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Preformed Line Products Company (PLPC)

Company Dividend Discount ModelIndustry: Electrical Equipment & PartsSector: Industrials

Valuation Snapshot

Stable Growth$91.29 - $152.85$118.33
Multi-Stage$103.11 - $113.02$107.97
Blended Fair Value$113.15
Current Price$196.15
Upside-42.31%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.74%-0.79%0.820.830.830.830.850.850.830.830.840.89
YoY Growth---0.73%0.17%-0.70%-1.34%-1.09%3.47%-0.27%-1.70%-5.03%-0.48%
Dividend Yield--0.59%0.66%0.65%1.31%1.23%1.71%1.52%1.27%1.62%2.43%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)37.30
(-) Cash Dividends Paid (M)4.12
(=) Cash Retained (M)33.18
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)7.464.662.80
Cash Retained (M)33.1833.1833.18
(-) Cash Required (M)-7.46-4.66-2.80
(=) Excess Retained (M)25.7228.5230.39
(/) Shares Outstanding (M)4.954.954.95
(=) Excess Retained per Share5.205.766.14
LTM Dividend per Share0.830.830.83
(+) Excess Retained per Share5.205.766.14
(=) Adjusted Dividend6.036.596.97
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.34%3.34%4.34%
Fair Value$91.29$118.33$152.85
Upside / Downside-53.46%-39.67%-22.07%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)37.3038.5539.8341.1642.5443.9645.28
Payout Ratio11.03%26.83%42.62%58.41%74.21%90.00%92.50%
Projected Dividends (M)4.1210.3416.9824.0531.5739.5641.88

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate2.34%3.34%4.34%
Year 1 PV (M)9.399.489.57
Year 2 PV (M)13.9914.2614.54
Year 3 PV (M)17.9918.5219.06
Year 4 PV (M)21.4322.2823.16
Year 5 PV (M)24.3825.6026.86
PV of Terminal Value (M)423.31444.40466.32
Equity Value (M)510.49534.54559.51
Shares Outstanding (M)4.954.954.95
Fair Value$103.11$107.97$113.02
Upside / Downside-47.43%-44.95%-42.38%

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