Park Aerospace: Growth Still On The Horizon
Summary
- Park Aerospace is prepared for a season of higher growth on the programs it currently supplies, especially the LEAP-1A jet engines for Airbus.
- The combined elements of higher growth and no debt make for an attractive investment profile if the valuation is fair.
- On the valuation basis of EV/EBITDA multiple, even with fairly conservative assumptions around EBITDA growth relative to management's forecast, valuation is fair with upside potential remaining.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of PKE either through stock ownership, options, or other derivatives. 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.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.