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

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PKOH

Park-Ohio Holdings

(NASDAQ:PKOH)

Rating:60Neutral
Price Target:
$17.50
▲(0.86%Upside)
Park-Ohio Holdings presents a balanced but challenging outlook. The most significant factor is its financial performance, which shows stability yet highlights risks due to high leverage and cash flow challenges. The technical analysis indicates bearish sentiment, while valuation metrics suggest the stock may be undervalued. Despite mixed earnings call sentiment and positive corporate events, the overall score reflects the need for strategic improvements to address financial and operational challenges.

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

Park-Ohio Holdings Business Overview & Revenue Model

Company DescriptionPark-Ohio Holdings Corp. (PKOH) is a diversified international company providing world-class supply chain management outsourcing services, capital equipment used on their customer's production lines, and manufactured components used to assemble a wide variety of products. The company operates through three segments: Supply Technologies, Assembly Components, and Engineered Products. These segments focus on providing integral solutions across industries such as automotive, industrial equipment, aerospace, defense, and more.
How the Company Makes MoneyPark-Ohio Holdings makes money through its three main segments. The Supply Technologies segment provides comprehensive supply chain management and logistics services, capitalizing on its global presence to deliver value-added services and solutions. The Assembly Components segment generates revenue by manufacturing and selling highly engineered components, such as fasteners and fittings, that are crucial for the assembly of various products in industries like automotive and aerospace. The Engineered Products segment designs and manufactures capital equipment and related replacement parts, catering to the specific needs of their clients' production lines. The company's revenue is boosted by its strategic partnerships and long-term contracts with key industry players, enabling it to maintain a steady income stream.

Park-Ohio Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -17.93%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with positive momentum in the Engineered Products group and Supply Technologies, despite a slow start to the year and challenges in Assembly Components. The company's global strategy and reshaping efforts show promise for future stability, but current sales declines and margin contractions indicate ongoing challenges.
Q1-2025 Updates
Positive Updates
Engineered Products Group Improvement
The Engineered Products group showed year-over-year improvement with strong quarter-end execution, highlighting its role in leading Park-Ohio in margin profile and backlog visibility. Sales in this segment grew 6% compared to last year.
Record Growth in Supply Technologies
Despite challenges, Supply Technologies experienced record growth in remaining businesses, indicating a successful reshaping strategy focusing on best products and services.
Operating Margin Increase
The industrial equipment business and Engineered Products segment saw operating margins increase by 110 basis points due to strong new equipment and aftermarket demand.
Global Manufacturing Strategy
Park-Ohio has a strong global presence in over 20 countries, utilizing an in-region strategy for manufacturing and distribution, which helps mitigate tariff impacts.
Negative Updates
Slow Start in January
The first quarter began slowly, with sales below internal expectations, but recovered in February and March.
Decline in Assembly Components
The Assembly Components segment faced lower unit volumes, delayed new business launches, and lower pricing on fuel rail products, resulting in a 9% sales decrease year-over-year.
Decrease in Gross Margin
Consolidated gross margin fell to 16.8% from 17.1% year-over-year, and consolidated operating income decreased from $24 million to $19 million due to lower sales levels.
Sales Decline in Supply Technologies
Supply Technologies saw a 5% decline in net sales year-over-year, with specific impacts in North America across power sports, industrial equipment, and industrial supplies product lines.
Company Guidance
During the Park-Ohio First Quarter 2025 Results Conference Call, the company provided guidance indicating a range of $1.6 billion to $1.7 billion in net sales for the year, with adjusted earnings expected to be between $3 to $3.50 per share. The company noted that while the first quarter sales were $405 million compared to $418 million a year ago, improvements were seen in March, suggesting potential recovery in subsequent quarters. Despite a year-over-year decrease in GAAP earnings per share from $0.83 to $0.61, the company's EBITDA as defined was $34 million for the quarter, with a trailing 12-month EBITDA of $148 million. The company expects full-year capital expenditures to range between $30 million and $35 million and foresees an effective tax rate between 20% and 23%. Park-Ohio highlighted efforts to mitigate tariff impacts, with expectations for increased domestic business, particularly in the Engineered Products segment, due to reshoring trends.

Park-Ohio Holdings Financial Statement Overview

Summary
Stable revenue and operational efficiency are evident, but challenges persist in profitability and leverage. High debt levels and negative recent free cash flow highlight areas for improvement.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.66B1.66B1.49B1.44B1.30B
Gross Profit281.40M271.40M210.50M156.10M168.60M
EBITDA125.40M118.30M89.60M62.50M60.60M
Net Income31.80M7.80M11.40M-26.00M-4.80M
Balance Sheet
Total Assets1.37B1.34B1.44B1.36B1.30B
Cash, Cash Equivalents and Short-Term Investments53.10M54.80M58.20M54.10M55.00M
Total Debt667.20M687.80M720.90M665.70M599.00M
Total Liabilities1.03B1.05B1.17B1.04B942.60M
Stockholders Equity330.80M280.40M256.50M314.10M344.20M
Cash Flow
Free Cash Flow3.60M22.30M-53.50M-74.40M43.00M
Operating Cash Flow35.00M50.50M-26.60M-43.30M69.30M
Investing Cash Flow-30.90M-15.80M-40.70M-16.20M-24.90M
Financing Cash Flow1.60M-39.00M84.60M59.90M-47.30M

Park-Ohio Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.35
Price Trends
50DMA
18.10
Negative
100DMA
19.46
Negative
200DMA
23.67
Negative
Market Momentum
MACD
-0.26
Positive
RSI
45.65
Neutral
STOCH
45.95
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 17.35 is below the 20-day moving average (MA) of 17.92, below the 50-day MA of 18.10, and below the 200-day MA of 23.67, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 45.95 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$597.86M49.1910.86%13.13%164.29%
73
Outperform
$344.82M20.5821.33%3.98%-6.47%-9.76%
72
Outperform
$331.47M15.439.61%4.27%1.63%7162.39%
67
Neutral
£2.85B10.424.69%215.06%2.73%-20.56%
63
Neutral
$127.33M30.892.77%1.78%11.49%-66.66%
60
Neutral
$254.00M6.6912.58%2.88%-0.59%190.35%
44
Neutral
$125.19M-9.30%1.15%-12.36%-569.47%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PKOH
Park-Ohio Holdings
17.35
-12.84
-42.53%
GHM
Graham
54.09
21.13
64.11%
HURC
Hurco Companies
19.76
1.62
8.93%
OFLX
Omega Flex
34.16
-17.16
-33.44%
TWIN
Twin Disc
9.00
-5.70
-38.78%
LXFR
Luxfer
11.94
-0.74
-5.84%

Park-Ohio Holdings Corporate Events

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: Jul 19, 2025