PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - New York Stock Exchange, Inc. - US69351T1060 - Common Stock - Currency: USD
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. PPL has a medium profitability rating, but doesn't score so well on its financial health evaluation. PPL is quite expensive at the moment. It does show a decent growth rate.
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.
PPL had positive earnings in 4 of the past 5 years.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.38%, PPL is not doing good in the industry: 72.34% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 6.95%, PPL is doing worse than 85.11% of the companies in the same industry.
PPL has a Return On Invested Capital of 3.86%. This is comparable to the rest of the industry: PPL outperforms 40.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPL 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
PPL has a Profit Margin (11.46%) 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 (21.62%) which is in line with its industry peers.
PPL's Operating Margin has declined in the last couple of years.
PPL has a Gross Margin of 80.17%. This is in the better half of the industry: PPL outperforms 76.60% of its industry peers.
PPL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PPL is destroying value.
PPL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PPL has been reduced compared to 5 years ago.
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
PPL has an Altman-Z score of 0.99. 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 0.99 is in line compared to the rest of the industry. PPL outperforms 57.45% of its industry peers.
A Debt/Equity ratio of 1.17 is on the high side and indicates that PPL has dependencies on debt financing.
With a decent Debt to Equity ratio value of 1.17, PPL is doing good in the industry, outperforming 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.99 |
ROIC/WACC0.57
WACC6.81%
2.3 Liquidity
A Current Ratio of 0.81 indicates that PPL may have some problems paying 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.
PPL's Quick ratio of 0.68 is in line compared to the rest of the industry. PPL outperforms 48.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
PPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.82%.
Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.34% on average per year.
Looking at the last year, PPL shows a small growth in Revenue. The Revenue has grown by 5.62% in the last year.
The Revenue has been growing slightly by 1.72% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.72% 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 5.49% on average per year.
EPS Next Y9.49%
EPS Next 2Y8.52%
EPS Next 3Y8.03%
EPS Next 5Y7.72%
Revenue Next Year7.07%
Revenue Next 2Y5.2%
Revenue Next 3Y4.96%
Revenue Next 5Y5.49%
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
The Price/Earnings ratio is 19.66, which indicates a rather expensive current valuation of PPL.
65.96% 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 (26.60), we can say PPL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.29, PPL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
PPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 17.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.87 |
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)2.07
PEG (5Y)N/A
EPS Next 2Y8.52%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.20%.
PPL's Dividend Yield is comparable with the industry average which is at 3.54.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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.
PPL has decreased its dividend recently.
Dividend Growth(5Y)-8.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PPL pays out 76.54% of its income as dividend. This is not a sustainable payout ratio.
DP76.54%
EPS Next 2Y8.52%
EPS Next 3Y8.03%
NYSE:PPL (6/13/2025, 11:55:50 AM)
34.215
-0.16 (-0.48%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change2.84%
Ins Owners0.12%
Ins Owner Change22.16%
Market Cap25.29B
Analysts80
Price Target38.69 (13.08%)
Short Float %3.15%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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%
PT rev (3m)4.91%
EPS NQ rev (1m)1.2%
EPS NQ rev (3m)-1.19%
EPS NY rev (1m)0.18%
EPS NY rev (3m)-0.01%
Revenue NQ rev (1m)29.17%
Revenue NQ rev (3m)29.75%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)7.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.66 | ||
| Fwd PE | 17.29 | ||
| P/S | 2.92 | ||
| P/FCF | N/A | ||
| P/OCF | 9.84 | ||
| P/B | 1.77 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 12.87 |
EPS(TTM)1.74
EY5.09%
EPS(NY)1.98
Fwd EY5.78%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)3.48
OCFY10.17%
SpS11.72
BVpS19.35
TBVpS15.88
PEG (NY)2.07
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 | 0.99 |
F-Score7
WACC6.81%
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)4.82%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%11.11%
EPS Next Y9.49%
EPS Next 2Y8.52%
EPS Next 3Y8.03%
EPS Next 5Y7.72%
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%