PPL CORP (PPL) Stock Fundamental Analysis
USA - NYSE:PPL - US69351T1060 - Common Stock
36.55 USD
-0.33 (-0.89%)
36.45 USD
-0.1 (-0.27%)
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. While PPL is still in line with the averages on profitability rating, there are concerns on its financial health. PPL is valied quite expensively at the moment, while it does show a decent growth rate.
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
The Return On Assets of PPL (2.49%) is worse than 65.96% of its industry peers.
PPL's Return On Equity of 7.58% is on the low side compared to the rest of the industry. PPL is outperformed by 78.72% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.07%, PPL is in line with its industry, outperforming 42.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 5.02%.
The last Return On Invested Capital (4.07%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.58% | ||
| ROIC | 4.07% |
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
With a Profit Margin value of 12.16%, PPL perfoms like the industry average, outperforming 42.55% of the companies in the same industry.
PPL's Profit Margin has declined in the last couple of years.
PPL has a Operating Margin (22.61%) 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 78.67%, PPL is in the better half of the industry, outperforming 74.47% 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 | 22.61% | ||
| PM (TTM) | 12.16% | ||
| GM | 78.67% |
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.
The number of shares outstanding for PPL remains at a similar level compared to 1 year ago.
PPL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a Altman-Z score of 0.98. This is comparable to the rest of the industry: PPL outperforms 57.45% of its industry peers.
PPL has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.22, PPL perfoms like the industry average, outperforming 59.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.61
WACC6.69%
2.3 Liquidity
A Current Ratio of 0.77 indicates that PPL may have some problems paying its short term obligations.
With a Current ratio value of 0.77, PPL perfoms like the industry average, outperforming 46.81% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that PPL may have some problems paying its short term obligations.
PPL has a Quick ratio (0.66) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by 0.00% in the last year.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
PPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.42%.
Measured over the past years, PPL shows a small growth in Revenue. The Revenue has been growing by 1.72% on average per year.
EPS 1Y (TTM)0%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%14.29%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.37%
3.2 Future
PPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
The Revenue is expected to grow by 6.29% on average over the next years.
EPS Next Y8.81%
EPS Next 2Y8.38%
EPS Next 3Y8.14%
EPS Next 5Y7.93%
Revenue Next Year7.73%
Revenue Next 2Y6.2%
Revenue Next 3Y6.02%
Revenue Next 5Y6.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 21.01 indicates a rather expensive valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than 63.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.91, PPL is valued at the same level.
Based on the Price/Forward Earnings ratio of 18.52, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (34.57), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PPL is more expensive than 68.09% of the companies in the same industry.
| 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 an expensive valuation of the company.
PEG (NY)2.38
PEG (5Y)N/A
EPS Next 2Y8.38%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, PPL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.22, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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
71.70% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP71.7%
EPS Next 2Y8.38%
EPS Next 3Y8.14%
36.55
-0.33 (-0.89%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change-1.02%
Ins Owners0.12%
Ins Owner Change-2.49%
Market Cap27.03B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target41.45 (13.41%)
Short Float %4.74%
Short Ratio7.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP71.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.86%
Min EPS beat(2)-17.1%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)-3.55%
Min EPS beat(4)-17.1%
Max EPS beat(4)9.51%
EPS beat(8)5
Avg EPS beat(8)0.94%
EPS beat(12)7
Avg EPS beat(12)0.18%
EPS beat(16)9
Avg EPS beat(16)-1.87%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.04%
Revenue beat(4)4
Avg Revenue beat(4)8.62%
Min Revenue beat(4)0.95%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)8.91%
Revenue beat(12)12
Avg Revenue beat(12)15.8%
Revenue beat(16)13
Avg Revenue beat(16)10.22%
PT rev (1m)6.8%
PT rev (3m)6.47%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-1.27%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)2.07%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.01 | ||
| Fwd PE | 18.52 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 10.43 | ||
| P/B | 1.88 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)1.74
EY4.76%
EPS(NY)1.97
Fwd EY5.4%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY9.59%
SpS12.14
BVpS19.49
TBVpS16.03
PEG (NY)2.38
PEG (5Y)N/A
Graham Number27.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.58% | ||
| ROCE | 5.17% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.48% | ||
| OM | 22.61% | ||
| PM (TTM) | 12.16% | ||
| GM | 78.67% | ||
| 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%
ROICexgc growth 3Y-3.74%
ROICexgc 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 268.4% | ||
| Cap/Sales | 41.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.98 |
F-Score5
WACC6.69%
ROIC/WACC0.61
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)0%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%14.29%
EPS Next Y8.81%
EPS Next 2Y8.38%
EPS Next 3Y8.14%
EPS Next 5Y7.93%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.37%
Revenue Next Year7.73%
Revenue Next 2Y6.2%
Revenue Next 3Y6.02%
Revenue Next 5Y6.29%
EBIT growth 1Y15.8%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year77.91%
EBIT Next 3Y28.61%
EBIT Next 5Y19.8%
FCF growth 1Y-121.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.83%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%
PPL CORP / PPL FAQ
What is the ChartMill fundamental rating of PPL CORP (PPL) stock?
ChartMill assigns a fundamental rating of 3 / 10 to PPL.
What is the valuation status for PPL stock?
ChartMill assigns a valuation rating of 1 / 10 to PPL CORP (PPL). This can be considered as Overvalued.
Can you provide the profitability details for PPL CORP?
PPL CORP (PPL) has a profitability rating of 4 / 10.
How financially healthy is PPL CORP?
The financial health rating of PPL CORP (PPL) is 2 / 10.
Can you provide the expected EPS growth for PPL stock?
The Earnings per Share (EPS) of PPL CORP (PPL) is expected to grow by 8.81% in the next year.