Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $297.40M
• Dividend Yield: 2.43%
• Average Volume (3M): 33.58K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 1.37
• Revenue Growth: -2.82%
• EPS Growth: 69.68%
• Country: US
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.75
• Shares Outstanding: 14,395,192
• 10 Day Avg. Volume: 38,751
• 30 Day Avg. Volume: 33,575
• 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: 3.09
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 3.36
• Enterprise Value/Ebitda: 7.92
• 1Y Price Target: $22.00
• Price Target Upside: 7.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $22.00 ▲(7.06% Upside)

Park-Ohio Holdings' overall stock score reflects a balance of strengths and challenges. The company's valuation is attractive, with a low P/E ratio and reasonable dividend yield. Technical indicators show positive momentum. However, financial performance is hindered by high leverage and declining revenue, and the earnings call revealed mixed signals with both positive developments and ongoing challenges.

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 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 Financial Statement Overview

Summary

Park-Ohio Holdings shows stable gross margins and operational efficiency but faces challenges in profitability and cash flow management. High leverage poses financial risks, and recent revenue decline is concerning. The company needs to focus on improving profitability and cash flow generation to enhance financial stability and shareholder value.

Income Statement

Park-Ohio Holdings shows a mixed performance in its income statement. The company has a stable gross profit margin around 16-17% over the years, indicating consistent cost management. However, the net profit margin remains low at around 1.7% for TTM, reflecting challenges in translating revenue into profit. Revenue growth has been negative recently, with a decline of 1.98% in TTM, which is a concern. EBIT and EBITDA margins are moderate, suggesting reasonable operational efficiency but room for improvement.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.88 in TTM, although it has improved from previous years. The return on equity is modest at 7.99%, indicating moderate profitability for shareholders. The equity ratio is not explicitly provided, but the high debt levels suggest potential financial risk. Overall, the balance sheet reflects a need for better capital structure management.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow in TTM despite a significant growth rate improvement. The operating cash flow to net income ratio is low at 0.03, highlighting inefficiencies in cash generation relative to net income. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties. These factors suggest liquidity concerns and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.66B	1.66B	1.49B	1.44B	1.30B
Gross Profit	273.10M	281.40M	271.40M	210.50M	156.10M	168.60M
EBITDA	116.00M	125.40M	118.30M	89.60M	62.50M	60.60M
Net Income	27.80M	31.80M	7.80M	11.40M	-26.00M	-4.80M
Balance Sheet
Total Assets	1.42B	1.37B	1.34B	1.44B	1.36B	1.30B
Cash, Cash Equivalents and Short-Term Investments	45.60M	53.10M	54.80M	58.20M	54.10M	55.00M
Total Debt	709.30M	667.20M	687.80M	720.90M	665.70M	599.00M
Total Liabilities	1.05B	1.03B	1.05B	1.17B	1.04B	942.60M
Stockholders Equity	376.30M	330.80M	280.40M	256.50M	314.10M	344.20M
Cash Flow
Free Cash Flow	-23.40M	-1.60M	22.30M	-53.50M	-74.40M	43.00M
Operating Cash Flow	10.40M	29.80M	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	-2.20M	1.60M	-39.00M	84.60M	59.90M	-47.30M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.55
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 20.55 is below the 20-day moving average (MA) of 21.05, above the 50-day MA of 19.19, and below the 200-day MA of 21.02, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 50.08 is Neutral, neither overbought nor oversold. The STOCH value of 13.45 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PKOH.

Park-Ohio Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXFR	77 Outperform	372.29M	15.40	10.22%	3.77%	5.60%	―
OFLX	71 Outperform	336.54M	19.77	20.27%	4.27%	-4.53%	-11.25%
GHM	70 Outperform	555.38M	41.34	11.23%	―	14.64%	182.19%
TWIN	68 Neutral	200.17M	-96.55	-1.15%	1.19%	15.45%	-117.28%
PKOH	64 Neutral	$297.40M	8.57	11.16%	2.43%	-2.82%	69.68%
HURC	49 Neutral	111.98M	-8.33	-8.02%	―	-6.13%	-6.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Park-Ohio Holdings Corporate Events

Park-Ohio Holdings Issues $350M Senior Secured Notes

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.

Park-Ohio Holdings Amends Credit Facility and Issues Notes

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.