Preformed Line Products Co

PLPC

Water, Sewer, Pipeline, Comm & Power Line Construction

Mkt Cap

$650.8M

PE

12.63

Debt

$62.08M

Cash

$45.86M

EV

$667M

FCF

$57.07M

Market Cap

$650.8M

P/E Ratio

12.63

Debt

$62.08M

Cash

$45.86M

EV

$667M

FCF

$57.07M

Charts data: {"Earnings":[{"time":"2014-12-30","value":12861000},{"time":"2015-12-30","value":6675000},{"time":"2016-12-30","value":15255000},{"time":"2017-12-30","value":12654000},{"time":"2018-12-30","value":26581000},{"time":"2019-12-30","value":23303000},{"time":"2020-12-30","value":29761000},{"time":"2021-12-30","value":35721000},{"time":"2022-12-30","value":54395000},{"time":"2023-12-30","value":63332000}],"Sales":[{"time":"2014-12-30","value":388185000},{"time":"2015-12-30","value":354666000},{"time":"2016-12-30","value":336634000},{"time":"2017-12-30","value":378212000},{"time":"2018-12-30","value":420878000},{"time":"2019-12-30","value":444861000},{"time":"2020-12-30","value":466449000},{"time":"2021-12-30","value":517417000},{"time":"2022-12-30","value":637021000},{"time":"2023-12-30","value":669679000}],"Net Margins":[{"time":"2014-12-30","value":0.033131110166544304},{"time":"2015-12-30","value":0.01882052409872951},{"time":"2016-12-30","value":0.045316278213133554},{"time":"2017-12-30","value":0.03345742599388703},{"time":"2018-12-30","value":0.06315606897960929},{"time":"2019-12-30","value":0.05238265435720371},{"time":"2020-12-30","value":0.06380333112516053},{"time":"2021-12-30","value":0.06903715958308289},{"time":"2022-12-30","value":0.08538964963478442},{"time":"2023-12-30","value":0.09457068237170346}],"Assets":[{"time":"2014-12-30","value":353967000},{"time":"2015-12-30","value":324573000},{"time":"2016-12-30","value":340937000},{"time":"2017-12-30","value":359785000},{"time":"2018-12-30","value":358797000},{"time":"2019-12-30","value":433571000},{"time":"2020-12-30","value":461087000},{"time":"2021-12-30","value":489018000},{"time":"2022-12-30","value":568479000},{"time":"2023-12-30","value":603151000}],"Stockholders Equity":[{"time":"2014-12-30","value":242925000},{"time":"2015-12-30","value":218984000},{"time":"2016-12-30","value":223543000},{"time":"2017-12-30","value":238537000},{"time":"2018-12-30","value":249370000},{"time":"2019-12-30","value":268568000},{"time":"2020-12-30","value":292078000},{"time":"2021-12-30","value":316117000},{"time":"2022-12-30","value":358637000},{"time":"2023-12-30","value":416164000}],"ROE":[{"time":"2014-12-30","value":0.05294226613152207},{"time":"2015-12-30","value":0.030481679026778213},{"time":"2016-12-30","value":0.06824190424213686},{"time":"2017-12-30","value":0.05304837404679358},{"time":"2018-12-30","value":0.10659261338573205},{"time":"2019-12-30","value":0.08676759703315362},{"time":"2020-12-30","value":0.10189401461253501},{"time":"2021-12-30","value":0.11299930089175843},{"time":"2022-12-30","value":0.1516714672496145},{"time":"2023-12-30","value":0.15218039042300632}],"ROA":[{"time":"2014-12-30","value":0.060485864501493077},{"time":"2015-12-30","value":0.03804691086442803},{"time":"2016-12-30","value":0.06299990907411046},{"time":"2017-12-30","value":0.07256555998721459},{"time":"2018-12-30","value":0.09179006513432386},{"time":"2019-12-30","value":0.07525180420277186},{"time":"2020-12-30","value":0.08798990212259292},{"time":"2021-12-30","value":0.09998813949588768},{"time":"2022-12-30","value":0.12965122722211375},{"time":"2023-12-30","value":0.1395239334760284}]}

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 optical ground wire products to support, protect, terminate, and splice transmission and distribution lines, as well as bolted, welded, and compressed connectors for substations; and string hardware products, polymer insulators, wildlife protection, substation fittings, and motion control devices. It also provides rugged outside plant closures to protect and support wireline and wireless networks, such as copper cable or fiber optic cable from moisture, environmental hazards, and other contaminants; and hardware assemblies, pole line hardware, plastic products, cable dynamics/vibration solutions, interior/exterior connectors, tools, and urethane solutions that are used by energy, renewable energy, communications, cable, and special industries for various applications. The company serves public and private energy utilities and communication companies, cable operators, governmental agencies, contractors and subcontractors, distributors, and value-added resellers in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It markets its products through a direct sales force, as well as through manufacturing representatives. The company was incorporated in 1947 and is headquartered in Mayfield, Ohio.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Preformed Line Products Co

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$57.07M	$73.02M	$91.57M	$112.5M	$135.3M	$159.4M	$183.6M	$206.8M	$227.7M	$244.9M	$257.1M	$2.571B
DCF		$63.49M	$69.24M	$73.97M	$77.38M	$79.23M	$79.37M	$77.75M	$74.43M	$69.61M	$63.56M	$635.6M
Value	$1.364B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 28%

Earnings Stability 94%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	1.9%	4.5%	3.3%	6.3%	5.2%	6.4%	6.9%	8.5%	9.5%	8.2%
ROA	3.8%	6.3%	7.3%	9.2%	7.5%	8.8%	10%	13%	14%	11%
ROE	3%	6.8%	5.3%	11%	8.7%	10%	11%	15%	15%	12%

What is the average Net Margin?

The average Net Margin over the past 5 years is +7.14%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.75%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +10.4%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.18%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.87%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.24%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	3.42	37.75	1.70	2.74	-30.72	3.58	4.12	-6.41	0.95	1.09
Debt Equity	0.15	0.21	0.16	0.15	0.26	0.21	0.20	0.26	0.17	0.15
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	100%	100%	100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 1.09.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.84.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	10%	9.7%	13%	5.1%	2.2%
Net Income	23%	19%	29%	16%	0.35%
Stockholders Equity	9.3%	11%	13%	16%	2.4%
FCF	79%	40%	62%	-	-32%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.73%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +2.17%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +18.96%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.35%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +10.79%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.42%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +39.99%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -32.32%.