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Preformed Line Products (PLPC)
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Preformed Line Products Company (PLPC) AI Stock Analysis

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PLPC

Preformed Line Products Company

(NASDAQ:PLPC)

Rating:74Outperform
Price Target:
$173.00
â–¼(-9.59% Downside)
PLPC demonstrates solid financial performance and benefits from positive corporate events, such as increased sales and strategic expansion plans. However, technical analysis presents mixed signals, and the stock's valuation is reasonable but not particularly compelling. The lack of earnings call data limits insights into management's future outlook.

Preformed Line Products Company (PLPC) vs. SPDR S&P 500 ETF (SPY)

Preformed Line Products Company Business Overview & Revenue Model

Company DescriptionPreformed 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 MoneyPLPC generates revenue primarily through the sale of its manufactured products and systems to utility companies, telecommunications providers, and construction contractors. The company's revenue model is based on direct sales, distribution partnerships, and ongoing service agreements. Key revenue streams include the sale of hardware for connecting and managing electrical and communication networks, installation equipment, and maintenance services. Additionally, PLPC benefits from long-term contracts with major utility and telecom companies, which provide a stable income base. The company also invests in research and development to innovate and expand its product offerings, thereby enhancing its market position and driving growth.

Preformed Line Products Company Financial Statement Overview

Summary
PLPC maintains a solid financial position with strong profitability, cash flow generation, and a stable balance sheet. The income statement shows strong profitability with consistent net income growth, although revenue has shown minor fluctuations. The balance sheet is financially stable with low leverage, and cash flow management is robust, despite a negative free cash flow growth rate.
Income Statement
78
Positive
PLPC's income statement shows strong profitability with a consistent increase in net income from previous periods. The gross profit margin for TTM is approximately 32.3%, and the net profit margin stands at a solid 6.5%. Revenue has shown a moderate growth trajectory with a minor decline recently. The EBIT and EBITDA margins are healthy, indicating efficient operations.
Balance Sheet
72
Positive
The balance sheet of PLPC reflects a strong equity position with an equity ratio of 73.5% for TTM, showing financial stability. The debt-to-equity ratio is low at 0.10, indicating low leverage and reduced financial risk. The return on equity (ROE) is moderate at 8.9%, showing efficient use of equity, though there is room for improvement.
Cash Flow
80
Positive
PLPC demonstrates robust cash flow management with a strong operating cash flow and a healthy free cash flow. The free cash flow growth rate is negative due to a decrease from the previous year, but the operating cash flow to net income ratio is quite favorable at 1.73, indicating strong cash generation relative to net income. Free cash flow to net income ratio is also positive, indicating good cash flow coverage.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue601.35M593.71M669.68M637.02M517.42M466.45M
Gross Profit194.35M189.81M234.85M215.18M166.24M154.01M
EBITDA68.97M73.82M105.16M93.25M63.70M54.52M
Net Income39.02M37.09M63.33M54.40M35.73M29.80M
Balance Sheet
Total Assets592.45M573.88M603.15M568.48M489.02M461.09M
Cash, Cash Equivalents and Short-Term Investments54.84M57.24M53.61M37.24M36.41M45.17M
Total Debt43.11M37.19M71.81M89.54M59.59M55.98M
Total Liabilities156.68M151.55M187.00M209.85M172.92M169.02M
Stockholders Equity435.78M422.31M416.16M358.64M316.12M292.08M
Cash Flow
Free Cash Flow45.67M52.83M72.31M-14.45M15.21M17.07M
Operating Cash Flow67.38M67.48M107.64M26.15M33.60M41.64M
Investing Cash Flow-21.33M-12.36M-44.79M-46.76M-18.24M-14.04M
Financing Cash Flow-36.16M-47.80M-48.92M22.54M-23.23M-23.16M

Preformed Line Products Company Technical Analysis

Technical Analysis Sentiment
Positive
Last Price191.34
Price Trends
50DMA
165.28
Positive
100DMA
153.41
Positive
200DMA
144.04
Positive
Market Momentum
MACD
9.19
Negative
RSI
62.32
Neutral
STOCH
60.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLPC, the sentiment is Positive. The current price of 191.34 is above the 20-day moving average (MA) of 180.14, above the 50-day MA of 165.28, and above the 200-day MA of 144.04, indicating a bullish trend. The MACD of 9.19 indicates Negative momentum. The RSI at 62.32 is Neutral, neither overbought nor oversold. The STOCH value of 60.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLPC.

Preformed Line Products Company Risk Analysis

Preformed Line Products Company disclosed 17 risk factors in its most recent earnings report. Preformed Line Products Company reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Preformed Line Products Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.83B11.6619.13%0.93%3.73%32.29%
80
Outperform
$3.18B18.3234.00%0.39%14.32%33.76%
80
Outperform
$14.40B25.467.53%0.88%-4.84%2.33%
77
Outperform
$1.93B8.15164.19%4.19%1.15%2358.45%
74
Outperform
$942.32M22.169.66%0.42%7.95%4.48%
65
Neutral
$1.93B18.457.29%2.23%-12.09%-78.18%
64
Neutral
$10.73B15.657.58%2.01%2.80%-14.92%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PLPC
Preformed Line Products Company
191.34
78.14
69.03%
ENR
Energizer Holdings
28.65
-1.26
-4.21%
ENS
EnerSys
103.06
7.73
8.11%
POWL
Powell Industries
270.73
121.20
81.05%
ATKR
Atkore International Group
58.21
-24.03
-29.22%
NVT
nVent Electric
91.93
31.01
50.90%

Preformed Line Products Company Corporate Events

Business Operations and StrategyFinancial Disclosures
Preformed Line Products Reports Strong Q2 2025 Results
Positive
Jul 30, 2025

On July 30, 2025, Preformed Line Products Company announced its second-quarter financial results, highlighting a 22% increase in net sales compared to the same period in 2024, driven by strong performance in energy and communications markets. Despite challenges from tariffs and foreign currency translation, the company reported a 35% rise in net income, attributing success to global sales growth, strategic acquisitions, and effective cost management strategies.

Private Placements and FinancingBusiness Operations and Strategy
Preformed Line Products Secures Major Loan for Expansion
Positive
Jul 22, 2025

On July 16, 2025, PLP Poland, a subsidiary of Preformed Line Products Company, secured a non-revolving investment loan from Bank Pekao S.A. to finance a new manufacturing plant. The loan, amounting to PLN100.3 million ($27.4 million), is guaranteed by the parent company and secured by existing and new plant assets, with a maturity date of January 31, 2035. This financial move is expected to bolster the company’s manufacturing capabilities and strengthen its market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 01, 2025