NasdaqGS:PKOH

Stock Analysis Report

Executive Summary

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.

Rewards

Trading at 45.1% below its fair value

Earnings are forecast to grow 16.86% per year

Earnings have grown 0.3% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record



Snowflake Analysis

Very undervalued with proven track record.


Similar Companies

Share Price & News

How has Park-Ohio Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PKOH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

PKOH

1.7%

US Machinery

1.7%

US Market


1 Year Return

11.6%

PKOH

18.6%

US Machinery

23.6%

US Market

Return vs Industry: PKOH underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: PKOH underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PKOHIndustryMarket
7 Day-3.3%1.7%1.7%
30 Day3.5%1.0%3.5%
90 Day10.5%9.8%11.7%
1 Year13.4%11.6%20.8%18.6%26.2%23.6%
3 Year-14.5%-18.0%46.2%36.8%53.2%43.3%
5 Year-33.8%-38.3%78.0%56.5%75.5%56.1%

Price Volatility Vs. Market

How volatile is Park-Ohio Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Park-Ohio Holdings undervalued compared to its fair value and its price relative to the market?

45.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PKOH ($35.71) is trading below our estimate of fair value ($65.02)

Significantly Below Fair Value: PKOH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PKOH is good value based on its PE Ratio (9.5x) compared to the Machinery industry average (23.4x).

PE vs Market: PKOH is good value based on its PE Ratio (9.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PKOH is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: PKOH is good value based on its PB Ratio (1.4x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is Park-Ohio Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PKOH's forecast earnings growth (16.9% per year) is above the savings rate (1.7%).

Earnings vs Market: PKOH's earnings (16.9% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: PKOH's earnings are forecast to grow, but not significantly.

Revenue vs Market: PKOH's revenue (4.7% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: PKOH's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PKOH's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Park-Ohio Holdings performed over the past 5 years?

0.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PKOH has high quality earnings.

Growing Profit Margin: PKOH's current net profit margins (2.8%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: PKOH's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: PKOH's earnings growth over the past year (2.7%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: PKOH earnings growth over the past year (2.7%) underperformed the Machinery industry 9.6%.


Return on Equity

High ROE: PKOH's Return on Equity (14.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Park-Ohio Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PKOH's short term assets ($746.2M) exceed its short term liabilities ($319.5M).

Long Term Liabilities: PKOH's short term assets ($746.2M) exceed its long term liabilities ($666.0M).


Debt to Equity History and Analysis

Debt Level: PKOH's debt to equity ratio (167.8%) is considered high.

Reducing Debt: PKOH's debt to equity ratio has reduced from 196.4% to 167.8% over the past 5 years.

Debt Coverage: PKOH's debt is not well covered by operating cash flow (11.9%).

Interest Coverage: PKOH's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: PKOH has a high level of physical assets or inventory.

Debt Coverage by Assets: PKOH's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Park-Ohio Holdings's current dividend yield, its reliability and sustainability?

1.44%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years1.4%

Current dividend yield vs market & industry

Notable Dividend: PKOH's dividend (1.4%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PKOH's dividend (1.4%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, PKOH has been paying a dividend for less than 10 years.

Growing Dividend: PKOH has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (13.3%), PKOH's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PKOH's dividends in 3 years are forecast to be thoroughly covered by earnings (10.3% payout ratio).


Next Steps

Management

What is the CEO of Park-Ohio Holdings's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average management tenure


CEO

Matthew Crawford (49yo)

1.7yrs

Tenure

US$6,124,327

Compensation

Mr. Matthew V. Crawford is a Strategic Advisor, Founding Investor and Executive Advisor at Resilience Capital Partners LLC and focus on industrial sector. Mr. Crawford serves as President at Park-Ohio Hold ...


CEO Compensation Analysis

Compensation vs Market: Matthew's total compensation ($USD6.12M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Matthew's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.6yrs

Average Tenure

58yo

Average Age

Experienced Management: PKOH's management team is considered experienced (4.6 years average tenure).


Board Age and Tenure

12.1yrs

Average Tenure

69.5yo

Average Age

Experienced Board: PKOH's board of directors are seasoned and experienced ( 12.1 years average tenure).


Insider Trading

Insider Buying: PKOH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$33,45618 Dec 19
Patrick Auletta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$33.46
SellUS$420,72314 Nov 19
Matthew Crawford
EntityIndividual
Role
Chief Executive Officer
President
Shares12,651
Max PriceUS$33.41
SellUS$165,44012 Nov 19
Matthew Crawford
EntityIndividual
Role
Chief Executive Officer
President
Shares5,000
Max PriceUS$33.30
SellUS$130,72028 Aug 19
Ronna Romney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$27.10
BuyUS$69,05713 Aug 19
James Wert
EntityIndividual
Role
Vice Chairman
Vice Chairman & Lead Director
Shares2,500
Max PriceUS$27.65
BuyUS$125,41414 Jun 19
Edward Crawford
EntityIndividual
Shares4,000
Max PriceUS$31.41
BuyUS$233,83612 Jun 19
Edward Crawford
EntityIndividual
Shares7,581
Max PriceUS$31.00
BuyUS$375,45411 Jun 19
Edward Crawford
EntityIndividual
Shares12,532
Max PriceUS$30.38
SellUS$72,41920 Mar 19
Ronna Romney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,195
Max PriceUS$33.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Matthew Crawford (49yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$6.12m
  • Patrick Fogarty (58yo)

    VP & CFO

    • Tenure: 4.6yrs
    • Compensation: US$1.32m
  • Robert Vilsack (58yo)

    Chief Legal Officer

    • Tenure: 18yrs
    • Compensation: US$1.22m

Board Members

  • John Grampa (71yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$176.23k
  • Matthew Crawford (49yo)

    President

    • Tenure: 1.7yrs
    • Compensation: US$6.12m
  • Patrick Auletta (68yo)

    Independent Director

    • Tenure: 16yrs
    • Compensation: US$158.23k
  • Dan Moore (79yo)

    Independent Director

    • Tenure: 16.7yrs
    • Compensation: US$158.23k
  • Jim Wert (72yo)

    Vice Chairman & Lead Director

    • Tenure: 18yrs
    • Compensation: US$177.23k
  • Steve Rosen (48yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$166.23k
  • Ronna Romney (75yo)

    Independent Director

    • Tenure: 19yrs
    • Compensation: US$167.23k
  • Hoby Hanna (47yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$72.70k

Company Information

Park-Ohio Holdings Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Park-Ohio Holdings Corp.
  • Ticker: PKOH
  • Exchange: NasdaqGS
  • Founded: 1907
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$424.641m
  • Shares outstanding: 12.20m
  • Website: https://www.pkoh.com

Number of Employees


Location

  • Park-Ohio Holdings Corp.
  • 6065 Parkland Boulevard
  • Cleveland
  • Ohio
  • 44124
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PKOHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972

Biography

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. The company’s 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, including 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, and wheel hardware. The company’s 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; and supplies aluminum components. The company’s 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 railcar center plates and draft lugs. Park-Ohio Holdings Corp. was founded in 1907 and is headquartered in Cleveland, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/20 23:45
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.