Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $273.49M
• Dividend Yield: 2.66%
• Average Volume (3M): 30.25K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 1.11
• Revenue Growth: -0.59%
• EPS Growth: 190.35%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.66
• Shares Outstanding: 14,229,522
• 10 Day Avg. Volume: 35,880
• 30 Day Avg. Volume: 30,251
• PEG Ratio: -0.09
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.79
• Enterprise Value/Market Cap: 2.97
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.92
• Enterprise Value/Ebitda: 1.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $19.00 ▼(-1.14%Downside)

The overall stock score of 62 reflects the company's stable financial foundation but highlights challenges in profitability and leverage. The stock's valuation suggests potential undervaluation, providing a value opportunity. While technical analysis indicates a bearish trend, the earnings call and corporate events show potential for future growth and stability.

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 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 Financial Statement Overview

Summary

Park-Ohio Holdings has a stable revenue base with some profitability challenges. The net profit margin is low, and the debt-to-equity ratio remains high, indicating leverage risks. Cash flow is mixed, with positive operating cash flow but negative free cash flow, suggesting liquidity issues.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	1.66B	1.66B	1.49B	1.44B	1.30B
Gross Profit	278.10M	281.40M	271.40M	210.50M	156.10M	168.60M
EBITDA	120.70M	125.40M	118.30M	89.60M	62.50M	60.60M
Net Income	30.50M	31.80M	7.80M	11.40M	-26.00M	-4.80M
Balance Sheet
Total Assets	1.41B	1.37B	1.34B	1.44B	1.36B	1.30B
Cash, Cash Equivalents and Short-Term Investments	54.50M	53.10M	54.80M	58.20M	54.10M	55.00M
Total Debt	695.70M	667.20M	687.80M	720.90M	665.70M	599.00M
Total Liabilities	1.06B	1.03B	1.05B	1.17B	1.04B	942.60M
Stockholders Equity	349.20M	330.80M	280.40M	256.50M	314.10M	344.20M
Cash Flow
Free Cash Flow	-8.80M	3.60M	22.30M	-53.50M	-74.40M	43.00M
Operating Cash Flow	26.30M	35.00M	50.50M	-26.60M	-43.30M	69.30M
Investing Cash Flow	-23.60M	-30.90M	-15.80M	-40.70M	-16.20M	-24.90M
Financing Cash Flow	-3.90M	1.60M	-39.00M	84.60M	59.90M	-47.30M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.22
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.22 is above the 20-day moving average (MA) of 17.73, above the 50-day MA of 18.71, and below the 200-day MA of 24.52, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 59.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.06 is Neutral, 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
OFLX	76 Outperform	$367.13M	21.14	21.33%	3.79%	-6.47%	-9.76%
LXFR	76 Outperform	$341.28M	15.89	9.61%	4.15%	1.63%	7162.39%
GHM	74 Outperform	$577.53M	47.64	10.86%	―	13.13%	164.29%
Sector *	68 Neutral	£2.93B	10.19	8.40%	3.47%	2.87%	-9.95%
TWIN	65 Neutral	$133.98M	32.50	2.77%	1.69%	11.49%	-66.66%
PKOH	62 Neutral	$273.49M	7.20	12.58%	2.66%	-0.59%	190.35%
HURC	48 Neutral	$130.01M	―	-9.30%	1.15%	-12.36%	-569.47%

Park-Ohio Holdings Corporate Events

Park-Ohio Holdings Amends Equity Compensation Plan

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.

Park-Ohio Holdings Elects Directors at Annual Meeting

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.