PPL CORP (PPL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PPL - US69351T1060 - Common Stock
35.22 USD
-0.58 (-1.62%)
35.22 USD
0 (0%)
PPL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 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
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.
In the past 5 years PPL always reported a positive cash flow from operatings.
1.2 Ratios
PPL has a worse Return On Assets (2.49%) than 64.58% of its industry peers.
PPL has a Return On Equity of 7.58%. This is amonst the worse of the industry: PPL underperforms 81.25% 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 43.75% 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 4.92%.
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
The Profit Margin of PPL (12.16%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PPL has declined.
PPL's Operating Margin of 22.61% is in line compared to the rest of the industry. PPL outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of PPL has declined.
Looking at the Gross Margin, with a value of 78.67%, PPL is in the better half of the industry, outperforming 72.92% 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
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.
The debt/assets ratio for PPL is higher compared to a year ago.
2.2 Solvency
PPL has an Altman-Z score of 0.96. 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 (0.96) is comparable to the rest of the industry.
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 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.61
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.77 indicates that PPL may have some problems paying its short term obligations.
With a Current ratio value of 0.77, PPL perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
A Quick Ratio of 0.66 indicates that PPL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.66, PPL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| 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.
Looking at the last year, PPL shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
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
The Earnings Per Share is expected to grow by 7.95% 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 6.31% yearly.
EPS Next Y8.81%
EPS Next 2Y8.38%
EPS Next 3Y8.14%
EPS Next 5Y7.95%
Revenue Next Year7.73%
Revenue Next 2Y6.2%
Revenue Next 3Y6.02%
Revenue Next 5Y6.31%
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
The Price/Earnings ratio is 20.24, which indicates a rather expensive current valuation of PPL.
PPL's Price/Earnings ratio is a bit more expensive when compared to the industry. PPL is more expensive than 64.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of PPL to the average of the S&P500 Index (26.15), we can say PPL is valued slightly cheaper.
PPL is valuated rather expensively with a Price/Forward Earnings ratio of 17.85.
The rest of the industry has a similar Price/Forward Earnings ratio as PPL.
PPL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.85 |
4.2 Price Multiples
64.58% of the companies in the same industry are cheaper than PPL, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.68 |
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)2.3
PEG (5Y)N/A
EPS Next 2Y8.38%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, PPL has a reasonable but not impressive dividend return.
PPL's Dividend Yield is comparable with the industry average which is at 3.33.
Compared to an average S&P500 Dividend Yield of 2.32, PPL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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.
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 2Y8.38%
EPS Next 3Y8.14%
35.22
-0.58 (-1.62%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners84.53%
Inst Owner Change7.3%
Ins Owners0.12%
Ins Owner Change-4.29%
Market Cap26.05B
Revenue(TTM)8.98B
Net Income(TTM)1.09B
Analysts79.05
Price Target41.45 (17.69%)
Short Float %4.41%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Yearly Dividend1.01
Dividend Growth(5Y)-8.78%
DP71.7%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)6.8%
PT rev (3m)6.43%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)11.65%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)3.28%
Revenue NQ rev (3m)8.84%
Revenue NY rev (1m)1.14%
Revenue NY rev (3m)1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.24 | ||
| Fwd PE | 17.85 | ||
| P/S | 2.9 | ||
| P/FCF | N/A | ||
| P/OCF | 10.05 | ||
| P/B | 1.81 | ||
| P/tB | 2.2 | ||
| EV/EBITDA | 12.68 |
EPS(TTM)1.74
EY4.94%
EPS(NY)1.97
Fwd EY5.6%
FCF(TTM)-1.54
FCFYN/A
OCF(TTM)3.5
OCFY9.95%
SpS12.14
BVpS19.48
TBVpS16.02
PEG (NY)2.3
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 | 0.96 |
F-Score5
WACC6.65%
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 Y8.81%
EPS Next 2Y8.38%
EPS Next 3Y8.14%
EPS Next 5Y7.95%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y13.53%
Revenue growth 5Y1.72%
Sales Q2Q%8.37%
Revenue Next Year7.73%
Revenue Next 2Y6.2%
Revenue Next 3Y6.02%
Revenue Next 5Y6.31%
EBIT growth 1Y15.8%
EBIT growth 3Y6%
EBIT growth 5Y-9.33%
EBIT Next Year77.91%
EBIT Next 3Y28.61%
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 for PPL stock?
ChartMill assigns a valuation rating of 2 / 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.
How financially healthy is PPL CORP?
The financial health rating of PPL CORP (PPL) is 2 / 10.
Can you provide the expected EPS growth for PPL stock?
The Earnings per Share (EPS) of PPL CORP (PPL) is expected to grow by 8.81% in the next year.