PPL CORP (PPL) Stock Fundamental Analysis
USA - NYSE:PPL - US69351T1060 - Common Stock
35.49 USD
-0.48 (-1.33%)
35.49 USD
0 (0%)
PPL gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. PPL may be in some trouble as it scores bad on both profitability and health. While showing a medium growth rate, PPL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
PPL had positive earnings in the past year.
In the past year PPL had a positive cash flow from operations.
Of the past 5 years PPL 4 years were profitable.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPL has a worse Return On Assets (2.33%) than 75.00% of its industry peers.
PPL's Return On Equity of 6.91% is on the low side compared to the rest of the industry. PPL is outperformed by 81.25% of its industry peers.
PPL's Return On Invested Capital of 3.90% is on the low side compared to the rest of the industry. PPL is outperformed by 60.42% of its industry peers.
PPL had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 5.43%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(3.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 6.91% | ||
| ROIC | 3.9% |
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's Profit Margin of 11.21% is on the low side compared to the rest of the industry. PPL is outperformed by 60.42% of its industry peers.
PPL's Profit Margin has declined in the last couple of years.
PPL has a Operating Margin (21.45%) which is in line with its industry peers.
PPL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 79.21%, PPL is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
In the last couple of years the Gross Margin of PPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.45% | ||
| PM (TTM) | 11.21% | ||
| GM | 79.21% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PPL is destroying value.
Compared to 1 year ago, PPL has about the same amount of shares outstanding.
Compared to 5 years ago, PPL has less shares outstanding
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a Altman-Z score (0.96) which is in line with its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that PPL has dependencies on debt financing.
The Debt to Equity ratio of PPL (1.16) is better than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.59
WACC6.63%
2.3 Liquidity
A Current Ratio of 0.59 indicates that PPL may have some problems paying its short term obligations.
The Current ratio of PPL (0.59) is worse than 77.08% of its industry peers.
A Quick Ratio of 0.49 indicates that PPL may have some problems paying its short term obligations.
PPL's Quick ratio of 0.49 is on the low side compared to the rest of the industry. PPL is outperformed by 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.00%.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
Looking at the last year, PPL shows a small growth in Revenue. The Revenue has grown by 6.62% in the last year.
PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.72% yearly.
EPS 1Y (TTM)-4%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)6.62%
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 7.79% on average per year.
The Revenue is expected to grow by 5.78% on average over the next years.
EPS Next Y9.12%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
EPS Next 5Y7.79%
Revenue Next Year6.17%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y5.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.13, PPL is valued on the expensive side.
75.00% of the companies in the same industry are cheaper than PPL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (27.20), we can say PPL is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.95 indicates a rather expensive valuation of PPL.
Based on the Price/Forward Earnings ratio, PPL is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (22.71), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 17.95 |
4.2 Price Multiples
68.75% of the companies in the same industry are cheaper than PPL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PPL does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.32
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.03%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.47, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
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.
The dividend of PPL decreased recently.
Dividend Growth(5Y)-8.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
78.22% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP78.22%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
35.49
-0.48 (-1.33%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.27%
Inst Owner Change0.73%
Ins Owners0.13%
Ins Owner Change-2.49%
Market Cap26.25B
Analysts77.89
Price Target38.94 (9.72%)
Short Float %3.96%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP78.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.79%
Min EPS beat(2)-17.1%
Max EPS beat(2)9.51%
EPS beat(4)1
Avg EPS beat(4)-4.74%
Min EPS beat(4)-17.1%
Max EPS beat(4)9.51%
EPS beat(8)5
Avg EPS beat(8)0.69%
EPS beat(12)6
Avg EPS beat(12)-0.41%
EPS beat(16)8
Avg EPS beat(16)-2.48%
Revenue beat(2)2
Avg Revenue beat(2)13.26%
Min Revenue beat(2)0.95%
Max Revenue beat(2)25.58%
Revenue beat(4)4
Avg Revenue beat(4)10.07%
Min Revenue beat(4)0.95%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)10.8%
Revenue beat(12)12
Avg Revenue beat(12)16.53%
Revenue beat(16)12
Avg Revenue beat(16)9.77%
PT rev (1m)0.04%
PT rev (3m)0.64%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.31%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 17.95 | ||
| P/S | 2.98 | ||
| P/FCF | N/A | ||
| P/OCF | 10.9 | ||
| P/B | 1.84 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)1.68
EY4.73%
EPS(NY)1.98
Fwd EY5.57%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)3.25
OCFY9.17%
SpS11.91
BVpS19.32
TBVpS15.86
PEG (NY)2.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 6.91% | ||
| ROCE | 5.05% | ||
| ROIC | 3.9% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.21% | ||
| OM | 21.45% | ||
| PM (TTM) | 11.21% | ||
| GM | 79.21% | ||
| 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-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 238.1% | ||
| Cap/Sales | 37.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.96 |
F-Score6
WACC6.63%
ROIC/WACC0.59
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 Y9.12%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
EPS Next 5Y7.79%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%7.66%
Revenue Next Year6.17%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y5.78%
EBIT growth 1Y7.21%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year79.03%
EBIT Next 3Y28.95%
EBIT Next 5Y20.82%
FCF growth 1Y-32.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.1%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%