PPL CORP (PPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPL - US69351T1060 - Common Stock
34.59 USD
-0.08 (-0.23%)
34.59 USD
0 (0%)
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 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.
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 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.
PPL has a Return On Equity of 7.58%. This is amonst the worse of the industry: PPL underperforms 80.43% of its industry peers.
PPL has a Return On Invested Capital (4.07%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PPL 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
PPL has a Profit Margin (12.16%) which is in line with its industry peers.
PPL's Profit Margin has declined in the last couple of years.
The Operating Margin of PPL (22.61%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PPL has declined.
With a decent Gross Margin value of 78.67%, PPL is doing good in the industry, outperforming 73.91% of the companies in the same industry.
PPL's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PPL is destroying value.
The number of shares outstanding for PPL remains at a similar level compared to 1 year ago.
The number of shares outstanding for PPL has been reduced compared to 5 years ago.
PPL has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that PPL is in the distress zone and has some risk of bankruptcy.
PPL has a Altman-Z score of 0.95. This is in the better half of the industry: PPL outperforms 60.87% of its industry peers.
PPL has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external 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 | 0.95 |
ROIC/WACC0.61
WACC6.68%
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.
PPL's Quick ratio of 0.66 is in line compared to the rest of the industry. PPL outperforms 52.17% of its industry peers.
| 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.
PPL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.42%.
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
PPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
PPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.32% yearly.
EPS Next Y8.98%
EPS Next 2Y8.34%
EPS Next 3Y8.18%
EPS Next 5Y7.93%
Revenue Next Year10.35%
Revenue Next 2Y7.88%
Revenue Next 3Y7.25%
Revenue Next 5Y6.32%
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.
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
With a Price/Earnings ratio of 19.88, PPL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of PPL indicates a slightly more expensive valuation: PPL is more expensive than 60.87% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. PPL is valued slightly cheaper when compared to this.
PPL is valuated rather expensively with a Price/Forward Earnings ratio of 17.54.
PPL's Price/Forward Earnings is on the same level as the industry average.
PPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.54 |
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 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.54 |
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)2.21
PEG (5Y)N/A
EPS Next 2Y8.34%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
PPL has a Yearly Dividend Yield of 3.14%.
Compared to an average industry Dividend Yield of 3.46, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 71.70% of its income as dividend. This is not a sustainable payout ratio.
DP71.7%
EPS Next 2Y8.34%
EPS Next 3Y8.18%
34.59
-0.08 (-0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners90.31%
Inst Owner Change0.07%
Ins Owners0.12%
Ins Owner Change-4.29%
Market Cap25.59B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target40.91 (18.27%)
Short Float %4.95%
Short Ratio5.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-0.97%
PT rev (3m)5.42%
EPS NQ rev (1m)-0.56%
EPS NQ rev (3m)7.02%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)3.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.54 | ||
| P/S | 2.85 | ||
| P/FCF | N/A | ||
| P/OCF | 9.87 | ||
| P/B | 1.78 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 12.54 |
EPS(TTM)1.74
EY5.03%
EPS(NY)1.97
Fwd EY5.7%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY10.13%
SpS12.14
BVpS19.48
TBVpS16.02
PEG (NY)2.21
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
WACC6.68%
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 5Y7.93%
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 5Y6.32%
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 19.88 and the Price/Book (PB) ratio is 1.78.
Can you provide the financial health for PPL stock?
The financial health rating of PPL CORP (PPL) is 2 / 10.