Preformed Line Products Company (PLPC) AI Stock Analysis

• Market Cap: $664.81M
• Dividend Yield: 0.59%
• Average Volume (3M): 28.42K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.58
• Revenue Growth: -11.34%
• EPS Growth: -41.23%
• Country: US
• Employees: 3,401
• Sector: Industrials
• Sector Strength: 68
• Industry: Electrical Equipment & Parts
• EPS (TTM): 7.50
• Shares Outstanding: 4,940,991
• 10 Day Avg. Volume: 38,997
• 30 Day Avg. Volume: 28,422
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.18
• Price to Cash Flow (P/CF): 7.30
• P/FCF Ratio: 8.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Preformed Line Products Company exhibits strong financial stability with good equity ratios and operational efficiency. However, the decline in revenue and net profit margins, along with negative free cash flow growth, poses risks. The technical analysis indicates positive momentum, but caution is warranted due to near overbought RSI levels. The valuation is reasonable, though the low dividend yield may not appeal to all investors.

Preformed Line Products Company Business Overview & Revenue Model

Company Description

Preformed Line Products Company, together with its subsidiaries, designs and manufactures products and systems that are used in the construction and maintenance of overhead, ground-mounted, and underground networks for the energy, telecommunication, cable operator, information, and other industries. The company offers formed wire products to support, protect, terminate, and secure power conductor and communication cables, as well as to control cable dynamics; and hardware products to support and protect transmission conductors, spacers, spacer-dampers, stockbridge dampers, corona suppression devices, and various compression fittings for dead-end applications. It also provides protective closures to protect fixed line communication networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, resale products, underground connectors, solar hardware systems, guy markers, tree guards, fiber optic cable markers, pedestal markers, and urethane products that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, financial institutions, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. The company was incorporated in 1947 and is headquartered in Mayfield, Ohio.

How the Company Makes Money

Preformed Line Products Company makes money primarily through the sale of its products and solutions to utility companies, telecommunication providers, and contractors involved in the construction and maintenance of infrastructure networks. The company generates revenue by offering a wide range of products that cater to different aspects of network construction and maintenance, including conductor support systems, cable anchoring and control hardware, and fiber optic enclosures. Additionally, PLPC benefits from long-term relationships with key industry players and global distribution channels that facilitate the delivery of its products to various markets. The company's earnings are also supported by its commitment to innovation and quality, ensuring a steady demand for its solutions across the industries it serves.

Preformed Line Products Company Financial Statement Overview

Summary

Preformed Line Products Company demonstrates a stable financial foundation with strong equity ratios and operational efficiency. However, the decline in revenue and net profit margins, along with negative free cash flow growth, poses potential challenges. The company must focus on revenue growth and maintain profitability to sustain its strong financial position.

Income Statement

Preformed Line Products Company has shown a mixed performance in its income statement metrics. The gross profit margin for the latest year is approximately 31.96%, indicating solid profitability from its core operations. However, the net profit margin decreased to 6.25% from the previous year's 9.46%, reflecting a decline in net income relative to revenue. Revenue for 2024 dropped by 11.35% compared to 2023, which is a concern. The EBIT margin stands at 8.55%, and the consistent EBITDA margin of 8.55% indicates stable operational efficiency.

Balance Sheet

The balance sheet of Preformed Line Products Company reflects a strong financial position. The debt-to-equity ratio is low, indicating prudent financial leverage management. Return on equity has decreased to 8.78% from 15.21%, highlighting a decline in profitability relative to shareholder equity. The equity ratio is robust at 73.60%, underscoring a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth, with a negative growth rate from the previous year. However, the operating cash flow to net income ratio of 1.82 suggests solid cash generation from operations, while the free cash flow to net income ratio is 1.42, showing efficiency in converting profits into free cash flow. Despite the decline in free cash flow, the company maintains a healthy cash position, supporting operational needs.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
593.71M	669.68M	637.02M	517.42M	466.45M
	Gross Profit
189.81M	234.85M	215.18M	166.24M	154.01M
	EBIT
50.76M	84.15M	69.36M	35.35M	29.13M
	EBITDA
73.82M	105.16M	93.25M	63.70M	54.52M
	Net Income Common Stockholders
37.09M	63.33M	54.40M	35.73M	29.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
57.24M	53.61M	37.24M	36.41M	45.17M
	Total Assets
573.88M	603.15M	568.48M	489.02M	461.09M
	Total Debt
6.54M	71.81M	89.54M	59.59M	55.98M
	Net Debt
-50.71M	18.21M	52.30M	23.18M	10.80M
	Total Liabilities
151.55M	187.00M	209.85M	172.92M	169.02M
	Stockholders Equity
422.31M	416.16M	358.64M	316.12M	292.08M
Cash Flow		Free Cash Flow
52.83M	72.31M	-14.45M	15.21M	17.07M
	Operating Cash Flow
67.48M	107.64M	26.15M	33.60M	41.64M
	Investing Cash Flow
-12.36M	-44.79M	-46.76M	-18.24M	-14.04M
	Financing Cash Flow
-47.80M	-48.92M	22.54M	-23.23M	-23.16M

Preformed Line Products Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 134.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLPC, the sentiment is Negative. The current price of 134.37 is below the 20-day moving average (MA) of 139.20, below the 50-day MA of 138.50, and above the 200-day MA of 128.53, indicating a neutral trend. The MACD of 2.76 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 12.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLPC.

Preformed Line Products Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRC	74 Outperform	$3.32B	17.35	17.92%	1.36%	6.20%	5.12%
ROCK	73 Outperform	$1.59B	11.98	13.99%	―	-5.01%	24.50%
ENS	72 Outperform	$3.28B	10.30	18.36%	1.14%	-2.94%	22.32%
MIDD	68 Neutral	$7.63B	17.98	12.44%	―	-4.00%	6.53%
PLPC	67 Neutral	$664.81M	17.94	8.85%	0.59%	-11.34%	-41.23%
ATKR	62 Neutral	$1.89B	5.32	25.00%	2.33%	-12.01%	-38.33%
Sector *	62 Neutral	$8.08B	13.63	3.82%	3.13%	3.58%	-14.35%

Preformed Line Products Company Corporate Events

Preformed Line Products Reports Q4 2024 Financial Results

On March 13, 2025, Preformed Line Products Company announced its financial results for the fourth quarter and full year of 2024. The company reported a 15% increase in quarterly net sales compared to Q4 2023, driven primarily by international subsidiaries and increased energy market sales. Despite a challenging year with an 11% decline in full-year net sales due to U.S. market softness, PLP managed to reduce its debt by $33.7 million through strong cash generation. The company remains focused on product development, facility modernization, and growth opportunities, supported by a robust balance sheet.