NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Highlights from the ratings report include:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- PARK OHIO HOLDINGS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PARK OHIO HOLDINGS CORP increased its bottom line by earning $2.45 versus $1.29 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $2.45).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Air Freight & Logistics industry. The net income increased by 437.8% when compared to the same quarter one year prior, rising from $3.52 million to $18.94 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Air Freight & Logistics industry and the overall market, PARK OHIO HOLDINGS CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
Park-Ohio Holdings Corp., through its subsidiaries, engages in the industrial supply chain logistics and diversified manufacturing business in the United States, Asia, Canada, Mexico, and Europe. The company has a P/E ratio of 8.8, below the average industrial industry P/E ratio of 17.3 and below the S&P 500 P/E ratio of 17.7. Park-Ohio has a market cap of $242.2 million and is part of the
industry. Shares are up 21.2% year to date as of the close of trading on Wednesday.
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-- Written by a member of TheStreet RatingsStaff