(PLPC) Preformed Line Products - Ratings and Ratios

Preformed Line Products (PLPC) trades as a U.S. common stock in the Electrical Components & Equipment sub‑industry, supplying custom‑engineered cable and conduit solutions primarily to telecom, utility, and construction markets.

The share price sits at $194.45, comfortably above its 20‑day ($173.86) and 50‑day ($161.51) simple moving averages, indicating short‑term bullish momentum. The 200‑day average of $142.72 underscores a longer‑term uptrend. With an ATR of 5.58 (≈2.9% of price) and a beta of 0.79, the stock exhibits modest volatility and lower systematic risk relative to the market. Average daily volume hovers around 43 k shares, supporting reasonable liquidity, while the 52‑week range of $112.69‑$194.45 reflects a near‑all‑time high price level.

Market capitalization is roughly $941 million, and the current trailing P/E of 22.3 places PLPC in the mid‑range of peers, suggesting earnings are priced at a modest premium. Return on equity stands at 9.7%, indicating modest capital efficiency. The company’s effective tax rate has hovered near 20% in recent years, with the yearly income tax expense tracking proportionally to earnings, providing a predictable after‑tax cash flow profile.

Key operational metrics include revenue growth of 5‑7% YoY, driven by expanding fiber‑optic and power‑line product lines. Gross margins have stabilized around 35%, while operating margins sit near 12%, reflecting disciplined cost control. Free cash flow conversion exceeds 80% of operating cash, supporting a modest dividend yield of ~1.5% and ongoing share repurchases. Inventory turnover averages 4.5× annually, indicating efficient working‑capital management, and debt‑to‑equity remains below 0.5, underscoring a strong balance sheet.

Economic drivers are anchored in sustained infrastructure investment: U.S. federal and state broadband expansion programs, the rollout of 5G networks, and renewable‑energy grid upgrades all boost demand for PLPC’s specialty cabling. Conversely, raw‑material price volatility—particularly copper and aluminum—affects input costs, while macro‑level construction activity and interest‑rate trends influence order pipelines. Currency exposure is limited, as the majority of sales are U.S.‑based.

Risks center on cyclical demand fluctuations in telecom and construction, margin compression from rising commodity prices, and potential shifts in corporate tax policy that could alter the effective tax rate. Additionally, any slowdown in federal infrastructure funding would directly impact order volumes.