Preformed Line Products Company (PLPC) AI Stock Analysis

• Market Cap: $825.42M
• Dividend Yield: 0.48%
• Average Volume (3M): 132.46K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 0.63
• Revenue Growth: -4.36%
• EPS Growth: -24.20%
• Country: US
• Employees: 3,401
• Sector: Industrials
• Sector Strength: 86
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.33
• Shares Outstanding: 4,940,265
• 10 Day Avg. Volume: 154,725
• 30 Day Avg. Volume: 132,464
• PEG Ratio: 0.15
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.43
• Enterprise Value/Market Cap: 0.56
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: $174.00 ▲(2.78%Upside)

Preformed Line Products Company shows a strong overall performance driven by positive technical indicators and recent corporate results that highlight effective cost management and sales growth. However, challenges in revenue and net profit margins, as well as a modest valuation, temper the overall score.

Preformed Line Products Company Business Overview & Revenue Model

Company Description

Preformed Line Products Company (PLPC) is a global leader in the design and manufacture of products and systems used in the construction and maintenance of overhead and underground networks for the energy, telecommunications, cable, and data industries. Established in 1947, the company provides solutions that enhance the reliability and performance of infrastructure critical to modern communications and power distribution. PLPC operates across multiple sectors, offering a range of products, including cable anchoring and control hardware, fiber optic and copper splice closures, and high-speed cross-connect devices.

How the Company Makes Money

Preformed Line Products Company generates revenue primarily through the sale of its diversified range of products designed for the energy and telecommunications sectors. The company's key revenue streams include the sale of cable anchoring and control hardware, fiber optic and copper splice closures, and cross-connect devices. PLPC benefits from longstanding relationships with utility companies, telecommunications providers, and contractors worldwide, which contribute to steady demand for its products. Additionally, the company's global presence allows it to leverage economic growth and infrastructure development in various regions, further supporting its revenue generation. PLPC's focus on innovation and quality ensures that its offerings remain competitive and essential to the maintenance and development of critical infrastructure.

Preformed Line Products Company Financial Statement Overview

Summary

Overall, Preformed Line Products Company demonstrates a stable financial foundation with strong equity ratios and operational efficiency. However, the recent decline in revenue and net profit margins, coupled with negative free cash flow growth, suggests potential challenges ahead. The company needs to address 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	601.35M	593.71M	669.68M	637.02M	517.42M	466.45M
Gross Profit	194.35M	189.81M	234.85M	215.18M	166.24M	154.01M
EBITDA	68.97M	73.82M	105.16M	93.25M	63.70M	54.52M
Net Income	39.02M	37.09M	63.33M	54.40M	35.73M	29.80M
Balance Sheet
Total Assets	592.45M	573.88M	603.15M	568.48M	489.02M	461.09M
Cash, Cash Equivalents and Short-Term Investments	54.84M	57.24M	53.61M	37.24M	36.41M	45.17M
Total Debt	0.00	36.70M	71.81M	89.54M	59.59M	55.98M
Total Liabilities	156.68M	151.55M	187.00M	209.85M	172.92M	169.02M
Stockholders Equity	435.78M	422.31M	416.16M	358.64M	316.12M	292.08M
Cash Flow
Free Cash Flow	45.67M	52.83M	72.31M	-14.45M	15.21M	17.07M
Operating Cash Flow	67.38M	67.48M	107.64M	26.15M	33.60M	41.64M
Investing Cash Flow	-21.33M	-12.36M	-44.79M	-46.76M	-18.24M	-14.04M
Financing Cash Flow	-36.16M	-47.80M	-48.92M	22.54M	-23.23M	-23.16M

Preformed Line Products Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 169.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 169.29 is above the 20-day moving average (MA) of 155.36, above the 50-day MA of 145.15, and above the 200-day MA of 135.37, indicating a bullish trend. The MACD of 5.64 indicates Negative momentum. The RSI at 75.61 is Negative, neither overbought nor oversold. The STOCH value of 89.99 is Negative, 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
NVT	82 Outperform	$12.33B	21.39	7.63%	1.09%	-5.12%	1.69%
PLPC	78 Outperform	$825.42M	21.20	9.19%	0.48%	-4.36%	-24.20%
POWL	78 Outperform	$2.63B	15.30	37.08%	0.49%	27.43%	67.93%
ATKR	74 Outperform	$2.53B	14.50	12.73%	1.75%	-12.02%	-67.69%
ENS	73 Outperform	$3.48B	10.03	19.82%	1.07%	1.00%	38.51%
Sector *	58 Neutral	$1.34B	4.24	-2.93%	7.38%	3.67%	-51.13%
ENR	57 Neutral	$1.56B	29.47	33.46%	5.56%	0.39%	-37.01%

Preformed Line Products Company Corporate Events

Preformed Line Products Holds Annual Shareholders Meeting

On May 13, 2025, Preformed Line Products Company held its annual shareholders meeting in Mayfield Village, Ohio, where several proposals were voted on. Shareholders re-elected directors to the board for terms expiring in 2027, approved the 2025 Incentive Plan, and ratified the appointment of Ernst & Young LLP as the independent public accounting firm for the year ending December 31, 2025. These decisions reflect the company’s strategic direction and governance stability, potentially impacting its operational efficiency and stakeholder confidence.

Preformed Line Products Reports Q1 2025 Financial Results

On May 1, 2025, Preformed Line Products Company announced its financial results for the first quarter of 2025, reporting a 5% increase in net sales compared to the same period in 2024. The company’s net income rose by 20%, driven by higher sales levels, despite facing challenges such as increased personnel expenses and negative impacts from foreign currency translation. The USA segment benefited from increased communication sales, while international segments saw growth in energy sales. The company is addressing cost increases due to tariffs and global commodity price rises by implementing targeted price increases and focusing on cost containment strategies.