Park Electrochemical (PKE) AI Stock Analysis

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Park Electrochemical

(NYSE:PKE)

Rating:74Outperform

Price Target:―

Park Electrochemical's overall stock score of 74 reflects its strong financial performance and potential growth within the Aerospace & Defense industry, supported by low leverage and solid profit margins. However, technical analysis shows a mixed outlook, and the high P/E ratio suggests overvaluation concerns. Recent earnings call details reveal operational challenges, yet the company's strategic focus on aerospace and defense markets offers optimism for future growth.

Park Electrochemical (PKE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$277.56M

Dividend Yield3.59%

Average Volume (3M)49.78K

Price to Earnings (P/E)48.0

Beta (1Y)0.78

Revenue Growth15.45%

EPS Growth-22.33%

CountryUS

Employees123

SectorIndustrials

Sector Strength90

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.06

Shares Outstanding19,925,243

10 Day Avg. Volume47,684

30 Day Avg. Volume49,783

Financial Highlights & Ratios

PEG Ratio6.17

Price to Book (P/B)2.47

Price to Sales (P/S)0.00

P/FCF Ratio30.67

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Park Electrochemical Business Overview & Revenue Model

Company DescriptionPark Electrochemical Corp. operates in the advanced composite materials industry, serving sectors such as aerospace, defense, and industrial markets. The company specializes in designing, manufacturing, and distributing high-performance composite materials, which are used in a variety of applications including aircraft structures and components.

How the Company Makes MoneyPark Electrochemical generates revenue primarily through the sale of its advanced composite materials. These materials are sold to aerospace manufacturers, defense contractors, and industrial companies who use them in the production of various high-performance products. The company's revenue streams are largely driven by contracts and long-term supply agreements with key players in these sectors. Additionally, Park Electrochemical may benefit from strategic partnerships and collaborations that enhance its market reach and technological capabilities.

Park Electrochemical Financial Statement Overview

Summary

Park Electrochemical presents a robust financial profile with strong profitability and stability. The company demonstrates efficient operations with solid profit margins and low leverage, positioning it well within the Aerospace & Defense industry. Despite some fluctuations in net income and capital expenditures, the company maintains a healthy financial position, suggesting continued growth potential.

Income Statement

Very Positive

Park Electrochemical shows a strong performance in its income statement with a gross profit margin of approximately 27.9% for TTM, and a net profit margin of 11.9%. The company has experienced revenue growth from the previous annual period, indicating a positive trajectory. EBIT and EBITDA margins are also robust, showcasing efficient operations and profitability. However, the slight decline in net income from the previous year suggests room for improvement in cost management.

Balance Sheet

Very Positive

The balance sheet is solid with an impressive equity ratio of 86.4% for TTM, indicating a strong equity position relative to total assets. The debt-to-equity ratio is low at 0.003, reflecting minimal leverage and financial stability. Return on equity is slightly lower at 6.8%, suggesting room to enhance returns for shareholders. Overall, the company's balance sheet demonstrates financial strength and low risk.

Cash Flow

Positive

The cash flow statement reveals positive free cash flow growth and a healthy operating cash flow to net income ratio of 1.24. The free cash flow to net income ratio is also strong at 1.18, indicating efficient cash generation relative to net income. However, the volatility in capital expenditures over the years poses a potential risk in maintaining consistent free cash flow.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
61.42M	56.00M	54.05M	53.58M	46.28M	60.01M
	Gross Profit
17.14M	16.53M	16.47M	17.92M	13.19M	18.67M
	EBIT
9.12M	8.38M	9.95M	11.41M	7.50M	10.74M
	EBITDA
10.93M	9.89M	11.09M	12.80M	8.65M	12.29M
	Net Income Common Stockholders
7.31M	7.47M	10.73M	8.46M	4.86M	9.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
70.04M	77.21M	105.44M	110.36M	116.54M	122.36M
	Total Assets
124.22M	132.31M	159.33M	160.89M	163.51M	171.79M
	Total Debt
367.00K	135.00K	182.00K	227.00K	119.00K	420.00K
	Net Debt
-12.39M	-6.43M	-105.26M	-110.13M	-116.42M	-121.94M
	Total Liabilities
16.86M	19.39M	43.40M	25.25M	27.57M	30.11M
	Stockholders Equity
107.36M	112.91M	115.93M	135.63M	135.94M	141.68M
Cash Flow		Free Cash Flow
8.62M	3.76M	5.44M	3.83M	5.52M	-1.63M
	Operating Cash Flow
9.04M	4.41M	6.49M	8.20M	13.01M	5.22M
	Investing Cash Flow
13.84M	31.39M	-7.02M	-29.56M	32.96M	-42.51M
	Financing Cash Flow
-14.30M	-33.47M	-8.05M	-7.43M	-9.79M	-28.30M

Park Electrochemical Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price13.55

Price Trends

50DMA

13.33

Positive

100DMA

13.69

Negative

200DMA

13.65

Negative

Market Momentum

MACD

0.15

Negative

RSI

51.94

Neutral

STOCH

65.78

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKE, the sentiment is Neutral. The current price of 13.55 is above the 20-day moving average (MA) of 13.44, above the 50-day MA of 13.33, and below the 200-day MA of 13.65, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 65.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PKE.

Park Electrochemical Risk Analysis

Park Electrochemical disclosed 16 risk factors in its most recent earnings report. Park Electrochemical reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Park Electrochemical Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PKE	74 Outperform	$277.56M	48.03	5.35%	3.59%	15.45%	-22.33%
RBC	73 Outperform	$11.75B	47.75	8.51%	―	4.62%	21.58%
AVT	70 Outperform	$4.27B	14.27	6.42%	2.55%	-10.52%	-42.40%
ENTG	66 Neutral	$11.55B	37.32	8.65%	0.52%	-3.83%	-1.93%
MTX	65 Neutral	$1.89B	11.37	-1.45%	0.72%	-3.82%	-126.04%
Sector *	64 Neutral	$4.46B	11.94	5.17%	249.36%	4.00%	-12.35%
CE	56 Neutral	$5.88B	6.84	-26.94%	2.72%	-5.98%	-183.27%

* Industrials Sector Average

Performance Comparison

PKE

Park Electrochemical

13.72

0.28

2.08%

AVT

Avnet

50.17

-2.47

-4.69%

Celanese

53.56

-96.25

-64.25%

ENTG

Entegris

73.17

-54.66

-42.76%

MTX

Minerals Technologies

58.77

-24.00

-29.00%

RBC

RBC Bearings

359.77

66.92

22.85%

Park Electrochemical Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2025)

% Change Since: -2.10%|

Next Earnings Date:Jul 03, 2025

Earnings Call Sentiment Neutral

The call highlighted strong sales performance and strategic expansions, particularly in defense and missile programs, but also noted challenges with factory utilization and supply chain issues.

Q4-2025 Updates

Positive Updates

Sales and Gross Margin Performance

Park Aerospace's Q4 sales were $16.939 million, exceeding their forecast range of $15.5 million to $16.3 million. The gross margin was 29.3%, which was higher than expected due to strong production.

C2B Fabric Sales

Park sold $4.4 million of C2B fabric in Q4, $500,000 more than predicted, contributing to a total of $7.5 million in fiscal '25, significantly impacting the P&L.

Ablative Material Sales

The company sold $420,000 of ablative materials manufactured with C2B fabric in Q4, contributing over $300,000 to the bottom line.

New Manufacturing Expansion

Park is planning a major new expansion of its manufacturing facilities with an estimated capital budget of $35 million, aiming to support significant new business opportunities in defense and missile programs.

Hypersonic Missile Programs

Park entered into an agreement with a major OEM to license technologies for hypersonic missile programs, making progress with manufacturing trials and testing.

Negative Updates

Underutilization of New Factory

The new factory is being ramped up for future demand but currently contributes to higher costs without capacity needs, affecting the P&L.

International Shipment Issues

Missed shipments during the quarter amounted to $175,000, primarily due to ongoing international shipment issues.

Supply Chain and Tariff Concerns

Ongoing supply chain issues are causing delays in engine deliveries for Airbus, and the impact of tariffs remains uncertain.

Company Guidance

During the Park Aerospace Corp. fourth quarter FY '25 earnings call, the company reported sales of $16.939 million, exceeding their previous estimate range of $15.5 million to $16.3 million. The quarter's gross margin was 29.3%, slightly below their preference for margins above 30%, but considered satisfactory given the sales composition, which included $4.4 million of C2B fabric sold at a small markup. The EBITDA for the quarter fell within the estimated range of $3.3 million to $3.9 million. Production surpassed sales by $1.4 million, contributing approximately $350,000 to the bottom line, and the company successfully rebuilt its inventory levels by about $1 million. The call also highlighted the company's commitment to integrity by avoiding padding their forecasts, and they emphasized ongoing efforts to manage tariff impacts and supply chain challenges, with a focus on future expansion and new business opportunities, particularly in defense and missile programs.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.