PPL CORP (PPL) Stock Fundamental Analysis
USA - NYSE:PPL - US69351T1060 - Common Stock
35.58 USD
-0.03 (-0.08%)
35.57 USD
-0.01 (-0.03%)
We assign a fundamental rating of 2 out of 10 to PPL. PPL was compared to 48 industry peers in the Electric Utilities industry. PPL has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, PPL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PPL was profitable.
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 2.33%, PPL is doing worse than 75.00% of the companies in the same industry.
PPL has a Return On Equity of 6.91%. This is amonst the worse of the industry: PPL underperforms 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, PPL is doing worse than 60.42% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PPL is in line with the industry average of 5.43%.
The last Return On Invested Capital (3.90%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 6.91% | ||
| ROIC | 3.9% |
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's Profit Margin of 11.21% is on the low side compared to the rest of the industry. PPL is outperformed by 60.42% of its industry peers.
PPL's Profit Margin has declined in the last couple of years.
PPL has a Operating Margin (21.45%) which is in line with its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
The Gross Margin of PPL (79.21%) is better than 77.08% of its industry peers.
In the last couple of years the Gross Margin of PPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.45% | ||
| PM (TTM) | 11.21% | ||
| GM | 79.21% |
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.
Compared to 1 year ago, PPL has about the same amount of shares outstanding.
Compared to 5 years ago, PPL has less shares outstanding
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that PPL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of PPL (0.96) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that PPL has dependencies on debt financing.
PPL has a better Debt to Equity ratio (1.16) than 60.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.59
WACC6.64%
2.3 Liquidity
PPL has a Current Ratio of 0.59. This is a bad value and indicates that PPL is not financially healthy enough and could expect problems in meeting its short term obligations.
PPL's Current ratio of 0.59 is on the low side compared to the rest of the industry. PPL is outperformed by 77.08% of its industry peers.
A Quick Ratio of 0.49 indicates that PPL may have some problems paying its short term obligations.
PPL has a Quick ratio of 0.49. This is in the lower half of the industry: PPL underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by -4.00% in the last year.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
PPL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.62%.
The Revenue has been growing slightly by 1.72% on average over the past years.
EPS 1Y (TTM)-4%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15.79%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%7.66%
3.2 Future
The Earnings Per Share is expected to grow by 7.79% on average over the next years.
The Revenue is expected to grow by 5.78% on average over the next years.
EPS Next Y9.12%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
EPS Next 5Y7.79%
Revenue Next Year6.17%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y5.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 21.18, PPL is valued on the expensive side.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (27.41), we can say PPL is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of PPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PPL indicates a slightly more expensive valuation: PPL is more expensive than 60.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. PPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 18 |
4.2 Price Multiples
PPL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. PPL is more expensive than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.06 |
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)2.32
PEG (5Y)N/A
EPS Next 2Y8.48%
EPS Next 3Y8.16%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.03%.
PPL's Dividend Yield is comparable with the industry average which is at 3.47.
PPL's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
The dividend of PPL decreases each year by -8.78%.
PPL has been paying a dividend for at least 10 years, so it has a reliable track record.
PPL has decreased its dividend recently.
Dividend Growth(5Y)-8.78%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PPL pays out 78.22% of its income as dividend. This is not a sustainable payout ratio.
DP78.22%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
35.58
-0.03 (-0.08%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners83.27%
Inst Owner Change0.73%
Ins Owners0.13%
Ins Owner Change-2.49%
Market Cap26.31B
Analysts77.89
Price Target38.94 (9.44%)
Short Float %3.96%
Short Ratio4.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP78.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.79%
Min EPS beat(2)-17.1%
Max EPS beat(2)9.51%
EPS beat(4)1
Avg EPS beat(4)-4.74%
Min EPS beat(4)-17.1%
Max EPS beat(4)9.51%
EPS beat(8)5
Avg EPS beat(8)0.69%
EPS beat(12)6
Avg EPS beat(12)-0.41%
EPS beat(16)8
Avg EPS beat(16)-2.48%
Revenue beat(2)2
Avg Revenue beat(2)13.26%
Min Revenue beat(2)0.95%
Max Revenue beat(2)25.58%
Revenue beat(4)4
Avg Revenue beat(4)10.07%
Min Revenue beat(4)0.95%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)10.8%
Revenue beat(12)12
Avg Revenue beat(12)16.53%
Revenue beat(16)12
Avg Revenue beat(16)9.77%
PT rev (1m)0.04%
PT rev (3m)0.64%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)1.31%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)-1.38%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.18 | ||
| Fwd PE | 18 | ||
| P/S | 2.99 | ||
| P/FCF | N/A | ||
| P/OCF | 10.93 | ||
| P/B | 1.84 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 13.06 |
EPS(TTM)1.68
EY4.72%
EPS(NY)1.98
Fwd EY5.56%
FCF(TTM)-1.16
FCFYN/A
OCF(TTM)3.25
OCFY9.15%
SpS11.91
BVpS19.32
TBVpS15.86
PEG (NY)2.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.33% | ||
| ROE | 6.91% | ||
| ROCE | 5.05% | ||
| ROIC | 3.9% | ||
| ROICexc | 3.93% | ||
| ROICexgc | 4.21% | ||
| OM | 21.45% | ||
| PM (TTM) | 11.21% | ||
| GM | 79.21% | ||
| 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-Score6
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 238.1% | ||
| Cap/Sales | 37.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 0.96 |
F-Score6
WACC6.64%
ROIC/WACC0.59
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%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%-15.79%
EPS Next Y9.12%
EPS Next 2Y8.48%
EPS Next 3Y8.16%
EPS Next 5Y7.79%
Revenue 1Y (TTM)6.62%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%7.66%
Revenue Next Year6.17%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y5.78%
EBIT growth 1Y7.21%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year79.03%
EBIT Next 3Y28.95%
EBIT Next 5Y20.82%
FCF growth 1Y-32.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y51.1%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%