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%)
Overall PPL gets a fundamental rating of 3 out of 10. We evaluated PPL against 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 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.
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 Return On Assets of 2.49%. This is in the lower half of the industry: PPL underperforms 63.04% of its industry peers.
PPL's Return On Equity of 7.58% is on the low side compared to the rest of the industry. PPL is outperformed by 80.43% of its industry peers.
PPL has a Return On Invested Capital of 4.07%. This is comparable to the rest of the industry: PPL outperforms 43.48% of 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 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
Looking at the Profit Margin, with a value of 12.16%, PPL is in line with its industry, outperforming 41.30% of the companies in the same industry.
PPL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.61%, PPL is in line with its industry, outperforming 56.52% of the companies in the same industry.
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 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.
PPL has about the same amout of shares outstanding than it did 1 year ago.
PPL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PPL has a worse debt to assets ratio.
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.
PPL has a Debt to Equity ratio of 1.22. This is in the better half of the industry: PPL outperforms 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
PPL has a Current 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 has a Current ratio of 0.77. This is comparable 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 has a Quick ratio of 0.66. This is comparable 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%.
PPL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.34% yearly.
The Revenue has grown by 8.42% in the past year. This is quite good.
The Revenue has been growing slightly by 1.72% on average over the past years.
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.
The Revenue is expected to grow by 6.31% on average over the next years.
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
Based on the Price/Earnings ratio of 19.88, the valuation of PPL can be described as rather expensive.
Based on the Price/Earnings ratio, PPL is valued a bit more expensive than 60.87% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. PPL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 17.54, PPL is valued on the expensive side.
PPL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PPL to the average of the S&P500 Index (23.88), we can say PPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 17.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PPL is valued a bit more expensive than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.56 |
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)2.21
PEG (5Y)N/A
EPS Next 2Y8.34%
EPS Next 3Y8.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, PPL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.40, PPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.90, PPL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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
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%
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)-1.29%
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 | 12.56 |
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 5Y7.95%
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 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.