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Park Electrochemical Corp. (PKE)
NYSE:PKE
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Park Electrochemical
(NYSE:PKE)
Rating:71Outperform
Price Target:
$17.00
▲(11.18%Upside)
Park Electrochemical (PKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$304.31M
Dividend Yield3.26%
Average Volume (3M)56.03K
Price to Earnings (P/E)52.6
Beta (1Y)0.84
Revenue Growth10.75%
EPS Growth-20.49%
CountryUS
Employees123
SectorIndustrials
Sector Strength92
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.06
Shares Outstanding19,850,714
10 Day Avg. Volume77,968
30 Day Avg. Volume56,031
Financial Highlights & Ratios
PEG Ratio1.16
Price to Book (P/B)2.87
Price to Sales (P/S)0.00
P/FCF Ratio61.09
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue0.96
Enterprise Value/Gross Profit12.88
Enterprise Value/Ebitda5.36
Forecast
1Y Price Target
$15.00Price Target Upside-1.90% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Park Electrochemical Business Overview & Revenue Model
Company DescriptionPark Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.
How the Company Makes MoneyPark Electrochemical makes money primarily through the sale of its advanced composite materials and electronic materials. The company's revenue streams are heavily dependent on its ability to supply high-quality materials to key industries such as aerospace, where their products are used in the production of aircraft components. Additionally, the company generates income from the electronics sector by providing materials used in the fabrication of printed circuit boards (PCBs). Significant partnerships with manufacturers and suppliers in these industries also bolster its earnings, along with a focus on innovation and maintaining high standards for material performance, which allows Park Electrochemical to command premium pricing for its specialized products.
Park Electrochemical Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2025)
| % Change Since: 11.44%|
Next Earnings Date:Jul 15, 2025
Earnings Call Sentiment Neutral
The call highlighted strong sales performance and strategic expansions, particularly in defense and missile programs, but also noted challenges with factory utilization and supply chain issues.Q4-2025 Updates
Positive Updates
Sales and Gross Margin Performance
Park Aerospace's Q4 sales were $16.939 million, exceeding their forecast range of $15.5 million to $16.3 million. The gross margin was 29.3%, which was higher than expected due to strong production.
C2B Fabric Sales
Park sold $4.4 million of C2B fabric in Q4, $500,000 more than predicted, contributing to a total of $7.5 million in fiscal '25, significantly impacting the P&L.
Ablative Material Sales
The company sold $420,000 of ablative materials manufactured with C2B fabric in Q4, contributing over $300,000 to the bottom line.
New Manufacturing Expansion
Park is planning a major new expansion of its manufacturing facilities with an estimated capital budget of $35 million, aiming to support significant new business opportunities in defense and missile programs.
Hypersonic Missile Programs
Park entered into an agreement with a major OEM to license technologies for hypersonic missile programs, making progress with manufacturing trials and testing.
Negative Updates
Underutilization of New Factory
The new factory is being ramped up for future demand but currently contributes to higher costs without capacity needs, affecting the P&L.
International Shipment Issues
Missed shipments during the quarter amounted to $175,000, primarily due to ongoing international shipment issues.
Supply Chain and Tariff Concerns
Ongoing supply chain issues are causing delays in engine deliveries for Airbus, and the impact of tariffs remains uncertain.
Company Guidance
During the Park Aerospace Corp. fourth quarter FY '25 earnings call, the company reported sales of $16.939 million, exceeding their previous estimate range of $15.5 million to $16.3 million. The quarter's gross margin was 29.3%, slightly below their preference for margins above 30%, but considered satisfactory given the sales composition, which included $4.4 million of C2B fabric sold at a small markup. The EBITDA for the quarter fell within the estimated range of $3.3 million to $3.9 million. Production surpassed sales by $1.4 million, contributing approximately $350,000 to the bottom line, and the company successfully rebuilt its inventory levels by about $1 million. The call also highlighted the company's commitment to integrity by avoiding padding their forecasts, and they emphasized ongoing efforts to manage tariff impacts and supply chain challenges, with a focus on future expansion and new business opportunities, particularly in defense and missile programs.Park Electrochemical Financial Statement Overview
Summary
Park Electrochemical demonstrates a strong financial position overall, with a consistent revenue growth trajectory and efficient cost management reflected in healthy profit margins. The balance sheet is notably resilient, characterized by low leverage and a substantial equity base. Cash flow metrics indicate solid operating performance, though there is room for improvement in free cash flow conversion.Income Statement
Park Electrochemical showcases solid performance with a rising trend in revenue, achieving a revenue growth rate of 10.74% from 2024 to 2025. The gross profit margin stands at 28.44%, indicating efficient cost management, while the net profit margin is 9.48%, reflecting a healthy bottom line despite a decline from the previous year. The EBIT and EBITDA margins are strong at 15.14% and 18.31% respectively, underlining operational efficiency.75
Positive
Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio of 0.003, indicating minimal leverage and low financial risk. The equity ratio is high at 87.78%, reflecting a strong equity base. However, the return on equity is moderate at 5.49%, suggesting room for improvement in utilizing shareholder funds to generate profit.80
Positive
Cash Flow
The cash flow position is stable with a slight improvement in free cash flow, growing to 3828000 from 3763000. The operating cash flow to net income ratio is 0.80, indicating effective cash generation from operations. However, the free cash flow to net income ratio is 0.65, suggesting that while cash flow generation is adequate, there is potential for enhanced conversion of profits into free cash flow.70
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.03M | 56.00M | 54.05M | 53.58M | 46.28M |
| Gross Profit | 17.64M | 16.53M | 16.47M | 17.92M | 13.19M |
| EBITDA | 11.36M | 9.89M | 11.09M | 12.80M | 8.65M |
| Net Income | 5.88M | 7.47M | 10.73M | 8.46M | 4.86M |
Balance Sheet | |||||
| Total Assets | 122.11M | 132.31M | 159.33M | 160.89M | 163.51M |
| Cash, Cash Equivalents and Short-Term Investments | 68.83M | 77.21M | 105.44M | 110.36M | 116.54M |
| Total Debt | 358.00K | 135.00K | 182.00K | 227.00K | 119.00K |
| Total Liabilities | 14.95M | 19.39M | 43.40M | 25.25M | 27.57M |
| Stockholders Equity | 107.15M | 112.91M | 115.93M | 135.63M | 135.94M |
Cash Flow | |||||
| Free Cash Flow | 3.83M | 3.76M | 5.44M | 3.83M | 5.52M |
| Operating Cash Flow | 4.72M | 4.41M | 6.49M | 8.20M | 13.01M |
| Investing Cash Flow | 23.99M | 31.39M | -7.02M | -29.56M | 32.96M |
| Financing Cash Flow | -13.65M | -33.47M | -8.05M | -7.43M | -9.79M |
Park Electrochemical Technical Analysis
Positive
15.29
Price Trends
13.88
Positive
13.55
Positive
13.78
Positive
Market Momentum
0.45
Negative
67.30
Neutral
85.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKE, the sentiment is Positive. The current price of 15.29 is above the 20-day moving average (MA) of 14.38, above the 50-day MA of 13.88, and above the 200-day MA of 13.78, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 67.30 is Neutral, neither overbought nor oversold. The STOCH value of 85.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PKE.
Park Electrochemical Risk Analysis
Park Electrochemical disclosed 18 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.68B | 153.93 | 5.10% | ― | 14.50% | -29.76% | |
71 Outperform | $304.31M | 52.63 | 5.35% | 3.26% | 10.75% | -20.49% | |
68 Neutral | $1.25B | 36.75 | 5.25% | ― | 3.02% | 95.76% | |
67 Neutral | $1.10B | ― | -1.35% | ― | 13.73% | 86.81% | |
65 Neutral | €4.06B | 9.12 | 18.29% | 3.75% | 3.84% | -103.41% | |
58 Neutral | $3.02B | ― | -4.45% | ― | 5.66% | 52.71% | |
55 Neutral | $2.01B | 56.65 | 46.74% | ― | -4.74% | ― |
* Industrials Sector Average
Performance Comparison
PKE
Park Electrochemical
15.29
1.76
13.01%
AVAV
AeroVironment
263.80
89.63
51.46%
ATRO
Astronics
36.11
14.78
69.29%
DCO
Ducommun
85.71
25.40
42.12%
MRCY
Mercury Systems
50.96
18.55
57.24%
TGI
Triumph Group
25.90
9.26
55.65%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.