PARK-OHIO HOLDINGS CORP (PKOH) Stock Fundamental Analysis
NASDAQ:PKOH - Nasdaq - US7006661000 - Common Stock - Currency: USD
Overall PKOH gets a fundamental rating of 4 out of 10. We evaluated PKOH against 129 industry peers in the Machinery industry. PKOH may be in some trouble as it scores bad on both profitability and health. PKOH scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
PKOH had positive earnings in the past year.
PKOH had a positive operating cash flow in the past year.
In multiple years PKOH reported negative net income over the last 5 years.
In multiple years PKOH reported negative operating cash flow during the last 5 years.
1.2 Ratios
PKOH's Return On Assets of 1.27% is on the low side compared to the rest of the industry. PKOH is outperformed by 62.40% of its industry peers.
PKOH has a Return On Equity (5.30%) which is comparable to the rest of the industry.
PKOH has a Return On Invested Capital of 7.02%. This is comparable to the rest of the industry: PKOH outperforms 54.40% of its industry peers.
PKOH had an Average Return On Invested Capital over the past 3 years of 4.31%. This is significantly below the industry average of 11.00%.
The 3 year average ROIC (4.31%) for PKOH is below the current ROIC(7.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 5.3% | ||
| ROIC | 7.02% |
ROA(3y)-0.74%
ROA(5y)0.07%
ROE(3y)-3.55%
ROE(5y)-0.09%
ROIC(3y)4.31%
ROIC(5y)4.37%
1.3 Margins
With a Profit Margin value of 1.07%, PKOH is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
PKOH's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.57%, PKOH is not doing good in the industry: 60.80% of the companies in the same industry are doing better.
PKOH's Operating Margin has been stable in the last couple of years.
PKOH's Gross Margin of 16.96% is on the low side compared to the rest of the industry. PKOH is outperformed by 79.20% of its industry peers.
In the last couple of years the Gross Margin of PKOH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.57% | ||
| PM (TTM) | 1.07% | ||
| GM | 16.96% |
OM growth 3Y35.47%
OM growth 5Y-1.2%
PM growth 3YN/A
PM growth 5Y-32%
GM growth 3Y4.46%
GM growth 5Y-0.03%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PKOH is destroying value.
PKOH has more shares outstanding than it did 1 year ago.
PKOH has more shares outstanding than it did 5 years ago.
PKOH has a worse debt/assets ratio than last year.
2.2 Solvency
PKOH has an Altman-Z score of 2.29. 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.
The Altman-Z score of PKOH (2.29) is comparable to the rest of the industry.
The Debt to FCF ratio of PKOH is 150.29, which is on the high side as it means it would take PKOH, 150.29 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 150.29, PKOH is not doing good in the industry: 70.40% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.94 is on the high side and indicates that PKOH has dependencies on debt financing.
PKOH has a Debt to Equity ratio of 1.94. This is amonst the worse of the industry: PKOH underperforms 89.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 150.29 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.76
WACC9.24%
2.3 Liquidity
A Current Ratio of 2.45 indicates that PKOH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.45, PKOH is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
PKOH has a Quick Ratio of 1.26. This is a normal value and indicates that PKOH is financially healthy and should not expect problems in meeting its short term obligations.
PKOH has a Quick ratio (1.26) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
PKOH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.04%, which is quite impressive.
PKOH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.37% yearly.
The Revenue has been growing slightly by 0.31% in the past year.
The Revenue has been growing slightly by 0.02% on average over the past years.
EPS 1Y (TTM)42.04%
EPS 3Y575.33%
EPS 5Y-6.37%
EPS Q2Q%8.08%
Revenue 1Y (TTM)0.31%
Revenue growth 3Y12.94%
Revenue growth 5Y0.02%
Sales Q2Q%-0.29%
3.2 Future
Based on estimates for the next years, PKOH will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.91% on average per year.
PKOH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.84% yearly.
EPS Next Y17.4%
EPS Next 2Y11.14%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue Next Year1.01%
Revenue Next 2Y2.8%
Revenue Next 3Y3.17%
Revenue Next 5Y5.84%
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
The Price/Earnings ratio is 6.83, which indicates a rather cheap valuation of PKOH.
98.40% of the companies in the same industry are more expensive than PKOH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.62. PKOH is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.25, which indicates a rather cheap valuation of PKOH.
Based on the Price/Forward Earnings ratio, PKOH is valued cheaper than 99.20% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, PKOH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 6.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKOH is valued cheaply inside the industry as 85.60% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PKOH is valued a bit more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.88 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
PKOH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y11.14%
EPS Next 3Y10.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, PKOH has a reasonable but not impressive dividend return.
The stock price of PKOH dropped by -28.03% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
PKOH's Dividend Yield is rather good when compared to the industry average which is at 1.66. PKOH pays more dividend than 88.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, PKOH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of PKOH has a limited annual growth rate of 2.32%.
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)2.32%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
44.38% of the earnings are spent on dividend by PKOH. This is a bit on the high side, but may be sustainable.
The dividend of PKOH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP44.38%
EPS Next 2Y11.14%
EPS Next 3Y10.91%
23.78
-0.73 (-2.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners53.54%
Inst Owner Change-71.78%
Ins Owners24.92%
Ins Owner Change-2.52%
Market Cap333.87M
Analysts43.33
Price TargetN/A
Short Float %1.79%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend0.57
Dividend Growth(5Y)2.32%
DP44.38%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.13%
Min EPS beat(2)6.38%
Max EPS beat(2)17.87%
EPS beat(4)3
Avg EPS beat(4)6.28%
Min EPS beat(4)-4.61%
Max EPS beat(4)17.87%
EPS beat(8)6
Avg EPS beat(8)-4.88%
EPS beat(12)8
Avg EPS beat(12)-51.24%
EPS beat(16)10
Avg EPS beat(16)-57.81%
Revenue beat(2)0
Avg Revenue beat(2)-6.15%
Min Revenue beat(2)-6.68%
Max Revenue beat(2)-5.63%
Revenue beat(4)0
Avg Revenue beat(4)-4.95%
Min Revenue beat(4)-6.68%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)-3.12%
Revenue beat(12)3
Avg Revenue beat(12)-8.5%
Revenue beat(16)5
Avg Revenue beat(16)-8.85%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.83 | ||
| Fwd PE | 6.25 | ||
| P/S | 0.2 | ||
| P/FCF | 75.88 | ||
| P/OCF | 9.79 | ||
| P/B | 0.99 | ||
| P/tB | 2.29 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)3.48
EY14.63%
EPS(NY)3.8
Fwd EY16%
FCF(TTM)0.31
FCFY1.32%
OCF(TTM)2.43
OCFY10.21%
SpS118.03
BVpS23.92
TBVpS10.38
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.27% | ||
| ROE | 5.3% | ||
| ROCE | 8.83% | ||
| ROIC | 7.02% | ||
| ROICexc | 7.45% | ||
| ROICexgc | 9.22% | ||
| OM | 5.57% | ||
| PM (TTM) | 1.07% | ||
| GM | 16.96% | ||
| FCFM | 0.27% |
ROA(3y)-0.74%
ROA(5y)0.07%
ROE(3y)-3.55%
ROE(5y)-0.09%
ROIC(3y)4.31%
ROIC(5y)4.37%
ROICexc(3y)4.57%
ROICexc(5y)4.63%
ROICexgc(3y)5.71%
ROICexgc(5y)5.81%
ROCE(3y)5.42%
ROCE(5y)5.5%
ROICexcg growth 3Y53.13%
ROICexcg growth 5Y-3.42%
ROICexc growth 3Y53.89%
ROICexc growth 5Y-2.61%
OM growth 3Y35.47%
OM growth 5Y-1.2%
PM growth 3YN/A
PM growth 5Y-32%
GM growth 3Y4.46%
GM growth 5Y-0.03%
F-Score7
Asset Turnover1.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.94 | ||
| Debt/FCF | 150.29 | ||
| Debt/EBITDA | 5.18 | ||
| Cap/Depr | 88.66% | ||
| Cap/Sales | 1.79% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 27.11% | ||
| Profit Quality | 24.72% | ||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 2.29 |
F-Score7
WACC9.24%
ROIC/WACC0.76
Cap/Depr(3y)83.48%
Cap/Depr(5y)87.93%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)42.04%
EPS 3Y575.33%
EPS 5Y-6.37%
EPS Q2Q%8.08%
EPS Next Y17.4%
EPS Next 2Y11.14%
EPS Next 3Y10.91%
EPS Next 5YN/A
Revenue 1Y (TTM)0.31%
Revenue growth 3Y12.94%
Revenue growth 5Y0.02%
Sales Q2Q%-0.29%
Revenue Next Year1.01%
Revenue Next 2Y2.8%
Revenue Next 3Y3.17%
Revenue Next 5Y5.84%
EBIT growth 1Y11.61%
EBIT growth 3Y53%
EBIT growth 5Y-1.18%
EBIT Next Year46.34%
EBIT Next 3Y19.17%
EBIT Next 5YN/A
FCF growth 1Y106.65%
FCF growth 3Y-23.08%
FCF growth 5Y18.12%
OCF growth 1Y169.88%
OCF growth 3Y-10.01%
OCF growth 5Y-1.62%