PPL CORP (PPL)
US69351T1060 - Common Stock
We assign a fundamental rating of 3 out of 10 to PPL. 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. While showing a medium growth rate, PPL is valued expensive at the moment.
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.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
PPL has a Return On Assets of 2.03%. This is in the lower half of the industry: PPL underperforms 73.33% of its industry peers.
With a Return On Equity value of 5.83%, PPL is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
PPL has a Return On Invested Capital of 3.63%. This is comparable to the rest of the industry: PPL outperforms 48.89% of its industry peers.
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 4.67%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(3.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.83% | ||
| ROIC | 3.63% |
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
With a Profit Margin value of 9.93%, PPL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of PPL has declined.
PPL has a Operating Margin of 21.17%. This is comparable to the rest of the industry: PPL outperforms 57.78% of its industry peers.
PPL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.36%, PPL is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
PPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.17% | ||
| PM (TTM) | 9.93% | ||
| GM | 81.36% |
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.
The number of shares outstanding for PPL has been increased compared to 5 years ago.
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL's Altman-Z score of 1.04 is fine compared to the rest of the industry. PPL outperforms 64.44% 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.
The Debt to Equity ratio of PPL (1.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.53
WACC6.9%
2.3 Liquidity
PPL has a Current Ratio of 1.29. This is a normal value and indicates that PPL is financially healthy and should not expect problems in meeting its short term obligations.
PPL has a Current ratio of 1.29. This is in the better half of the industry: PPL outperforms 68.89% of its industry peers.
A Quick Ratio of 1.07 indicates that PPL should not have too much problems paying its short term obligations.
PPL has a better Quick ratio (1.07) than 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.57% over the past year.
The Earnings Per Share has been decreasing by -7.79% on average over the past years.
PPL shows a decrease in Revenue. In the last year, the revenue decreased by -3.37%.
Measured over the past years, PPL shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
EPS 1Y (TTM)17.57%
EPS 3Y-12.52%
EPS 5Y-7.79%
EPS Q2Q%-2.33%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y3%
Revenue growth 5Y1.32%
Sales Q2Q%1.13%
3.2 Future
PPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.56% yearly.
The Revenue is expected to grow by 3.92% on average over the next years.
EPS Next Y8.09%
EPS Next 2Y7.48%
EPS Next 3Y7.29%
EPS Next 5Y6.56%
Revenue Next Year-0.98%
Revenue Next 2Y-0.18%
Revenue Next 3Y1.64%
Revenue Next 5Y3.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
PPL is valuated rather expensively with a Price/Earnings ratio of 20.03.
PPL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.96. PPL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.86, which indicates a rather expensive current valuation of PPL.
Based on the Price/Forward Earnings ratio, PPL is valued a bit more expensive than the industry average as 62.22% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (23.82), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.28 |
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)2.47
PEG (5Y)N/A
EPS Next 2Y7.48%
EPS Next 3Y7.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, PPL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.44, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of PPL decreases each year by -9.84%.
PPL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-9.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
89.42% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP89.42%
EPS Next 2Y7.48%
EPS Next 3Y7.29%
PPL CORP
NYSE:PPL (11/21/2024, 8:04:00 PM)
After market: 34.85 0 (0%)34.85
+0.58 (+1.69%)
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 Cap25.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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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 | 20.03 | ||
| Fwd PE | 18.86 | ||
| 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)2.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.17% | ||
| PM (TTM) | 9.93% | ||
| GM | 81.36% | ||
| 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.07 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)17.57%
EPS 3Y-12.52%
EPS 5Y
EPS Q2Q%
EPS Next Y8.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y3%
Revenue growth 5Y
Sales 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
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OCF growth 5Y