PPL (NYSE:PPL) - Share price, News & Analysis

Q: What is the Fair Price of PPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PPL ($27.13) is trading below our estimate of [[fair value]] ($32.19)

PPL fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	1/6
Past Performance	1/6
Financial Health	2/6
Dividends	1/6

PPL Stock Overview

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom.

Rewards

Trading at 15.7% below our estimate of its fair value

Earnings are forecast to grow 13.6% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 2.95% is not well covered by earnings or forecast to be in the next 3 years

Profit margins (1.5%) are lower than last year (11.5%)

PPL Competitors

Constellation Energy

NasdaqGS:CEG

US$19.0b

FirstEnergy

NYSE:FE

US$21.8b

Entergy

NYSE:ETR

US$22.8b

Avangrid

NYSE:AGR

US$17.8b

Price History & Performance

Summary of all time highs, changes and price drops for PPL
Historical stock prices
Current Share Price	US$27.13
52 Week High	US$30.72
52 Week Low	US$24.98
Beta	0.75
1 Month Change	-10.64%
3 Month Change	-5.47%
1 Year Change	-2.31%
3 Year Change	-11.89%
5 Year Change	-29.13%
Change since IPO	152.37%

Recent News & Updates

May 31

PPL (NYSE:PPL) Could Be Struggling To Allocate Capital

What financial metrics can indicate to us that a company is maturing or even in decline? When we see a declining return...

May 13

A Look At The Intrinsic Value Of PPL Corporation (NYSE:PPL)

Today we will run through one way of estimating the intrinsic value of PPL Corporation ( NYSE:PPL ) by projecting its...

May 06

PPL Shares With Relative Strength Despite Bad News In 2022

PPL has bounced back nicely after a dividend cut in February. Utilities continue to outperform, and PPL has been a sector leader. The stock has been range-bound, but a breakout could be in the works.

Shareholder Returns

	PPL	US Electric Utilities	US Market
7D	5.0%	5.2%	1.7%
1Y	-2.3%	5.2%	-20.4%

Return vs Industry: PPL underperformed the US Electric Utilities industry which returned 4.1% over the past year.

Return vs Market: PPL exceeded the US Market which returned -18.8% over the past year.

Price Volatility

Is PPL's price volatile compared to industry and market?
PPL volatility
PPL Average Weekly Movement	3.4%
Electric Utilities Industry Average Movement	3.4%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: PPL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: PPL's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1920	5,607	Vince Sorgi	https://www.pplweb.com

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through two segments: Kentucky Regulated and Pennsylvania Regulated. It serves approximately 429,000 electric and 333,000 natural gas customers in Louisville and adjacent areas in Kentucky; 538,000 electric customers in central, southeastern, and western Kentucky; and 28,000 electric customers in five counties in southwestern Virginia.

PPL Fundamentals Summary

How do PPL's earnings and revenue compare to its market cap?
PPL fundamental statistics
Market Cap	US$20.13b
Earnings (TTM)	US$88.00m
Revenue (TTM)	US$6.07b

226.9x

P/E Ratio

3.3x

P/S Ratio

Is PPL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PPL income statement (TTM)
Revenue	US$6.07b
Cost of Revenue	US$3.27b
Gross Profit	US$2.80b
Other Expenses	US$2.71b
Earnings	US$88.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	46.17%
Net Profit Margin	1.45%
Debt/Equity Ratio	88.0%

How did PPL perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

1,239%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is PPL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PPL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PPL. This is calculated by dividing PPL's market cap by their current preferred multiple.
What is PPL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$20.13b

PPL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.6x
Enterprise Value/EBITDA	10.6x
PEG Ratio	16.7x

Price to Sales Ratio vs Peers

How does PPL's PS Ratio compare to its peers?

PPL PS Ratio vs Peers

The above table shows the PS ratio for PPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.8x
CEG Constellation Energy	1x	3.1%	US$19.0b
FE FirstEnergy	1.9x	2.8%	US$21.8b
ETR Entergy	1.9x	3.0%	US$22.8b
AGR Avangrid	2.5x	5.3%	US$17.8b
PPL PPL	3.3x	2.5%	US$20.1b

Forward PS

Price-To-Sales vs Peers: PPL is expensive based on its Price-To-Sales Ratio (3.3x) compared to the peer average (1.8x).

Price to Earnings Ratio vs Industry

How does PPL's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Sales vs Industry: PPL is expensive based on its Price-To-Sales Ratio (3.3x) compared to the US Electric Utilities industry average (2.2x)

Price to Sales Ratio vs Fair Ratio

What is PPL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PPL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.3x
Fair PS Ratio	3x

Price-To-Sales vs Fair Ratio: PPL is expensive based on its Price-To-Sales Ratio (3.3x) compared to the estimated Fair Price-To-Sales Ratio (3x).

Share Price vs Fair Value

What is the Fair Price of PPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PPL ($27.13) is trading below our estimate of fair value ($32.19)

Significantly Below Fair Value: PPL is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: PPL is poor value based on its PEG Ratio (16.7x)

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Future Growth

How is PPL forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPL's forecast earnings growth (13.6% per year) is above the savings rate (1.9%).

Earnings vs Market: PPL's earnings (13.6% per year) are forecast to grow slower than the US market (13.8% per year).

High Growth Earnings: PPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: PPL's revenue (2.5% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: PPL's revenue (2.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PPL's Return on Equity is forecast to be low in 3 years time (8.6%).

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Past Performance

How has PPL performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-23.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PPL has high quality earnings.

Growing Profit Margin: PPL's current net profit margins (1.5%) are lower than last year (11.5%).

Past Earnings Growth Analysis

Earnings Trend: PPL's earnings have declined by 23.3% per year over the past 5 years.

Accelerating Growth: PPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PPL had negative earnings growth (-86.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (9.5%).

Return on Equity

High ROE: PPL's Return on Equity (0.6%) is considered low.

Discover strong past performing companies

Financial Health

How is PPL's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: PPL's short term assets ($5.7B) exceed its short term liabilities ($3.0B).

Long Term Liabilities: PPL's short term assets ($5.7B) do not cover its long term liabilities ($17.2B).

Debt to Equity History and Analysis

Debt Level: PPL's net debt to equity ratio (57.4%) is considered high.

Reducing Debt: PPL's debt to equity ratio has reduced from 199.3% to 88% over the past 5 years.

Debt Coverage: PPL's debt is not well covered by operating cash flow (17.3%).

Interest Coverage: PPL's interest payments on its debt are not well covered by EBIT (1.8x coverage).

Balance Sheet

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Dividend

What is PPL current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.95%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: PPL's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: PPL's dividend (2.95%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: PPL's dividend payments have been volatile in the past 10 years.

Growing Dividend: PPL's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (1238.9%), PPL's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (327.1%), PPL's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure

CEO

Vince Sorgi (49 yo)

2.92yrs

Tenure

US$11,356,481

Compensation

Mr. Vincent Sorgi, also known as Vince, has been the Chief Executive Officer at PPL Corporation since June 01, 2020 and has been its Director since May 13, 2020. He has been President of PPL Corporation si...

CEO Compensation Analysis

Compensation vs Market: Vince's total compensation ($USD11.36M) is about average for companies of similar size in the US market ($USD13.41M).

Compensation vs Earnings: Vince's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: PPL's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.

Board Members

Experienced Board: PPL's board of directors are considered experienced (7.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31