Park Electrochemical Corp (PKE)
NYSE:PKE
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Park Electrochemical
(NYSE:PKE)
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Rating:73Outperform
Price Target:
$31.00
▲(58.16% Upside)
Action:UpgradedDate:01/15/26
The score is driven primarily by strong financial strength (especially the conservative balance sheet) and a constructive earnings-call outlook with meaningful end-market tailwinds. This is tempered by weak cash conversion and a demanding valuation (high P/E), while technicals are supportive but show overbought risk.
Positive Factors
Conservative Balance Sheet
A very low leverage profile and $63.6M cash provide durable financial flexibility to fund capex, dividends and buybacks while absorbing operational hiccups. This reduces solvency risk during multi-year capacity builds and supports optionality for opportunistic investments.
Negative Factors
Weak Cash Conversion
Operating cash flow and free cash flow materially lag net income, reflecting working-capital swings and uneven cash conversion. Over time this limits self-funding of large capex, raises sensitivity to timing shocks, and could force external financing for growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
A very low leverage profile and $63.6M cash provide durable financial flexibility to fund capex, dividends and buybacks while absorbing operational hiccups. This reduces solvency risk during multi-year capacity builds and supports optionality for opportunistic investments.
Read all positive factors
Park Electrochemical (PKE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$620.89M
Dividend Yield2.53%
Average Volume (3M)271.76K
Price to Earnings (P/E)31.8
Beta (1Y)0.83
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. Volume206,331
30 Day Avg. Volume271,764
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 Cap0.92
Enterprise Value/Revenue8.64
Enterprise Value/Gross Profit27.58
Enterprise Value/Ebitda41.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.74
Revenue Forecast (FY)$86.91M
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 f...
How the Company Makes Money
null...
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.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).
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.
Read all updates
Q3-2026 Updates
Positive
Negative
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).
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 | Feb 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 66.05M | 62.03M | 56.00M | 54.05M | 53.58M | 46.28M |
| Gross Profit | 20.70M | 17.64M | 16.53M | 16.47M | 17.92M | 13.19M |
| EBITDA | 13.63M | 11.36M | 10.84M | 11.09M | 12.80M | 8.23M |
| Net Income | 8.68M | 5.88M | 7.47M | 10.73M | 8.46M | 4.86M |
Balance Sheet | ||||||
| Total Assets | 118.10M | 122.11M | 132.31M | 159.33M | 160.89M | 163.51M |
| Cash, Cash Equivalents and Short-Term Investments | 63.56M | 68.83M | 77.21M | 105.44M | 110.36M | 116.54M |
| Total Debt | 328.00K | 358.00K | 135.00K | 182.00K | 227.00K | 119.00K |
| Total Liabilities | 11.51M | 14.95M | 19.39M | 43.40M | 25.25M | 27.57M |
| Stockholders Equity | 106.59M | 107.15M | 112.91M | 115.93M | 135.63M | 135.94M |
Cash Flow | ||||||
| Free Cash Flow | 3.42M | 3.83M | 3.76M | 5.44M | 3.83M | 5.52M |
| Operating Cash Flow | 5.55M | 4.72M | 4.41M | 6.49M | 8.20M | 13.01M |
| Investing Cash Flow | 42.91M | 23.99M | 31.39M | -7.02M | -29.56M | 32.96M |
| Financing Cash Flow | -10.71M | -13.65M | -33.47M | -8.05M | -7.43M | -9.79M |
Park Electrochemical Technical Analysis
Positive
19.60
Price Trends
26.69
Positive
23.98
Positive
21.11
Positive
Market Momentum
1.08
Negative
67.67
Neutral
91.81
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 28.22, below the 50-day MA of 26.69, and below the 200-day MA of 21.11, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 67.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.81 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $620.89M | 31.84 | 8.18% | 2.53% | 7.63% | 7.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.58B | 71.09 | 14.92% | ― | 6.19% | 52.10% | |
61 Neutral | $1.01B | 23.06 | 8.72% | 0.92% | 34.75% | 14.31% | |
60 Neutral | $1.40B | 37.81 | 13.50% | 0.90% | 19.94% | 33.38% | |
59 Neutral | $2.10B | -41.88 | -5.01% | ― | 3.16% | -213.56% | |
44 Neutral | $239.45M | 1.54 | -174.08% | ― | ― | ― |
* Industrials Sector Average
PKE
Park Electrochemical
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140.21%
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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.