Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Mar. 2026, Preformed Line Products Co has a Sloan Ratio of 0.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Preformed Line Products Co (NAS:PLPC) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, Preformed Line Products Co has a Sloan Ratio of 0.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Preformed Line Products Co Sloan Ratio % Related Terms
Preformed Line Products Co Sloan Ratio % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PLPC vs EOSE, AMPX, FCEL: Sloan Ratio % Comparison
For the Electrical Equipment & Parts subindustry, Preformed Line Products Co's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Preformed Line Products Co Sloan Ratio % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Preformed Line Products Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Preformed Line Products Co's Sloan Ratio % falls into.
Preformed Line Products Co Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Preformed Line Products Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 12.705 (Jun. 2025 ) + 2.626 (Sep. 2025 ) + 8.435 (Dec. 2025 ) + 10.524 (Mar. 2026 ) = $34.3 Mil.
Preformed Line Products Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 26.928 (Jun. 2025 ) + 18.94 (Sep. 2025 ) + 21.944 (Dec. 2025 ) + 6.047 (Mar. 2026 ) = $73.9 Mil.
Preformed Line Products Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -12.552 (Jun. 2025 ) + -10.962 (Sep. 2025 ) + -10.206 (Dec. 2025 ) + -9.944 (Mar. 2026 ) = $-43.7 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Preformed Line Products Co (PLPC) has a Sloan Ratio % of 0.62% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Preformed Line Products Co and its competitors.
Is Preformed Line Products Co's Sloan Ratio % too high?
Preformed Line Products Co's current Sloan Ratio % is 0.62%. Overall, Preformed Line Products Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Preformed Line Products Co's Sloan Ratio % compare to EOSE and AMPX?
Preformed Line Products Co's Sloan Ratio % of 0.62% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Industrial Products company?
A good Sloan Ratio % depends on the Industrial Products industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Preformed Line Products Co and its competitors. Preformed Line Products Co's current Sloan Ratio % is 0.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preformed Line Products Co stock overvalued right now?
Based on GuruFocus' analysis, Preformed Line Products Co (PLPC) is currently considered Significantly Overvalued. The stock's GF Value™ is $170.48, compared to a current price of $368.55 — trading 116.2% above its estimated fair value. The current Sloan Ratio % is 0.62%. Preformed Line Products Co's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Preformed Line Products Co (PLPC), the current Sloan Ratio % is 0.62% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Preformed Line Products Co (PLPC) Overvalued in 2026?
Based on GuruFocus' analysis, Preformed Line Products Co stock appears to be overvalued.
The current stock price of $368.55 is trading 116.2% above its estimated GF Value™ of $170.48.
GuruFocus considers Preformed Line Products Co to be Significantly Overvalued.
Key valuation signals for PLPC:
Sloan Ratio %: 0.62%
GF Value™: $170.48 vs. price of $368.55 (116.2% above fair value)
No single metric tells the full story. See the PLPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preformed Line Products Co is a designer and manufacturer of products and systems for constructing and maintaining overhead and underground networks for energy, telecommunication, cable operators, data communication, and other industries. The Company's primary products support, protect, connect, terminate, and secure cables and wires. The Company provides helical solutions, connectors, fiber optic and copper splice closures, solar framing applications, and electric vehicle charging station foundations. The Company's customers include public and private energy utilities and communication companies, cable operators, contractors and subcontractors, distributors, and value-added resellers. Geographically, the company operates in four regions: PLP-USA, the Americas, EMEA, and Asia-Pacific.
79GF Score
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