Preformed Line Products Company (NASDAQ:PLPC) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Preformed Line Products Company (NASDAQ:PLPC) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Preformed Line Products (NASDAQ:PLPC) has had a rough three months with its share price down 33%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. Specifically, we decided to study Preformed Line Products' ROE in this article.
预制线产品（纳斯达克股票代码：PLPC）经历了艰难的三个月，其股价下跌了33％。但是，仔细观察其稳健的财务状况可能会让您重新考虑。鉴于基本面通常会推动长期市场业绩，该公司值得一看。具体而言，我们决定在本文中研究预成型生产线产品的投资回报率。
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Put another way, it reveals the company's success at turning shareholder investments into profits.
股本回报率或投资回报率是对公司增值和管理投资者资金的有效性的考验。换句话说，它揭示了公司成功地将股东投资转化为利润。
View our latest analysis for Preformed Line Products
查看我们对预制线产品的最新分析
How Do You Calculate Return On Equity?
你如何计算股本回报率？
The formula for return on equity is:
这个 股本回报率公式 是：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回报率 = 净利润（来自持续经营业务）÷ 股东权益
So, based on the above formula, the ROE for Preformed Line Products is:
因此，根据上述公式，预成型生产线产品的投资回报率为：
18% = US$74m ÷ US$400m (Based on the trailing twelve months to September 2023).
18% = 7,400万美元 ¥4亿美元（基于截至2023年9月的过去十二个月）。
The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.18 in profit.
“回报” 是指公司去年的收益。这意味着，每持有价值1美元的股东权益，公司就会产生0.18美元的利润。
What Is The Relationship Between ROE And Earnings Growth?
投资回报率与收益增长之间有什么关系？
So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.
到目前为止，我们已经了解到，投资回报率是衡量公司盈利能力的指标。现在，我们需要评估公司再投资或 “保留” 了多少利润以用于未来的增长，从而使我们对公司的增长潜力有所了解。假设其他一切保持不变，那么与不一定具有这些特征的公司相比，投资回报率和利润保留率越高，公司的增长率就越高。
Preformed Line Products' Earnings Growth And 18% ROE
预制生产线产品的收益增长和18％的投资回报率
To start with, Preformed Line Products' ROE looks acceptable. Further, the company's ROE is similar to the industry average of 16%. Consequently, this likely laid the ground for the impressive net income growth of 25% seen over the past five years by Preformed Line Products. We reckon that there could also be other factors at play here. For instance, the company has a low payout ratio or is being managed efficiently.
首先，预成型生产线产品的投资回报率看起来可以接受。此外，该公司的投资回报率与行业平均水平的16％相似。因此，这可能为预成型生产线产品在过去五年中实现令人印象深刻的25％的净收入增长奠定了基础。我们认为，这里可能还有其他因素在起作用。例如，该公司的支付率较低或正在得到有效的管理。
As a next step, we compared Preformed Line Products' net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 9.4%.
下一步，我们将预成型生产线产品的净收入增长与行业进行了比较，令人高兴的是，我们发现该公司的增长高于行业平均9.4％的增长。
Earnings growth is a huge factor in stock valuation. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Preformed Line Products is trading on a high P/E or a low P/E, relative to its industry.
收益增长是股票估值的重要因素。对于投资者来说，重要的是要知道市场是否影响了公司的预期收益增长（或下降）。通过这样做，他们将知道这只股票是进入清澈的蓝色海水还是沼泽水域在等着你。衡量预期收益增长的一个很好的指标是市盈率，它根据收益前景决定了市场愿意为股票支付的价格。因此，您可能需要检查预成型产品相对于其行业而言是高市盈率还是低市盈率。
Is Preformed Line Products Efficiently Re-investing Its Profits?
预制生产线产品能否有效地对其利润进行再投资？
Preformed Line Products has a really low three-year median payout ratio of 9.6%, meaning that it has the remaining 90% left over to reinvest into its business. So it looks like Preformed Line Products is reinvesting profits heavily to grow its business, which shows in its earnings growth.
预制产品公司的三年中位数支付率非常低，为9.6％，这意味着它还有剩余的90％可以再投资于业务。因此，看来预成型生产线产品公司正在将利润大量再投资以发展其业务，这体现在其收益增长上。
Besides, Preformed Line Products has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.
此外，Performed Line Products支付股息已有至少十年或更长时间了。这表明该公司致力于与股东分享利润。
Conclusion
结论
On the whole, we feel that Preformed Line Products' performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings.
总体而言，我们认为预成型生产线产品的表现相当不错。特别是，很高兴看到该公司正在对其业务进行大量投资，再加上高回报率，这使其收益大幅增长。
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