Park-Ohio Holdings (PKOH) AI Stock Analysis

• Market Cap: $284.59M
• Dividend Yield: 2.5%
• Average Volume (3M): 27.93K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.14
• Revenue Growth: -0.59%
• EPS Growth: 188.79%
• 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: 27,604
• 30 Day Avg. Volume: 27,929
• PEG Ratio: 0.08
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 86.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Park-Ohio Holdings has a balanced stock score, reflecting a mix of strengths and challenges. The company's improved profitability and attractive valuation are countered by leverage concerns and stagnant revenue growth. The technical analysis suggests a neutral trend, while the earnings call highlighted areas of both progress and difficulty. Investors should consider the potential for recovery alongside the risks associated with financial leverage and modest growth.

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 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 shows mixed financial performance. Improved profitability is offset by stagnant revenue growth and high leverage. Cash flow management is improving, but free cash flow generation needs enhancement.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.66B	1.66B	1.49B	1.44B	1.30B
	Gross Profit
281.40M	271.40M	210.50M	156.10M	168.60M
	EBIT
86.60M	89.90M	59.40M	-12.50M	23.00M
	EBITDA
125.40M	118.30M	89.60M	62.50M	60.60M
	Net Income Common Stockholders
31.80M	7.80M	11.40M	-26.00M	-4.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.10M	54.80M	58.20M	54.10M	55.00M
	Total Assets
1.37B	1.34B	1.44B	1.36B	1.30B
	Total Debt
667.20M	687.80M	720.90M	665.70M	599.00M
	Net Debt
614.10M	633.00M	662.70M	611.60M	544.00M
	Total Liabilities
1.03B	1.05B	1.17B	1.04B	942.60M
	Stockholders Equity
330.80M	280.40M	256.50M	314.10M	344.20M
Cash Flow		Free Cash Flow
3.60M	22.30M	-53.50M	-74.40M	43.00M
	Operating Cash Flow
35.00M	50.50M	-26.60M	-43.30M	69.30M
	Investing Cash Flow
-30.90M	-15.80M	-40.70M	-16.20M	-24.90M
	Financing Cash Flow
1.60M	-39.00M	84.60M	59.90M	-47.30M

Park-Ohio Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.99
• 50DMA: Negative
• 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 Neutral. The current price of 19.99 is above the 20-day moving average (MA) of 19.59, below the 50-day MA of 20.75, and below the 200-day MA of 26.30, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 48.87 is Neutral, neither overbought nor oversold. The STOCH value of 56.97 is Neutral, 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
GHM	77 Outperform	$393.16M	44.79	8.41%	―	11.22%	229.35%
LXFR	72 Outperform	$331.47M	15.43	9.61%	4.27%	1.63%	7162.39%
OFLX	70 Outperform	$333.11M	19.18	21.33%	4.12%	-6.47%	-9.76%
TWIN	70 Outperform	$102.43M	24.85	2.77%	2.21%	11.49%	-66.66%
PKOH	65 Neutral	$284.59M	7.53	12.58%	2.50%	-0.59%	188.79%
Sector *	64 Neutral	$4.38B	12.03	5.25%	249.91%	4.11%	-11.02%
HURC	45 Neutral	$100.83M	―	-9.12%	1.03%	-13.86%	-1497.93%