Park Aerospace Corp. Common Stock (PKE)

FairStock Score: 49/100 — MIXED

Key Financials

Strengths

• Generates $2 million in annual free cash flow (0.3% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 34.5 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 20.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 356% margin of safety—limited downside protection

AI Analysis

Park Aerospace Corp. Common Stock is a micro-cap industrials company valued at $653 million. Revenue stands at $66 million. From a quality standpoint, Park shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 34.5 confirms fortress-level solvency. On valuation, the stock is commanding a steep 76.3x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 20.3% and profit growth of 87.1%. The 1.5% dividend yield adds an income component for patient holders. Our composite FairStock Score of 49/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Park's 20% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. With $2 million in annual free cash flow (0.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 76x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer