PPL CORP (PPL) Stock Fundamental Analysis
NYSE:PPL - New York Stock Exchange, Inc. - US69351T1060 - Common Stock - Currency: USD
Taking everything into account, PPL scores 3 out of 10 in our fundamental rating. PPL was compared to 46 industry peers in the Electric Utilities industry. There are concerns on the financial health of PPL while its profitability can be described as average. PPL is quite expensive at the moment. 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
With a Return On Assets value of 2.03%, PPL is not doing good in the industry: 75.68% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 5.83%, PPL is doing worse than 86.49% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.63%, PPL is in line with its industry, outperforming 48.65% 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 4.60%.
The last Return On Invested Capital (3.63%) for PPL is above the 3 year average (3.44%), which is a sign of increasing profitability.
| 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
The Profit Margin of PPL (9.93%) is worse than 70.27% 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 comparable to the rest of the industry.
PPL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 81.36%, PPL is in the better half of the industry, outperforming 72.97% 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.
The number of shares outstanding for PPL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, PPL has more shares outstanding
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.03, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL's Altman-Z score of 1.03 is fine compared to the rest of the industry. PPL outperforms 67.57% of its industry peers.
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 67.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.17 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.52
WACC6.92%
2.3 Liquidity
PPL has a Current Ratio of 1.29. This is a normal value and indicates that PPL is financially healthy and should not expect problems in meeting its short term obligations.
PPL has a Current ratio of 1.29. This is in the better half of the industry: PPL outperforms 72.97% of its industry peers.
A Quick Ratio of 1.07 indicates that PPL should not have too much problems paying its short term obligations.
PPL has a better Quick ratio (1.07) than 72.97% of its industry peers.
| 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.
Looking at the last year, PPL shows a decrease in Revenue. The Revenue has decreased by -3.37% in the last year.
Measured over the past years, PPL shows a small growth in Revenue. The Revenue has been growing by 1.32% on average per year.
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 7.38% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.61% yearly.
EPS Next Y8.09%
EPS Next 2Y7.52%
EPS Next 3Y7.33%
EPS Next 5Y7.38%
Revenue Next Year-0.77%
Revenue Next 2Y-0.13%
Revenue Next 3Y2.01%
Revenue Next 5Y2.61%
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
Based on the Price/Earnings ratio of 19.31, the valuation of PPL can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as PPL.
PPL is valuated rather cheaply when we compare the Price/Earnings ratio to 28.46, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.17, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (92.56), we can say PPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 18.17 |
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 67.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.09 |
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)2.39
PEG (5Y)N/A
EPS Next 2Y7.52%
EPS Next 3Y7.33%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.15%.
PPL's Dividend Yield is comparable with the industry average which is at 3.64.
Compared to an average S&P500 Dividend Yield of 2.27, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of PPL decreases each year by -9.84%.
PPL has been paying a dividend for at least 10 years, so it has 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 (1/31/2025, 8:04:00 PM)
After market: 33.6 0 (0%)33.6
+0.13 (+0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners78.01%
Inst Owner Change-0.15%
Ins Owners0.08%
Ins Owner Change-2.86%
Market Cap24.80B
Analysts80.91
Price Target36.42 (8.39%)
Short Float %2.18%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.96
Dividend Growth(5Y)-9.84%
DP89.42%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)1.57%
PT rev (3m)5.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.31 | ||
| Fwd PE | 18.17 | ||
| P/S | 2.99 | ||
| P/FCF | N/A | ||
| P/OCF | 12.79 | ||
| P/B | 1.76 | ||
| P/tB | 2.15 | ||
| EV/EBITDA | 13.09 |
EPS(TTM)1.74
EY5.18%
EPS(NY)1.85
Fwd EY5.51%
FCF(TTM)-0.89
FCFYN/A
OCF(TTM)2.63
OCFY7.82%
SpS11.22
BVpS19.1
TBVpS15.63
PEG (NY)2.39
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 | 1.03 |
F-Score5
WACC6.92%
ROIC/WACC0.52
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 5Y7.38%
Revenue 1Y (TTM)-3.37%
Revenue growth 3Y3%
Revenue growth 5Y1.32%
Sales Q2Q%1.13%
Revenue Next Year-0.77%
Revenue Next 2Y-0.13%
Revenue Next 3Y2.01%
Revenue Next 5Y2.61%
EBIT growth 1Y11.23%
EBIT growth 3Y-16.53%
EBIT growth 5Y-10.59%
EBIT Next Year79.76%
EBIT Next 3Y28.44%
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%