Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $336.51M
• Dividend Yield: 2.32%
• Average Volume (3M): 36.31K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 1.33
• Revenue Growth: -3.90%
• EPS Growth: 61.80%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.65
• Shares Outstanding: 14,399,130
• 10 Day Avg. Volume: 53,319
• 30 Day Avg. Volume: 36,307
• PEG Ratio: -0.26
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.18
• P/FCF Ratio: 144.49
• Enterprise Value/Market Cap: 2.85
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 8.38
• 1Y Price Target: $37.00
• Price Target Upside: 58.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.15
• Revenue Forecast (FY): $1.67B

• Rating: 60 Neutral
• Price Target: $25.00 ▲(6.97% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is held back primarily by weaker cash-flow quality, thin margins, and still-high leverage despite improving trends. Offsetting factors include a strong technical uptrend, reasonable valuation, and a cautiously optimistic 2026 outlook with improved cash generation and debt reduction.

Positive Factors

Backlog & Bookings Strength

A materially larger, growing backlog and record bookings provide durable revenue visibility over coming quarters and support production planning. This reduces near-term demand risk and increases the likelihood of steady order conversion, supporting sustained top-line growth and capacity utilization.

Strengthened Capital Structure

Extending debt maturities and refinancing into secured notes materially reduces near-term refinancing risk and interest-rate pressure. This provides multi-year financing stability to fund capex, working-capital cycling, and strategic projects without forcing asset sales or emergency deleveraging.

Targeted Productivity & Margin Investments

Sizable, targeted investments in automation, IT/ERP, and distribution capacity are structural moves to raise throughput and lower unit costs. Over 2–6 months these initiatives should begin improving operational efficiency and set the foundation for more sustainable margin expansion as volumes normalize.

Negative Factors

Elevated Leverage

Sustained high debt relative to equity constrains flexibility in a cyclical industrial business. Elevated leverage increases vulnerability to downturns, limits ability to invest opportunistically, and magnifies earnings pressure from rising rates or weaker cash flows over the medium term.

Weak Cash Conversion & Volatile FCF

Historically poor cash conversion and volatile free cash flow indicate working-capital and execution risk. Even with recent improvements, inconsistent FCF undermines deleveraging plans and restricts reinvestment capacity, making sustained margin gains and debt paydown harder to realize.

Thin & Pressured Profitability

Persistent low margins limit ability to absorb commodity swings, interest costs, or timing issues on new program ramps. Segment-level profitability pressures and one-off write-offs highlight execution sensitivity, meaning modest demand shifts could quickly erode earnings power.

Park-Ohio Holdings Business Overview & Revenue Model

Company Description

Park-Ohio Holdings Corp. provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Europe, Asia, Mexico, Canada, and internationally. It operates through three segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment offers Total Supply Management solution, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, such as valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. It also engineers and manufactures precision cold-formed and cold-extruded fasteners and other products, including locknuts, SPAC nuts, SPAC bolts, and wheel hardware. The Assembly Components segment manufactures aluminum products, direct fuel injection fuel rails and pipes, fuel filler pipes, and flexible multi-layer plastic and rubber assemblies; turbo charging and coolant hoses; and fluid handling systems. It also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly. The Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products primarily for ferrous and non-ferrous metals, silicon, coatings, forging, foundry, automotive, and construction equipment industries; engineers and installs mechanical forging presses; sells spare parts; provides field services; and offers aerospace and defense structural components, and rail products, such as railcar center plates and draft lugs. Park-Ohio Holdings Corp. was founded in 1907 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

Park-Ohio makes money primarily by selling manufactured products and by charging for outsourced supply-chain services. (1) Manufactured products revenue: PKOH generates sales from producing and delivering engineered components, assemblies, and other manufactured parts to OEMs and industrial customers. Revenue is typically recognized from contracts and purchase orders tied to customer production programs, with pricing influenced by volumes, program lifecycles, and, in some cases, raw-material pass-through mechanisms depending on contract terms. (2) Supply-chain services revenue: Through its supply management operations, PKOH earns revenue by managing the sourcing, procurement, and delivery of production components and materials for customers—often operating as an integrator that consolidates supplier bases, manages inventory, and coordinates replenishment. Depending on customer arrangements, this can include fees for value-added services and/or margins embedded in the sale/resale of sourced items. (3) Key factors affecting earnings: profitability is influenced by manufacturing efficiency and utilization, customer demand in served end markets (notably automotive production levels), the company’s ability to manage material cost volatility, and performance on long-term customer programs. Information on any specific partnerships is null.

Park-Ohio Holdings Financial Statement Overview

Summary

Improving but still constrained fundamentals: strong recent revenue growth and an earnings recovery, but persistently thin net margins, elevated leverage (debt well above equity), and weak/volatile cash conversion with inconsistent free cash flow.

Income Statement

Revenue has expanded over time (2025 up ~41% vs. 2024; 2023 up ~11% vs. 2022), showing solid top-line momentum after earlier volatility. Profitability has improved versus 2020–2022 (losses in 2021–2022, low profit in 2023), with 2024–2025 returning to modest earnings; however, net profit margins remain thin (about 1.5% in 2025 and 1.9% in 2024). Operating profitability also appears to have softened in 2025 versus 2024 based on the reported EBITDA margin (about 4.1% vs. 7.6%), indicating pressure on earnings quality despite strong revenue growth.

Balance Sheet

Leverage remains elevated, with debt running well above equity (debt-to-equity roughly 1.75x in 2025 and ~2.02x in 2024), which can limit flexibility in a cyclical industrial business. A positive offset is the improving trajectory: equity has grown meaningfully from 2022 to 2025 and leverage has come down from the 2022 peak (about 2.81x). Returns on equity improved from negative levels in 2021–2022 to positive in 2023–2025, but are still only moderate (about 6% in 2025).

Cash Flow

Cash generation is the weakest area. Operating cash flow is positive in 2023–2025 but small relative to earnings (operating cash flow to net income about 0.12x in 2025 and 0.08x in 2024), suggesting weaker cash conversion. Free cash flow has been inconsistent—strongly positive in 2023, negative in 2024, and only slightly positive in 2025—with 2025 free cash flow representing just ~5% of net income. Earlier years also show volatility, including negative operating cash flow in 2021–2022, reinforcing execution and working-capital risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.60B	1.66B	1.66B	1.49B	1.28B
Gross Profit	271.20M	281.40M	271.40M	210.50M	177.90M
EBITDA	114.60M	125.40M	118.30M	74.70M	56.80M
Net Income	23.80M	31.80M	7.80M	-14.20M	-24.80M
Balance Sheet
Total Assets	1.42B	1.37B	1.34B	1.44B	1.36B
Cash, Cash Equivalents and Short-Term Investments	44.80M	53.10M	54.80M	58.20M	54.10M
Total Debt	670.30M	667.20M	687.80M	720.90M	649.70M
Total Liabilities	1.04B	1.03B	1.05B	1.17B	1.04B
Stockholders Equity	382.80M	330.80M	280.40M	256.50M	314.10M
Cash Flow
Free Cash Flow	2.00M	-1.60M	22.30M	-54.50M	-65.60M
Operating Cash Flow	42.30M	29.80M	50.50M	-27.60M	-43.30M
Investing Cash Flow	-40.30M	-30.90M	-15.80M	-45.50M	-16.20M
Financing Cash Flow	-11.10M	1.60M	-39.00M	81.20M	59.90M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 23.37
• 50DMA: Negative
• 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 PKOH, the sentiment is Neutral. The current price of 23.37 is below the 20-day moving average (MA) of 25.46, below the 50-day MA of 24.76, and above the 200-day MA of 20.81, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 37.14 is Neutral, neither overbought nor oversold. The STOCH value of 23.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PKOH.

Park-Ohio Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	76 Outperform	$885.05M	62.02	11.90%	―	16.04%	75.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$214.59M	2.69	13.25%	0.95%	14.24%	-96.24%
PKOH	60 Neutral	$336.51M	12.14	8.13%	2.32%	-3.90%	61.80%
LXFR	60 Neutral	$306.63M	11.56	13.57%	3.70%	3.36%	57.40%
OFLX	59 Neutral	$288.70M	21.76	17.67%	4.80%	-2.73%	-11.67%