PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - New York Stock Exchange, Inc. - US69351T1060 - Common Stock - Currency: USD
PPL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. PPL has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year PPL had a positive cash flow from operations.
Of the past 5 years PPL 4 years were profitable.
In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
PPL has a worse Return On Assets (2.16%) than 71.05% of its industry peers.
With a Return On Equity value of 6.29%, PPL is not doing good in the industry: 86.84% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.65%, PPL is doing worse than 60.53% of the companies in the same industry.
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 4.94%.
The last Return On Invested Capital (3.65%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 6.29% | ||
| ROIC | 3.65% |
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
The Profit Margin of PPL (10.47%) is worse than 63.16% of its industry peers.
PPL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 20.56%, PPL is in line with its industry, outperforming 44.74% of the companies in the same industry.
In the last couple of years the Operating Margin of PPL has declined.
The Gross Margin of PPL (80.16%) is better than 71.05% of its industry peers.
In the last couple of years the Gross Margin of PPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.56% | ||
| PM (TTM) | 10.47% | ||
| GM | 80.16% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PPL is destroying value.
PPL has about the same amout of shares outstanding than it did 1 year ago.
PPL has less shares outstanding than it did 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.
PPL has a Altman-Z score of 1.01. This is in the better half of the industry: PPL outperforms 68.42% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that PPL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.15, PPL is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.01 |
ROIC/WACC0.54
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.86 indicates that PPL may have some problems paying its short term obligations.
With a Current ratio value of 0.86, PPL perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
PPL has a Quick Ratio of 0.86. 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 0.71, PPL is in line with its industry, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.00% over the past year.
PPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.34% yearly.
The Revenue has been growing slightly by 1.80% in the past year.
The Revenue has been growing slightly by 1.72% on average over the past years.
EPS 1Y (TTM)5%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.86%
3.2 Future
PPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.52% yearly.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y9.51%
EPS Next 2Y8.5%
EPS Next 3Y8.25%
EPS Next 5Y7.52%
Revenue Next Year-0.54%
Revenue Next 2Y2.73%
Revenue Next 3Y1.47%
Revenue Next 5Y3.87%
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
The Price/Earnings ratio is 21.12, which indicates a rather expensive current valuation of PPL.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than 65.79% of the companies in the same industry.
PPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.98.
With a Price/Forward Earnings ratio of 19.28, PPL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, PPL is valued a bit more expensive than 60.53% of the companies in the same industry.
PPL is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.66, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.62 |
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)2.22
PEG (5Y)N/A
EPS Next 2Y8.5%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.16%.
Compared to an average industry Dividend Yield of 3.48, PPL is paying slightly less dividend.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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.
Dividend Growth(5Y)-8.78%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
84.31% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP84.31%
EPS Next 2Y8.5%
EPS Next 3Y8.25%
NYSE:PPL (3/3/2025, 2:25:01 PM)
35.475
+0.27 (+0.75%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners79.73%
Inst Owner Change2.45%
Ins Owners0.12%
Ins Owner Change21.27%
Market Cap26.18B
Analysts80.95
Price Target36.66 (3.34%)
Short Float %2.48%
Short Ratio4.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP84.31%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.69%
Min EPS beat(2)-9.99%
Max EPS beat(2)-1.39%
EPS beat(4)2
Avg EPS beat(4)1.92%
Min EPS beat(4)-9.99%
Max EPS beat(4)12.37%
EPS beat(8)5
Avg EPS beat(8)0.9%
EPS beat(12)7
Avg EPS beat(12)0.56%
EPS beat(16)7
Avg EPS beat(16)-6.95%
Revenue beat(2)2
Avg Revenue beat(2)6.87%
Min Revenue beat(2)6.83%
Max Revenue beat(2)6.91%
Revenue beat(4)4
Avg Revenue beat(4)9.45%
Min Revenue beat(4)6.83%
Max Revenue beat(4)13.45%
Revenue beat(8)8
Avg Revenue beat(8)15.29%
Revenue beat(12)10
Avg Revenue beat(12)13.54%
Revenue beat(16)10
Avg Revenue beat(16)5.43%
PT rev (1m)0.74%
PT rev (3m)2.05%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-2.54%
Revenue NY rev (3m)-2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.28 | ||
| P/S | 3.09 | ||
| P/FCF | N/A | ||
| P/OCF | 11.19 | ||
| P/B | 1.86 | ||
| P/tB | 2.27 | ||
| EV/EBITDA | 13.62 |
EPS(TTM)1.68
EY4.74%
EPS(NY)1.84
Fwd EY5.19%
FCF(TTM)-0.63
FCFYN/A
OCF(TTM)3.17
OCFY8.94%
SpS11.47
BVpS19.08
TBVpS15.61
PEG (NY)2.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.16% | ||
| ROE | 6.29% | ||
| ROCE | 4.61% | ||
| ROIC | 3.65% | ||
| ROICexc | 3.68% | ||
| ROICexgc | 3.95% | ||
| OM | 20.56% | ||
| PM (TTM) | 10.47% | ||
| GM | 80.16% | ||
| 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-Score5
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 206.71% | ||
| Cap/Sales | 33.15% | ||
| Interest Coverage | 2.6 | ||
| Cash Conversion | 75.56% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.86 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 1.01 |
F-Score5
WACC6.77%
ROIC/WACC0.54
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)5%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15%
EPS Next Y9.51%
EPS Next 2Y8.5%
EPS Next 3Y8.25%
EPS Next 5Y7.52%
Revenue 1Y (TTM)1.8%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.86%
Revenue Next Year-0.54%
Revenue Next 2Y2.73%
Revenue Next 3Y1.47%
Revenue Next 5Y3.87%
EBIT growth 1Y6.75%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year76.33%
EBIT Next 3Y27.19%
EBIT Next 5Y20.85%
FCF growth 1Y26.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y33.11%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%