Park-Ohio Holdings Corp. (PKOH) Stock Analysis

Park-Ohio Holdings Corp. (PKOH) Industrial Operations Profile

Park-Ohio Holdings Corp. delivers supply chain solutions, capital equipment, and precision-engineered components, serving industries globally. With a focus on value-added services and a diversified product portfolio, the company navigates a competitive landscape, leveraging its established presence and integrated capabilities to meet evolving customer needs.

What Is the Investment Thesis for PKOH?

Park-Ohio Holdings Corp. presents a mixed investment thesis. The company's diversified business model, spanning supply chain management, assembly components, and engineered products, offers resilience across economic cycles. A P/E ratio of 23.24 suggests a reasonable valuation relative to earnings, while a dividend yield of 1.62% provides income potential. However, a low profit margin of 1.5% indicates potential challenges in profitability. Growth catalysts include expanding its Total Supply Management solutions and capitalizing on increased demand for engineered products in key industries. Potential risks include economic downturns affecting industrial demand and competitive pressures impacting pricing and market share. Investors should closely monitor the company's ability to improve profitability and execute its growth strategies effectively.

Based on FMP financials and quantitative analysis

PKOH Key Highlights

Market capitalization of $659M reflects the company's current valuation in the market.

• P/E ratio of 23.24 indicates the price investors are willing to pay for each dollar of earnings.
• Gross margin of 17.1% shows the percentage of revenue remaining after deducting the cost of goods sold.
• Dividend yield of 1.62% provides a return on investment through dividend payments.
• Beta of 1.13 suggests the stock is slightly more volatile than the overall market.

Who Are PKOH's Competitors?

PKOH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are PKOH's Key Strengths?

Diversified business model with multiple revenue streams.

• Comprehensive supply chain management solutions.
• Engineering expertise and manufacturing capabilities.
• Global footprint with operations in multiple countries.

What Are PKOH's Weaknesses?

Low profit margin compared to industry peers.

• Dependence on cyclical industries.
• Potential for supply chain disruptions.
• Exposure to currency exchange rate fluctuations.

What Could Drive PKOH Stock Higher?

Expansion of Total Supply Management solutions to new customers and industries.

• Increasing demand for engineered products in key sectors like automotive and aerospace.
• Strategic acquisitions to expand product portfolio and market share.

What Are the Key Risks for PKOH?

Inconsistent delivery — missed Wall Street EPS estimates in 4 of the last 8 reported quarters.

• Insider selling — insiders were net sellers of roughly $4.6M recently.
• Economic downturns affecting industrial demand and profitability.
• Intense competition from other industrial manufacturers.
• Rising raw material costs impacting gross margins.
• Supply chain disruptions affecting production and delivery.

What Are the Growth Opportunities for PKOH?

• Expanding Total Supply Management Solutions: Park-Ohio can capitalize on the growing trend of companies outsourcing their supply chain management to improve efficiency and reduce costs. The market for supply chain management solutions is projected to reach $30.91 billion by 2028, growing at a CAGR of 11.2%. By offering comprehensive services, including engineering support, supplier selection, and just-in-time delivery, Park-Ohio can attract new customers and expand its market share.
• Capitalizing on Demand for Engineered Products: The demand for engineered products, such as induction heating systems and forging presses, is driven by growth in industries like automotive, aerospace, and construction equipment. Park-Ohio can leverage its engineering expertise and manufacturing capabilities to develop innovative products that meet the evolving needs of these industries. The global market for engineered products is expected to reach $2.3 trillion by 2027, presenting a significant growth opportunity for the company.
• Geographic Expansion: Park-Ohio can expand its presence in emerging markets, such as Asia and Latin America, where industrial activity is growing rapidly. By establishing manufacturing facilities and distribution networks in these regions, the company can tap into new customer bases and diversify its revenue streams. The industrial machinery market in Asia-Pacific is projected to grow at a CAGR of 6.5% over the next five years, making it an attractive target for expansion.
• Strategic Acquisitions: Park-Ohio can pursue strategic acquisitions to expand its product portfolio, enhance its technological capabilities, and increase its market share. By acquiring companies with complementary businesses, Park-Ohio can create synergies and improve its competitive position. The company has a history of successful acquisitions, and it can continue to use this strategy to drive growth.
• Focusing on Value-Added Services: Park-Ohio can differentiate itself from competitors by offering value-added services, such as design engineering, machining, and part assembly. These services can help customers improve their efficiency, reduce costs, and enhance the quality of their products. By focusing on value-added services, Park-Ohio can build stronger relationships with its customers and increase its customer retention rate.

What Are PKOH's Competitive Advantages?

• Established relationships with key customers in diverse industries.
• Comprehensive Total Supply Management solutions.
• Engineering expertise and manufacturing capabilities.
• Global footprint with operations in multiple countries.

What Does PKOH Do?

Founded in 1907 and headquartered in Cleveland, Ohio, Park-Ohio Holdings Corp. has evolved into a diversified industrial enterprise. The company operates through three primary segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment offers comprehensive Total Supply Management solutions, encompassing engineering support, supplier selection, quality assurance, and just-in-time delivery. This segment also provides spare parts and aftermarket products, along with precision cold-formed and cold-extruded fasteners. The Assembly Components segment focuses on manufacturing aluminum products, direct fuel injection components, fuel filler pipes, and flexible multi-layer assemblies. These components cater to the automotive and industrial sectors, supported by machining and design engineering services. The Engineered Products segment designs and manufactures engineered products, including induction heating and melting systems, pipe threading systems, and forged and machined products. These products serve a wide array of industries, including metals, automotive, and construction equipment. Park-Ohio's global footprint extends across the United States, Europe, Asia, Mexico, and Canada, enabling it to serve a diverse customer base with tailored solutions.

What Products and Services Does PKOH Offer?

• Provides supply chain management outsourcing services.
• Manufactures and distributes capital equipment.
• Produces precision-engineered components.
• Offers Total Supply Management solutions.
• Manufactures aluminum products and fuel injection components.
• Designs and manufactures induction heating and melting systems.
• Provides machining and part assembly services.

How Does PKOH Make Money?

• Generates revenue through supply chain management outsourcing contracts.
• Sells capital equipment and engineered products to various industries.
• Provides value-added services, such as design engineering and machining.
• Focuses on long-term relationships with key customers.

What Industry Does PKOH Operate In?

Park-Ohio Holdings Corp. operates within the industrial machinery sector, which is influenced by global economic conditions, technological advancements, and regulatory changes. The market is characterized by intense competition, with companies vying for market share through product innovation, service offerings, and pricing strategies. Trends such as automation, digitalization, and sustainability are reshaping the industry, creating both opportunities and challenges for companies like Park-Ohio. The company's ability to adapt to these trends and differentiate itself through value-added services will be crucial for its long-term success.

Who Are PKOH's Key Customers?

• Automotive industry
• Aerospace and defense industry
• Construction equipment industry
• Ferrous and non-ferrous metals industry

Company Profile

Park-Ohio Holdings Corp. operates in the Industrial - Machinery industry within the Industrials sector. It is headquartered in Cleveland, US. The company is led by CEO Matthew V. Crawford. PKOH has traded publicly since 1973.

Park-Ohio Holdings Corp. Financial Trajectory

Park-Ohio Holdings Corp. (PKOH) reported $440.1M in revenue for Q2 FY2026, reflecting 4.5% growth compared to the prior quarter. The company recorded net income of $12.1M, with diluted EPS of $0.86. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Industrials company. Across the four most recent quarters, PKOH averaged $0.47 in diluted EPS.

How Park-Ohio Holdings Corp. Is Valued

Park-Ohio Holdings Corp. carries a market capitalization of $659M, placing it in the small-cap category.

Return on equity for Park-Ohio Holdings Corp. stands at 6.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.7%, showing how much profit it generates from its asset base. PKOH trades at a trailing price-to-earnings ratio of 23.24, below the Industrials sector average of ~28.00x. Its free cash flow yield is 0.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.40 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.9%, the inverse of the P/E and a quick read on earnings relative to price.

Park-Ohio Holdings Corp.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.38 places it in the grey zone, a middle ground that warrants monitoring.

Park-Ohio Holdings Corp. has missed Wall Street's EPS estimate in 4 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 3.0% below estimates on average.

Over the past six months, Park-Ohio Holdings Corp. insiders filed 100 SEC Form 4 transactions — 83 sales and 17 purchases. On net that is roughly 37K shares disposed (about $4.6M), a signal worth weighing alongside the fundamentals.

PKOH Financials

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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