200-day MA of 13.61, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 44.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKE.
Park Electrochemical Risk Analysis
Park Electrochemical disclosed 16 risk factors in its most recent earnings report. Park Electrochemical reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Park Electrochemical Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $253.85M | 35.36 | 6.66% | 3.92% | 15.45% | -22.33% | |
73 Outperform | $10.47B | 46.24 | 8.35% | ― | 4.62% | 21.58% | |
68 Neutral | $3.83B | 12.56 | 6.45% | 2.93% | -12.21% | -51.31% | |
66 Neutral | $13.04B | 44.70 | 8.25% | 0.56% | -8.02% | 61.14% | |
63 Neutral | $1.99B | 12.05 | 9.83% | 0.67% | -2.37% | 100.91% | |
62 Neutral | $8.08B | 13.63 | 3.82% | 3.13% | 3.58% | -14.35% | |
50 Neutral | $6.22B | 6.84 | -24.69% | 4.51% | -6.03% | -177.29% |
* Industrials Sector Average
Performance Comparison
PKE
Park Electrochemical
12.74
-2.70
-17.49%
AVT
Avnet
44.31
-2.62
-5.58%
CE
Celanese
47.20
-113.56
-70.64%
ENTG
Entegris
71.94
-62.87
-46.64%
MTX
Minerals Technologies
58.56
-15.18
-20.59%
RBC
RBC Bearings
317.19
55.58
21.25%
Park Electrochemical Earnings Call Summary
Earnings Call Date: Jan 14, 2025 | % Change Since: -9.65% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While sales exceeded forecasts and strategic initiatives in the military and defense sectors offer future growth opportunities, the company faced significant challenges in the form of gross margin declines, EBITDA shortfalls, and production issues. The recall of ArianeGroup's fabric further impacted high-margin sales. Despite these challenges, the company remains optimistic about future growth, particularly in aerospace and defense markets.Highlights
Sales Exceeded Forecast
Fiscal '25 Q3 sales were $14.4 million, which exceeded the forecast range by about $150,000.
MRAS LTA Price Increase
MRAS LTA provided for a 6.5% weighted average price increase effective January 1.
Strong Airbus A320neo Backlog
Airbus has a backlog of 7,221 airplanes and plans to ramp up to 75 airplanes per month by 2027.
GE Aerospace Jet Engine Sales Forecast
Estimated fiscal '26 sales of $28 million to $32 million, based on customer input.
Strategic Military and Defense Market Focus
Engagement in several high-profile missile programs, with potential revenues of $10 million or more annually.
Lowlights
Gross Margin Decline
Gross margin was 26.6%, below the company target of above 30%.
Adjusted EBITDA Shortfall
Adjusted EBITDA was $2,414 million, significantly below the forecast of $3 million to $3.3 million.
Production Shortfalls and Learning Curves
Production shortfalls due to ramping up new manufacturing lines and training new employees impacted profitability.
ArianeGroup C2B Fabric Recall
Park could not produce high-margin ablative materials due to a recall of ArianeGroup's fabric, impacting Q3 sales by $400,000.
Forecasted Q4 Sales Decline
Projected sales for Q4 are $5 million to $5.5 million, a decrease from Q3's $6.9 million.
Company Guidance
During Park Aerospace Corp.'s Q3 2025 earnings call, CEO Brian Shore provided detailed guidance on the company's financial metrics and future outlook. The company reported sales of $14.408 million and a gross margin of 26.6%, highlighting a discrepancy from their preferred gross margin of over 30%. Despite exceeding sales estimates, adjusted EBITDA fell short, recording $2.414 million against an expected $3 million to $3.3 million. Shore attributed this to a production shortfall and challenges with new manufacturing lines, which are expected to eventually increase efficiency by 25% to 50%. The company faced an EBITDA impact of approximately $300,000 due to these issues. Park also navigated a complex situation involving ArianeGroup's RAYCARB C2B NG Fabric, impacting high-margin ablative material sales. Shore emphasized the importance of preparing for a significant ramp-up in production, termed the "Juggernaut," and forecasted Q4 sales of $15.5 million to $16.3 million with EBITDA of $3.3 million to $3.9 million. The call underscored the company's strategic focus on military and aerospace markets while addressing ongoing operational challenges.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.