PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - New York Stock Exchange, Inc. - US69351T1060 - Common Stock - Currency: USD
Overall PPL gets a fundamental rating of 3 out of 10. We evaluated PPL against 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of PPL have multiple concerns. PPL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PPL had positive earnings in the past year.
PPL had a positive operating cash flow in the past year.
PPL had positive earnings in 4 of the past 5 years.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPL has a Return On Assets of 2.38%. This is in the lower half of the industry: PPL underperforms 70.21% of its industry peers.
The Return On Equity of PPL (6.95%) is worse than 85.11% of its industry peers.
PPL's Return On Invested Capital of 3.86% is on the low side compared to the rest of the industry. PPL is outperformed by 61.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPL is significantly below the industry average of 38.55%.
The last Return On Invested Capital (3.86%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 6.95% | ||
| ROIC | 3.86% |
ROA(3y)2.01%
ROA(5y)0.93%
ROE(3y)5.68%
ROE(5y)3.45%
ROIC(3y)3.44%
ROIC(5y)4.12%
1.3 Margins
PPL has a Profit Margin (11.46%) which is in line with its industry peers.
PPL's Profit Margin has declined in the last couple of years.
PPL has a Operating Margin (21.62%) which is in line with its industry peers.
PPL's Operating Margin has declined in the last couple of years.
PPL has a better Gross Margin (80.17%) than 76.60% of its industry peers.
In the last couple of years the Gross Margin of PPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.62% | ||
| PM (TTM) | 11.46% | ||
| GM | 80.17% |
OM growth 3Y-6.63%
OM growth 5Y-10.87%
PM growth 3YN/A
PM growth 5Y-14.16%
GM growth 3Y-2.69%
GM growth 5Y-2.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPL is destroying value.
The number of shares outstanding for PPL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PPL has less shares outstanding
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.02, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL's Altman-Z score of 1.02 is in line compared to the rest of the industry. PPL outperforms 59.57% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that PPL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.17, PPL is in the better half of the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.57
WACC6.75%
2.3 Liquidity
PPL has a Current Ratio of 0.81. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
PPL has a Current ratio of 0.81. This is in the lower half of the industry: PPL underperforms 61.70% of its industry peers.
PPL has a Quick Ratio of 0.81. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PPL (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by -4.00% in the last year.
Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.34% on average per year.
The Revenue has been growing slightly by 1.80% in the past year.
Measured over the past years, PPL shows a small growth in Revenue. The Revenue has been growing by 1.72% on average per year.
EPS 1Y (TTM)-4%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%7.66%
3.2 Future
Based on estimates for the next years, PPL will show a small growth in Earnings Per Share. The EPS will grow by 7.76% on average per year.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y9.32%
EPS Next 2Y8.45%
EPS Next 3Y8.07%
EPS Next 5Y7.76%
Revenue Next Year7.66%
Revenue Next 2Y5.82%
Revenue Next 3Y5.84%
Revenue Next 5Y5.49%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.30 indicates a rather expensive valuation of PPL.
Compared to the rest of the industry, the Price/Earnings ratio of PPL indicates a slightly more expensive valuation: PPL is more expensive than 72.34% of the companies listed in the same industry.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.11, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (36.28), we can say PPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 18.11 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PPL is more expensive than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.29
PEG (5Y)N/A
EPS Next 2Y8.45%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.06%.
PPL's Dividend Yield is slightly below the industry average, which is at 3.66.
Compared to an average S&P500 Dividend Yield of 2.40, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
5.2 History
The dividend of PPL decreases each year by -8.78%.
PPL has been paying a dividend for at least 10 years, so it has a reliable track record.
PPL has decreased its dividend recently.
Dividend Growth(5Y)-8.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PPL pays out 76.54% of its income as dividend. This is not a sustainable payout ratio.
DP76.54%
EPS Next 2Y8.45%
EPS Next 3Y8.07%
35.78
-0.4 (-1.11%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.11%
Inst Owner Change0.07%
Ins Owners0.13%
Ins Owner Change2.21%
Market Cap26.44B
Analysts78
Price Target38.3 (7.04%)
Short Float %3.21%
Short Ratio4.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP76.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-9.99%
Max EPS beat(2)9.51%
EPS beat(4)2
Avg EPS beat(4)2.63%
Min EPS beat(4)-9.99%
Max EPS beat(4)12.37%
EPS beat(8)5
Avg EPS beat(8)1.57%
EPS beat(12)7
Avg EPS beat(12)1.04%
EPS beat(16)8
Avg EPS beat(16)-2.83%
Revenue beat(2)2
Avg Revenue beat(2)16.25%
Min Revenue beat(2)6.91%
Max Revenue beat(2)25.58%
Revenue beat(4)4
Avg Revenue beat(4)13.19%
Min Revenue beat(4)6.83%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)15.99%
Revenue beat(12)11
Avg Revenue beat(12)16.29%
Revenue beat(16)11
Avg Revenue beat(16)9.08%
PT rev (1m)-0.4%
PT rev (3m)1.86%
EPS NQ rev (1m)-1.33%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)0.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)20.34%
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)6.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.3 | ||
| Fwd PE | 18.11 | ||
| P/S | 3.05 | ||
| P/FCF | N/A | ||
| P/OCF | 10.29 | ||
| P/B | 1.85 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 13.28 |
EPS(TTM)1.68
EY4.7%
EPS(NY)1.98
Fwd EY5.52%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)3.48
OCFY9.72%
SpS11.72
BVpS19.35
TBVpS15.88
PEG (NY)2.29
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 6.95% | ||
| ROCE | 4.93% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.17% | ||
| OM | 21.62% | ||
| PM (TTM) | 11.46% | ||
| GM | 80.17% | ||
| FCFM | N/A |
ROA(3y)2.01%
ROA(5y)0.93%
ROE(3y)5.68%
ROE(5y)3.45%
ROIC(3y)3.44%
ROIC(5y)4.12%
ROICexc(3y)3.47%
ROICexc(5y)4.26%
ROICexgc(3y)3.73%
ROICexgc(5y)4.49%
ROCE(3y)4.4%
ROCE(5y)5.28%
ROICexcg growth 3Y-3.74%
ROICexcg growth 5Y-8.32%
ROICexc growth 3Y-4.73%
ROICexc growth 5Y-7.76%
OM growth 3Y-6.63%
OM growth 5Y-10.87%
PM growth 3YN/A
PM growth 5Y-14.16%
GM growth 3Y-2.69%
GM growth 5Y-2.44%
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 220.9% | ||
| Cap/Sales | 34.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.02 |
F-Score7
WACC6.75%
ROIC/WACC0.57
Cap/Depr(3y)186.84%
Cap/Depr(5y)195.12%
Cap/Sales(3y)29.72%
Cap/Sales(5y)33.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15.79%
EPS Next Y9.32%
EPS Next 2Y8.45%
EPS Next 3Y8.07%
EPS Next 5Y7.76%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%7.66%
Revenue Next Year7.66%
Revenue Next 2Y5.82%
Revenue Next 3Y5.84%
Revenue Next 5Y5.49%
EBIT growth 1Y11.69%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year78%
EBIT Next 3Y27.79%
EBIT Next 5Y20.87%
FCF growth 1Y24.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y55.07%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%