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PLPC

Preformed Line Products NasdaqGS:PLPC Stock Report

Last Price

US$72.11

Market Cap

US$356.3m

7D

-5.5%

1Y

5.7%

Updated

25 Sep, 2022

Data

Company Financials
PLPC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends2/6

PLPC Stock Overview

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.

Preformed Line Products Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Preformed Line Products
Historical stock prices
Current Share PriceUS$72.11
52 Week HighUS$87.19
52 Week LowUS$54.97
Beta0.73
1 Month Change-10.60%
3 Month Change16.31%
1 Year Change5.73%
3 Year Change32.58%
5 Year Change7.15%
Change since IPO324.18%

Recent News & Updates

Sep 23
Preformed Line Products (NASDAQ:PLPC) Is Due To Pay A Dividend Of $0.20

Preformed Line Products (NASDAQ:PLPC) Is Due To Pay A Dividend Of $0.20

The board of Preformed Line Products Company ( NASDAQ:PLPC ) has announced that it will pay a dividend on the 20th of...

Sep 19

Preformed Line Products declares $0.20 dividend

Preformed Line Products (NASDAQ:PLPC) declares $0.20/share quarterly dividend, in line with previous. Forward yield 1.04% Payable Oct. 20; for shareholders of record Oct. 3; ex-div Sept. 30. See PLPC Dividend Scorecard, Yield Chart, & Dividend Growth.

Aug 14

Volume Breakout Report: August 13, 2022 (Technical Analysis)

Trailing pick performance, future stock market risks, and some housekeeping items are discussed. 4 new buy signals are explained. Preformed Line Products is highlighted and analyzed in more detail. Overall gains for investors from the first 7 weeks of VBR picks have been good to acceptable, in my opinion. However, the recent split trend of outperformance vs. the S&P 500 index (equally weighting VBR choices from Friday closing values), with lagging performance vs. the closer-peer Russell 2000 index is continuing. I am a little frustrated that follow-through buying has been lacking in many of the 30 names in total selected since June 25th. My goal is regular "outperformance" of both major index creations, blue chips, and small caps. One argument for the absence of extra buying may in fact be this: the sharp +15% U.S. equity market rise off its worst level in June (+20% for the Russell 2000) represents something of a bear market rally. Like I have mentioned in previous Seeking Alpha articles beginning in May, major bottoms in the stock market are typically "led" higher by gold prices and more often than not stronger performance by bank and financial sectors (a function of changed liquidity forces, especially after a panic or crisis). However, this has clearly not been the case in July-August. Either the advance is a very atypical rise in stock quotes or just a rapid bounce and knee-jerk reaction to overly bearish trading setups in June (with high cash levels and short covering supporting the move). I am torn, kind of 50/50, on the macroeconomic environment backdrop. [Please take my market cynicism with a grain of salt and decide on your own what weightings to have in personal portfolio designs.] In the end, a relatively neutral outlook for U.S. equities generally over the next 6-12 months means stock picking is an endeavor of greater-than-usual importance moving forward. I do expect some sort of retest of the summer market lows in coming months, at a minimum. I would interject much of the upside in price I expected between late May and early 2023 has already played out. I now suggest readers tread lightly in stocks for weightings, owning higher-than-normal cash levels (money market instruments should improve into the 2% to 3% area soon for yield as the Fed raises base bank-lending rates). The Fed is promising to slow the economy meaningfully into Christmas with further rate hikes. In a Catch-22 fashion, the July-August Wall Street rebound may actually encourage additional rates hikes and perhaps at greater amounts, 0.75% instead of 0.5% at the September meeting for example. The Fed’s tightening actions to fight inflation, including the ability to flood the Treasury bond market with supply from $9 trillion in owned QE assets, are bad news for the economy and corporate profits. On a positive note, I am happy to announce the Volume Reversal Report has found some big winners. Two that stand out are Broadwind (BWEN) and ShockWave (SWAV). Over a matter of weeks, both have risen nearly +45% after reaching VBR buy status. BWEN should be a real winner as more wind power is constructed in America with the global warming action, pollution-reducing incentives of the Inflation Reduction Act. ShockWave's medical devices are selling faster than expected, with Q2 revenue numbers up +116% vs. 2021’s same quarter and +20% above Wall Street estimates. EPS was almost TRIPLE estimates, with a record of beating optimistic analyst projections by a wide margin for 4 straight quarters. StockCharts.com, Author Reference Point, BWEN 1-Year StockCharts.com, Author Reference Point, SWAV 1-Year The past five weeks of price results for VBR selections are drawn below, which I am thinking will be the new rolling process going forward. My statistical research points to the first 6 to 8-weeks after each buy signal as providing the best chance at market outperformance. Repeating earlier analysis, the initial article picks from June 25th have turned out to be the weakest relative group so far (not pictured). I may update the performance of previous lists at a later date, for a longer-term perspective on success rates. YCharts, VBR Picks from August 5th YCharts, VBR Picks from July 29th YCharts, VBR Picks from July 22nd YCharts, VBR Picks from July 15th YCharts, VBR Picks from July 8th New VBR Buy Signals Preformed Line Products A stock with plenty of upside potential is Preformed Line Products (PLPC), based in Ohio. In a rare setup, the business may begin a long-term growth expansion backed by TWO U.S. government spending packages passed by Democrats and the President in the middle of 2022. Both the added federal money for infrastructure upgrade programs, and the climate-change fighting program pushing for final passage in the days ahead, could propel growth for the company and shareholders into high gear. Preformed Line manufactures and sells items used by electric utilities, clean energy producers, telephone service providers, and cable operators. Company Website Without doubt, government-financed upgrades in the electrical power transmission networks of America will be necessary to accommodate rapid electric vehicle [EV] adoption. Transitioning from gas-powered cars and trucks to ones requiring large new electricity demand should drive company sales for many years. An excellent bullish article was just written by Jeremy Blum here, and is worth your reading time. He is one of the top small cap writers on Seeking Alpha, with an enviable track record of big winners for investors, according to TipRanks. It would be interesting if the VBR quant-sorting formulas corroborate his strong buy enthusiasm for Preformed Line Products. Doing a little bit of research, Preformed Line Products is incredibly cheap, using assumptions of flat operating results. Below is a 10-year graph of price to trailing earnings, sales, and book value. All three calculations are near decade lows. In addition, enterprise value (stock capitalization + debt outstanding – cash) to EBITDA is trading at a bargain multiple of 5.4x, far lower than the S&P 500 average close to 15x. I figure the stock quote is a good 40% discount to its 10-year average financial ratio setup! YCharts, PLPC Basic Valuation Ratios, 10 Years The balance sheet is liquid and ready to fund growth with $307 million in current assets like cash, receivables, and inventory vs. $204 million in total liabilities. Trading at 1.4x tangible book value, I find it hard to model a circumstance that will put price below $60 a share, absent an all-out stock market crash on Wall Street. The best news is the company’s operations are already growing quickly, moving into a potential 5 to 10-year boom in U.S. electricity grid upgrades. Q2 2022 numbers included record quarterly sales and profits. Revenue grew +23% YoY and EPS was up +54%. It’s quite amazing Wall Streeters have not figured out the exceptional buy proposition offered by Preformed Line. Projecting a price of $150 per share in 12-18 months, or $200 in 18-24 months is not difficult from $76 today. Of course, the execution of management's production ramp to meet growing orders and bookings will be key for the stock’s valuation and eventual price. The share quote has been galloping higher following its August 4th earnings release. Investors have also been digesting the surprise climate-change bill and its super-positive repercussions for PLPC, given its minor $360 million market capitalization. The stock quote has risen 6 of the last 7 trading days on high volume, launching out of a low-volatility base pattern during all of 2022. On Balance Volume has been incredibly bullish since March, drawn on the chart below. StockCharts.com, 1-Year PLPC Thermon Group Holdings An expanding-growth industrial products maker is Thermon Group (THR), focused on keeping things heated and warm under all types of weather and operating conditions. Air heaters, boilers and calorifiers, controlling and monitoring solutions, heat tracing systems, tank heating systems, thermostats, tubing bundles, heating blankets, and system accessories are proprietary offerings. In terms of a gee-whiz stat, THR has closed higher 20 of the last 21 trading days, by my count. This run marks one of the top daily winning streaks I have seen in 2022. Negative Volume Index and On Balance Volume trends have been terrific since early July. The good news is underlying company growth and financials may support a much greater percentage price gain into 2023. Current assets on the balance sheet match total liabilities, meaning rising sales and earnings should flow directly to shareholder value. The stock traded for $27 in early 2020 on lower sales and income per share vs. what’s projected for 2023. StockCharts.com, 1-Year THR Wilhelmina International One of the top fashion model, entertainment and athlete management agencies in America, Wilhelmina (WHLM) is something of a reopening play from COVID-19 lockdowns, especially in New York City. The company is small, but trades near tangible book value. Current assets are slightly greater than total liabilities. Consequently, as long as profits and cash flow continue to roll in the door, limited downside risk appears to be part of the investment equation. Below is a graph of current 10-year lows in price to trailing cash flow and EV to EBITDA ratios. If business improves into 2024, a double in the share price cannot be ruled out over the next 12-18 months. YCharts, WHLM Basic Valuation Ratios, 10 Years On the 12-month chart below, a high-volume breakout occurred on Thursday. Friday’s retreat brought price back to its 200-day moving average. On Balance Volume has been exceptional the past year and could be signaling a coiled spring is set to release, pushing price into a strong uptrend.

Shareholder Returns

PLPCUS ElectricalUS Market
7D-5.5%-7.0%-5.2%
1Y5.7%-24.2%-23.0%

Return vs Industry: PLPC exceeded the US Electrical industry which returned -24.2% over the past year.

Return vs Market: PLPC exceeded the US Market which returned -23% over the past year.

Price Volatility

Is PLPC's price volatile compared to industry and market?
PLPC volatility
PLPC Average Weekly Movement6.5%
Electrical Industry Average Movement10.6%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: PLPC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PLPC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19472,927Rob Ruhlmanhttps://www.preformed.com

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.

Preformed Line Products Company Fundamentals Summary

How do Preformed Line Products's earnings and revenue compare to its market cap?
PLPC fundamental statistics
Market CapUS$356.27m
Earnings (TTM)US$45.68m
Revenue (TTM)US$568.52m

7.8x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PLPC income statement (TTM)
RevenueUS$568.52m
Cost of RevenueUS$390.85m
Gross ProfitUS$177.67m
Other ExpensesUS$131.99m
EarningsUS$45.68m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.25
Gross Margin31.25%
Net Profit Margin8.03%
Debt/Equity Ratio23.3%

How did PLPC perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

9%

Payout Ratio

Does PLPC pay a reliable dividends?

See PLPC dividend history and benchmarks
When do you need to buy PLPC by to receive an upcoming dividend?
Preformed Line Products dividend dates
Ex Dividend DateSep 30 2022
Dividend Pay DateOct 20 2022
Days until Ex dividend4 days
Days until Dividend pay date24 days

Does PLPC pay a reliable dividends?

See PLPC dividend history and benchmarks