PPL CORP (PPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPL - US69351T1060 - Common Stock
35.11 USD
+0.09 (+0.26%)
35.11 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to PPL. PPL was compared to 47 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.
In the past year PPL had a positive cash flow from operations.
Of the past 5 years PPL 4 years were profitable.
PPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PPL has a worse Return On Assets (2.49%) than 63.83% of its industry peers.
With a Return On Equity value of 7.58%, PPL is not doing good in the industry: 80.85% of the companies in the same industry are doing better.
PPL has a Return On Invested Capital (4.07%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for PPL is in line with the industry average of 4.65%.
The 3 year average ROIC (3.44%) for PPL is below the current ROIC(4.07%), indicating increased profibility in the last year.
| 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
PPL has a Profit Margin of 12.16%. This is comparable to the rest of the industry: PPL outperforms 40.43% of its industry peers.
In the last couple of years the Profit Margin of PPL has declined.
PPL has a Operating Margin (22.61%) which is in line with its industry peers.
PPL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 78.67%, PPL is in the better half of the industry, outperforming 74.47% 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 | 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
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
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
PPL has an Altman-Z score of 0.95. This is a bad value and indicates that PPL is not financially healthy and even has some risk of bankruptcy.
PPL has a Altman-Z score of 0.95. This is comparable to the rest of the industry: PPL outperforms 59.57% 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.
The Debt to Equity ratio of PPL (1.22) is better than 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.95 |
ROIC/WACC0.61
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.77 indicates that PPL may have some problems paying 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.
PPL has a Quick ratio of 0.66. This is comparable to the rest of the industry: PPL outperforms 51.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for PPL have decreased by 0.00% in the last year.
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 7.95% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.31% yearly.
EPS Next Y8.98%
EPS Next 2Y8.34%
EPS Next 3Y8.18%
EPS Next 5Y7.95%
Revenue Next Year10.35%
Revenue Next 2Y7.88%
Revenue Next 3Y7.25%
Revenue Next 5Y6.31%
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
The Price/Earnings ratio is 20.18, which indicates a rather expensive current valuation of PPL.
Compared to the rest of the industry, the Price/Earnings ratio of PPL indicates a slightly more expensive valuation: PPL is more expensive than 61.70% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (26.60), we can say PPL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 17.81, the valuation of PPL can be described as rather expensive.
PPL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, PPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.81 |
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 68.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.63 |
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)2.25
PEG (5Y)N/A
EPS Next 2Y8.34%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.11%.
Compared to an average industry Dividend Yield of 3.07, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.93, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
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
71.70% of the earnings are spent on dividend by PPL. This is not a sustainable payout ratio.
DP71.7%
EPS Next 2Y8.34%
EPS Next 3Y8.18%
35.11
+0.09 (+0.26%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change7.31%
Ins Owners0.12%
Ins Owner Change-4.29%
Market Cap25.97B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target40.91 (16.52%)
Short Float %4.95%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.11% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP71.7%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.86%
Min EPS beat(2)-17.1%
Max EPS beat(2)3.37%
EPS beat(4)2
Avg EPS beat(4)-3.55%
Min EPS beat(4)-17.1%
Max EPS beat(4)9.51%
EPS beat(8)5
Avg EPS beat(8)0.94%
EPS beat(12)7
Avg EPS beat(12)0.18%
EPS beat(16)9
Avg EPS beat(16)-1.87%
Revenue beat(2)2
Avg Revenue beat(2)0.99%
Min Revenue beat(2)0.95%
Max Revenue beat(2)1.04%
Revenue beat(4)4
Avg Revenue beat(4)8.62%
Min Revenue beat(4)0.95%
Max Revenue beat(4)25.58%
Revenue beat(8)8
Avg Revenue beat(8)8.91%
Revenue beat(12)12
Avg Revenue beat(12)15.8%
Revenue beat(16)13
Avg Revenue beat(16)10.22%
PT rev (1m)-1.29%
PT rev (3m)5.05%
EPS NQ rev (1m)-1.63%
EPS NQ rev (3m)9.83%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)2.43%
Revenue NY rev (3m)3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 17.81 | ||
| P/S | 2.89 | ||
| P/FCF | N/A | ||
| P/OCF | 10.02 | ||
| P/B | 1.8 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 12.63 |
EPS(TTM)1.74
EY4.96%
EPS(NY)1.97
Fwd EY5.62%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY9.98%
SpS12.14
BVpS19.48
TBVpS16.02
PEG (NY)2.25
PEG (5Y)N/A
Graham Number27.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 7.58% | ||
| ROCE | 5.17% | ||
| ROIC | 4.07% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.48% | ||
| OM | 22.61% | ||
| PM (TTM) | 12.16% | ||
| GM | 78.67% | ||
| 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%
ROICexgc growth 3Y-3.74%
ROICexgc 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 Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.13 | ||
| Cap/Depr | 268.4% | ||
| Cap/Sales | 41.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.95 |
F-Score5
WACC6.7%
ROIC/WACC0.61
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)0%
EPS 3Y16.96%
EPS 5Y-7.34%
EPS Q2Q%14.29%
EPS Next Y8.98%
EPS Next 2Y8.34%
EPS Next 3Y8.18%
EPS Next 5Y7.95%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.37%
Revenue Next Year10.35%
Revenue Next 2Y7.88%
Revenue Next 3Y7.25%
Revenue Next 5Y6.31%
EBIT growth 1Y15.8%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year74.57%
EBIT Next 3Y28.87%
EBIT Next 5Y19.84%
FCF growth 1Y-121.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y38.83%
OCF growth 3Y-2.87%
OCF growth 5Y-0.73%
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 20.18 and the Price/Book (PB) ratio is 1.8.
Can you provide the financial health for PPL stock?
The financial health rating of PPL CORP (PPL) is 2 / 10.