One-glance verdict
Overvalued
$186.73 our estimate vs market $285.27
Wall Street consensus: $480.00 (157.1% higher than our fair-value estimate)
53% above our estimate, beyond the bull case
Fundamentals snapshot
Preformed Line Products Company
PLPC · NMS · Industrials · Electrical Equipment & Parts
Current price
$285.27
52-week range
$184.02 - $504.69
Market cap
$1.39B
Balance sheet
Healthy
42.31x Strong cushion
Net cash $33.88M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 15.3% last year.
- Reward Returns 12.0% on equity, ahead of 16% of its peers.
- Risk Stock trades 49.4% above its 5-year average P/E.
- Risk Operating margin compressed from 11.9% to 11.9% over 3 years.
What this company does
Preformed Line Products Company
Preformed Line Products Company (PLPC) makes products that help build and fix things like power lines and communication networks. Most of their money comes from selling these crucial parts to utility and communication companies. This is important because reliable infrastructure for electricity and internet is essential for everyday life.
How the company got here
Preformed Line Products (PLP) was founded in 1947 by Thomas F. Peterson, an electrical engineer who invented a new way to reinforce and protect electrical cables. [1, 3, 4] His initial product, the PREFORMED™ Armour Rod, was a helically shaped wire designed to be applied over conductors to prevent breakage at support points and protect them from wear. [3, 4] This innovation laid the groundwork for the company's expansion into a global leader in manufacturing hardware and accessories for energy and telecommunications infrastructure. [2, 3, 8] Over the decades, PLP has grown by developing new products, expanding its manufacturing capabilities, and establishing a worldwide presence, serving critical infrastructure needs. [1, 3, 9]
What it actually does
PLP designs and manufactures specialized products used in the construction and maintenance of electrical power and telecommunications networks. [2, 8] Think of them as the essential connectors, protectors, and supports that keep electricity flowing and phone/internet signals traveling through overhead and underground lines. [2, 8] Their products are crucial for ensuring the reliability and longevity of these vital networks, often playing a small but critical role in the overall cost of infrastructure projects. [1, 8]
Energy Products
This segment focuses on products for the electric power industry, including transmission and distribution lines. [1, 10] PLP offers a variety of hardware, such as helically formed products for dead-ends (where a cable terminates), splices (to join cables), armor rods (for protection), and motion control devices to manage vibrations. [4, 8] These products are essential for utilities to build, maintain, and protect the infrastructure that delivers electricity to homes and businesses. [1, 4] The energy sector is a significant part of PLP's business, representing its largest segment by revenue. [14]
Communications Products
This part of PLP's business provides solutions for telecommunications networks, including those for fiber optic and copper cables. [2, 8, 11] They manufacture splice closures, which are protective casings for joining fiber optic cables, and anchoring systems to secure these cables. [2, 8] These components are vital for broadband providers, telecommunications carriers, and cable operators as they build and maintain the networks that deliver internet and phone services. [1, 2] This segment is a key area for PLP, supporting the ongoing expansion of communication infrastructure.
Special Industries
This segment encompasses a diverse range of products for various niche markets beyond traditional energy and communications. [2, 8, 10, 11] It includes hardware assemblies, pole line hardware, and specialized solutions for applications like solar energy installations, drone inspection services for power lines, and even foundations for electric vehicle (EV) charging stations. [1] This segment allows PLP to leverage its engineering expertise across a broader spectrum of industrial needs, catering to unique customer requirements.
What management is betting on now
PLP's management is focused on several strategic priorities to drive future growth and maintain its leadership position. [2, 15, 17] They are investing in advanced manufacturing technologies and automation to improve efficiency and reduce costs. [2] Diversifying their supplier base is a key initiative to mitigate risks associated with supply chain disruptions. [2] Additionally, PLP is committed to developing sustainable solutions to meet growing environmental demands. [2] The company also aims to expand its product offerings through strategic acquisitions and by continuing to innovate in areas like grid hardening, renewable energy, and advanced infrastructure technologies. [16, 17]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$20.64M
FY2025 Q1
$-5.32M
FY2025 Q2
$18.55M
FY2025 Q3
$8.32M
FY2025 Q4
$11.79M
FY2026 Q1
$-3.95M
FY2026 Q2
$18.26M
FY2026 Q3
$10.13M
Revenue
$209.50M
Net income
$18.04M
Diluted EPS
3.56
Operating cash flow
$36.83M
Free cash flow
$10.13M
Fetching…
Sources
Revenue
$212.68M
Net income
$21.51M
Diluted EPS
4.49
Operating cash flow
$25.21M
Free cash flow
$18.26M
Fetching…
Sources
Revenue
$176.28M
Net income
$10.52M
Diluted EPS
2.14
Operating cash flow
$6.05M
Free cash flow
$-3.95M
Fetching…
Sources
Revenue
$173.11M
Net income
$8.44M
Diluted EPS
1.72
Operating cash flow
$21.94M
Free cash flow
$11.79M
Fetching…
Sources
Revenue
$178.09M
Net income
$2.63M
Diluted EPS
0.53
Operating cash flow
$18.94M
Free cash flow
$8.32M
Fetching…
Sources
Revenue
$169.60M
Net income
$12.71M
Diluted EPS
2.56
Operating cash flow
$26.93M
Free cash flow
$18.55M
Fetching…
Sources
Revenue
$148.54M
Net income
$11.52M
Diluted EPS
2.33
Operating cash flow
$5.66M
Free cash flow
$-5.32M
Fetching…
Sources
Revenue
$167.12M
Net income
$10.45M
Diluted EPS
2.13
Operating cash flow
$24.07M
Free cash flow
$20.64M
Fetching…
Sources
Is it cheap or expensive?
Fair value $186.73 vs current price $285.27
Wall Street consensus is the average analyst price target: $480.00 (157.1% higher than our fair-value estimate).
Our most-likely fair value is $186.73 a share — about 34.5% below today's price of $285.27, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $33.9M - more cash than debt. Interest coverage 42.3x.
Net debt
$-33.88M
Interest coverage
42.31x
Preformed Line Products Company's profit covers its interest bill about 42.3 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
PLPC
BASELINE
Preformed Line Products Company
Total debt $64.89M Interest coverage 42.31x This is the baseline the peer rows are being compared against.
Total debt $3.19B Interest coverage 6.81x -84% vs PLPC Carries about 6.2x less debt cushion than PLPC.
Total debt $5.31B Interest coverage 18.86x -55% vs PLPC Carries about 2.2x less debt cushion than PLPC.
Total debt $913.52M Interest coverage 7.14x -83% vs PLPC Carries about 5.9x less debt cushion than PLPC.
Total debt $895.65M Interest coverage 12.88x -70% vs PLPC Carries about 3.3x less debt cushion than PLPC.
Total debt $2.52M Interest coverage 13.89x -67% vs PLPC Carries about 3.0x less debt cushion than PLPC.
What you should know
The case for and against PLPC
3 Rewards
2 Risks
Rewards
-
Revenue grew 15.3% last year.
-
Returns 12.0% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 49.4% above its 5-year average P/E.
-
Operating margin compressed from 11.9% to 11.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.97x
Forward P/E
—
P/B
2.72x
P/S
1.80x
EV/EBITDA
13.13x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
32.4%
Operating margin
11.9%
Net margin
7.6%
ROE
12.0%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
2.85x
Quick ratio
1.59x
Total debt
$64.89M
Total cash
$98.77M
Growth
How the business has been compounding
Revenue TTM
$771.57M
Revenue 5Y CAGR
6.6%
EPS TTM
11.90
EPS 5Y CAGR
-13.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$90.04M
Free CF TTM
$33.34M
FCF margin
4.3%
Dividend
Shareholder payout
Yield
0.3%
Payout ratio
7.1%
Last ex-div date
2026-10-01