PLC pays a yield of 2.4%, has demonstrated excellent sales and profit growth over the past five years (31% and 50% annualized, respectively), and forward growth is expected to be strong. It has decent debt levels, is profitable, and is trading below book value, with a price-to-book of 0.9X. Its forward earnings are quite cheap today, at 13.2X. Its balance sheet is strong, and it uses its free cash flow for dividends and acquisitions. Its recent quarters have been somewhat weak, and its debt balance can see pressure from higher rates. Fundamentally, it is a strong name, but with the current interest rate environment, investors are shying away from acquisition-driven stories. We would see the broader markets stabilizing as a potential upcoming catalyst to help this name find support, but we continue to like this name and feel that it has a lot of potential in the coming years. We do not see any material changes to its business, and thus we feel its price is getting slightly dislocated from its fundamentals in the short term, we like it as a long-term hold here.
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