NYSE:PPLElectric Utilities
PPL (PPL): Margin Growth Reinforces Bull Case but Premium Valuation Fuels Dividend Sustainability Debate
PPL (PPL) reported robust earnings growth, with EPS surging 17.5% for the year and a five-year annualized earnings growth rate of 20.9%. Net profit margin also advanced, reaching 11.2% compared to 10.2% in the prior year. Looking forward, consensus forecasts point to annual earnings growth of 12% and revenue growth around 5%. Both are trailing the broader US market. Investors must also weigh the elevated P/E ratio of 27.3x, with the stock trading well above its estimated fair value. Alongside...