PPL CORP (PPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPL - US69351T1060 - Common Stock
36.72 USD
+0.22 (+0.6%)
36.72 USD
0 (0%)
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. While PPL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year PPL had a positive cash flow from operations.
- PPL had positive earnings in 4 of the past 5 years.
- In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
- PPL's Return On Assets of 2.49% is on the low side compared to the rest of the industry. PPL is outperformed by 63.04% of its industry peers.
- With a Return On Equity value of 7.58%, PPL is not doing good in the industry: 80.43% of the companies in the same industry are doing better.
- PPL's Return On Invested Capital of 4.07% is in line compared to the rest of the industry. PPL outperforms 43.48% of its industry peers.
- PPL had an Average Return On Invested Capital over the past 3 years of 3.44%. This is in line with the industry average of 4.58%.
- 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
- With a Profit Margin value of 12.16%, PPL perfoms like the industry average, outperforming 41.30% of the companies in the same industry.
- PPL's Profit Margin has declined in the last couple of years.
- PPL has a Operating Margin of 22.61%. This is comparable to the rest of the industry: PPL outperforms 56.52% of its industry peers.
- In the last couple of years the Operating Margin of PPL has declined.
- PPL has a better Gross Margin (78.67%) than 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.
- 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
- Compared to 1 year ago, PPL has a worse debt to assets ratio.
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.
- The Altman-Z score of PPL (0.98) 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.
- The Debt to Equity ratio of PPL (1.22) is better than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.6
WACC6.78%
2.3 Liquidity
- A Current Ratio of 0.77 indicates that PPL may have some problems paying its short term obligations.
- PPL's Current ratio of 0.77 is in line compared to the rest of the industry. PPL outperforms 47.83% of its industry peers.
- PPL has a Quick 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.
- Looking at the Quick ratio, with a value of 0.66, PPL is in line with its industry, 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%.
- The Earnings Per Share has been decreasing by -7.34% on average over the past years.
- Looking at the last year, PPL shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
- PPL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.72% yearly.
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
- The Earnings Per Share is expected to grow by 7.93% on average over the next years.
- PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
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
- A Price/Earnings ratio of 21.10 indicates a rather expensive valuation of PPL.
- 67.39% of the companies in the same industry are cheaper than PPL, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, PPL is valued a bit cheaper.
- PPL is valuated rather expensively with a Price/Forward Earnings ratio of 18.62.
- The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
- PPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.1 | ||
| Fwd PE | 18.62 |
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 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.95 |
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)2.34
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.
- Compared to an average S&P500 Dividend Yield of 1.82, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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.
- 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 3Y8.17%
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 21.1 and the Price/Book (PB) ratio is 1.88.
Can you provide the financial health for PPL stock?
The financial health rating of PPL CORP (PPL) is 2 / 10.