# Preformed Line Products (PLPC.US)

Canonical: https://gigainvestors.com/s/PLPC

Analysis as of: 2026-10-16T07:31:14.537Z. Financial observations: FY2000–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $369.68 per share; close as of 2026-10-15.

Estimated value: low $156.04 per share, central $208.33 per share, high $242.03 per share. Buy at or below the central value $208.33 per share. Valuation as of 2026-10-16T07:31:14.537Z; scenarios are not confidence intervals.

Expected annual return: 6.9% at the stated quote. About 6.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.18×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.07×

- FY2018: 0.08×

- FY2019: 0.07×

- FY2020: 0.09×

- FY2021: 0.09×

- FY2022: 0.11×

- FY2023: 0.13×

- FY2024: 0.09×

- FY2025: 0.08×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.6%

- ROIC, second-lowest year: 8.7%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 31.8%

- Recent gross margin (lower of latest and 3-year median): 31.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.2%

- ROIC including acquisitions, ten-year median: 8.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 7.9%

- FY2018: 11.9%

- FY2019: 8.7%

- FY2020: 10.4%

- FY2021: 10.8%

- FY2022: 13.1%

- FY2023: 16.0%

- FY2024: 9.9%

- FY2025: 10.4%

- LTM to Jun 2026: 11.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $233M

- Net income, five-year total: $233M

- Return on incremental invested capital: 15.8%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -0.2 pp

- Working capital / revenue, final three-year average: 32.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.90×

- FY2024: 1.17×

- FY2025: 1.00×

- LTM to Jun 2026: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.9% vs 10.4%

- Per-share earnings: 2.47 to 7.50 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -0.2%

- Market cap gain: $717M

- Cumulative retained earnings: $281M

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 14.9%

- Per-share value change: $5.03

- Per-share value, starting three-year median: $2.47

- Per-share value, ending three-year median: $7.50

- Buybacks concentrated in cheaper years (correlation): 0.01

- Average buyback yield: 1.9%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $52M

- Cumulative net income, 10 years: $333M

- ROIC, first three-year median: 7.9%

- ROIC, last three-year median: 10.4%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.95

- FY2017: $2.47

- FY2018: $5.20

- FY2019: $4.58

- FY2020: $5.98

- FY2021: $7.19

- FY2022: $10.88

- FY2023: $12.67

- FY2024: $7.50

- FY2025: $7.14

### accounting: pass

- Sloan accruals: -5.8%

- Receivables to sales index (DSRI): 0.90×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 6.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.08×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.1%

- FY2017: -5.9%

- FY2018: 1.0%

- FY2019: -0.9%

- FY2020: -2.6%

- FY2021: 0.4%

- FY2022: 5.0%

- FY2023: -7.3%

- FY2024: -5.3%

- FY2025: -5.8%

## Holders

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 13% a year for ten years · sales +10.6%

Story as of 2026-10-16T09:59:24.873Z; price observation 2026-10-15.

Price needs cash profits to grow 13% a year for ten years

### Sales · FY2025–2026

sales +10.6%; source https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm; observed 2026-03-05.

- FY2017: $378M 

- FY2018: $421M 

- FY2019: $445M 

- FY2020: $466M 

- FY2021: $517M 

- FY2022: $637M 

- FY2023: $670M 

- FY2024: $594M 

- FY2025: $669M 

- FY2026: $740M 

### Gross margin · FY2026

gross margin 31.4%; source https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm; observed 2026-03-05.

- FY2017: 31.4% 

- FY2018: 31.4% 

- FY2019: 31.6% 

- FY2020: 33.0% 

- FY2021: 32.1% 

- FY2022: 33.8% 

- FY2023: 35.1% 

- FY2024: 32.0% 

- FY2025: 31.2% 

- FY2026: 31.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are USD 669.3 million.

- Source: https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm (filed 2026-03-05); FY2025: revenue 669338000; grossProfit 208539000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 31.2% to 35.1% during 2023–25; it earns 10.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2023: grossProfit / revenue = 35.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2024: grossProfit / revenue = 32%.

- Source: https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm (filed 2026-03-05); FY2025: grossProfit / revenue = 31.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); 10-year return on capital observations [[2017,0.0790985574121979],[2018,0.11907983701146536],[2019,0.08711005783922059],[2020,0.10372241218710138],[2021,0.10813259827634811],[2022,0.1307428637247672],[2023,0.15987533851991992],[2024,0.0987858549659218],[2025,0.1042442029821136],[2026,0.11520669537671686]]; median 0.10618840062923085. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 61.9% of cash earnings; earns 15.8% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2016: growth capex 0; upkeep 24725000; cash acquisitions 0; owner earnings 2526000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2017: growth capex 0; upkeep 11233000; cash acquisitions 0; owner earnings 14211000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2018: growth capex 0; upkeep 9528000; cash acquisitions 0; owner earnings 29497000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2019: growth capex 6763435.082133785; upkeep 22703564.917866215; cash acquisitions 18894000; owner earnings 14347435.082133785. Growth capex plus acquisitions / owner earnings = 1.7882942097492975.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2020: growth capex 6256058.009720594; upkeep 18312941.990279406; cash acquisitions 0; owner earnings 25328058.009720594. Growth capex plus acquisitions / owner earnings = 0.24700109291125266.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2021: growth capex 2820000; upkeep 15564000; cash acquisitions 0; owner earnings 35729000. Growth capex plus acquisitions / owner earnings = 0.07892748187746648.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2022: growth capex 24168000; upkeep 16430000; cash acquisitions 16235000; owner earnings 54395000. Growth capex plus acquisitions / owner earnings = 0.7427704752275025.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2023: growth capex 10044924.171847299; upkeep 25287075.8281527; cash acquisitions 12089000; owner earnings 56958924.1718473. Growth capex plus acquisitions / owner earnings = 0.38859449144559655.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); FY2024: growth capex 0; upkeep 14651000; cash acquisitions 0; owner earnings 43273000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm (filed 2026-03-05); FY2025: growth capex 17102000; upkeep 23030000; cash acquisitions 4746000; owner earnings 35283000. Growth capex plus acquisitions / owner earnings = 0.619221721508942.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); Incremental return on capital 0.15814797335561662, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); Dividend observations: [[2016,4170000],[2017,4099000],[2018,4088000],[2019,4230000],[2020,4184000],[2021,4128000],[2022,4099000],[2023,4106000],[2024,4076000],[2025,4118000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm (filed 2026-03-05); FY2025: cash repurchases 9754000 USD.

### Are managers owners

Insiders own 48.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PLPC.US SharesStats.PercentInsiders = 48.692 percentage points; cache date 2026-10-15.

### What could break it

US import tariffs could raise product costs.

- Source: https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm (filed 2026-03-05); ent of these or other new technologies can render existing products or products under development obsolete or unmarketable, which may have a material adverse effect on the Company’s business, operating results and financial condition as a result of lost sales.

Price increases or delayed or decreased availability of raw materials could result in lower earnings.

The Company’s cost of sales may be adversely affected by increases in the market prices of the raw materials used in the Company’s manufacturing processes. The Company has experienced, and is expected to continue to experience, a high tariff environment and inflationary pressures that have impacted its profit margins, primarily due to tariffs on raw materials (specifically, steel and aluminum). While tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in 2025 were ruled to be illegal in February 2026 by the U.S. Supreme Court, the steel and aluminum tariffs remain in place and additional tariffs have been and may continue to be established. The Company has implemented price increases in the U.S. and internationally to mitigate rising material and tariff costs, and additional increases may be needed in the future to maintain profit margins. Price increases could impact the demand for the Company’s products. The Company may not be able to pass on further price increases in raw materials to the Company’s customers through increases in product prices. Further, to the extent amounts are refunded for previously paid tariffs that impacted the Company, it is unknown how such refunds would be processed or the timeline for doing so and whether any such amounts would be recovered by the Company. In addition, any decrease or delay in the availability of these materials or interruptions generally in the global supply chain could slow production and delivery to the Company’s customers. In limited circumstances, the Company relies on sole source suppliers for certain materials and may face challenges or delays in establishing an alternative source. As a result of these factors, the Company’s operating results and financial condition could be adversely affected.

The Company’s international operations subject the Company to additional business risks that may have a material adverse effect on the Company’s business, operating results and financial condition.

International sales account for a substantial portion of the Company’s net sales (53%, 55%, and 48% in 2025, 2024 and 2023, respectively). Due to its international sales, the Company is subject to the risks of conducting business internationally, including unexpected changes in, or impositions of, legislative or regulatory requirements, which could materially adversely affect U.S. dollar sales or operating expenses, tariffs and other barriers and restrictions, potentially longer payment cycles, greater difficulty in accounts r

### What the price says

The price assumes cash profits grow 13% yearly over ten years; actual growth was 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-05); Ten-year compound average after fade. Initial solved rate 0.17414442691332355. Price 369.68; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3889303019008572 → FY2025 7.139417239983812. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $43.02 per share

- 2016-11: $55.94 per share

- 2016-12: $58.12 per share

- 2017-01: $54.60 per share

- 2017-02: $46.02 per share

- 2017-03: $52.15 per share

- 2017-04: $52.93 per share

- 2017-05: $48.00 per share

- 2017-06: $46.42 per share

- 2017-07: $48.72 per share

- 2017-08: $52.25 per share

- 2017-09: $67.30 per share

- 2017-10: $71.11 per share

- 2017-11: $83.49 per share

- 2017-12: $71.05 per share

- 2018-01: $73.86 per share

- 2018-02: $60.79 per share

- 2018-03: $65.09 per share

- 2018-04: $67.25 per share

- 2018-05: $77.05 per share

- 2018-06: $88.78 per share

- 2018-07: $87.80 per share

- 2018-08: $81.70 per share

- 2018-09: $70.28 per share

- 2018-10: $63.20 per share

- 2018-11: $64.16 per share

- 2018-12: $54.25 per share

- 2019-01: $55.50 per share

- 2019-02: $59.70 per share

- 2019-03: $53.09 per share

- 2019-04: $56.39 per share

- 2019-05: $47.01 per share

- 2019-06: $55.52 per share

- 2019-07: $57.77 per share

- 2019-08: $51.25 per share

- 2019-09: $54.59 per share

- 2019-10: $54.60 per share

- 2019-11: $71.90 per share

- 2019-12: $60.35 per share

- 2020-01: $54.62 per share

- 2020-02: $48.80 per share

- 2020-03: $49.83 per share

- 2020-04: $49.68 per share

- 2020-05: $49.63 per share

- 2020-06: $50.01 per share

- 2020-07: $49.26 per share

- 2020-08: $54.41 per share

- 2020-09: $48.72 per share

- 2020-10: $55.03 per share

- 2020-11: $60.65 per share

- 2020-12: $68.44 per share

- 2021-01: $64.29 per share

- 2021-02: $73.36 per share

- 2021-03: $68.75 per share

- 2021-04: $66.20 per share

- 2021-05: $74.42 per share

- 2021-06: $74.20 per share

- 2021-07: $68.52 per share

- 2021-08: $70.12 per share

- 2021-09: $65.04 per share

- 2021-10: $69.40 per share

- 2021-11: $63.15 per share

- 2021-12: $64.70 per share

- 2022-01: $60.64 per share

- 2022-02: $55.75 per share

- 2022-03: $63.42 per share

- 2022-04: $59.50 per share

- 2022-05: $61.99 per share

- 2022-06: $61.50 per share

- 2022-07: $59.80 per share

- 2022-08: $77.80 per share

- 2022-09: $71.15 per share

- 2022-10: $79.37 per share

- 2022-11: $94.34 per share

- 2022-12: $83.29 per share

- 2023-01: $88.33 per share

- 2023-02: $89.17 per share

- 2023-03: $128.04 per share

- 2023-04: $124.28 per share

- 2023-05: $153.71 per share

- 2023-06: $156.10 per share

- 2023-07: $173.51 per share

- 2023-08: $169.49 per share

- 2023-09: $162.58 per share

- 2023-10: $135.35 per share

- 2023-11: $124.61 per share

- 2023-12: $133.86 per share

- 2024-01: $122.25 per share

- 2024-02: $137.48 per share

- 2024-03: $128.67 per share

- 2024-04: $121.03 per share

- 2024-05: $134.34 per share

- 2024-06: $124.54 per share

- 2024-07: $137.87 per share

- 2024-08: $119.93 per share

- 2024-09: $128.08 per share

- 2024-10: $123.00 per share

- 2024-11: $136.02 per share

- 2024-12: $127.79 per share

- 2025-01: $150.44 per share

- 2025-02: $130.28 per share

- 2025-03: $140.09 per share

- 2025-04: $137.37 per share

- 2025-05: $142.64 per share

- 2025-06: $159.81 per share

- 2025-07: $154.33 per share

- 2025-08: $191.07 per share

- 2025-09: $196.15 per share

- 2025-10: $212.11 per share

- 2025-11: $205.25 per share

- 2025-12: $206.71 per share

- 2026-01: $250.94 per share

- 2026-02: $253.65 per share

- 2026-03: $270.75 per share

- 2026-04: $332.25 per share

- 2026-05: $369.82 per share

- 2026-06: $410.56 per share

- 2026-07: $356.98 per share

- 2026-08: $400.85 per share

- 2026-09: $407.20 per share

- 2026-10: $369.68 per share

## Annual estimated value (USD per share)

- FY2016: low $19.57 per share, central $21.63 per share, high $24.37 per share

- FY2017: low $24.09 per share, central $26.43 per share, high $29.53 per share

- FY2018: low $27.80 per share, central $33.30 per share, high $37.73 per share

- FY2019: low $36.73 per share, central $40.98 per share, high $46.64 per share

- FY2020: low $47.36 per share, central $55.06 per share, high $62.92 per share

- FY2021: low $70.35 per share, central $83.51 per share, high $96.41 per share

- FY2022: low $111.26 per share, central $139.41 per share, high $161.98 per share

- FY2023: low $123.20 per share, central $158.15 per share, high $183.60 per share

- FY2024: low $116.82 per share, central $147.88 per share, high $171.31 per share

- FY2025: low $142.52 per share, central $189.29 per share, high $219.44 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/80035/000008003526000007/plpc-20251231.htm); period 2025-12-31, filed 2026-03-05.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.