Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $265.52M
• Dividend Yield: 2.63%
• Average Volume (3M): 27.74K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 1.11
• Revenue Growth: -0.59%
• EPS Growth: 190.35%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 0.66
• Shares Outstanding: 14,229,522
• 10 Day Avg. Volume: 27,207
• 30 Day Avg. Volume: 27,737
• PEG Ratio: -1.34
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -31.84
• Enterprise Value/Market Cap: 3.47
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 1.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $20.00 ▲( 7.18% Upside)

Park-Ohio Holdings' overall stock score reflects a mixed financial performance with significant leverage and stagnant revenue growth. Despite attractive valuation metrics, technical indicators suggest bearish momentum. Positive corporate developments and strategic improvements provide some optimism for future performance.

Park-Ohio Holdings Business Overview & Revenue Model

Company Description

Park-Ohio Holdings Corp. (PKOH) is a diversified industrial supply chain logistics and manufacturing business headquartered in Cleveland, Ohio. The company operates through three primary segments: Supply Technologies, Assembly Components, and Engineered Products. Park-Ohio provides a wide range of products and services, including supply chain management services, precision machined and assembled components, and manufacturing of engineered products for various industrial markets.

How the Company Makes Money

Park-Ohio Holdings makes money through its three main business segments. The Supply Technologies segment generates revenue by providing supply chain management services, focusing on inventory management, logistics, and distribution of industrial components to a diverse customer base. The Assembly Components segment earns income by manufacturing and selling precision machined and assembled components, serving industries such as automotive, aerospace, and industrial equipment. The Engineered Products segment contributes to revenue by designing and producing custom-engineered products, including induction heating systems and aluminum products, for various industrial applications. Key revenue streams include long-term contracts with industrial manufacturers and partnerships with suppliers to optimize supply chain operations. The company leverages its comprehensive service offerings and global presence to maintain competitive advantages and drive growth.

Park-Ohio Holdings Financial Statement Overview

Summary

Park-Ohio Holdings exhibits a mixed financial position. While profitability has shown improvement, growth remains an issue. The company is heavily leveraged, posing potential risks in volatile conditions. Cash flow management is improving, but further enhancement in free cash flow generation is needed. Investors should monitor revenue growth and leverage reduction closely.

Income Statement

Park-Ohio Holdings has shown a mixed performance in terms of profitability and growth. The gross profit margin has improved significantly from previous years. However, both the EBIT and EBITDA margins are relatively low, indicating operational challenges. The net profit margin has improved, showing a positive trend in net income, but the revenue growth rate remains stagnant, suggesting limited top-line expansion.

Balance Sheet

The company's balance sheet indicates moderate financial health with a relatively high debt-to-equity ratio, reflecting significant leverage. Return on Equity (ROE) has shown improvement, suggesting better utilization of equity. However, the equity ratio is moderate, indicating that a substantial portion of assets is financed through debt, which could pose risks if not managed effectively.

Cash Flow

Park-Ohio Holdings has managed to improve its cash flow situation with a positive free cash flow in the latest period, indicating better cash management. The operating cash flow to net income ratio suggests efficient conversion of earnings into cash. However, the free cash flow to net income ratio is low, implying that not all net income is translating into free cash flow.

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
210.00M	281.40M	271.40M	210.50M	156.10M	168.60M
	EBIT
82.70M	86.60M	89.90M	59.40M	-12.50M	23.00M
	EBITDA
110.40M	125.40M	118.30M	89.60M	62.50M	60.60M
	Net Income Common Stockholders
30.50M	31.80M	7.80M	11.40M	-26.00M	-4.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
54.50M	53.10M	54.80M	58.20M	54.10M	55.00M
	Total Assets
1.41B	1.37B	1.34B	1.44B	1.36B	1.30B
	Total Debt
695.70M	667.20M	687.80M	720.90M	665.70M	599.00M
	Net Debt
641.20M	614.10M	633.00M	662.70M	611.60M	544.00M
	Total Liabilities
696.20M	1.03B	1.05B	1.17B	1.04B	942.60M
	Stockholders Equity
354.80M	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
-24.20M	1.60M	-39.00M	84.60M	59.90M	-47.30M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 18.66 is below the 20-day moving average (MA) of 19.83, below the 50-day MA of 20.28, and below the 200-day MA of 25.95, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKOH.

Park-Ohio Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	77 Outperform	$400.90M	44.09	8.41%	―	11.22%	229.35%
OFLX	71 Outperform	$325.95M	18.77	21.33%	4.14%	-6.47%	-9.76%
LXFR	71 Outperform	$305.32M	14.22	9.61%	4.47%	1.63%	7162.39%
TWIN	67 Neutral	$102.15M	24.78	2.77%	2.18%	11.49%	-66.66%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%
PKOH	63 Neutral	$265.52M	6.99	12.58%	2.63%	-0.59%	190.35%
HURC	48 Neutral	$97.26M	―	-9.12%	1.07%	-13.86%	-1497.93%

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.