Park-Ohio Holdings Corporation operates as an industrial supply chain logistics and diversified manufacturing company in the United States, Canada, Europe, Asia, Mexico, and other countries. The company operates in three segments: Supply Technologies, Assembly Components, and Engineered Products. The company was founded in 1961 and is based in Cleveland, Ohio.
PKOH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Park Ohio Holdings Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Park Ohio Holdings Corp ranked in the 55th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 59.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for PKOH, they are:
24% of the company's capital comes from equity, which is greater than merely 9.89% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 76% of the company's capital (with equity being the remaining amount). Approximately 90.07% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
The weighted average cost of capital for the company is 11. This value is greater than 77.55% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CR, AZZ, HY, CSX, and KBR can be thought of as valuation peers to PKOH, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Park-Ohio Industries Incorporated and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
In this article you are going to find out whether hedge funds think Park-Ohio Holdings Corp. (NASDAQ:PKOH) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks […]
Moody's Investors Service, ("Moody's") downgraded the ratings of Park-Ohio Industries Incorporated (Park-Ohio), including the corporate family rating (CFR) to B2 from B1, Probability of Default Rating (PDR) to B2-PD from B1-PD, and the senior unsecured rating to Caa1 from B3. The outlook is stable.