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.

Snowflake

Fundamentals

Very undervalued with adequate balance sheet.


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


Market Performance


7 Day Return

0.06%

NasdaqGS:PKOH

-1.0%

US Machinery

-0.02%

US Market


1 Year Return

-17.8%

NasdaqGS:PKOH

-5.4%

US Machinery

1.6%

US Market

PKOH underperformed the Machinery industry which returned -4.3% over the past year.

PKOH underperformed the Market in United States of America which returned 1.9% over the past year.


Share holder returns

PKOHIndustryMarket
7 Day0.06%-1.0%-0.02%
30 Day12.8%7.1%2.7%
90 Day-1.2%-1.0%1.4%
1 Year-16.5%-17.8%-3.4%-5.4%3.8%1.6%
3 Year-11.3%-14.9%49.2%39.5%45.2%35.8%
5 Year-30.6%-35.2%55.3%36.1%61.8%44.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Park-Ohio Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Park-Ohio Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Park-Ohio Holdings is good value based on earnings compared to the US Machinery industry average.

Park-Ohio Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Park-Ohio Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Park-Ohio Holdings is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

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

21.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Park-Ohio Holdings's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Park-Ohio Holdings's earnings are expected to grow significantly at over 20% yearly.

Park-Ohio Holdings's revenue growth is positive but not above the United States of America market average.

Park-Ohio Holdings's earnings growth is expected to exceed the United States of America market average.

Park-Ohio Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Park-Ohio Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

-0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Park-Ohio Holdings's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Park-Ohio Holdings's 1-year earnings growth exceeds its 5-year average (18.3% vs -0.2%)

Park-Ohio Holdings's earnings growth has not exceeded the US Machinery industry average in the past year (18.3% vs 18.7%).


Return on Equity

Park-Ohio Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Park-Ohio Holdings used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Park-Ohio Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Park-Ohio Holdings's financial position?


Financial Position Analysis

Park-Ohio Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Park-Ohio Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Park-Ohio Holdings's level of debt (172.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (213.3% vs 172.9% today).

Debt is not well covered by operating cash flow (10.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).


Balance Sheet

High level of physical assets or inventory.

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?

1.58%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Park-Ohio Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Park-Ohio Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).

Whilst dividend payments have been stable, Park-Ohio Holdings has been paying a dividend for less than 10 years.

Park-Ohio Holdings has only been paying a dividend for 5 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are thoroughly covered by earnings (7.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

4.3yrs

Average management tenure


CEO

Matthew Crawford (49yo)

1.3yrs

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

Matthew's remuneration is higher than average for companies of similar size in United States of America.

Matthew's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.3yrs

Average Tenure

58yo

Average Age

The tenure for the Park-Ohio Holdings management team is about average.


Board Age and Tenure

11.8yrs

Average Tenure

69.5yo

Average Age

The average tenure for the Park-Ohio Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Park-Ohio Holdings individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$130,72028 Aug 19
Ronna Romney
EntityIndividual
Role
Member of the Board of Directors
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
Director
Shares2,195
Max PriceUS$33.07
SellUS$66,80013 Dec 18
Matthew Crawford
EntityIndividual
Role
Chief Executive Officer
President
Shares2,000
Max PriceUS$33.40
SellUS$46,84611 Dec 18
Matthew Crawford
EntityIndividual
Role
Chief Executive Officer
President
Shares1,400
Max PriceUS$33.59

Ownership Breakdown


Management Team

  • Matthew Crawford (49yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.12m
  • Patrick Fogarty (58yo)

    VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$1.32m
  • Robert Vilsack (58yo)

    Chief Legal Officer

    • Tenure: 17.7yrs
    • Compensation: US$1.22m

Board Members

  • John Grampa (71yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$176.23k
  • Matthew Crawford (49yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$6.12m
  • Patrick Auletta (68yo)

    Director

    • Tenure: 15.7yrs
    • Compensation: US$158.23k
  • Dan Moore (79yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$158.23k
  • Jim Wert (72yo)

    Vice Chairman & Lead Director

    • Tenure: 17.7yrs
    • Compensation: US$177.23k
  • Steve Rosen (48yo)

    Director

    • Tenure: 7.8yrs
    • Compensation: US$166.23k
  • Ronna Romney (75yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$167.23k
  • Hoby Hanna (47yo)

    Director

    • Tenure: 1yrs
    • 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$386.357m
  • Shares outstanding: 12.19m
  • 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 c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 23:39
End of Day Share Price2019/09/18 00:00
Earnings2019/06/30
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.