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Park-Ohio Holdings (PKOH)
NASDAQ:PKOH
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Park-Ohio Holdings (PKOH) AI Stock Analysis

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PKOH

Park-Ohio Holdings

(NASDAQ:PKOH)

Rating:64Neutral
Price Target:
$22.00
▲(7.63% Upside)
Park-Ohio Holdings' overall stock score reflects a balance of strengths and challenges. The company's valuation is attractive, with a low P/E ratio and reasonable dividend yield. Technical indicators show positive momentum. However, financial performance is hindered by high leverage and declining revenue, and the earnings call revealed mixed signals with both positive developments and ongoing challenges.

Park-Ohio Holdings (PKOH) vs. SPDR S&P 500 ETF (SPY)

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 generates revenue through multiple streams primarily from its manufacturing and logistics operations. The Manufacturing segment earns money by producing and selling industrial components and systems to clients in various sectors, primarily focusing on high-demand markets like automotive and aerospace. The Supply Chain segment contributes to revenue through logistics services, which include inventory management, packaging, and transportation solutions. Additionally, the company benefits from long-term contracts and strategic partnerships with major clients, which provide a stable revenue base. Factors such as efficient supply chain management, innovation in manufacturing processes, and a focus on customer service also play significant roles in enhancing earnings.

Park-Ohio Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call demonstrated a mix of positive developments and challenges. While Park-Ohio achieved record capital equipment orders, successful refinancing, and improved liquidity, it also faced a decline in year-over-year revenue and sales in key segments. The impact of tariffs and higher interest costs further complicates the financial outlook.
Q2-2025 Updates
Positive Updates
Record Capital Equipment Orders
Capital equipment orders in the second quarter were approximately $85 million, an all-time quarterly record, including a $47 million order for induction slab heating equipment.
Successful Refinancing and Improved Liquidity
Refinanced $350 million of senior secured notes due in 2030 and extended revolving credit facility maturity by 5 years, resulting in upgraded ratings from Moody's, S&P Global, and Fitch Ratings.
Sequential Profitability Improvement
Adjusted EPS increased by 14% to $0.75 per diluted share and EBITDA increased by 4% to $35 million from the previous quarter.
Strong Liquidity Position
Liquidity totaled $189 million as of June 30, with $46 million in cash and $143 million in unused borrowing capacity.
Negative Updates
Decline in Year-Over-Year Revenue
Second quarter revenue decreased to $400 million from $433 million a year ago, reflecting lower customer demand in the Supply Technologies segment.
Lower Sales in Assembly Components and Engineered Products
Sales in the Assembly Components segment decreased to $95 million from $103 million a year ago, and Engineered Products sales fell to $118 million from $127 million a year ago.
Impact of Tariffs and Higher Interest Costs
Estimated tariff costs of $25 million to $35 million in 2025 and higher interest in the second half of the year expected to reduce adjusted EPS by approximately $0.20.
Company Guidance
During the Park-Ohio Second Quarter 2025 Results Conference Call, the company provided a robust outlook for the remainder of 2025 and into 2026, emphasizing key financial metrics and strategic initiatives. The company reported second-quarter revenue of $400 million, a decrease from $433 million the previous year, citing lower customer demand in specific markets. Adjusted EPS increased by 14% to $0.75 per diluted share, with EBITDA rising by 4% to $35 million. The capital equipment orders reached an all-time quarterly high of $85 million, including a significant $47 million order from a major steel producer. Park-Ohio also highlighted its successful refinancing activities, which involved a $350 million offering of senior secured notes due in 2030 and an amendment to its revolving credit facility, enhancing financial flexibility. The company is targeting a full-year adjusted EPS range of $2.90 to $3.20 per share and net sales between $1.62 billion and $1.65 billion. Additionally, Park-Ohio expects free cash flow for 2025 to be between $20 million and $30 million, significantly bolstered by a projected $65 million in the second half of the year.

Park-Ohio Holdings Financial Statement Overview

Summary
Park-Ohio Holdings shows stable gross margins and operational efficiency but faces challenges in profitability and cash flow management. High leverage poses financial risks, and recent revenue decline is concerning. The company needs to focus on improving profitability and cash flow generation to enhance financial stability and shareholder value.
Income Statement
65
Positive
Park-Ohio Holdings shows a mixed performance in its income statement. The company has a stable gross profit margin around 16-17% over the years, indicating consistent cost management. However, the net profit margin remains low at around 1.7% for TTM, reflecting challenges in translating revenue into profit. Revenue growth has been negative recently, with a decline of 1.98% in TTM, which is a concern. EBIT and EBITDA margins are moderate, suggesting reasonable operational efficiency but room for improvement.
Balance Sheet
55
Neutral
The balance sheet reveals high leverage with a debt-to-equity ratio of 1.88 in TTM, although it has improved from previous years. The return on equity is modest at 7.99%, indicating moderate profitability for shareholders. The equity ratio is not explicitly provided, but the high debt levels suggest potential financial risk. Overall, the balance sheet reflects a need for better capital structure management.
Cash Flow
45
Neutral
Cash flow analysis indicates challenges, with negative free cash flow in TTM despite a significant growth rate improvement. The operating cash flow to net income ratio is low at 0.03, highlighting inefficiencies in cash generation relative to net income. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties. These factors suggest liquidity concerns and the need for improved cash management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.61B1.66B1.66B1.49B1.44B1.30B
Gross Profit273.10M281.40M271.40M210.50M156.10M168.60M
EBITDA116.00M125.40M118.30M89.60M62.50M60.60M
Net Income27.80M31.80M7.80M11.40M-26.00M-4.80M
Balance Sheet
Total Assets1.42B1.37B1.34B1.44B1.36B1.30B
Cash, Cash Equivalents and Short-Term Investments45.60M53.10M54.80M58.20M54.10M55.00M
Total Debt709.30M667.20M687.80M720.90M665.70M599.00M
Total Liabilities709.20M1.03B1.05B1.17B1.04B942.60M
Stockholders Equity376.30M330.80M280.40M256.50M314.10M344.20M
Cash Flow
Free Cash Flow-23.40M3.60M22.30M-53.50M-74.40M43.00M
Operating Cash Flow10.40M29.80M50.50M-26.60M-43.30M69.30M
Investing Cash Flow-23.60M-30.90M-15.80M-40.70M-16.20M-24.90M
Financing Cash Flow-33.70M1.60M-39.00M84.60M59.90M-47.30M

Park-Ohio Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.44
Price Trends
50DMA
18.19
Positive
100DMA
18.40
Positive
200DMA
21.80
Negative
Market Momentum
MACD
0.62
Negative
RSI
62.00
Neutral
STOCH
67.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKOH, the sentiment is Positive. The current price of 20.44 is above the 20-day moving average (MA) of 19.40, above the 50-day MA of 18.19, and below the 200-day MA of 21.80, indicating a neutral trend. The MACD of 0.62 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 67.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$361.32M14.6611.89%3.85%5.60%
72
Outperform
$356.23M20.4620.68%3.85%-4.53%-11.25%
69
Neutral
$539.68M39.2411.97%14.64%182.19%
68
Neutral
$169.91M29.82-1.19%1.22%15.45%-117.28%
64
Neutral
$294.24M8.1511.16%2.54%-2.82%69.68%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
48
Neutral
$108.53M-9.30%1.15%-12.36%-569.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PKOH
Park-Ohio Holdings
21.05
-6.02
-22.24%
GHM
Graham
49.17
21.60
78.35%
HURC
Hurco Companies
17.93
0.68
3.94%
OFLX
Omega Flex
35.01
-9.95
-22.13%
TWIN
Twin Disc
13.09
1.50
12.94%
LXFR
Luxfer
13.50
3.28
32.09%

Park-Ohio Holdings Corporate Events

Private Placements and Financing
Park-Ohio Holdings Issues $350M Senior Secured Notes
Neutral
Jul 31, 2025

On July 31, 2025, Park-Ohio Industries, a subsidiary of Park-Ohio Holdings, issued $350 million in Senior Secured Notes due 2030, bearing an interest rate of 8.500% per annum. This issuance, governed by an indenture with Computershare Trust Company, aims to secure the company’s financial positioning by leveraging U.S. equipment and assets as collateral, while also outlining specific covenants and redemption terms to manage financial risks and obligations.

Private Placements and Financing
Park-Ohio Holdings Amends Credit Facility and Issues Notes
Neutral
Jul 18, 2025

On July 17, 2025, Park-Ohio Industries, a subsidiary of Park-Ohio Holdings Corp., amended its Revolving Credit Facility to extend the maturity date and allow for the issuance of $350 million in senior secured notes due 2030. The notes, priced on July 17, 2025, will be used to redeem existing senior notes due 2027, impacting the company’s financial structure and potentially enhancing its market positioning by securing its U.S. equipment and assets.

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.Date of analysis: Sep 01, 2025