PPL CORP (PPL) Stock Fundamental Analysis
USA - NYSE:PPL - US69351T1060 - Common Stock
36.49 USD
-0.31 (-0.84%)
36.49 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PPL. PPL was compared to 46 industry peers in the Electric Utilities industry. PPL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, PPL is valued expensive at the moment.
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.
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
Looking at the Return On Assets, with a value of 2.49%, PPL is doing worse than 65.22% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.58%, PPL is doing worse than 80.43% of the companies in the same industry.
PPL's Return On Invested Capital of 4.07% is in line compared to the rest of the industry. PPL outperforms 43.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPL is in line with the industry average of 5.00%.
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
PPL has a Profit Margin (12.16%) which is in line with its industry peers.
PPL's Profit Margin has declined in the last couple of years.
PPL has a Operating Margin (22.61%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PPL has declined.
The Gross Margin of PPL (78.67%) is better than 76.09% 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
PPL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PPL remains at a similar level compared to 1 year ago.
The number of shares outstanding for PPL has been reduced compared to 5 years ago.
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.
The Altman-Z score of PPL (0.98) is comparable to the rest of the industry.
PPL has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
PPL has a Debt to Equity ratio of 1.22. This is in the better half of the industry: PPL outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.61
WACC6.72%
2.3 Liquidity
A Current Ratio of 0.77 indicates that PPL may have some problems paying its short term obligations.
The Current ratio of PPL (0.77) is comparable to the rest of the 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 in line with its industry peers.
| 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.
Looking at the last year, PPL shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
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.
Based on estimates for the next years, PPL will show a small growth in Revenue. The Revenue will grow by 6.29% on average per year.
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
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
Based on the Price/Earnings ratio of 20.97, the valuation of PPL can be described as rather expensive.
PPL's Price/Earnings ratio is a bit more expensive when compared to the industry. PPL is more expensive than 63.04% of the companies in the same industry.
PPL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.49, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings is on the same level as the industry average.
PPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.49 |
4.2 Price Multiples
67.39% 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 | 12.95 |
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)2.38
PEG (5Y)N/A
EPS Next 2Y8.38%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
PPL's Dividend Yield is comparable with the industry average which is at 3.77.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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 2Y8.38%
EPS Next 3Y8.14%
36.49
-0.31 (-0.84%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change7.29%
Ins Owners0.12%
Ins Owner Change-6.73%
Market Cap26.99B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target41.45 (13.59%)
Short Float %4.46%
Short Ratio6.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)8.44%
EPS NQ rev (3m)14.28%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)7.87%
Revenue NQ rev (3m)9.13%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.97 | ||
| Fwd PE | 18.49 | ||
| P/S | 3.01 | ||
| P/FCF | N/A | ||
| P/OCF | 10.41 | ||
| P/B | 1.87 | ||
| P/tB | 2.28 | ||
| EV/EBITDA | 12.95 |
EPS(TTM)1.74
EY4.77%
EPS(NY)1.97
Fwd EY5.41%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY9.61%
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
WACC6.72%
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.