PPL CORP (PPL)
US69351T1060 - Common Stock
We assign a fundamental rating of 3 out of 10 to PPL. PPL was compared to 45 industry peers in the Electric Utilities industry. While PPL is still in line with the averages on profitability rating, there are concerns on its financial 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.
PPL had a positive operating cash flow in the past year.
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 (1.92%) than 60.00% of its industry peers.
PPL's Return On Equity of 5.42% is on the low side compared to the rest of the industry. PPL is outperformed by 68.89% of its industry peers.
With a Return On Invested Capital value of 3.53%, PPL perfoms like the industry average, outperforming 51.11% of the companies in the same industry.
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 4.42%.
The last Return On Invested Capital (3.53%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 5.42% | ||
| ROIC | 3.53% |
ROA(3y)-0.19%
ROA(5y)1.26%
ROE(3y)-0.01%
ROE(5y)4.87%
ROIC(3y)3.44%
ROIC(5y)4.43%
1.3 Margins
PPL has a Profit Margin of 9.29%. This is in the lower half of the industry: PPL underperforms 64.44% of its industry peers.
In the last couple of years the Profit Margin of PPL has declined.
PPL has a Operating Margin (20.45%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
PPL's Gross Margin of 80.16% is amongst the best of the industry. PPL outperforms 82.22% of its industry peers.
In the last couple of years the Gross Margin of PPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.45% | ||
| PM (TTM) | 9.29% | ||
| GM | 80.16% |
OM growth 3Y-18.96%
OM growth 5Y-11.75%
PM growth 3Y-22.73%
PM growth 5Y-17.6%
GM growth 3Y-5.3%
GM growth 5Y-2.95%
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.
PPL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPL has more shares outstanding
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a better Altman-Z score (0.95) than 73.33% of its industry peers.
PPL has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
PPL's Debt to Equity ratio of 1.14 is fine compared to the rest of the industry. PPL outperforms 68.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.53
WACC6.65%
2.3 Liquidity
A Current Ratio of 1.28 indicates that PPL should not have too much problems paying its short term obligations.
PPL has a better Current ratio (1.28) than 71.11% of its industry peers.
A Quick Ratio of 1.08 indicates that PPL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, PPL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.93% over the past year.
Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.79% on average per year.
Looking at the last year, PPL shows a decrease in Revenue. The Revenue has decreased by -3.91% in the last year.
PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
EPS 1Y (TTM)12.93%
EPS 3Y-12.52%
EPS 5Y-7.79%
EPS growth Q2Q12.5%
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y3%
Revenue growth 5Y1.32%
Revenue growth Q2Q-4.6%
3.2 Future
The Earnings Per Share is expected to grow by 7.01% on average over the next years.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y7.54%
EPS Next 2Y7.31%
EPS Next 3Y7.24%
EPS Next 5Y7.01%
Revenue Next Year-3.6%
Revenue Next 2Y0.1%
Revenue Next 3Y1.75%
Revenue Next 5Y1.76%
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 16.92, which indicates a correct valuation of PPL.
PPL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.02. PPL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.25, PPL is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, PPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.98 |
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)2.24
PEG (5Y)N/A
EPS Next 2Y7.31%
EPS Next 3Y7.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.67%, PPL has a reasonable but not impressive dividend return.
PPL's Dividend Yield is slightly below the industry average, which is at 4.13.
Compared to an average S&P500 Dividend Yield of 2.40, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
5.2 History
The dividend of PPL decreases each year by -9.84%.
PPL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
93.18% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP93.18%
EPS Next 2Y7.31%
EPS Next 3Y7.24%
PPL CORP
NYSE:PPL (5/6/2024, 7:22:06 PM)
After market: 28.09 0 (0%)28.09
0 (0%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap20.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.92 | ||
| Fwd PE | 15.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 5.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.45% | ||
| PM (TTM) | 9.29% | ||
| GM | 80.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.93%
EPS 3Y-12.52%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.91%
Revenue growth 3Y3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y