Park Electrochemical (PKE) AI Stock Analysis

• Market Cap: $379.64M
• Dividend Yield: 2.67%
• Average Volume (3M): 113.09K
• Price to Earnings (P/E): 55.1
• Beta (1Y): 0.78
• Revenue Growth: 16.60%
• EPS Growth: 6.58%
• Country: US
• Employees: 123
• Sector: Industrials
• Sector Strength: 70
• Industry: Aerospace & Defense
• EPS (TTM): 0.10
• Shares Outstanding: 19,855,839
• 10 Day Avg. Volume: 85,189
• 30 Day Avg. Volume: 113,089
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 3.27
• Enterprise Value/Gross Profit: 11.35
• Enterprise Value/Ebitda: 17.86
• 1Y Price Target: $20.00
• Price Target Upside: 6.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $20.00 ▲(6.78% Upside)

Park Electrochemical's strong financial performance and promising earnings call insights are the most significant factors driving the score. The technical analysis supports a positive trend, although the high P/E ratio suggests caution regarding valuation. The absence of notable corporate events further solidifies the focus on financial and operational metrics.

Positive Factors

Strong Financial Health

The company's minimal debt and high equity levels ensure financial stability and low leverage risk, providing a solid foundation for future growth and resilience against economic fluctuations.

Long-Term Contracts

Securing long-term contracts with major industry players like GE Aerospace provides a stable revenue stream and strengthens the company's market position in the aerospace sector.

Increased Defense Demand

Rising demand for defense materials positions the company to benefit from increased military spending, enhancing revenue prospects and reinforcing its strategic importance in defense applications.

Negative Factors

Ongoing Recall Issues

Unresolved recall issues can lead to customer dissatisfaction and potential financial liabilities, impacting the company's reputation and operational efficiency over the long term.

High Operational Expenses

High operational expenses from underutilized facilities can strain profit margins and cash flow, challenging the company's ability to maintain cost efficiency and profitability.

Cash Position Decrease

A reduction in cash reserves limits financial flexibility and could hinder the company's capacity to invest in growth opportunities or weather economic downturns.

Park Electrochemical Business Overview & Revenue Model

Company Description

Park 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 Money

Park Electrochemical generates revenue primarily through the sale of its high-performance composite materials and related products. The company's revenue model is centered around several key streams, including direct sales to manufacturers in the aerospace, automotive, and electronics sectors. Additionally, PKE benefits from long-term contracts and partnerships with major industry players, which provide a stable revenue base. The company also invests in research and development to innovate and enhance its product offerings, allowing it to cater to evolving market needs and maintain competitive pricing. Furthermore, PKE's focus on sustainability and environmentally friendly materials has opened up new revenue opportunities in markets increasingly focused on green technologies.

Park Electrochemical Financial Statement Overview

Summary

Park Electrochemical demonstrates strong financial health with solid profit margins and a robust balance sheet characterized by minimal debt and high equity. Cash flows are improving, though there's room for better alignment with net income.

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	63.46M	62.03M	56.00M	54.05M	53.58M	46.28M
Gross Profit	18.26M	17.64M	16.53M	16.47M	17.92M	13.19M
EBITDA	11.61M	11.36M	10.84M	11.09M	12.80M	8.23M
Net Income	6.97M	5.88M	7.47M	10.73M	8.46M	4.86M
Balance Sheet
Total Assets	120.72M	122.11M	132.31M	159.33M	160.89M	163.51M
Cash, Cash Equivalents and Short-Term Investments	65.57M	68.83M	77.21M	105.44M	110.36M	116.54M
Total Debt	348.00K	358.00K	135.00K	182.00K	227.00K	119.00K
Total Liabilities	15.77M	14.95M	19.39M	43.40M	25.25M	27.57M
Stockholders Equity	104.95M	107.15M	112.91M	115.93M	135.63M	135.94M
Cash Flow
Free Cash Flow	5.37M	3.83M	3.76M	5.44M	3.83M	5.52M
Operating Cash Flow	6.73M	4.72M	4.41M	6.49M	8.20M	13.01M
Investing Cash Flow	25.52M	23.99M	31.39M	-7.02M	-29.56M	32.96M
Financing Cash Flow	-15.70M	-13.65M	-33.47M	-8.05M	-7.43M	-9.79M

Park Electrochemical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 18.73 is below the 20-day moving average (MA) of 18.74, above the 50-day MA of 17.97, and above the 200-day MA of 14.83, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 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
PKE	75 Outperform	$379.64M	55.13	6.43%	2.67%	16.60%	6.58%
DCO	73 Outperform	$1.39B	35.30	5.86%	―	2.42%	72.72%
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
AVAV	63 Neutral	$12.07B	153.50	-1.70%	―	44.04%	-129.81%
MRCY	63 Neutral	$4.38B	―	-2.57%	―	9.19%	72.88%
ATRO	62 Neutral	$1.45B	―	-1.41%	―	10.99%	69.85%
TGI	58 Neutral		―		―	-4.74%	―

Park Electrochemical Corporate Events

Park Electrochemical Holds Annual Shareholders Meeting

At the Annual Meeting of Shareholders on July 22, 2025, Park Electrochemical elected its board of directors and approved several key proposals. The shareholders approved an advisory resolution on executive compensation and ratified the appointment of CohnReznick LLP as the independent registered public accounting firm for the fiscal year ending March 1, 2026.