tiprankstipranks
Trending News
More News >
Park-Ohio Holdings (PKOH)
NASDAQ:PKOH
US Market
Advertisement

Park-Ohio Holdings (PKOH) AI Stock Analysis

Compare
60 Followers

Top Page

PKOH

Park-Ohio Holdings

(NASDAQ:PKOH)

Rating:64Neutral
Price Target:
$22.00
▲(10.00% Upside)
Park-Ohio Holdings' overall score reflects stable gross margins and operational efficiency, but significant challenges in profitability and cash flow management weigh heavily. The stock's valuation suggests potential upside, and recent corporate actions are positive. However, technical indicators show mixed signals, and the earnings call highlights both opportunities and risks.

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: 25.08%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The call highlighted strong capital equipment orders, successful refinancing, and improved profitability, but also noted declines in revenue and challenges in key segments. Despite the positive aspects, the negative trends in revenue and demand balance the sentiment.
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 from a major steel producer.
Successful Refinancing and Credit Facility Extension
Successfully refinanced $350 million of senior secured notes and extended the revolving credit facility maturity date by 5 years, receiving upgraded ratings from Moody's, S&P Global, and Fitch Ratings.
Improved Profitability and Cost Management
Profitability improved sequentially in the second quarter with adjusted EPS increasing 14% to $0.75 per diluted share and EBITDA increasing 4% to $35 million. SG&A expenses decreased from $48.2 million last quarter to $46.8 million.
Strong EBITDA Performance
Generated $35.2 million of EBITDA in the quarter, with an EBITDA margin of 8.8%. On a trailing 12-month basis, EBITDA totaled $144 million.
Positive Free Cash Flow Outlook
Expect significant operating and free cash flow in the second half of the year, with full-year free cash flow expected to be approximately $20 million to $30 million, up from $15 million last year.
Negative Updates
Decreased Revenue and Demand in Key Segments
Second quarter revenue decreased to $400 million from $433 million last year, reflecting lower customer demand in the Supply Technologies segment in certain North American industrial markets.
Decline in Assembly Components Sales
Sales in the Assembly Components segment were $95 million, down from $103 million a year ago, driven by lower unit volumes and customer delays on new product launches.
Challenges in Engineered Products Segment
Sales in the Engineered Products segment decreased to $118 million from $127 million last year, primarily due to lower railcar demand and closure of a small manufacturing operation.
Increased Interest Costs
Interest costs totaled $11 million during the quarter compared to $12 million last year. The refinancing of senior notes will result in higher interest in the second half of the year, reducing adjusted EPS by approximately $0.20.
Company Guidance
During the second quarter of 2025, Park-Ohio provided guidance with multiple financial metrics and strategic updates. The company refinanced $350 million in senior secured notes at an 8.5% interest rate and extended its revolving credit facility by five years, strengthening its liquidity position. Park-Ohio reported second-quarter revenue of $400 million, a decrease from $433 million the previous year, primarily due to reduced demand in certain markets. However, adjusted EPS increased by 14% to $0.75, and EBITDA rose by 4% to $35 million, driven by improved gross margins, which stood at 17%. The company anticipates full-year net sales between $1.62 billion and $1.65 billion and adjusted EPS ranging from $2.90 to $3.20. Additionally, Park-Ohio expects significant free cash flow improvements in the second half, totaling approximately $65 million, contributing to an estimated full-year free cash flow of $20 to $30 million. The company highlighted a record $85 million in capital equipment orders, including a $47 million order from a major steel producer, indicating strong demand for its high-tech solutions.

Park-Ohio Holdings Financial Statement Overview

Summary
Park-Ohio Holdings demonstrates stable revenue and operational efficiency, but faces challenges in profitability and leverage. The high debt level requires careful management, and cash flow metrics suggest a need for improved liquidity and free cash generation.
Income Statement
65
Positive
Park-Ohio Holdings shows a stable revenue base with slight fluctuations in growth. The gross profit margin has shown improvement over the years, indicating effective cost management. However, the net profit margin remains relatively low, reflecting ongoing profitability challenges. The EBIT and EBITDA margins are stable, suggesting operational efficiency but highlighting potential concerns in translating operating profits to net income.
Balance Sheet
58
Neutral
The company's debt-to-equity ratio is relatively high, indicating significant leverage which could pose risks if not managed properly. However, Park-Ohio has shown an improvement in stockholders' equity, which is a positive sign. The equity ratio is moderate, pointing towards a balanced asset management strategy, but there is room for strengthening the balance sheet further.
Cash Flow
60
Neutral
The cash flow situation reveals mixed results. While operating cash flow is generally positive, the free cash flow has been negative in recent periods, indicating challenges in covering capital expenditures. The operating cash flow to net income ratio suggests that the company is capable of converting profits into cash, but sustaining positive free cash flow remains an area for improvement.
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 Price20.00
Price Trends
50DMA
17.59
Positive
100DMA
18.55
Positive
200DMA
22.52
Negative
Market Momentum
MACD
0.46
Negative
RSI
65.87
Neutral
STOCH
93.40
Negative
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 is above the 20-day moving average (MA) of 17.34, above the 50-day MA of 17.59, and below the 200-day MA of 22.52, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 65.87 is Neutral, neither overbought nor oversold. The STOCH value of 93.40 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$336.96M13.9411.89%4.13%5.60%
72
Outperform
$340.48M20.0020.68%3.98%-4.53%-11.25%
69
Neutral
$550.44M40.0211.97%14.64%182.19%
67
Neutral
$126.48M30.682.77%1.78%11.49%-66.66%
64
Neutral
$280.20M8.0811.16%2.46%-2.82%69.68%
61
Neutral
C$7.20B-5.69-4.20%2.32%13.54%-29.62%
51
Neutral
$122.52M-9.30%1.15%-12.36%-569.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PKOH
Park-Ohio Holdings
20.00
-8.60
-30.07%
GHM
Graham
50.15
20.82
70.99%
HURC
Hurco Companies
18.30
1.28
7.52%
OFLX
Omega Flex
33.00
-12.82
-27.98%
TWIN
Twin Disc
8.94
-4.03
-31.07%
LXFR
Luxfer
12.59
2.40
23.55%

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.

Shareholder MeetingsBusiness Operations and Strategy
Park-Ohio Holdings Amends Equity Compensation Plan
Positive
May 21, 2025

On March 6, 2025, Park-Ohio Holdings Corp.’s Board of Directors approved an amendment to the 2021 Equity and Incentive Compensation Plan, which was later ratified by shareholders on May 15, 2025. The amended plan increases the number of shares available for awards by 675,000, extends the plan’s term to ten years, and adjusts the limit on shares for incentive stock options, enhancing the company’s ability to incentivize its workforce.

Executive/Board ChangesShareholder Meetings
Park-Ohio Holdings Elects Directors at Annual Meeting
Neutral
May 15, 2025

On May 15, 2025, Park-Ohio Holdings Corp. held its Annual Meeting of Shareholders where key decisions were made. Edward F. Crawford, John D. Grampa, and Steven H. Rosen were elected as directors until 2028. Additionally, shareholders approved the Amendment and Restatement of the 2021 Equity and Incentive Compensation Plan and ratified Ernst & Young LLP as the independent public accounting firm for 2025.

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: Aug 14, 2025