Preformed Line Products Company (PLPC) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: 0.35%
• Average Volume (3M): 77.41K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.77
• Revenue Growth: 15.93%
• EPS Growth: 12.72%
• Country: US
• Employees: 3,401
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.09
• Shares Outstanding: 4,901,871
• 10 Day Avg. Volume: 92,419
• 30 Day Avg. Volume: 77,410
• PEG Ratio: -0.41
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 11.87
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.42
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 9.39
• Revenue Forecast (FY): $641.00M

• Rating: 69 Neutral
• Price Target: $257.00 ▲(25.40% Upside)

Preformed Line Products Company has a solid financial foundation with strong revenue growth and efficient cost management. The technical indicators suggest bullish momentum, though the stock may be overbought. Valuation metrics indicate the stock could be overvalued, with a high P/E ratio and low dividend yield. Positive corporate events, including a dividend increase and strong financial results, bolster the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Dividend Increase

The dividend increase reflects strong liquidity and management's confidence in sustained cash flow, enhancing shareholder value.

Low Leverage

Low leverage provides financial stability and flexibility, reducing risk and enabling strategic investments for growth.

Negative Factors

Profit Margin Pressure

Decreasing profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.

Operational Efficiency Challenges

Declining operational efficiency may hinder profitability, requiring management to improve cost control and operational processes.

Free Cash Flow Conversion

Challenges in converting earnings to free cash flow could limit the company's ability to invest in growth opportunities and return capital to shareholders.

Preformed Line Products Company Business Overview & Revenue Model

Company Description

Preformed Line Products Company (PLPC) is a leading global provider of high-quality products and services for the telecommunications and energy industries. Founded in 1947, the company specializes in the design and manufacturing of wire and cable accessories, including splices, connectors, and hardware. PLPC operates in various sectors, including broadband, utility, and renewable energy, offering innovative solutions that enhance the performance and reliability of infrastructure systems worldwide.

How the Company Makes Money

PLPC generates revenue primarily through the sale of its core products, which include cable accessories, optical fiber and cable products, and utility hardware. The company serves a diverse customer base, including telecommunication providers, utility companies, and contractors, creating multiple revenue streams. Key partnerships with major industry players and ongoing investments in research and development help PLPC maintain its competitive edge and expand its product offerings. Additionally, maintenance services and technical support add to the company's income, while international sales contribute significantly to its overall revenue, capitalizing on global infrastructure development demands.

Preformed Line Products Company Financial Statement Overview

Summary

Preformed Line Products Company demonstrates a stable financial position with strong revenue growth and efficient cost management. The balance sheet is solid with low leverage, providing financial flexibility. Cash flow generation is improving, although there are some concerns regarding the conversion of earnings into free cash flow. Overall, the company is in a healthy financial state, with room for improvement in profitability and cash flow efficiency.

Income Statement

Preformed Line Products Company shows a solid revenue growth rate of 4.92% in the TTM, indicating a positive trajectory. The gross profit margin is strong at 32.04%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 5.62% from the previous year's 6.25%, suggesting some pressure on profitability. The EBIT and EBITDA margins have also declined, indicating potential challenges in operational efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.013, showcasing strong financial stability and low leverage risk. The return on equity is reasonable at 8.36%, though it has decreased from the previous year, indicating a slight decline in profitability. The equity ratio is robust, highlighting a strong capital structure with equity financing.

Cash Flow

Operating cash flow has improved, with a coverage ratio of 0.65, indicating good cash generation relative to net income. Free cash flow growth is positive at 6.37%, showing improved cash management. However, the free cash flow to net income ratio has decreased, suggesting potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	663.35M	593.71M	669.68M	637.02M	517.42M	466.45M
Gross Profit	212.55M	189.81M	234.85M	215.18M	166.24M	154.01M
EBITDA	71.88M	71.94M	103.75M	93.14M	63.70M	54.52M
Net Income	37.30M	37.09M	63.33M	54.40M	35.73M	29.80M
Balance Sheet
Total Assets	644.62M	573.88M	603.15M	568.48M	489.02M	461.09M
Cash, Cash Equivalents and Short-Term Investments	72.95M	57.24M	53.61M	37.24M	36.41M	45.17M
Total Debt	46.84M	37.19M	71.81M	98.17M	69.73M	66.96M
Total Liabilities	178.28M	151.55M	187.00M	209.85M	172.92M	169.02M
Stockholders Equity	466.31M	422.31M	416.16M	358.64M	316.12M	292.08M
Cash Flow
Free Cash Flow	42.18M	52.83M	72.31M	-14.45M	15.21M	17.07M
Operating Cash Flow	75.59M	67.48M	107.64M	26.15M	33.60M	41.64M
Investing Cash Flow	-37.80M	-12.36M	-44.79M	-46.76M	-18.24M	-14.04M
Financing Cash Flow	-14.34M	-47.80M	-48.92M	22.54M	-23.23M	-23.16M

Preformed Line Products Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 204.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 204.94 is below the 20-day moving average (MA) of 216.01, below the 50-day MA of 215.31, and above the 200-day MA of 173.20, indicating a bullish trend. The MACD of 2.76 indicates Positive momentum. The RSI at 53.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.12 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENS	79 Outperform	$5.42B	17.17	18.22%	0.68%	6.17%	20.86%
POWL	76 Outperform	$4.03B	22.41	32.17%	0.32%	9.08%	19.86%
NVT	76 Outperform	$16.38B	27.98	8.57%	0.84%	5.31%	5.76%
PLPC	69 Neutral	$1.05B	28.51	8.33%	0.35%	15.93%	12.72%
AEIS	67 Neutral	$8.16B	56.85	11.80%	0.18%	17.18%	235.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATKR	52 Neutral	$2.17B	―	-1.11%	2.05%	-10.98%	-103.99%

Preformed Line Products Company Corporate Events

Preformed Line Products Increases Quarterly Dividend by 5%

On December 11, 2025, Preformed Line Products announced a 5% increase in its quarterly cash dividend, marking the first rise since its NASDAQ listing in 2001. This decision reflects the company’s strong liquidity and commitment to shareholder returns, highlighting management’s confidence in sustained cash flow and strategic growth potential.

Preformed Line Products Reports Q3 2025 Financial Results

On October 29, 2025, Preformed Line Products Company announced its financial results for the third quarter of 2025, highlighting a 21% increase in net sales compared to the same period in 2024. The company successfully completed the termination of its U.S. Pension Plan, resulting in a non-cash pre-tax charge of $11.7 million, impacting earnings per share. Despite this, adjusted earnings per share rose by 36% due to strong sales in energy and communication markets, bolstered by international growth and contributions from the acquisition of JAP Telecom. The company faces challenges from tariffs affecting costs, but anticipates mitigating these through selling price adjustments.