PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - US69351T1060 - Common Stock
36.51 USD
-0.39 (-1.06%)
36.51 USD
0 (0%)
Taking everything into account, PPL scores 3 out of 10 in our fundamental rating. PPL was compared to 47 industry peers in the Electric Utilities industry. There are concerns on the financial health of PPL while its profitability can be described as average. While showing a medium growth rate, PPL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PPL was profitable.
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
Looking at the Return On Assets, with a value of 2.33%, PPL is doing worse than 72.34% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.91%, PPL is doing worse than 80.85% of the companies in the same industry.
PPL's Return On Invested Capital of 3.90% is in line compared to the rest of the industry. PPL outperforms 42.55% 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 5.03%.
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
Looking at the Profit Margin, with a value of 11.21%, PPL is doing worse than 61.70% of the companies in the same industry.
In the last couple of years the Profit Margin of PPL has declined.
Looking at the Operating Margin, with a value of 21.45%, PPL is in line with its industry, outperforming 55.32% of the companies in the same industry.
PPL's Operating Margin has declined in the last couple of years.
The Gross Margin of PPL (79.21%) is better 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 | 21.45% | ||
| 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
PPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL's Altman-Z score of 0.97 is in line compared to the rest of the industry. PPL outperforms 57.45% of its industry peers.
A Debt/Equity ratio of 1.16 is on the high side and indicates that PPL has dependencies on debt financing.
PPL's Debt to Equity ratio of 1.16 is fine compared to the rest of the industry. PPL outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.57
WACC6.8%
2.3 Liquidity
PPL has a Current Ratio of 0.59. 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's Current ratio of 0.59 is on the low side compared to the rest of the industry. PPL is outperformed by 76.60% of its industry peers.
A Quick Ratio of 0.49 indicates that PPL may have some problems paying its short term obligations.
PPL has a worse Quick ratio (0.49) than 70.21% 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
The Earnings Per Share is expected to grow by 7.79% on average over the next years.
Based on estimates for the next years, PPL will show a small growth in Revenue. The Revenue will grow by 5.78% on average per year.
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
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.
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
The Price/Earnings ratio is 21.73, which indicates a rather expensive current valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than 72.34% of the companies in the same industry.
PPL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.47, PPL is valued on the expensive side.
PPL's Price/Forward Earnings is on the same level as the industry average.
PPL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PPL indicates a slightly more expensive valuation: PPL is more expensive than 68.09% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.26 |
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)2.38
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, PPL has a reasonable but not impressive dividend return.
PPL's Dividend Yield is slightly below the industry average, which is at 3.53.
Compared to an average S&P500 Dividend Yield of 2.34, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of PPL decreases each year by -8.78%.
PPL has paid a dividend for at least 10 years, which is 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%
36.51
-0.39 (-1.06%)
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-1.49%
Market Cap27.00B
Analysts78
Price Target38.94 (6.66%)
Short Float %3.2%
Short Ratio3.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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)1.68%
PT rev (3m)0.64%
EPS NQ rev (1m)1.66%
EPS NQ rev (3m)-0.11%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)29.35%
Revenue NY rev (1m)-1.54%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.73 | ||
| Fwd PE | 18.47 | ||
| P/S | 3.07 | ||
| P/FCF | N/A | ||
| P/OCF | 11.22 | ||
| P/B | 1.89 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 13.26 |
EPS(TTM)1.68
EY4.6%
EPS(NY)1.98
Fwd EY5.42%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)3.25
OCFY8.91%
SpS11.91
BVpS19.32
TBVpS15.86
PEG (NY)2.38
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 | 0.97 |
F-Score6
WACC6.8%
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 Y9.12%
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%