Preformed Line Products Company Fundamental Analysis (NASDAQ: PLPC)
Preformed Line Products Company Fundamental Analysis (NASDAQ: PLPC)
Preformed Line Products Company (NASDAQ: PLPC) shows moderate financial fundamentals with a PE ratio of 24.57, profit margin of 7.58%, and ROE of 11.96%. The company generates $0.7B in annual revenue with strong year-over-year growth of 12.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PLPC's fundamental strength across five key dimensions:
Efficiency Score
WeakPLPC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPLPC trades at attractive valuation levels.
Growth Score
ModeratePLPC shows steady but slowing expansion.
Financial Health Score
ExcellentPLPC maintains a strong and stable balance sheet.
Profitability Score
WeakPLPC struggles to sustain strong margins.
Key Financial Metrics
Is PLPC Expensive or Cheap?
P/E Ratio
PLPC trades at 24.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PLPC's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values Preformed Line Products Company at 2.88 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.59 times EBITDA. This signals the market has high growth expectations.
How Well Does PLPC Make Money?
Net Profit Margin
For every $100 in sales, Preformed Line Products Company keeps $7.58 as profit after all expenses.
Operating Margin
Core operations generate 10.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.96 in profit for every $100 of shareholder equity.
ROA
Preformed Line Products Company generates $7.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Preformed Line Products Company produces operating cash flow of $87.33M, showing steady but balanced cash generation.
Free Cash Flow
Preformed Line Products Company produces free cash flow of $35.14M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.20 in free cash annually.
FCF Yield
PLPC converts 2.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.88
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How PLPC Stacks Against Its Sector Peers
| Metric | PLPC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.57 | 27.10 | Neutral |
| ROE | 11.96% | 1187.00% | Weak |
| Net Margin | 7.58% | 11.00% | Weak |
| Debt/Equity | 0.13 | 0.84 | Strong (Low Leverage) |
| Current Ratio | 2.85 | 22.01 | Strong Liquidity |
| ROA | 7.88% | -1347792.00% (disorted) | Weak |
PLPC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Preformed Line Products Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.64%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
18.51%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
76.60%
Industry Style: Cyclical, Value, Infrastructure
High Growth