PPL CORP (PPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPL - US69351T1060 - Common Stock
34.29 USD
-0.46 (-1.32%)
34.29 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PPL. PPL was compared to 48 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.
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
PPL has a Return On Assets of 2.49%. This is in the lower half of the industry: PPL underperforms 64.58% of its industry peers.
With a Return On Equity value of 7.58%, PPL is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
PPL has a Return On Invested Capital of 4.07%. This is comparable to the rest of the industry: PPL outperforms 41.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 4.97%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(4.07%), indicating increased profibility in the last year.
| 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
PPL has a Profit Margin of 12.16%. This is comparable to the rest of the industry: PPL outperforms 41.67% of its industry peers.
PPL's Profit Margin has declined in the last couple of years.
The Operating Margin of PPL (22.61%) is comparable to the rest of the industry.
PPL's Operating Margin has declined in the last couple of years.
PPL has a Gross Margin of 78.67%. This is in the better half of the industry: PPL outperforms 72.92% of its industry peers.
PPL's Gross Margin has declined in the last couple of years.
| 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
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.
Compared to 5 years ago, PPL has less shares outstanding
Compared to 1 year ago, PPL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a Altman-Z score of 0.95. This is comparable to the rest of the industry: PPL outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 1.22 is on the high side and indicates that PPL has dependencies on debt financing.
PPL has a Debt to Equity ratio of 1.22. This is in the better half of the industry: PPL outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.61
WACC6.65%
2.3 Liquidity
PPL has a Current Ratio of 0.77. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.77, PPL is in line with its industry, outperforming 43.75% of the companies in the same industry.
PPL has a Quick Ratio of 0.77. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.66, PPL is in line with its industry, outperforming 47.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
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.
The Revenue has grown by 8.42% in the past year. This is quite good.
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 7.95% yearly.
The Revenue is expected to grow by 6.31% on average over the next years.
EPS Next Y8.96%
EPS Next 2Y8.42%
EPS Next 3Y8.21%
EPS Next 5Y7.95%
Revenue Next Year10.14%
Revenue Next 2Y7.6%
Revenue Next 3Y7.06%
Revenue Next 5Y6.31%
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
Based on the Price/Earnings ratio of 19.71, the valuation of PPL can be described as rather expensive.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 26.38. PPL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 17.36, the valuation of PPL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (23.83), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 17.36 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than PPL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.58 |
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)2.2
PEG (5Y)N/A
EPS Next 2Y8.42%
EPS Next 3Y8.21%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.14%.
PPL's Dividend Yield is comparable with the industry average which is at 2.98.
PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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.
The dividend of PPL decreased recently.
Dividend Growth(5Y)-8.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PPL pays out 71.70% of its income as dividend. This is not a sustainable payout ratio.
DP71.7%
EPS Next 2Y8.42%
EPS Next 3Y8.21%
34.29
-0.46 (-1.32%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.27%
Inst Owner Change7.31%
Ins Owners0.12%
Ins Owner Change-4.29%
Market Cap25.37B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target41.31 (20.47%)
Short Float %4.72%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-0.33%
PT rev (3m)6.08%
EPS NQ rev (1m)-1.07%
EPS NQ rev (3m)10.46%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-0.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)2.24%
Revenue NY rev (3m)3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.71 | ||
| Fwd PE | 17.36 | ||
| P/S | 2.83 | ||
| P/FCF | N/A | ||
| P/OCF | 9.79 | ||
| P/B | 1.76 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 12.58 |
EPS(TTM)1.74
EY5.07%
EPS(NY)1.97
Fwd EY5.76%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY10.22%
SpS12.14
BVpS19.48
TBVpS16.02
PEG (NY)2.2
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 | 0.95 |
F-Score5
WACC6.65%
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 Y8.96%
EPS Next 2Y8.42%
EPS Next 3Y8.21%
EPS Next 5Y7.95%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.37%
Revenue Next Year10.14%
Revenue Next 2Y7.6%
Revenue Next 3Y7.06%
Revenue Next 5Y6.31%
EBIT growth 1Y15.8%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year74.57%
EBIT Next 3Y28.58%
EBIT Next 5Y19.84%
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 8.96% in the next year.