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Park-Ohio Holdings (PKOH)
NASDAQ:PKOH
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Park-Ohio Holdings
(NASDAQ:PKOH)
66Neutral
Park-Ohio Holdings (PKOH) vs. S&P 500 (SPY)
Market Cap
$291.17M
Dividend Yield2.69%
Average Volume (3M)24.84K
Price to Earnings (P/E)6.4
Beta (1Y)1.18
Revenue Growth-0.21%
EPS Growth348.28%
CountryUS
Employees6,300
SectorIndustrials
Sector Strength61
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.81
Shares Outstanding14,230,992
10 Day Avg. Volume25,099
30 Day Avg. Volume24,839
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)0.19
Price to Cash Flow (P/CF)3.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Park-Ohio Holdings Business Overview & Revenue Model
Company DescriptionPark-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 MoneyPark-Ohio Holdings makes money through its three main business segments. The Supply Technologies segment generates revenue by providing supply chain management services, focusing on inventory management, logistics, and distribution of industrial components to a diverse customer base. The Assembly Components segment earns income by manufacturing and selling precision machined and assembled components, serving industries such as automotive, aerospace, and industrial equipment. The Engineered Products segment contributes to revenue by designing and producing custom-engineered products, including induction heating systems and aluminum products, for various industrial applications. Key revenue streams include long-term contracts with industrial manufacturers and partnerships with suppliers to optimize supply chain operations. The company leverages its comprehensive service offerings and global presence to maintain competitive advantages and drive growth.
Park-Ohio Holdings Financial Statement Overview
Summary
Park-Ohio Holdings shows mixed financial performance. Improved profitability is offset by stagnant revenue growth and high leverage. Cash flow management is improving, but free cash flow generation needs enhancement.Income Statement
Park-Ohio Holdings has shown a mixed performance in terms of profitability and growth. The gross profit margin has improved significantly from previous years. However, both the EBIT and EBITDA margins are relatively low, indicating operational challenges. The net profit margin has improved, showing a positive trend in net income, but the revenue growth rate remains stagnant, suggesting limited top-line expansion.65
Positive
Balance Sheet
The company's balance sheet indicates moderate financial health with a relatively high debt-to-equity ratio, reflecting significant leverage. Return on Equity (ROE) has shown improvement, suggesting better utilization of equity. However, the equity ratio is moderate, indicating that a substantial portion of assets is financed through debt, which could pose risks if not managed effectively.58
Neutral
Cash Flow
Park-Ohio Holdings has managed to improve its cash flow situation with a positive free cash flow in the latest period, indicating better cash management. The operating cash flow to net income ratio suggests efficient conversion of earnings into cash. However, the free cash flow to net income ratio is low, implying that not all net income is translating into free cash flow.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.66B | 1.66B | 1.49B | 1.44B | 1.30B | Gross Profit |
| 281.40M | 271.40M | 210.50M | 156.10M | 168.60M | EBIT |
| 86.60M | 89.90M | 59.40M | -12.50M | 23.00M | EBITDA |
| 125.40M | 118.30M | 89.60M | 62.50M | 60.60M | Net Income Common Stockholders |
| 31.80M | 7.80M | 11.40M | -26.00M | -4.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 53.10M | 54.80M | 58.20M | 54.10M | 55.00M | Total Assets |
| 1.37B | 1.34B | 1.44B | 1.36B | 1.30B | Total Debt |
| 667.20M | 687.80M | 720.90M | 665.70M | 599.00M | Net Debt |
| 614.10M | 633.00M | 662.70M | 611.60M | 544.00M | Total Liabilities |
| 1.03B | 1.05B | 1.17B | 1.04B | 942.60M | Stockholders Equity |
| 330.80M | 280.40M | 256.50M | 314.10M | 344.20M |
| Cash Flow | Free Cash Flow | |||
| 3.60M | 22.30M | -53.50M | -74.40M | 43.00M | Operating Cash Flow |
| 35.00M | 50.50M | -26.60M | -43.30M | 69.30M | Investing Cash Flow |
| -30.90M | -15.80M | -40.70M | -16.20M | -24.90M | Financing Cash Flow |
| 1.60M | -39.00M | 84.60M | 59.90M | -47.30M |
Park-Ohio Holdings Technical Analysis
Negative
19.21
Price Trends
23.16
Negative
25.68
Negative
27.04
Negative
Market Momentum
-0.56
Negative
41.45
Neutral
28.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKOH, the sentiment is Negative. The current price of 19.21 is below the 20-day moving average (MA) of 21.39, below the 50-day MA of 23.16, and below the 200-day MA of 27.04, indicating a bearish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 41.45 is Neutral, neither overbought nor oversold. The STOCH value of 28.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKOH.
Park-Ohio Holdings Risk Analysis
Park-Ohio Holdings disclosed 26 risk factors in its most recent earnings report. Park-Ohio Holdings reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Park-Ohio Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $291.17M | 6.42 | 13.81% | 2.69% | -0.21% | 348.28% | |
64 Neutral | $4.44B | 9.24 | 10.81% | 4.10% | -0.70% | -7.27% | |
62 Neutral | $409.43M | 12.03 | 5.79% | ― | 0.75% | ― | |
62 Neutral | $5.91B | 17.88 | 6.46% | 1.64% | -11.10% | -46.32% | |
62 Neutral | $7.68B | 13.06 | 3.21% | 3.34% | 3.62% | -14.40% | |
57 Neutral | $1.74B | ― | -3.92% | 3.34% | -2.57% | -248.28% |
* Industrials Sector Average
Performance Comparison
PKOH
Park-Ohio Holdings
19.21
-5.88
-23.44%
AXL
American Axle
3.12
-4.13
-56.97%
BWA
BorgWarner
25.67
-8.38
-24.61%
DAN
Dana Holding
10.63
-1.38
-11.49%
LEA
Lear
76.33
-56.65
-42.60%
MGA
Magna International
32.13
-16.86
-34.42%
Park-Ohio Holdings Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -15.75% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view of Park-Ohio's performance in 2024, highlighting record gross margins, strong proprietary fastener manufacturing growth, and a successful year for the Supply Technologies segment. However, challenges were noted in the Assembly Components and Engineered Products segments, alongside increased SG&A expenses and rising interest costs. The impact of tariffs also presents a future challenge, although management is actively working on mitigation strategies.Highlights
Record Gross Margin Levels
The company improved and reached record levels of gross margin in 2024, which improved 60 basis points to 17% of net sales compared to the previous year.
Strong Cash Flow Performance
While not meeting internal goals, cash flow performance was solid with operating cash flow generated during the year at $35 million and free cash flow at $15 million.
Proprietary Fastener Manufacturing Growth
Proprietary fastener manufacturing business saw record levels with sales increasing more than 10% year-over-year.
Positive Earnings Per Share Growth
GAAP earnings per share increased 18% to $3.19 per diluted share, and adjusted earnings per share improved 17% to $3.59 per share year-over-year.
Supply Technologies Segment Success
Net sales for the full year in Supply Technologies reached a record $779 million, driven by a 21% increase in aerospace and defense demand.
Lowlights
Assembly Components Segment Decline
Sales in the Assembly Components segment fell by 7% year-over-year due to lower unit volumes, end-of-life programs, and reduced pricing on certain products.
Challenges in Engineered Products Segment
Despite record full-year sales, adjusted operating income declined due to lower rail forging sales and affected margins in the segment.
Higher SG&A Expenses
SG&A expenses increased in 2024 due to higher employee-related costs and general inflationary pressures, increasing from 10.9% to 11.3% of net sales.
Interest Expense Increase
Interest expenses rose to $47 million from $45 million in the previous year, primarily due to higher interest rates.
Impact of Tariffs
Costs for certain imported goods are expected to increase due to tariffs, impacting supply chains and requiring mitigation efforts.
Company Guidance
In the Park-Ohio Holdings Corp. fourth quarter and full year 2024 results conference call, the company provided guidance indicating expectations for revenue growth in 2025, driven by stable demand across most end markets compared to 2024. Key financial metrics from 2024 included consolidated net sales of approximately $1.7 billion, matching 2023's record revenues. The company reported an 18% increase in GAAP earnings per share to $3.19, with adjusted earnings per share up 17% to $3.59 year-over-year. Gross margins improved by 60 basis points to 17% of net sales, and EBITDA rose to $152 million, a 13% increase from 2023. The company expects year-over-year improvement in adjusted operating income, net income, EBITDA, and free cash flow for 2025, alongside an effective tax rate of 21% to 23%, up from 11% in 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.