Park Electrochemical (PKE) AI Stock Analysis

• Market Cap: $394.53M
• Dividend Yield: 2.53%
• Average Volume (3M): 84.93K
• Price to Earnings (P/E): 54.3
• Beta (1Y): 0.81
• Revenue Growth: 7.63%
• EPS Growth: 7.09%
• Country: US
• Employees: 123
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.12
• Shares Outstanding: 19,905,823
• 10 Day Avg. Volume: 68,732
• 30 Day Avg. Volume: 84,933
• PEG Ratio: -2.15
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 4.42
• P/FCF Ratio: 71.56
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 4.96
• Enterprise Value/Gross Profit: 16.83
• Enterprise Value/Ebitda: 25.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $21.50 ▲(9.69% Upside)

Park Electrochemical's overall stock score is driven by a mixed financial performance, with strong balance sheet metrics but concerning revenue and cash flow trends. The positive sentiment from the earnings call, including exceeded sales and EBITDA estimates, provides a boost. However, the high P/E ratio and valuation concerns weigh on the score. Technical indicators suggest stability but limited momentum.

Positive Factors

Strong Financial Health

Park Electrochemical's minimal leverage risk and high equity levels provide financial stability, allowing for strategic investments and resilience against economic fluctuations.

Strategic Partnerships

The partnership with ArianeGroup enhances Park Electrochemical's market position in the aerospace sector, potentially leading to increased demand and long-term revenue growth.

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and shareholder value.

Negative Factors

Certification Delays

Certification delays can disrupt supply chains and revenue streams, potentially affecting customer relationships and operational efficiency in the long term.

Reduced Sales Forecast

A reduced sales forecast for GE Aerospace programs may signal challenges in meeting demand or competitive pressures, impacting future revenue expectations.

Tariff-Related Costs

Ongoing tariff-related costs introduce uncertainty and potential financial strain, affecting cost structures and profitability over time.

Park Electrochemical Business Overview & Revenue Model

Company Description

Park 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 Money

Park 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 Financial Statement Overview

Summary

Park Electrochemical demonstrates strong financial health with solid profit margins and a robust balance sheet featuring minimal debt. However, there are slight concerns with net income fluctuations and cash flow alignment.

Income Statement

Park Electrochemical shows a solid Gross Profit Margin of 28.8% TTM, indicating efficient cost management. The Net Profit Margin TTM stands at 11.0%, reflecting decent profitability. Revenue growth is healthy, with a 2.3% increase compared to the previous year. EBIT and EBITDA margins are strong at 15.3% and 18.3% respectively, showcasing operational efficiency. However, net income slightly decreased from last year, suggesting potential challenges in maintaining profit levels.

Balance Sheet

The company's balance sheet is robust with a very low Debt-to-Equity Ratio of 0.003, highlighting minimal leverage risk. The Return on Equity (ROE) is a modest 6.6% TTM, indicating moderate profitability on shareholder equity. The Equity Ratio is excellent at 86.9% TTM, ensuring financial stability and low reliance on liabilities. Overall, Park Electrochemical has a strong balance sheet with high equity levels and minimal debt.

Cash Flow

Operating Cash Flow to Net Income Ratio is 0.97, indicating good cash conversion efficiency. Free Cash Flow saw a significant growth of 40.3% TTM, reflecting improved cash generation. However, Free Cash Flow to Net Income Ratio stands at 0.77, suggesting that not all earnings translate into free cash flow. While improvements are evident, there's room to enhance cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	63.13M	62.03M	56.00M	54.05M	53.58M	46.28M
Gross Profit	18.62M	17.64M	16.53M	16.47M	17.92M	13.19M
EBITDA	12.30M	11.36M	10.84M	11.09M	12.80M	8.23M
Net Income	7.31M	5.88M	7.47M	10.73M	8.46M	4.86M
Balance Sheet
Total Assets	116.45M	122.11M	132.31M	159.33M	160.89M	163.51M
Cash, Cash Equivalents and Short-Term Investments	61.55M	68.83M	77.21M	105.44M	110.36M	116.54M
Total Debt	338.00K	358.00K	135.00K	182.00K	227.00K	119.00K
Total Liabilities	10.65M	14.95M	19.39M	43.40M	25.25M	27.57M
Stockholders Equity	105.80M	107.15M	112.91M	115.93M	135.63M	135.94M
Cash Flow
Free Cash Flow	1.82M	3.83M	3.76M	5.44M	3.83M	5.52M
Operating Cash Flow	3.17M	4.72M	4.41M	6.49M	8.20M	13.01M
Investing Cash Flow	31.43M	23.99M	31.39M	-7.02M	-29.56M	32.96M
Financing Cash Flow	-13.21M	-13.65M	-33.47M	-8.05M	-7.43M	-9.79M

Park Electrochemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 above the 20-day moving average (MA) of 19.35, below the 50-day MA of 19.62, and above the 200-day MA of 16.43, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 67.83 is Neutral, neither overbought nor oversold. The STOCH value of 78.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PKE.

Park Electrochemical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDRE	80 Outperform	$1.75B	38.91	14.17%	0.87%	19.94%	33.38%
ATRO	68 Neutral	$1.89B	―	-1.72%	―	6.19%	52.10%
PKE	68 Neutral	$394.53M	54.27	6.76%	2.53%	7.63%	7.09%
NPK	65 Neutral	$722.35M	18.54	10.69%	0.97%	34.75%	14.31%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	58 Neutral	$1.36B	―	-5.27%	―	3.16%	-213.56%
EVTL	25 Underperform	$667.03M	―	―	―	―	―

Park Electrochemical Corporate Events

Park Electrochemical Corp’s Promising Earnings Call Highlights

Park Electrochemical Corp’s recent earnings call conveyed a generally positive sentiment, highlighting significant achievements such as surpassing sales and EBITDA estimates, forming strategic partnerships, and a promising backlog for the Airbus A320neo family. However, the company also faces challenges, including certification delays, tariff impacts, and a reduced full-year sales forecast for GE Aerospace, which could pose concerns moving forward.

Park Aerospace Corp. Reports Steady Q2 Earnings

Park Aerospace Corp. is a company that develops and manufactures advanced composite materials and structures for the aerospace industry, including products for jet engines, military aircraft, and spacecraft, with a focus on challenging and niche applications.