Park-Ohio Holdings Corp. (PKOH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mueller Industries, Inc.

Valmont Industries, Inc.

RBC Bearings, Inc.

Xometry, Inc.

CompX International, Inc.

Olympic Steel, Inc.

Park-Ohio Holdings Corp.

NL Industries, Inc.

Insteel Industries, Inc.

Gibraltar Industries, Inc.

Fathom Digital Manufacturing Corp.

Why is Park-Ohio Holdings Corp. ?

Poor Management Efficiency with a low ROCE of 5.65%

The company has been able to generate a Return on Capital Employed (avg) of 5.65% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 35.30% of over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 6.73%
CASH AND EQV(HY) Lowest at USD 91.5 MM
NET PROFIT(Q) Lowest at USD 9.28 MM

With ROCE of 8.48%, it has a fair valuation with a 1.05 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 104.99%, its profits have fallen by -14.1%

High Institutional Holdings at 57.91%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 104.99% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Park-Ohio Holdings Corp. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Park-Ohio Holdings Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Park-Ohio Holdings Corp.

104.99%

1.13

45.31%

S&P 500

20.78%

1.56

13.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.31%

EBIT Growth (5y)

35.30%

EBIT to Interest (avg)

1.20

Debt to EBITDA (avg)

7.58

Net Debt to Equity (avg)

1.69

Sales to Capital Employed (avg)

1.67

Tax Ratio

8.60%

Dividend Payout Ratio

28.17%

Pledged Shares

Institutional Holding

57.91%

ROCE (avg)

5.65%

ROE (avg)

7.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.13

EV to EBIT

12.40

EV to EBITDA

8.83

EV to Capital Employed

1.05

EV to Sales

0.63

PEG Ratio

Dividend Yield

1.90%

ROCE (Latest)

8.48%

ROE (Latest)

9.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 169.9 %

RAW MATERIAL COST(Y)

Fallen by -2.97% (YoY

NET SALES(Q)

Highest at USD 421 MM

-4What is not working for the Company

ROCE(HY)

Lowest at 6.73%

CASH AND EQV(HY)

Lowest at USD 91.5 MM

NET PROFIT(Q)

Lowest at USD 9.28 MM

Here's what is working for Park-Ohio Holdings Corp.

Debt-Equity Ratio

Lowest at 169.9 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at USD 421 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Raw Material Cost

Fallen by -2.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Park-Ohio Holdings Corp.

Net Profit

Lowest at USD 9.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 91.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents