Another strong showing for Park Electrochemical

Park Electrochemical Corp. (PKE.US), a leading player in the Aerospace & Defense sector, saw its shares surge over 2% recently, sparking interest among investors. The company's robust financial performance could be a driving factor behind this uptick. In the recent quarter, the company reported a significant quarterly earnings growth of 1.556 and a quarterly revenue growth of 0.082. The firm's net income from continuing operations stood at $10.7M, with an operating income of $10M. The company's gross profit reached $17.9M, and the revenue was reported at $54.1M. Park Electrochemical's strong financial health is also reflected in its return on equity of 0.0853 and return on assets of 0.0389. The firm's operating margin was 0.1842, and the profit margin was 0.1985, indicating efficient operations and profitability. Despite the surge, analysts maintain a 'Buy' consensus on the stock, with a Wall Street target price of $26, suggesting further upside potential. The company's possible upside price is $15.46, indicating room for growth. The market capitalization of the company is $285M, and the enterprise value.is $170.9M. Investors may also be attracted to the stock due to its dividend yield of 0.0369, with a dividend per share of $0.4. The PE ratio of the stock is 27.0192, and the PEG ratio is 2.36. With a book value of 5.663 and earnings per share of 0.52, the company presents a promising investment profile. For more information, visit the company's website at [https://www.parkaerospace.com](https://www.parkaerospace.com). The dividends per basic common share for the current year are expected to increase to 0.37, while the long-term debt to equity ratio is projected to decrease to 0.35. Given the heightened interest among millennials in the aerospace and defense sector, it's pertinent to delve into Park Electrochemical. We will assess why recent price movements in Park Electrochemical stock suggest a potential surge in August. In this article, I will also discuss various factors influencing Park Electrochemical's products and services, and explain their potential impact on Park Electrochemical's shareholders.
Published over a year ago
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Reviewed by Ellen Johnson

Our trading recommendations tool can cross-verify the current analyst consensus on Park Electrochemical and analyze the company's potential for growth in the current economic cycle. The company has a Net Profit Margin of 0.2 %, suggesting that it may require a different competitive strategy. Even a very small decline in its revenue could wipe out profits, resulting in a net loss. This is significantly below average. Similarly, it has a Net Operating Margin of 0.18 %, indicating that for every 100 dollars of revenue, it generates $0.18 of operating income.

More Analysis

Park Electrochemical (PKE) shares have seen a surge of over 2% recently, with the last price recorded at $14.05. This increase can be attributed to the company's strong performance in the Aerospace & Defense industry, particularly its operating margin of 18.42% and an EBITDA of $11.1 million. Moreover, Park Electrochemical has an enterprise value.revenue of 3.04, indicating that the company is valued at a reasonable price compared to its revenue. From a product viewpoint, the company's robust performance and potential upside of 3.04% suggest that further upside could be on the horizon for PKE. The company's financial health is also indicated by a book value of $5.66 and a PEG ratio of 2.36, both of which further reinforce the potential for growth in Park Electrochemical's stock.
The performance of Park Electrochemical in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Park Electrochemical's stock prices. When investing in Park Electrochemical, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Park Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Park Electrochemical carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.

And What about dividends?

A dividend is the distribution of a portion of Park Electrochemical earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Park Electrochemical dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Park one year expected dividend income is about USD0.66 per share.
The current year's Dividend Paid And Capex Coverage Ratio is expected to grow to 3.50, whereas Dividends Paid is forecasted to decline to about 20.5 M.
Last ReportedProjected for Next Year
Dividends Paid30.6 M20.5 M
Dividend Yield 0.10  0.01 
Dividend Payout Ratio 4.10 (1.23)
Dividend Paid And Capex Coverage Ratio 0.14  3.50 
Investing in dividend-paying stocks, such as Park Electrochemical is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Park Electrochemical must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Park Electrochemical. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Park Electrochemical's Liquidity

Park Electrochemical financial leverage refers to using borrowed capital as a funding source to finance Park Electrochemical ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Park Electrochemical financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Park Electrochemical's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Park Electrochemical's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Park Electrochemical's total debt and its cash.

Park Electrochemical Gross Profit

Park Electrochemical Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Park Electrochemical previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Park Electrochemical Gross Profit growth over the last 10 years. Please check Park Electrochemical's gross profit and other fundamental indicators for more details.

A Deeper Perspective On Park Electrochemical

Shares of Park Electrochemical (PKE) have seen a surge of over 2% recently, sparking interest among investors. The company, which operates in the Aerospace & Defense sector, has a strong financial footing with a net income of $10.73 million and EBITDA of $9.95 million. The operating margin stands at 0.18% with a profit margin of 0.20%. The company's risk-adjusted performance is 0.0657, indicating a relatively low risk investment. The beta of 0.52 also suggests that the stock is less volatile than the market. Furthermore, PKE's shares are largely held by institutions, with 89.21% of shares owned by them. Park Electrochemical's valuation metrics also paint a positive picture. The Price to Earnings to Growth (PEG) ratio stands at 2.36X, while the Price to Book ratio is 1.96X. The Wall Street target price for the stock is $26, suggesting potential for further upside. Despite the positive outlook, investors should note the company's probability of bankruptcy stands at 49.48%. Therefore, while the recent surge in PKE's stock price is encouraging, a careful evaluation of the company's financial health is crucial before making investment decisions.

Are Park Electrochemical technical ratios showing a recoup?

The latest skewness ratio of 0.27 for Park Electrochemical Corp. suggests a fairly symmetrical distribution of returns, indicating a balanced risk-reward profile for the company's stock. This technical ratio, when combined with other metrics, could hint at a potential recovery in the company's performance. However, investors should not rely solely on this ratio. A comprehensive analysis of the company's financial health and prevailing market conditions should be conducted before making any investment decisions. Park Electrochemical exhibits relatively low volatility, with a skewness of 0.27 and a kurtosis of 0.14. Nevertheless, we advise all investors to independently investigate Park Electrochemical to ensure that all available information aligns with their expectations regarding its upside potential and future expected returns. Understanding different market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Park Electrochemical's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact Park Electrochemical's stock price, adding stress for investors as they watch the value of their shares plummet. This often compels investors to rebalance their portfolios by purchasing different stocks as prices decline. In conclusion, Park Electrochemical Corp. (PKE) has shown promising growth with a recent ascent of over 2 percent. However, the company's current market value of 14.05 is notably higher than its real value of 9.31, suggesting a potential overvaluation. Despite this, the analyst consensus is a 'Buy', with one strong buy recommendation and an overall target price estimated value of 4.949. The potential upside price is 15.46, offering a promising return on investment. However, investors should also consider the possible downside price of 12.21. The highest estimated target price by analysts stands at a whopping 20.2M, indicating significant potential for growth. Therefore, while the company's current valuation may seem high, the overall outlook for Park Electrochemical Corp. remains positive.

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