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Park Electrochemical Corp. (PKE)
NYSE:PKE
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Park Electrochemical
(NYSE:PKE)
Rating:75Outperform
Price Target:
$20.00
▲(4.99% Upside)
Park Electrochemical (PKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.25M
Dividend Yield2.62%
Average Volume (3M)197.38K
Price to Earnings (P/E)54.9
Beta (1Y)0.78
Revenue Growth16.60%
EPS Growth6.58%
CountryUS
Employees123
SectorIndustrials
Sector Strength77
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.10
Shares Outstanding19,855,839
10 Day Avg. Volume126,343
30 Day Avg. Volume197,377
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue3.27
Enterprise Value/Gross Profit11.35
Enterprise Value/Ebitda17.86
Forecast
1Y Price Target
$20.00Price Target Upside4.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Park Electrochemical Business Overview & Revenue Model
Company DescriptionPark Electrochemical Corp. (PKE) is a leading manufacturer of advanced materials, primarily focusing on high-performance materials for the aerospace, automotive, and electronics industries. The company specializes in producing composite materials, which are essential for various applications, including printed circuit boards and other electronic components. With a commitment to innovation and sustainability, Park Electrochemical has established itself as a key player in the materials sector, offering products that enhance performance and efficiency in demanding environments.
How the Company Makes MoneyPark 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 Earnings Call Summary
Earnings Call Date:Jul 15, 2025
(Q1-2026)
| % Change Since: 22.74%|
Next Earnings Date:Oct 02, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong financial performance and strategic expansions. However, some operational challenges and external risks like tariffs were noted.Q1-2026 Updates
Positive Updates
Strong Financial Performance
Sales for Q1 of Fiscal 2026 amounted to $15.4 million, with a gross margin of 30.6% and an EBITDA margin of 19.2%, meeting the high end of their estimated range.
Key Defense Program Involvement
Park Aerospace is the sole source for specialty ablative materials for the PAC-3 Patriot Missile System and is expected to significantly increase output, with a proposed blanket purchase order of up to $40 million.
Strategic Partnerships and Expansions
The company has entered into a new agreement with the Arian Group to increase C2B manufacturing capacity and is planning a major new expansion of its manufacturing facilities.
Involvement in Significant Aerospace Programs
Continued participation in important aerospace programs like GE Aerospace jet engine programs, with forecasted sales of $61 million.
Negative Updates
Manufacturing Underutilization
The new manufacturing facility is underutilized, which is affecting the company's margins due to significant ongoing expenses.
Delayed Customer Product Recall
A key customer product recall anticipated to happen soon is still pending, causing operational delays.
Tariffs and Trade Issues
While currently minimal, the potential impact of international tariffs remains a concern, with ongoing monitoring required.
Company Guidance
During the Park Aerospace Corp. Fiscal Year 2026 Q1 earnings call, the company reported sales of $15.4 million, achieving a gross profit of $4.718 million with a gross margin of 30.6%. The adjusted EBITDA was slightly less than $3 million, resulting in an EBITDA margin of 19.2%. The company's sales fell within the guidance range of $15 million to $16 million, while the adjusted EBITDA was at the higher end of the estimated range of $2.5 million to $3 million. The call highlighted ongoing expenses related to a new manufacturing facility and discussed the strategic importance of maintaining a gross margin above 30%. Park Aerospace also addressed the impact of production and sales alignment on their margins, noting that the lack of negative factors, such as excessive sales of low-margin fabric, contributed positively to the overall financial performance.Park Electrochemical Financial Statement Overview
Summary
Park Electrochemical demonstrates a strong financial position overall, with consistent revenue growth and efficient cost management reflected in healthy profit margins. The balance sheet is resilient with low leverage and a substantial equity base, although 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 | 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
19.05
Price Trends
16.57
Positive
14.94
Positive
14.49
Positive
Market Momentum
0.42
Positive
65.05
Neutral
71.04
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 19.05 is above the 20-day moving average (MA) of 18.01, above the 50-day MA of 16.57, and above the 200-day MA of 14.49, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 65.05 is Neutral, neither overbought nor oversold. The STOCH value of 71.04 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $378.25M | 54.93 | 6.43% | 2.62% | 16.60% | 6.58% | |
73 Outperform | $1.39B | 35.15 | 5.86% | ― | 2.42% | 72.72% | |
65 Neutral | $11.83B | 155.40 | 5.10% | ― | 14.50% | -29.76% | |
64 Neutral | $10.92B | 16.41 | 8.85% | 2.02% | 2.59% | -16.33% | |
63 Neutral | $4.00B | ― | -2.57% | ― | 9.19% | 72.88% | |
62 Neutral | $1.27B | ― | -1.41% | ― | 10.99% | 69.85% | |
58 Neutral | ― | ― | -4.74% | ― |
* Industrials Sector Average
Performance Comparison
PKE
Park Electrochemical
19.05
5.86
44.43%
AVAV
AeroVironment
239.84
62.45
35.20%
ATRO
Astronics
36.34
15.35
73.13%
DCO
Ducommun
92.84
28.49
44.27%
MRCY
Mercury Systems
66.83
29.45
78.79%
TGI
Triumph Group
26.01
12.16
87.80%
Park Electrochemical Corporate Events
Executive/Board ChangesShareholder Meetings
Park Electrochemical Holds Annual Shareholders Meeting
Neutral
Jul 25, 2025
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.
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.