PKEPark Aerospace Corp.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 8% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PKE?
Park Aerospace Corp. earns 29% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 20 points above what the capital costs: growth creates value
- Operating margin
- 20%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q1 2027
- Cash conversion
- 1.12×
Cash conversion · 1.08× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +6.3%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2021 | 12% |
| FY2022 | 21% |
| FY2023 | 18% |
| FY2024 | 15% |
| FY2025 | 15% |
| FY2026 | 18% |
Details›
- Gross margin12 months to Q1 2027
- 32%
- Operating margin12 months to Q1 2027
- 20%
- Net margin12 months to Q1 2027
- 17%
- Free cash flow margin
- 14%
- Revenue, trailing twelve months
- $76M
- Free cash flow, trailing twelve months
- $11M
- Net income, trailing twelve months
- $13M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 29%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #15 of 36 by RyuScore