One-glance verdict
Overvalued
$-14.74 our estimate vs market $45.00
Wall Street consensus: $54.00 (-466.4% lower than our fair-value estimate)
405% below our estimate, beyond the bull case
Fundamentals snapshot
Park-Ohio Holdings Corp.
PKOH · NMS · Industrials · Specialty Industrial Machinery
Current price
$45.00
52-week range
$18.06 - $53.30
Market cap
$652.05M
Balance sheet
Stretched
1.72x Concerning
Net debt $655.70M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.5% last year.
- Reward Returns 6.3% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 8/10 years.
- Risk Stock trades 4.3% above its 5-year average P/E.
What this company does
Park-Ohio Holdings Corp.
Park-Ohio is an industrial company that helps other businesses build their products by manufacturing key components and managing their supply chain (the entire process of getting parts from a supplier to a factory). They make a wide range of items, from car fuel pipes to airplane landing gear, selling to customers in diverse industries like automotive and aerospace. This variety is important because a slowdown in one industry can be balanced by strength in another, providing more stability for the company's business.
How the company got here
Park-Ohio's story begins with the 1967 merger of two Cleveland-based companies: Park Drop Forge, founded in 1907, and Ohio Crankshaft, started in 1920. [1] For many years, the combined company focused on making heavy-duty engine parts and industrial equipment. A key turning point came in 1992 when a new leader, Edward F. Crawford, took over and shifted the company's strategy towards acquiring other businesses. [10, 13] This series of acquisitions transformed Park-Ohio from a traditional manufacturer into a more diverse company that also specializes in managing supply chains for other businesses. [1, 13]
What it actually does
Think of Park-Ohio as a behind-the-scenes partner for big manufacturing companies. They don't make products you'd buy in a store, but they provide the essential parts and services that other companies need to build their own products, like cars, trucks, and construction equipment. [6, 7] Their business is split into three main areas: managing the flow of small parts for assembly lines, making custom components that go into larger products, and building specialized industrial machinery. [2, 5] Essentially, they help other manufacturers build things more efficiently.
Supply Technologies
This is Park-Ohio's largest segment by sales and acts like a super-smart logistics (the detailed organization and implementation of a complex operation) service for factories. [9] Instead of a manufacturer having to deal with hundreds of different suppliers for small parts like nuts, bolts, and fasteners, they hire this division to manage everything. [4, 7] Supply Technologies handles sourcing the parts, ensuring quality, and delivering them directly to the assembly line exactly when they're needed, a process often called 'just-in-time' delivery. Customers pay for this service to make their production lines run more smoothly and efficiently.
Assembly Components
This division manufactures highly specific parts that are then used in other companies' final products. [2] For example, they make things like fuel pipes and rails for car engines, rubber hoses for heavy machinery, and cast aluminum parts for trucks and construction equipment. [3, 4] These aren't generic parts; they are engineered and built to fit the exact needs of their customers, which include major players in the automotive and agricultural industries. This segment makes money by selling these custom-built components directly to other manufacturers.
Engineered Products
This part of the company designs and builds heavy-duty, specialized machinery for other industrial businesses. [8] Their products include systems that use high-frequency electricity to heat and shape metal (a process called induction heating), equipment that threads pipes for the oil and gas industry, and large forged metal parts for things like airplane landing gear and locomotives. [4, 7, 8] This is a niche business where customers pay for custom-engineered, high-quality equipment that performs a specific, critical function in their own manufacturing process.
What management is betting on now
The company's leadership is focusing on growing in specific high-tech and essential areas, such as data centers, aerospace and defense, and industrial electrification. [9] They are investing in technology like automation and better information systems to make their own operations more efficient. [9] Management is also actively reviewing its different businesses to sell off parts that are less profitable or have lower growth potential, allowing them to focus capital (money invested in a business) on the more promising areas. [9] The goal is to benefit from a strong backlog (a buildup of work or orders that have yet to be completed) and become a key supplier for these expanding industries.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-100.00K
FY2024 Q4
$17.30M
FY2025 Q1
$-19.50M
FY2025 Q2
$-21.10M
FY2025 Q3
$6.60M
FY2025 Q4
$36.00M
FY2026 Q1
$-20.30M
FY2026 Q2
$-1.80M
Revenue
$440.10M
Net income
$12.10M
Diluted EPS
0.86
Operating cash flow
$9.20M
Free cash flow
$-1.80M
Fetching…
Sources
Revenue
$421.00M
Net income
$8.10M
Diluted EPS
0.57
Operating cash flow
$-7.80M
Free cash flow
$-20.30M
Fetching…
Sources
Revenue
$395.00M
Net income
$1.00M
Diluted EPS
0.06
Operating cash flow
$48.70M
Free cash flow
$36.00M
Fetching…
Sources
Revenue
$398.60M
Net income
$5.30M
Diluted EPS
0.38
Operating cash flow
$17.30M
Free cash flow
$6.60M
Fetching…
Sources
Revenue
$400.10M
Net income
$9.20M
Diluted EPS
0.66
Operating cash flow
$-13.70M
Free cash flow
$-21.10M
Fetching…
Sources
Revenue
$405.40M
Net income
$8.30M
Diluted EPS
0.60
Operating cash flow
$-10.00M
Free cash flow
$-19.50M
Fetching…
Sources
Revenue
$388.40M
Net income
$500.00K
Diluted EPS
0.00
Operating cash flow
$26.40M
Free cash flow
$17.30M
Fetching…
Sources
Revenue
$417.60M
Net income
$9.80M
Diluted EPS
0.73
Operating cash flow
$9.00M
Free cash flow
$-100.00K
Fetching…
Sources
Is it cheap or expensive?
Fair value $-14.74 vs current price $45.00
Wall Street consensus is the average analyst price target: $54.00 (-466.4% lower than our fair-value estimate).
Our most-likely fair value is $-14.74 a share — about 132.7% below today's price of $45.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $655.7M. Interest coverage 1.7x.
Net debt
$655.70M
Interest coverage
1.72x
Park-Ohio Holdings Corp.'s profit covers its interest bill about 1.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
PKOH
BASELINE
Park-Ohio Holdings Corp.
Total debt $704.00M Interest coverage 1.72x This is the baseline the peer rows are being compared against.
Total debt $142.06M Interest coverage 0.53x -69% vs PKOH Carries about 3.2x less debt cushion than PKOH.
Total debt $184.79M Interest coverage 14.06x +718% vs PKOH Carries about 8.2x more debt cushion than PKOH.
Total debt $845.47M Interest coverage 1.41x -18% vs PKOH Carries about 1.2x less debt cushion than PKOH.
Total debt $566.29M Interest coverage 4.97x +190% vs PKOH Carries about 2.9x more debt cushion than PKOH.
What you should know
The case for and against PKOH
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.5% last year.
-
Returns 6.3% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 4.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.20x
Forward P/E
12.23x
P/B
1.61x
P/S
0.39x
EV/EBITDA
10.02x
PEG ratio
1.05x
Profitability
How much profit each dollar creates
Gross margin
17.3%
Operating margin
6.4%
Net margin
1.6%
ROE
6.3%
ROA
4.1%
Health
Liquidity and balance-sheet strength
Debt / equity
1.79x
Current ratio
2.40x
Quick ratio
1.05x
Total debt
$704.00M
Total cash
$48.30M
Growth
How the business has been compounding
Revenue TTM
$1.65B
Revenue 5Y CAGR
5.8%
EPS TTM
1.94
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$67.40M
Free CF TTM
$2.00M
FCF margin
0.1%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
25.8%
Last ex-div date
2026-07-31