NEW YORK (
-- Park-Ohio Holdings Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, attractive valuation levels, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.
Highlights from the ratings report include:
- 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.
- 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 322.5% when compared to the same quarter one year prior, rising from $2.07 million to $8.73 million.
- 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 turned its bottom line around by earning $1.29 versus -$0.48 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.29).
- Powered by its strong earnings growth of 305.55% and other important driving factors, this stock has surged by 60.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
Park-Ohio Holdings Corp., through its subsidiaries, operates as an industrial supply chain logistics and diversified manufacturing company in the United States, Asia, Canada, Mexico, and Europe. The company has a P/E ratio of 15, equal to the average industrial industry P/E ratio and below the S&P 500 P/E ratio of 16.2. Park-Ohio has a market cap of $229.1 million and is part of the
industry. Shares are down 4.3% year to date as of the previous trading day's close.
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