On March 31, 2025, Chuck Royce (Trades, Portfolio) executed a strategic reduction in holdings of Preformed Line Products Co (PLPC, Financial). This transaction involved a decrease of 28,905 shares, marking a -9.20% change in the firm's position. The shares were traded at a price of $140.09, resulting in a total holding of 285,189 shares post-transaction. This adjustment had a -0.04 impact on the portfolio, with the stock now representing 0.37% of the portfolio and 5.77% of the firm's holdings in the stock.

Profile of Chuck Royce (Trades, Portfolio)

Charles M. Royce is renowned as a pioneer in small-cap investing, having managed the Royce Pennsylvania Mutual Fund since 1972. The firm's investment philosophy is centered on smaller companies with strong balance sheets, successful business records, and potential for profitability. Royce's approach involves seeking out stocks trading below their estimated enterprise value, focusing on companies with market capitalizations up to $5 billion, and occasionally up to $10 billion. The firm's top holdings include SEI Investments Co (SEIC, Financial), Air Lease Corp (AL, Financial), Enovis Corp (ENOV, Financial), Kennedy-Wilson Holdings Inc (KW, Financial), and Arcosa Inc (ACA, Financial).

Overview of Preformed Line Products Co

Preformed Line Products Co is a U.S.-based designer and manufacturer serving the energy, telecommunication, and other industries. The company boasts a market capitalization of $657.918 million and operates in segments such as Communications, Energy, and Special Industries. Its products include systems for constructing and maintaining overhead and underground networks, as well as solar hardware systems. The majority of its revenue is derived from the sale of energy products, which include transmission conductors and dampers.

Financial Metrics and Valuation of PLPC

Currently, PLPC is priced at $133.175, with a PE ratio of 16.88. The [GF-Score](https://www.gurufocus.com/term/gf-score/PLPC) is 87/100, indicating good outperformance potential. The stock is considered modestly overvalued according to the GF Valuation, with a [GF Value Rank](https://www.gurufocus.com/term/rank-gf-value/PLPC) of 5/10. The company's [Financial Strength](https://www.gurufocus.com/term/rank-balancesheet/PLPC) is robust, with a balance sheet rank of 9/10, and a [Profitability Rank](https://www.gurufocus.com/term/rank-profitability/PLPC) of 8/10.

Performance and Growth Indicators

PLPC has demonstrated a revenue growth of 4.90% over three years, with an EBITDA growth of 3.70% and earnings growth of 1.40%. The stock's momentum and growth ranks are strong, with a [Momentum Rank](https://www.gurufocus.com/term/rank-momentum/PLPC) of 9/10 and a [Growth Rank](https://www.gurufocus.com/term/rank-growth/PLPC) of 7/10. The company's [Operating Margin](https://www.gurufocus.com/term/operating-margin/PLPC) growth is 6.40%, and it maintains a [Piotroski F-Score](https://www.gurufocus.com/term/fscore/PLPC) of 4, indicating moderate financial health.

Largest Guru Holding PLPC

The largest holder of PLPC shares is Hotchkis & Wiley Capital Management LLC. Although specific share percentage data is not provided, this indicates significant interest from major investment firms in the stock.

Conclusion

Chuck Royce (Trades, Portfolio)'s reduction in PLPC shares reflects a strategic adjustment in the portfolio, aligning with the firm's investment philosophy of focusing on small-cap companies with strong fundamentals. The transaction and current stock metrics provide valuable insights for value investors considering PLPC's potential in the market. With a solid [Altman Z score](https://www.gurufocus.com/term/zscore/PLPC) of 5.60 and an [interest coverage](https://www.gurufocus.com/term/interest-coverage/PLPC) of 27.84, PLPC remains a company with promising financial stability and growth prospects.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.