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 medium profitability rating, but doesn't score so well on its financial health evaluation. PPL is valied quite expensively at the moment, while 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.
Each year in the past 5 years PPL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.38%, PPL is doing worse than 72.34% of the companies in the same industry.
The Return On Equity of PPL (6.95%) is worse than 85.11% of its industry peers.
With a Return On Invested Capital value of 3.86%, PPL perfoms like the industry average, outperforming 40.43% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PPL is significantly below the industry average of 38.54%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(3.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 6.95% | ||
| ROIC | 3.86% |
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 (11.46%) 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 (21.62%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
PPL has a better Gross Margin (80.17%) than 76.60% of its industry peers.
PPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.62% | ||
| PM (TTM) | 11.46% | ||
| GM | 80.17% |
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.
Compared to 5 years ago, PPL has less shares outstanding
PPL has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.98, PPL is in line with its industry, outperforming 57.45% of the companies in the same industry.
A Debt/Equity ratio of 1.17 is on the high side and indicates that PPL has dependencies on debt financing.
PPL has a Debt to Equity ratio of 1.17. This is in the better half of the industry: PPL outperforms 61.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.57
WACC6.77%
2.3 Liquidity
PPL has a Current Ratio of 0.81. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.81, PPL is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
PPL has a Quick Ratio of 0.81. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.68, PPL perfoms like the industry average, outperforming 48.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
PPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.82%.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
Looking at the last year, PPL shows a small growth in Revenue. The Revenue has grown by 5.62% 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)4.82%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%11.11%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
3.2 Future
Based on estimates for the next years, PPL will show a small growth in Earnings Per Share. The EPS will grow by 7.76% on average per year.
The Revenue is expected to grow by 5.49% on average over the next years.
EPS Next Y9.5%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
EPS Next 5Y7.76%
Revenue Next Year7.07%
Revenue Next 2Y5.2%
Revenue Next 3Y4.96%
Revenue Next 5Y5.49%
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
PPL is valuated rather expensively with a Price/Earnings ratio of 19.30.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than 63.83% of the companies in the same industry.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 16.98, which indicates a correct valuation of PPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.76. PPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.98 |
4.2 Price Multiples
70.21% 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 | 12.69 |
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)2.03
PEG (5Y)N/A
EPS Next 2Y8.51%
EPS Next 3Y8.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.22%, PPL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.63, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
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
76.54% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP76.54%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
NYSE:PPL (7/9/2025, 10:27:04 AM)
33.585
+0.01 (+0.01%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.11%
Inst Owner Change-0.01%
Ins Owners0.13%
Ins Owner Change22.16%
Market Cap24.82B
Analysts78
Price Target38.45 (14.49%)
Short Float %2.92%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP76.54%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.24%
Min EPS beat(2)-9.99%
Max EPS beat(2)9.51%
EPS beat(4)2
Avg EPS beat(4)2.63%
Min EPS beat(4)-9.99%
Max EPS beat(4)12.37%
EPS beat(8)5
Avg EPS beat(8)1.57%
EPS beat(12)7
Avg EPS beat(12)1.04%
EPS beat(16)8
Avg EPS beat(16)-2.83%
Revenue beat(2)2
Avg Revenue beat(2)16.25%
Min Revenue beat(2)6.91%
Max Revenue beat(2)25.58%
Revenue beat(4)4
Avg Revenue beat(4)13.19%
Min Revenue beat(4)6.83%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)15.99%
Revenue beat(12)11
Avg Revenue beat(12)16.29%
Revenue beat(16)11
Avg Revenue beat(16)9.08%
PT rev (1m)-0.62%
PT rev (3m)2.66%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)29.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 16.98 | ||
| P/S | 2.87 | ||
| P/FCF | N/A | ||
| P/OCF | 9.65 | ||
| P/B | 1.74 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 12.69 |
EPS(TTM)1.74
EY5.18%
EPS(NY)1.98
Fwd EY5.89%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)3.48
OCFY10.36%
SpS11.72
BVpS19.35
TBVpS15.88
PEG (NY)2.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 6.95% | ||
| ROCE | 4.93% | ||
| ROIC | 3.86% | ||
| ROICexc | 3.89% | ||
| ROICexgc | 4.17% | ||
| OM | 21.62% | ||
| PM (TTM) | 11.46% | ||
| GM | 80.17% | ||
| 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-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.17 | ||
| Cap/Depr | 220.9% | ||
| Cap/Sales | 34.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.98 |
F-Score7
WACC6.77%
ROIC/WACC0.57
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)4.82%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%11.11%
EPS Next Y9.5%
EPS Next 2Y8.51%
EPS Next 3Y8.02%
EPS Next 5Y7.76%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.68%
Revenue Next Year7.07%
Revenue Next 2Y5.2%
Revenue Next 3Y4.96%
Revenue Next 5Y5.49%
EBIT growth 1Y11.69%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year78%
EBIT Next 3Y27.79%
EBIT Next 5Y20.87%
FCF growth 1Y24.25%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y55.07%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%