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Park Electrochemical Corp (PKE)
NYSE:PKE
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Park Electrochemical
(NYSE:PKE)
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Rating:61Neutral
Price Target:
$27.00
▲(37.76% Upside)
The score is held back primarily by weak recent fundamentals (sharp TTM revenue decline and deteriorating cash generation) and a high P/E valuation, partially offset by a strong low-debt balance sheet and a generally positive earnings-call outlook tied to GE/missile demand and planned capacity expansion. Technicals are supportive but look overextended, adding near-term risk.
Positive Factors
Low Leverage and Strong Liquidity
A very low leverage profile and substantial cash balance give durable financial flexibility to fund the planned plant, support dividends and buybacks, and absorb program timing noise. This reduces refinancing risk and preserves strategic optionality during multi‑year ramps.
Secular OEM & Defense Demand
Established exposure to GE/CFM LEAP engine programs and urgent missile replenishment creates multi-year, high-volume demand for Park's specialty materials. These program-driven tailwinds can sustainably underpin revenue growth as OEM delivery rates and DoD procurement persist through the decade.
Planned Capacity Expansion & Partnerships
A targeted ~120k sq ft plant and joint European C2B efforts position Park to roughly double capacity and pursue ~$200M sales by FY31. If executed, the investment supports sustainable scale, qualification throughput for OEMs, and better capture of long-term aerospace and defense contracts.
Negative Factors
Sharp Historical Revenue Decline
A >50% TTM sales drop is a structural red flag: it erodes operating leverage, weakens fixed‑cost absorption, and makes margin recovery dependent on sustained program ramps and new qualification wins. Recovery timelines could stretch multiple quarters and pressure returns.
Weak Cash Generation
Material free cash flow deterioration and cash conversion well below parity with net income limit internal funding for the large plant capex, dividends, and buybacks. Persistent weak cash conversion raises refinancing or dilution risk if capex and working capital needs accelerate.
Customer and Program Concentration Risk
Heavy dependence on a few OEM and defense programs concentrates revenue and links growth to others' schedules and qualification cycles. Delivery delays, certification slippages or lost sole‑source positions could materially shift multi‑year revenue and strain scale-up plans.
Park Electrochemical (PKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$499.94M
Dividend Yield2.53%
Average Volume (3M)86.94K
Price to Earnings (P/E)57.9
Beta (1Y)0.80
Revenue Growth7.63%
EPS Growth7.09%
CountryUS
Employees123
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.15
Shares Outstanding19,925,798
10 Day Avg. Volume115,303
30 Day Avg. Volume86,940
Financial Highlights & Ratios
PEG Ratio-2.15
Price to Book (P/B)2.56
Price to Sales (P/S)4.42
P/FCF Ratio71.56
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue4.93
Enterprise Value/Gross Profit15.73
Enterprise Value/Ebitda23.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Park Electrochemical Business Overview & Revenue Model
Company DescriptionPark Electrochemical Corp. (PKE) is a leading provider of advanced materials and technologies, primarily focusing on the aerospace, defense, telecommunications, and automotive sectors. The company specializes in the manufacture of high-performance composite materials, including prepregs and laminates, which are used in a variety of applications, from aircraft components to circuit boards. With a strong commitment to innovation and sustainability, Park Electrochemical is dedicated to delivering cutting-edge solutions that meet the evolving needs of its customers.
How the Company Makes MoneyPark Electrochemical generates revenue through the sale of its advanced composite materials, primarily targeting sectors that require high-performance and lightweight solutions. Key revenue streams include the production and distribution of prepregs, which are essential in the aerospace and defense industries, and specialized laminates used in telecommunications and automotive applications. The company also benefits from long-term contracts and relationships with major manufacturers in these industries, ensuring a steady stream of income. Additionally, Park Electrochemical's commitment to research and development allows it to introduce new products, enhancing its market position and driving further revenue growth. Strategic partnerships with key players in the aerospace and defense sectors also contribute significantly to its earnings, providing access to larger projects and expanding its customer base.
Park Electrochemical Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyPark Electrochemical Earnings Call Summary
Earnings Call Date:Jan 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive strategic and financial picture: solid Q3 profitability and margins, a strong cash position with no long-term debt, and multiple large secular demand drivers (GE/CFM engine programs and urgent missile replenishment). Management is proactively investing in capacity (new plant, joint funding with Arian) and filed an S‑3 to preserve optionality for a $50M offering. The main near-term negatives are timing and margin effects related to elevated low‑margin C2B fabric sales in Q4, re‑emerging supply‑chain and misshipment issues (~$740k), and execution/timing risks tied to the $50M plant build and program qualification. Overall, the highlights (growth opportunities, strong margins, cash/debt profile, sole-source positions and strategic expansion plans) outweigh the operational timing and execution lowlights.Q3-2026 Updates
Positive Updates
Q3 Financial Results — Revenue and Profitability
Q3 sales of $17,333,000; gross profit $5,003,000 and gross margin 34.1%; adjusted EBITDA $4,228,000 with an adjusted EBITDA margin of 24.4%. Company came in within its Q3 sales estimate ($16.5M–$17.5M) and slightly above its adjusted EBITDA estimate ($3.7M–$4.1M).
Strong Balance Sheet and Capital Returns
Cash of $63,600,000 at end of Q3, zero long-term debt, 41 consecutive years of quarterly cash dividends and ~ $608.6M paid in cash dividends since 2005.
Buyback Activity
Board authorized repurchase of 1,500,000 shares; Park repurchased 718,000 shares at an average price of $12.94.
GE Aerospace / A320neo Opportunity (Juggernaut)
Park highlights significant long-term upside from GE/CFM LEAP programs: Q3 GE-related sales $7.5M; FY backlog-related estimate ~$29.0M–$29.5M; Airbus targeting A320neo family delivery rate of 75/month by 2027 (a ~50% increase) and LEAP 1A market share ~64.5%, supporting multi-year demand for Park nacelle and engine-related materials.
Missile/Military Demand Upside (Patriot and Others)
Urgent, multi-year replenishment demand for Patriot and other missile systems driven by recent conflicts and DoD actions (e.g., Lockheed $9.8B Patriot-related award). Park is sole-source qualified for specialty ablative materials on PAC-3 and has been asked to increase expected output materially.
Strategic Partnerships and Near-Term Orders
Partnership with Arian Group (Safran/Airbus JV) for proprietary C2B fabric: Park advanced €4,587,000 to Arian to expand European C2B capacity; joint €50,000 study on potential U.S. C2B manufacturing capacity (expense expected in Q4).
Committed Capacity Expansion — New Plant
Announced plan for a new ~120,000 sq ft integrated composite materials plant with estimated capital budget of ~$50,000,000 designed to roughly double current composite materials capacity; target completion H2 calendar 2027 and initial operational production H2 calendar 2028.
Long-Term Materials Outlook
Park's conservative 'known-items' outlook targets approximately $200,000,000 in composite materials sales by the target year (discussed as fiscal '31), with preliminary company estimates of park manufacturing capacity in normal/expanded states ranging from ~$220M to ~$260M sales (max ~ $315–320M).
Liquidity and Financing Optionality
Filed S-3 registration and announced a potential at-the-market $50,000,000 public offering to replenish a portion of the plant capex and preserve the ability to exploit rapid opportunities; management says the new plant is not dependent on the offering and will be funded with cash/cash flow as needed.
Tariffs and Pricing Pass-Through
Minimal near-term tariff impact in Q3; management states Park prices short-term and can largely pass tariffs through to customers, reducing near-term margin risk from tariff volatility.
Negative Updates
C2B Fabric Sales Timing and Margin Impact
Zero sales of raw C2B fabric in Q3, while >$1M of sales were materials manufactured with C2B. Management forecasts approximately $7.2M of C2B fabric sales in Q4 (and ~$9.8M for fiscal '26), which are low-margin, tariff-pass-through sales that are expected to compress margins in the quarter and distort period-to-period comparisons.
Supply Chain / Misshipments Increase
Total miss shipments in Q3 approximately $740,000 (materially higher than prior), driven principally by international freight/supply chain issues and customer spec/engineering problems — indicating re-emerging supply-chain friction as programs accelerate.
Industry Delivery Delays and Program Risk
Airbus A320neo experienced delivery reductions in 2025 due to fuselage panel/software issues; Boeing 777X certification/delivery now expected in 2027. Comac (C919/919 family) may fall short of 2025 delivery targets. These program-level delays create timing uncertainty for ramp-related revenue.
Q4 Margin Pressure Despite Higher Sales Forecast
Q4 sales are forecast materially higher ($23.5M–$24.5M) but management expects only modest EBITDA uplift ($4.75M–$5.25M) because a substantial portion (~$7.2M) is expected to be low-margin fabric sales, reducing the operating leverage benefit.
Capital Investment and Execution Risk
Planned ~$50M plant expansion carries execution, timing and cost escalation risk (estimated 60% spend FY27, 30% FY28, 10% FY29). While management says project will proceed without relying on the offering, the scale and multi-year timeline introduce execution and ramp risk.
Potential Dilution from Equity Offering
Filed S-3 and proposed up to $50M at-the-market offering to replenish part of plant capex; while optional, the offering could result in dilution if utilized.
Dependence on Large OEM and Program Timing
Significant revenue sensitivity to a handful of large customers/programs (GE/CFM engine programs, PAC-3/Lockheed) and timing of OEM deliveries — known opportunities drive the outlook but remain exposed to customer program schedules and qualification timelines.
Increased Missiles Demand Poses Capacity & Supply Risks
Rapid DoD-driven ramp (e.g., Lockheed scale-up to 2,000 PAC-3 interceptors, L3 $1B DoD investment) creates urgent capacity need; Park must scale quickly (new plant and US C2B capacity discussions) which could strain supply chains, lead times, and working capital during ramp.
Company Guidance
Management framed the call as estimates (not formal guidance) and gave concrete metrics: Q3 sales $17.333M, gross profit $5.003M (34.1% gross margin), adjusted EBITDA $4.228M (24.4% adj. EBITDA margin), coming in versus prior internal ranges of $16.5–17.5M sales and $3.7–4.1M adj. EBITDA; Q4 is estimated at $23.5–24.5M sales and $4.75–5.25M adjusted EBITDA (with ≈$7.2M of C2B fabric sales assumed in Q4), and FY‑26 sales are targeted around $72.5M (including ≈$9.8M of C2B fabric sales); GE engine programs contributed $7.5M in Q3 and are forecasted at roughly $29.0–29.5M for the year. Key balance‑sheet and strategic metrics cited: cash $63.6M, zero long‑term debt, share buyback activity of 718k shares at an average $12.94 under a 1.5M‑share authorization, $608.6M of dividends paid since 2005, a proposed up‑to $50M at‑the‑market offering, and a planned ~$50M capital investment for a ~120,000 sq ft composite plant (targeted completion H2 CY2027, operational ramp H2 CY2028) intended to roughly double current capacity with long‑term sales outlooks around $200M by FY31 (capacity scenarios cited ≈$220M–$260M run‑rate, up to ~$315M max).Park Electrochemical Financial Statement Overview
Summary
Overall financials are mixed: a strong balance sheet with minimal leverage (balance sheet score 75) is offset by a steep TTM revenue decline (-51.7%) and weakening net margin (income statement score 65) plus pressured cash generation (free cash flow growth -66.12%, cash flow score 55).Income Statement
Park Electrochemical's income statement shows a mixed performance. The gross profit margin for TTM is 29.50%, indicating a moderate level of profitability. However, the net profit margin has decreased to 11.57% from previous periods, reflecting a decline in net income efficiency. The revenue growth rate is negative at -51.7% TTM, which is concerning and suggests a significant drop in sales. EBIT and EBITDA margins are stable at 16.57% and 19.48% respectively, indicating operational efficiency, but the overall revenue decline is a major weakness.65
Positive
Balance Sheet
The balance sheet of Park Electrochemical is strong with a very low debt-to-equity ratio of 0.32% TTM, indicating minimal leverage and financial risk. The return on equity is 6.87% TTM, which is moderate but shows room for improvement. The equity ratio is healthy, suggesting a solid capital structure. Overall, the company maintains a stable financial position with low debt levels, which is a significant strength.75
Positive
Cash Flow
The cash flow statement reveals challenges, with a significant decline in free cash flow growth rate at -66.12% TTM, indicating cash generation issues. The operating cash flow to net income ratio is 0.67, suggesting that cash flows are not fully covering net income. The free cash flow to net income ratio is 0.57, which is below optimal levels. These metrics highlight potential liquidity concerns and the need for improved cash management.55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 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 | 10.84M | 11.09M | 12.80M | 8.23M |
| 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
19.60
Price Trends
20.62
Positive
19.99
Positive
17.41
Positive
Market Momentum
1.24
Negative
72.05
Negative
84.80
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 19.6 is below the 20-day moving average (MA) of 22.46, below the 50-day MA of 20.62, and above the 200-day MA of 17.41, indicating a bullish trend. The MACD of 1.24 indicates Negative momentum. The RSI at 72.05 is Negative, neither overbought nor oversold. The STOCH value of 84.80 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $1.77B | 39.37 | 14.17% | 0.90% | 19.94% | 33.38% | |
70 Outperform | $855.52M | 21.95 | 10.69% | 0.92% | 34.75% | 14.31% | |
65 Neutral | $2.65B | -550.55 | -1.72% | ― | 6.19% | 52.10% | |
65 Neutral | $1.71B | -48.89 | -5.27% | ― | 3.16% | -213.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $499.94M | 57.88 | 6.76% | 2.53% | 7.63% | 7.09% | |
45 Neutral | $596.09M | -0.66 | ― | ― | ― | ― |
* Industrials Sector Average
PKE
Park Electrochemical
25.09
10.85
76.22%
ATRO
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74.71
57.36
330.61%
DCO
Ducommun
114.24
44.34
63.43%
NPK
National Presto
119.62
21.41
21.80%
EVTL
Vertical Aerospace
6.05
-3.41
-36.05%
CDRE
Cadre Holdings
43.61
5.10
13.24%
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.