NYSE:PPL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer with proven track record.


Similar Companies

Share Price & News

How has PPL's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.7%

NYSE:PPL

0.05%

US Electric Utilities

1.2%

US Market


1 Year Return

2.4%

NYSE:PPL

15.5%

US Electric Utilities

1.7%

US Market

PPL underperformed the Electric Utilities industry which returned 15.5% over the past year.

PPL matched the United States of America Market (1.7%) over the past year.


Share holder returns

PPLIndustryMarket
7 Day3.7%0.05%1.2%
30 Day5.7%2.4%4.9%
90 Day-1.8%3.7%3.7%
1 Year8.0%2.4%19.4%15.5%3.9%1.7%
3 Year2.4%-12.0%39.1%25.1%47.2%37.7%
5 Year25.9%-8.2%77.4%47.1%60.0%42.4%

Price Volatility Vs. Market

How volatile is PPL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PPL undervalued based on future cash flows and its price relative to the stock market?

13%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

PPL's share price is below the future cash flow value, but not at a moderate discount (< 20%).

PPL's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

PPL is good value based on earnings compared to the US Electric Utilities industry average.

PPL is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

PPL is poor value based on expected growth next year.


Price Based on Value of Assets

PPL is good value based on assets compared to the US Electric Utilities industry average.


Next Steps

Future Growth

How is PPL expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

PPL's revenue is expected to grow by 2.4% yearly, however this is not considered high growth (20% yearly).

PPL's earnings are expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).

PPL's revenue growth is positive but not above the United States of America market average.

PPL's earnings growth is positive but not above the United States of America market average.

PPL's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

PPL is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has PPL performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

PPL's year on year earnings growth rate has been positive over the past 5 years.

PPL's 1-year earnings growth exceeds its 5-year average (26.3% vs 4.6%)

PPL's earnings growth has exceeded the US Electric Utilities industry average in the past year (26.3% vs 4.2%).


Return on Equity

PPL has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

PPL used its assets more efficiently than the US Electric Utilities industry average last year based on Return on Assets.


Return on Capital Employed

PPL's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is PPL's financial position?


Financial Position Analysis

PPL's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

PPL's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

PPL's level of debt (190.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (160.6% vs 190.6% today).

Debt is not well covered by operating cash flow (11.2%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.2x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

5.45%

Expected Dividend Yield


Dividend Yield and Payments Analysis

PPL's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

PPL's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.5x coverage).


Next Steps

Management

What is the CEO of PPL's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

Bill Spence (62yo)

7.8yrs

Tenure

US$11,338,785

Compensation

Mr. William H. Spence, also known as Bill, has been the Chief Executive Officer of PPL Corporation since 2011 and its Chairman of the Board from April 1, 2012. He served as President at PPL Corporation sin ...


CEO Compensation Analysis

Bill's remuneration is about average for companies of similar size in United States of America.

Bill's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

61yo

Average Age

The average tenure for the PPL management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

64yo

Average Age

The tenure for the PPL board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paul Thompson (61yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$2.75m
  • Bill Spence (62yo)

    Chairman & CEO

    • Tenure: 7.8yrs
    • Compensation: US$11.34m
  • Joanne Raphael (59yo)

    Executive VP

    • Tenure: 4.3yrs
    • Compensation: US$3.00m
  • Greg Dudkin (61yo)

    President of PPL Electric Utilities Corporation

    • Tenure: 7.5yrs
    • Compensation: US$2.60m
  • Joe Bergstein (48yo)

    Senior VP & CFO

    • Tenure: 0.2yrs
  • Vince Sorgi (47yo)

    President & COO

    • Tenure: 0.2yrs
    • Compensation: US$2.94m
  • Tom Lynch (63yo)

    VP & Chief Human Resources Officer of PPL Services

    • Tenure: 3.7yrs
  • Andy Ludwig

    Vice President of Investor Relations

    • Tenure: 0.2yrs
  • Steve Phillips

    VP & Global Chief Compliance Officer

    • Tenure: 1.7yrs
  • Mark Brooks

    VP & Chief Information Security Officer

    • Tenure: 0.8yrs

Board Members

  • John Conway (74yo)

    Independent Lead Director

    • Tenure: 8.3yrs
    • Compensation: US$280.00k
  • Steve Elliott (72yo)

    Director

    • Tenure: 8.7yrs
    • Compensation: US$285.00k
  • Armando Zagalo de Lima (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$250.00k
  • Paul Thompson (61yo)

    Chairman

    • Tenure: 1.5yrs
    • Compensation: US$2.75m
  • Phoebe Wood (66yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$248.20k
  • Bill Spence (62yo)

    Chairman & CEO

    • Tenure: 7.8yrs
    • Compensation: US$11.34m
  • Craig Rogerson (62yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$270.00k
  • Natica Von Althann (68yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$273.50k
  • Keith Williamson (67yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$250.00k
  • Raja Madabhushi (57yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$250.00k

Company Information

PPL Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PPL Corporation
  • Ticker: PPL
  • Exchange: NYSE
  • Founded: 1920
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: US$22.303b
  • Shares outstanding: 722.25m
  • Website: https://www.pplweb.com

Number of Employees


Location

  • PPL Corporation
  • Two North Ninth Street
  • Allentown
  • Pennsylvania
  • 18101
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PPLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
PP9DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
0KEJLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through three segments: U.K. Regulated, Kentucky Regulated ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/14 23:43
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.