PPL CORP (PPL) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:PPL • US69351T1060
36.31 USD
-0.39 (-1.06%)
At close: Jan 29, 2026
36.31 USD
0 (0%)
After Hours: 1/29/2026, 8:04:00 PM
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. PPL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- PPL had positive earnings in the past year.
- 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
- PPL has a Return On Assets of 2.49%. This is in the lower half of the industry: PPL underperforms 63.04% of its industry peers.
- The Return On Equity of PPL (7.58%) is worse than 80.43% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.07%, PPL is in line with its industry, outperforming 43.48% 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 4.57%.
- 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
- Looking at the Profit Margin, with a value of 12.16%, PPL is in line with its industry, outperforming 41.30% of the companies in the same industry.
- In the last couple of years the Profit Margin of PPL has declined.
- With a Operating Margin value of 22.61%, PPL perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of PPL has declined.
- PPL's Gross Margin of 78.67% is fine compared to the rest of the industry. PPL outperforms 73.91% of its industry peers.
- In the last couple of years the Gross Margin of PPL has declined.
| 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.
- 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 0.97, we must say that PPL is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of PPL (0.97) is better than 60.87% of its industry peers.
- A Debt/Equity ratio of 1.22 is on the high side and indicates that PPL has dependencies on debt financing.
- With a decent Debt to Equity ratio value of 1.22, PPL is doing good in the industry, outperforming 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.97 |
ROIC/WACC0.6
WACC6.79%
2.3 Liquidity
- PPL has a Current Ratio of 0.77. 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 has a Current ratio (0.77) which is in line with its industry peers.
- A Quick Ratio of 0.66 indicates that PPL may have some problems paying its short term obligations.
- With a Quick ratio value of 0.66, PPL perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
- PPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
- Measured over the past years, PPL shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.34% on average per year.
- PPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.42%.
- 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 6.32% on average per year.
EPS Next Y9.04%
EPS Next 2Y8.34%
EPS Next 3Y8.17%
EPS Next 5Y7.93%
Revenue Next Year10.48%
Revenue Next 2Y7.94%
Revenue Next 3Y6.96%
Revenue Next 5Y6.32%
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
- Based on the Price/Earnings ratio of 20.87, 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.
- When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (28.39), we can say PPL is valued slightly cheaper.
- With a Price/Forward Earnings ratio of 18.41, PPL is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
- PPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.87 | ||
| Fwd PE | 18.41 |
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 67.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.91 |
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)2.31
PEG (5Y)N/A
EPS Next 2Y8.34%
EPS Next 3Y8.17%
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.
- Compared to an average industry Dividend Yield of 2.90, PPL has a dividend in line with its industry peers.
- PPL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 2Y8.34%
EPS Next 3Y8.17%
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 of PPL CORP (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.
What are the PE and PB ratios of PPL CORP (PPL) stock?
The Price/Earnings (PE) ratio for PPL CORP (PPL) is 20.87 and the Price/Book (PB) ratio is 1.86.
Can you provide the financial health for PPL stock?
The financial health rating of PPL CORP (PPL) is 2 / 10.