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Park-Ohio Holdings Corp. (PKOH)

Company Dividend Discount ModelIndustry: Industrial - MachinerySector: Industrials

Valuation Snapshot

Stable Growth$12.66 - $18.40$15.44
Multi-Stage$20.11 - $22.08$21.08
Blended Fair Value$18.26
Current Price$21.24
Upside-14.04%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.87%3.61%0.490.540.470.510.230.510.470.500.450.46
YoY Growth---9.46%15.63%-8.57%118.75%-54.29%9.38%-7.25%11.29%-1.59%34.04%
Dividend Yield--2.26%2.03%3.85%3.62%0.74%2.69%1.40%1.29%1.25%1.07%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)23.50
(-) Cash Dividends Paid (M)7.80
(=) Cash Retained (M)15.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)4.702.941.76
Cash Retained (M)15.7015.7015.70
(-) Cash Required (M)-4.70-2.94-1.76
(=) Excess Retained (M)11.0012.7613.94
(/) Shares Outstanding (M)13.7513.7513.75
(=) Excess Retained per Share0.800.931.01
LTM Dividend per Share0.570.570.57
(+) Excess Retained per Share0.800.931.01
(=) Adjusted Dividend1.371.501.58
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.54%-0.54%0.46%
Fair Value$12.66$15.44$18.40
Upside / Downside-40.39%-27.31%-13.39%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)23.5023.3723.2523.1223.0022.8823.56
Payout Ratio33.19%44.55%55.91%67.28%78.64%90.00%92.50%
Projected Dividends (M)7.8010.4113.0015.5618.0920.5921.80

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate-1.54%-0.54%0.46%
Year 1 PV (M)9.459.559.64
Year 2 PV (M)10.7010.9211.14
Year 3 PV (M)11.6211.9812.35
Year 4 PV (M)12.2612.7713.29
Year 5 PV (M)12.6713.3214.00
PV of Terminal Value (M)219.87231.26243.12
Equity Value (M)276.57289.80303.55
Shares Outstanding (M)13.7513.7513.75
Fair Value$20.11$21.08$22.08
Upside / Downside-5.30%-0.77%3.94%

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