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 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of PPL while its profitability can be described as average. PPL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
PPL's Return On Assets of 2.16% is on the low side compared to the rest of the industry. PPL is outperformed by 60.87% of its industry peers.
Looking at the Return On Equity, with a value of 6.29%, PPL is doing worse than 71.74% of the companies in the same industry.
PPL has a Return On Invested Capital of 3.65%. This is comparable to the rest of the industry: PPL outperforms 52.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPL is in line with the industry average of 4.68%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(3.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 6.29% | ||
| ROIC | 3.65% |
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 (10.47%) which is in line with its industry peers.
In the last couple of years the Profit Margin of PPL has declined.
PPL has a Operating Margin (20.56%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
Looking at the Gross Margin, with a value of 80.16%, PPL is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
PPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.56% | ||
| PM (TTM) | 10.47% | ||
| GM | 80.16% |
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.
The number of shares outstanding for PPL has been reduced compared to 5 years ago.
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
PPL has an Altman-Z score of 1.02. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.02, PPL is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that PPL has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.15, PPL is doing good in the industry, outperforming 76.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.02 |
ROIC/WACC0.53
WACC6.83%
2.3 Liquidity
A Current Ratio of 0.86 indicates that PPL may have some problems paying its short term obligations.
With a decent Current ratio value of 0.86, PPL is doing good in the industry, outperforming 65.22% of the companies in the same industry.
PPL has a Quick Ratio of 0.86. 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 (0.71) is better than 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.82% over the past year.
PPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.34% yearly.
Looking at the last year, PPL shows a small growth in Revenue. The Revenue has grown by 1.80% 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)4.82%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%11.11%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
3.2 Future
The Earnings Per Share is expected to grow by 7.55% 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 3.38% on average per year.
EPS Next Y9.29%
EPS Next 2Y8.48%
EPS Next 3Y8.11%
EPS Next 5Y7.55%
Revenue Next Year0.76%
Revenue Next 2Y3.42%
Revenue Next 3Y3.9%
Revenue Next 5Y3.38%
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
A Price/Earnings ratio of 20.79 indicates a rather expensive valuation of PPL.
Compared to the rest of the industry, the Price/Earnings ratio of PPL is on the same level as its industry peers.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.29, which indicates a rather expensive current valuation of PPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.86. PPL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.29 |
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 60.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.84 |
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 2Y8.48%
EPS Next 3Y8.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, PPL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.45, PPL is paying slightly less dividend.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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.
Dividend Growth(5Y)-8.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
84.31% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP84.31%
EPS Next 2Y8.48%
EPS Next 3Y8.11%
36.17
+0.09 (+0.25%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change0.23%
Ins Owners0.12%
Ins Owner Change20.66%
Market Cap26.73B
Analysts80.95
Price Target37.6 (3.95%)
Short Float %2.87%
Short Ratio3.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP84.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.69%
Min EPS beat(2)-9.99%
Max EPS beat(2)-1.39%
EPS beat(4)2
Avg EPS beat(4)1.92%
Min EPS beat(4)-9.99%
Max EPS beat(4)12.37%
EPS beat(8)5
Avg EPS beat(8)0.9%
EPS beat(12)7
Avg EPS beat(12)0.56%
EPS beat(16)7
Avg EPS beat(16)-6.95%
Revenue beat(2)2
Avg Revenue beat(2)6.87%
Min Revenue beat(2)6.83%
Max Revenue beat(2)6.91%
Revenue beat(4)4
Avg Revenue beat(4)9.45%
Min Revenue beat(4)6.83%
Max Revenue beat(4)13.45%
Revenue beat(8)8
Avg Revenue beat(8)15.29%
Revenue beat(12)10
Avg Revenue beat(12)13.54%
Revenue beat(16)10
Avg Revenue beat(16)5.43%
PT rev (1m)1.95%
PT rev (3m)3.26%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)7.5%
Revenue NQ rev (3m)6.81%
Revenue NY rev (1m)0.79%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.29 | ||
| P/S | 3.16 | ||
| P/FCF | N/A | ||
| P/OCF | 11.42 | ||
| P/B | 1.9 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 13.84 |
EPS(TTM)1.74
EY4.81%
EPS(NY)1.98
Fwd EY5.47%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)3.17
OCFY8.75%
SpS11.45
BVpS19.05
TBVpS15.58
PEG (NY)2.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 6.29% | ||
| ROCE | 4.61% | ||
| ROIC | 3.65% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.95% | ||
| OM | 20.56% | ||
| PM (TTM) | 10.47% | ||
| GM | 80.16% | ||
| 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 206.71% | ||
| Cap/Sales | 33.15% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 75.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.02 |
F-Score5
WACC6.83%
ROIC/WACC0.53
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)4.82%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%11.11%
EPS Next Y9.29%
EPS Next 2Y8.48%
EPS Next 3Y8.11%
EPS Next 5Y7.55%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
Revenue Next Year0.76%
Revenue Next 2Y3.42%
Revenue Next 3Y3.9%
Revenue Next 5Y3.38%
EBIT growth 1Y6.75%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year76.24%
EBIT Next 3Y27.85%
EBIT Next 5Y20.87%
FCF growth 1Y26.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.11%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%