PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - New York Stock Exchange, Inc. - US69351T1060 - Common Stock - Currency: USD
PPL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 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. PPL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PPL was profitable.
PPL had a positive operating cash flow in the past year.
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 has a worse Return On Assets (2.38%) than 72.34% of its industry peers.
PPL has a Return On Equity of 6.95%. This is amonst the worse of the industry: PPL underperforms 85.11% of its industry peers.
PPL has a Return On Invested Capital (3.86%) which is in line with its industry peers.
PPL had an Average Return On Invested Capital over the past 3 years of 3.44%. This is significantly below the industry average of 38.54%.
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
Looking at the Profit Margin, with a value of 11.46%, PPL is in line with its industry, outperforming 40.43% of the companies in the same industry.
PPL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.62%, PPL is in line with its industry, outperforming 51.06% of the companies in the same industry.
PPL's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 80.17%, PPL is doing good in the industry, outperforming 76.60% 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 | 21.62% | ||
| 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.
PPL has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, PPL has less shares outstanding
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
PPL has an Altman-Z score of 0.98. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
PPL's Altman-Z score of 0.98 is in line compared to the rest of the industry. PPL outperforms 57.45% of its industry peers.
PPL has a Debt/Equity ratio of 1.17. This is a high value indicating a heavy dependency on external financing.
PPL's Debt to Equity ratio of 1.17 is fine compared to the rest of the industry. PPL outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.44
WACC8.76%
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's Current ratio of 0.81 is on the low side compared to the rest of the industry. PPL is outperformed by 61.70% of its industry peers.
A Quick Ratio of 0.68 indicates that PPL may have some problems paying 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 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.
PPL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.62%.
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)5.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
3.2 Future
PPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.76% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.49% yearly.
EPS Next Y9.5%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
EPS Next 5Y7.76%
Revenue Next Year7.07%
Revenue Next 2Y5.2%
Revenue Next 3Y4.96%
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
The Price/Earnings ratio is 19.43, which indicates a rather expensive current valuation of PPL.
63.83% 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 (27.45), we can say PPL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.09, PPL is valued on the expensive side.
PPL's Price/Forward Earnings ratio is in line with the industry average.
PPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.09 |
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 70.21% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.74 |
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)2.04
PEG (5Y)N/A
EPS Next 2Y8.51%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, PPL has a dividend in line with its industry peers.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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
76.54% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP76.54%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
33.81
+0.27 (+0.81%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.11%
Inst Owner Change2.84%
Ins Owners0.13%
Ins Owner Change22.16%
Market Cap24.99B
Analysts80
Price Target38.45 (13.72%)
Short Float %2.92%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.24% |
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)-0.62%
PT rev (3m)4.06%
EPS NQ rev (1m)-1.26%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)29.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.43 | ||
| Fwd PE | 17.09 | ||
| P/S | 2.88 | ||
| P/FCF | N/A | ||
| P/OCF | 9.72 | ||
| P/B | 1.75 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 12.74 |
EPS(TTM)1.74
EY5.15%
EPS(NY)1.98
Fwd EY5.85%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)3.48
OCFY10.29%
SpS11.72
BVpS19.35
TBVpS15.88
PEG (NY)2.04
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 | 0.98 |
F-Score7
WACC8.76%
ROIC/WACC0.44
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 Y9.5%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
EPS Next 5Y7.76%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
Revenue Next Year7.07%
Revenue Next 2Y5.2%
Revenue Next 3Y4.96%
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%