PL

Preformed Line Products Co

PLPC
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Preformed Line Products Co AI Insights

Informational only. Not investment advice.
As of 2026-01-05

Snapshot

  • Operating margin 9.2% TTM vs industry median -0.5% - profitable in sector where most peers lose money[Operating Margin]
  • Debt/equity 0.10 with 73M cash vs 47M total debt - net cash position provides downside protection[Debt to Equity]
  • EPS declined 66% YoY (7.55 TTM) despite flat revenue - margin compression or one-time items driving disconnect[EPS Growth 1Y]

Watch Triggers

  • EPS: Quarterly EPS stabilizes >$2.00 for 2 consecutive quartersConfirms earnings trough; current 7.55 TTM implies sub-$2 recent quarters
  • Operating Margin: Falls below 7% TTMWould signal margin compression accelerating despite cost structure
  • Free Cash Flow: Turns negative for 2+ quarters42M FCF TTM is key bull case support; loss invalidates thesis

Bull Case

Fortress balance sheet: 0.10 debt/equity, 73M cash, 244M working capital enables opportunistic M&A or buybacks without dilution

Debt to EquityCash and EquivalentsWorking Capital

Profitable niche operator: 9.2% operating margin vs -0.5% industry median with 3.5% R&D spend suggests defensible position

Operating MarginResearch and Development

Bear Case

Severe earnings deterioration: EPS -66% 1Y, -45% 3Y CAGR, -27% 5Y CAGR signals structural decline not temporary weakness

EPS Growth 1YEPS Growth 3YEPS Growth 5Y

Valuation stretched: P/E 29.9x at industry median despite collapsing earnings; P/B 2.6x for low-growth industrial

P/E RatioP/B Ratio

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

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Forward Thesis

EPS normalization likely as 66% YoY decline appears unsustainable given stable revenue base

1-3ymed
  • Revenue 663M TTM essentially flat (2.5% 3Y CAGR)
  • Operating margin 9.2% still healthy vs peers
  • FCF 42M TTM confirms underlying cash generation
EPS -66% YoY vs revenue flatFCF margin 6.4% TTM positiveNet cash position 26M
Valuation Context
Caveats

Public Strategies Rankings

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Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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