Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $334.75M
• Dividend Yield: 2.32%
• Average Volume (3M): 36.31K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.36
• 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: 14,404,207
• 10 Day Avg. Volume: 53,319
• 30 Day Avg. Volume: 36,307
• PEG Ratio: 0.03
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -211.84
• Enterprise Value/Market Cap: 2.84
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 8.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $23.00 ▼(-1.03% Downside)

Park-Ohio Holdings' stock score is driven by its strong technical indicators and attractive valuation, despite financial performance concerns due to high leverage and cash flow issues. Strategic initiatives and positive earnings call guidance provide a promising outlook, though challenges remain in certain segments.

Positive Factors

Strategic Investments

Investments in technology and capacity expansion indicate a commitment to long-term growth, enhancing competitive positioning and operational efficiency.

Record High Backlog

A record high backlog suggests strong future demand and revenue visibility, supporting sustained business operations and growth.

Free Cash Flow Expectations

Strong free cash flow expectations indicate improved liquidity and financial flexibility, enabling debt reduction and strategic investments.

Negative Factors

High Leverage

High leverage can constrain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Cash flow challenges can hinder the company's ability to fund operations and growth initiatives, affecting long-term financial health.

Sales Decline in North America

A decline in sales in key markets can impact revenue and profitability, challenging the company's ability to maintain growth momentum.

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 generates revenue through multiple channels, primarily from the sale of its manufactured products and supply chain services. The Manufacturing segment contributes significantly to earnings by supplying engineered components and systems to major industrial customers, leveraging its technical expertise and production capabilities. The Supply Chain segment enhances revenue through logistics services, including inventory management, transportation, and warehousing solutions, often on a contract basis with long-term customers. Key partnerships with major OEMs and Tier 1 suppliers in various sectors further bolster the company's revenue streams, as they provide stable contracts and consistent demand for its products and services. Additionally, the company's focus on operational efficiency and cost management strengthens its profitability, allowing it to adapt to market changes and customer needs.

Park-Ohio Holdings Financial Statement Overview

Summary

Park-Ohio Holdings shows resilience in maintaining profitability margins despite revenue challenges. However, high leverage and cash flow constraints highlight areas of concern. The company should focus on improving cash flow and reducing debt to strengthen its financial position.

Income Statement

Park-Ohio Holdings shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue with a negative growth rate of -1.18%. However, the company maintains a stable gross profit margin around 16.9%, and the net profit margin is positive at 1.73%. The EBIT and EBITDA margins are moderate, suggesting operational efficiency. Despite the revenue decline, the company has improved its net income compared to previous years.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.88, indicating significant leverage, which could pose financial risks. The return on equity (ROE) is modest at 7.99%, reflecting moderate profitability. The equity ratio stands at 26.37%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Cash flow analysis shows challenges, with negative free cash flow growth and a free cash flow to net income ratio of -2.25, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.03, suggesting limited cash generation from operations. The company needs to enhance its cash flow management to support its financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.66B	1.66B	1.49B	1.28B	1.15B
Gross Profit	267.40M	281.40M	271.40M	210.50M	177.90M	165.30M
EBITDA	108.60M	125.40M	118.30M	74.70M	56.80M	54.00M
Net Income	23.50M	31.80M	7.80M	-14.20M	-24.80M	-4.50M
Balance Sheet
Total Assets	1.44B	1.37B	1.34B	1.44B	1.36B	1.30B
Cash, Cash Equivalents and Short-Term Investments	50.80M	53.10M	54.80M	58.20M	54.10M	55.00M
Total Debt	709.90M	667.20M	687.80M	720.90M	649.70M	599.00M
Total Liabilities	1.06B	1.03B	1.05B	1.17B	1.04B	942.60M
Stockholders Equity	374.80M	330.80M	280.40M	256.50M	314.10M	344.20M
Cash Flow
Free Cash Flow	-18.20M	-1.60M	22.30M	-54.50M	-65.60M	43.00M
Operating Cash Flow	18.40M	29.80M	50.50M	-27.60M	-43.30M	69.30M
Investing Cash Flow	-25.20M	-30.90M	-15.80M	-45.50M	-16.20M	-24.90M
Financing Cash Flow	-1.40M	1.60M	-39.00M	81.20M	59.90M	-47.30M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 23.24 is above the 20-day moving average (MA) of 21.85, above the 50-day MA of 21.22, and above the 200-day MA of 19.58, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 62.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PKOH.

Park-Ohio Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	69 Neutral	$808.38M	60.17	11.39%	―	16.04%	75.37%
OFLX	68 Neutral	$328.07M	20.38	19.37%	4.80%	-2.73%	-11.67%
LXFR	68 Neutral	$408.04M	28.87	7.14%	3.70%	3.36%	57.40%
PKOH	67 Neutral	$334.75M	11.22	8.13%	2.32%	-3.90%	61.80%
TWIN	66 Neutral	$264.74M	757.20	0.22%	0.95%	14.24%	-96.24%
HI	65 Neutral	$2.24B	52.28	3.07%	2.85%	-16.00%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%