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
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.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PPL (2.03%) is worse than 71.11% of its industry peers.
PPL has a Return On Equity of 5.83%. This is in the lower half of the industry: PPL underperforms 77.78% of its industry peers.
PPL's Return On Invested Capital of 3.63% is in line compared to the rest of the industry. PPL outperforms 48.89% 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 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
PPL's Profit Margin of 9.93% is on the low side compared to the rest of the industry. PPL is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of PPL has declined.
PPL has a Operating Margin (21.17%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
With a decent Gross Margin value of 81.36%, PPL is doing good in the industry, outperforming 77.78% 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPL is destroying value.
Compared to 1 year ago, PPL has about the same amount of shares outstanding.
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 1.01, we must say that PPL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PPL (1.01) is better than 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.
PPL's Debt to Equity ratio of 1.17 is in line compared to the rest of the industry. PPL outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.53
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.29 indicates that PPL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.29, PPL is in the better half of the industry, outperforming 68.89% of the companies in the same industry.
PPL has a Quick Ratio of 1.07. This is a normal value and indicates that PPL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.07, PPL is in the better half of the industry, outperforming 64.44% of the companies in the same industry.
| 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%.
PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.32% yearly.
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 7.36% yearly.
Based on estimates for the next years, PPL will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y8.09%
EPS Next 2Y7.52%
EPS Next 3Y7.33%
EPS Next 5Y7.36%
Revenue Next Year-1.03%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.7%
Revenue Next 5Y2.56%
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
With a Price/Earnings ratio of 18.64, PPL is valued on the expensive side.
PPL's Price/Earnings ratio is a bit more expensive when compared to the industry. PPL is more expensive than 62.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, PPL is valued a bit cheaper.
PPL is valuated rather expensively with a Price/Forward Earnings ratio of 17.53.
Based on the Price/Forward Earnings ratio, PPL is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (23.73), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 17.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than 73.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.85 |
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)2.31
PEG (5Y)N/A
EPS Next 2Y7.52%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.22%. Purely for dividend investing, there may be better candidates out there.
PPL's Dividend Yield is slightly below the industry average, which is at 3.68.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
The dividend of PPL decreases each year by -9.84%.
PPL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-9.84%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
PPL pays out 89.42% of its income as dividend. This is not a sustainable payout ratio.
DP89.42%
EPS Next 2Y7.52%
EPS Next 3Y7.33%
PPL CORP
NYSE:PPL (12/20/2024, 8:04:00 PM)
After market: 32.43 0 (0%)32.43
+0.41 (+1.28%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.01%
Inst Owner Change1.52%
Ins Owners0.08%
Ins Owner Change-2.86%
Market Cap23.93B
Analysts80.95
Price Target35.85 (10.55%)
Short Float %2.29%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Dividend Growth(5Y)-9.84%
DP89.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.49%
Min EPS beat(2)-1.39%
Max EPS beat(2)12.37%
EPS beat(4)3
Avg EPS beat(4)5.43%
Min EPS beat(4)-1.39%
Max EPS beat(4)12.37%
EPS beat(8)5
Avg EPS beat(8)2.04%
EPS beat(12)7
Avg EPS beat(12)-1.31%
EPS beat(16)7
Avg EPS beat(16)-6.6%
Revenue beat(2)2
Avg Revenue beat(2)10.14%
Min Revenue beat(2)6.83%
Max Revenue beat(2)13.45%
Revenue beat(4)4
Avg Revenue beat(4)9.21%
Min Revenue beat(4)5.95%
Max Revenue beat(4)13.45%
Revenue beat(8)8
Avg Revenue beat(8)19.39%
Revenue beat(12)9
Avg Revenue beat(12)10.75%
Revenue beat(16)9
Avg Revenue beat(16)4.37%
PT rev (1m)3.8%
PT rev (3m)8.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)2.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.64 | ||
| Fwd PE | 17.53 | ||
| P/S | 2.89 | ||
| P/FCF | N/A | ||
| P/OCF | 12.34 | ||
| P/B | 1.7 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 12.85 |
EPS(TTM)1.74
EY5.37%
EPS(NY)1.85
Fwd EY5.7%
FCF(TTM)-0.89
FCFYN/A
OCF(TTM)2.63
OCFY8.1%
SpS11.23
BVpS19.1
TBVpS15.63
PEG (NY)2.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.03% | ||
| ROE | 5.83% | ||
| ROCE | 4.59% | ||
| ROIC | 3.63% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.95% | ||
| OM | 21.17% | ||
| PM (TTM) | 9.93% | ||
| GM | 81.36% | ||
| FCFM | N/A |
ROA(3y)-0.19%
ROA(5y)1.26%
ROE(3y)-0.01%
ROE(5y)4.87%
ROIC(3y)3.44%
ROIC(5y)4.43%
ROICexc(3y)3.62%
ROICexc(5y)4.58%
ROICexgc(3y)3.85%
ROICexgc(5y)4.87%
ROCE(3y)4.43%
ROCE(5y)5.75%
ROICexcg growth 3Y-17.6%
ROICexcg growth 5Y-9.68%
ROICexc growth 3Y-18.7%
ROICexc growth 5Y-9.12%
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%
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.31 | ||
| Cap/Depr | 191.86% | ||
| Cap/Sales | 31.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.01 |
F-Score5
WACC6.87%
ROIC/WACC0.53
Cap/Depr(3y)176.6%
Cap/Depr(5y)201.95%
Cap/Sales(3y)30.05%
Cap/Sales(5y)34.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.57%
EPS 3Y-12.52%
EPS 5Y-7.79%
EPS Q2Q%-2.33%
EPS Next Y8.09%
EPS Next 2Y7.52%
EPS Next 3Y7.33%
EPS Next 5Y7.36%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y3%
Revenue growth 5Y1.32%
Sales Q2Q%1.13%
Revenue Next Year-1.03%
Revenue Next 2Y-0.12%
Revenue Next 3Y1.7%
Revenue Next 5Y2.56%
EBIT growth 1Y11.23%
EBIT growth 3Y-16.53%
EBIT growth 5Y-10.59%
EBIT Next Year80.69%
EBIT Next 3Y28.29%
EBIT Next 5Y18.96%
FCF growth 1Y-191.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.54%
OCF growth 3Y-13.81%
OCF growth 5Y-9.02%