Park Aerospace: Highly Profitable And Shareholder-Friendly With Good Long-Term Prospects

Jan. 03, 2024 6:01 PM ETPark Aerospace Corp. (PKE) StockGE, PKE
Carles Diaz Caron
1.07K Followers

Summary

  • Revenues keep recovering after the coronavirus hit in fiscal 2021.
  • Margins are expanding as demand returns while headwinds ease.
  • The balance sheet is very robust thanks to very high cash and short-term investments and zero debt.
  • This represents a good opportunity for long-term dividend investors as the dividend yield currently stands at 3.4%.
  • I don't expect significant surprises in the second half of fiscal 2024, but I strongly recommend averaging down due to volatility risks.

Large aircraft in aircraft maintenance hangar

Monty Rakusen/DigitalVision via Getty Images

Investment thesis

Park Aerospace Corp. (NYSE:PKE) is expected to report fiscal 2024 Q3 results soon, so many investors might be wondering what to expect. In principle, no surprises are expected given the progression of recent quarters, so the

This article was written by

1.07K Followers
Subscribe for an average ~14% return per year according to Tipranks. I am a long-term Dividend Growth Investor always looking for new opportunities in the stock market since 2015. In order to find good deals in the stock market, I look for companies that are going through a bad time and carefully assess the chances that the financial situation will return to the path of profitability and growth. My objective is to find stocks that can be bought and held for many years and try to get them for the lowest price possible during temporary headwinds. For me, the most important aspects when analyzing a stock's turnaround chances are that the company's products are essential to a big portion of the population, healthy and stable profit margins, a sustainable debt and dividend, and a long-term trend that suggests the products and services offered will continue to be essential for the decades to come.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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