PARK-OHIO HOLDINGS CORP (PKOH) Stock Fundamental Analysis
NASDAQ:PKOH - Nasdaq - US7006661000 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to PKOH. PKOH was compared to 128 industry peers in the Machinery industry. Both the profitability and financial health of PKOH have multiple concerns. PKOH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PKOH was profitable.
In the past year PKOH had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PKOH reported negative net income in multiple years.
In multiple years PKOH reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.16%, PKOH is in line with its industry, outperforming 40.63% of the companies in the same industry.
PKOH has a Return On Equity of 8.73%. This is comparable to the rest of the industry: PKOH outperforms 50.00% of its industry peers.
PKOH has a Return On Invested Capital of 6.78%. This is comparable to the rest of the industry: PKOH outperforms 48.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKOH is below the industry average of 10.71%.
The last Return On Invested Capital (6.78%) for PKOH is above the 3 year average (6.45%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 8.73% | ||
| ROIC | 6.78% |
ROA(3y)0.64%
ROA(5y)-0.05%
ROE(3y)2.29%
ROE(5y)-0.47%
ROIC(3y)6.45%
ROIC(5y)4.66%
1.3 Margins
Looking at the Profit Margin, with a value of 1.86%, PKOH is doing worse than 60.94% of the companies in the same industry.
In the last couple of years the Profit Margin of PKOH has declined.
Looking at the Operating Margin, with a value of 5.15%, PKOH is doing worse than 60.94% of the companies in the same industry.
PKOH's Operating Margin has been stable in the last couple of years.
PKOH has a Gross Margin of 16.92%. This is in the lower half of the industry: PKOH underperforms 78.91% of its industry peers.
PKOH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.15% | ||
| PM (TTM) | 1.86% | ||
| GM | 16.92% |
OM growth 3Y46.11%
OM growth 5Y-0.08%
PM growth 3YN/A
PM growth 5Y-4.25%
GM growth 3Y6.84%
GM growth 5Y0.78%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PKOH is destroying value.
The number of shares outstanding for PKOH has been increased compared to 1 year ago.
PKOH has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PKOH has an improved debt to assets ratio.
2.2 Solvency
PKOH has an Altman-Z score of 2.21. This is not the best score and indicates that PKOH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.21, PKOH is doing worse than 66.41% of the companies in the same industry.
A Debt/Equity ratio of 1.84 is on the high side and indicates that PKOH has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.84, PKOH is doing worse than 86.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.75
WACC9%
2.3 Liquidity
PKOH has a Current Ratio of 2.41. This indicates that PKOH is financially healthy and has no problem in meeting its short term obligations.
PKOH's Current ratio of 2.41 is fine compared to the rest of the industry. PKOH outperforms 61.72% of its industry peers.
PKOH has a Quick Ratio of 1.25. This is a normal value and indicates that PKOH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.25, PKOH is in line with its industry, outperforming 53.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.54% over the past year.
The Earnings Per Share has been decreasing by -0.71% on average over the past years.
The Revenue has decreased by -0.59% in the past year.
Measured over the past years, PKOH shows a small growth in Revenue. The Revenue has been growing by 0.46% on average per year.
EPS 1Y (TTM)6.54%
EPS 3YN/A
EPS 5Y-0.71%
EPS Q2Q%-22.35%
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y9.05%
Revenue growth 5Y0.46%
Sales Q2Q%-2.92%
3.2 Future
Based on estimates for the next years, PKOH will show a small growth in Earnings Per Share. The EPS will grow by 0.01% on average per year.
Based on estimates for the next years, PKOH will show a small growth in Revenue. The Revenue will grow by 6.77% on average per year.
EPS Next Y-8.45%
EPS Next 2Y0.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.23%
Revenue Next 2Y1.34%
Revenue Next 3Y7.62%
Revenue Next 5Y6.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.22, the valuation of PKOH can be described as very cheap.
PKOH's Price/Earnings ratio is rather cheap when compared to the industry. PKOH is cheaper than 99.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, PKOH is valued rather cheaply.
PKOH is valuated cheaply with a Price/Forward Earnings ratio of 4.95.
99.22% of the companies in the same industry are more expensive than PKOH, based on the Price/Forward Earnings ratio.
PKOH is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 4.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKOH indicates a rather cheap valuation: PKOH is cheaper than 88.28% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.01%
EPS Next 3YN/A
5. Dividend
5.1 Amount
PKOH has a Yearly Dividend Yield of 2.80%.
PKOH's Dividend Yield is rather good when compared to the industry average which is at 1.88. PKOH pays more dividend than 89.84% of the companies in the same industry.
PKOH's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
5.2 History
The dividend of PKOH decreases each year by -0.96%.
PKOH has paid a dividend for at least 10 years, which is a reliable track record.
PKOH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.96%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
24.26% of the earnings are spent on dividend by PKOH. This is a low number and sustainable payout ratio.
DP24.26%
EPS Next 2Y0.01%
EPS Next 3YN/A
17.86
-0.05 (-0.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners53.1%
Inst Owner Change-0.02%
Ins Owners25.61%
Ins Owner Change-1.25%
Market Cap254.15M
Analysts43.33
Price TargetN/A
Short Float %0.9%
Short Ratio3.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend0.53
Dividend Growth(5Y)-0.96%
DP24.26%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.28%
Min EPS beat(2)-22.51%
Max EPS beat(2)5.95%
EPS beat(4)3
Avg EPS beat(4)1.92%
Min EPS beat(4)-22.51%
Max EPS beat(4)17.87%
EPS beat(8)6
Avg EPS beat(8)3.95%
EPS beat(12)8
Avg EPS beat(12)-4.81%
EPS beat(16)9
Avg EPS beat(16)-63.44%
Revenue beat(2)0
Avg Revenue beat(2)-6.36%
Min Revenue beat(2)-6.54%
Max Revenue beat(2)-6.18%
Revenue beat(4)0
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-6.68%
Max Revenue beat(4)-5.63%
Revenue beat(8)2
Avg Revenue beat(8)-3.77%
Revenue beat(12)3
Avg Revenue beat(12)-5.31%
Revenue beat(16)4
Avg Revenue beat(16)-7.29%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.49%
EPS NY rev (1m)-0.77%
EPS NY rev (3m)-13.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.22 | ||
| Fwd PE | 4.95 | ||
| P/S | 0.15 | ||
| P/FCF | N/A | ||
| P/OCF | 12.16 | ||
| P/B | 0.73 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)3.42
EY19.15%
EPS(NY)3.61
Fwd EY20.22%
FCF(TTM)-1
FCFYN/A
OCF(TTM)1.47
OCFY8.22%
SpS115.53
BVpS24.54
TBVpS11.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 8.73% | ||
| ROCE | 8.05% | ||
| ROIC | 6.78% | ||
| ROICexc | 7.15% | ||
| ROICexgc | 8.78% | ||
| OM | 5.15% | ||
| PM (TTM) | 1.86% | ||
| GM | 16.92% | ||
| FCFM | N/A |
ROA(3y)0.64%
ROA(5y)-0.05%
ROE(3y)2.29%
ROE(5y)-0.47%
ROIC(3y)6.45%
ROIC(5y)4.66%
ROICexc(3y)6.82%
ROICexc(5y)4.93%
ROICexgc(3y)8.5%
ROICexgc(5y)6.15%
ROCE(3y)7.65%
ROCE(5y)5.53%
ROICexcg growth 3Y59.47%
ROICexcg growth 5Y-0.06%
ROICexc growth 3Y59.67%
ROICexc growth 5Y0.35%
OM growth 3Y46.11%
OM growth 5Y-0.08%
PM growth 3YN/A
PM growth 5Y-4.25%
GM growth 3Y6.84%
GM growth 5Y0.78%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.84 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.44 | ||
| Cap/Depr | 104.78% | ||
| Cap/Sales | 2.14% | ||
| Interest Coverage | 1.84 | ||
| Cash Conversion | 17.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.21 |
F-Score6
WACC9%
ROIC/WACC0.75
Cap/Depr(3y)90.49%
Cap/Depr(5y)83.17%
Cap/Sales(3y)1.8%
Cap/Sales(5y)1.78%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.54%
EPS 3YN/A
EPS 5Y-0.71%
EPS Q2Q%-22.35%
EPS Next Y-8.45%
EPS Next 2Y0.01%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.59%
Revenue growth 3Y9.05%
Revenue growth 5Y0.46%
Sales Q2Q%-2.92%
Revenue Next Year-1.23%
Revenue Next 2Y1.34%
Revenue Next 3Y7.62%
Revenue Next 5Y6.77%
EBIT growth 1Y-8.34%
EBIT growth 3Y59.34%
EBIT growth 5Y0.39%
EBIT Next Year49.37%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y72.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y188.19%
OCF growth 3YN/A
OCF growth 5Y-14.1%