NYSE:PPL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

6 star dividend payer and good value.


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

Stable Share Price: PPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.7%

PPL

0.5%

US Electric Utilities

1.2%

US Market


1 Year Return

-3.3%

PPL

-1.9%

US Electric Utilities

16.8%

US Market

Return vs Industry: PPL underperformed the US Electric Utilities industry which returned -1.9% over the past year.

Return vs Market: PPL underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

PPLIndustryMarket
7 Day6.7%0.5%1.2%
30 Day13.5%4.5%4.9%
90 Day16.7%9.6%20.0%
1 Year1.9%-3.3%1.2%-1.9%19.3%16.8%
3 Year-13.8%-26.4%4.7%-3.8%43.7%34.4%
5 Year9.6%-14.3%36.6%16.9%75.5%56.6%

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 compared to its fair value and its price relative to the market?

17.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPL ($28.65) is trading below our estimate of fair value ($34.88)

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


Price To Earnings Ratio

PE vs Industry: PPL is good value based on its PE Ratio (12.4x) compared to the US Electric Utilities industry average (19.9x).

PE vs Market: PPL is good value based on its PE Ratio (12.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PPL is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: PPL is good value based on its PB Ratio (1.7x) compared to the US Electric Utilities industry average (2x).


Next Steps

Future Growth

How is PPL forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPL's forecast earnings growth (5.2% per year) is above the savings rate (2.2%).

Earnings vs Market: PPL's earnings (5.2% per year) are forecast to grow slower than the US market (23.7% per year).

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

Revenue vs Market: PPL's revenue (3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: PPL's revenue (3% 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 (13.1%).


Next Steps

Past Performance

How has PPL performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPL has high quality earnings.

Growing Profit Margin: PPL's current net profit margins (22.6%) are lower than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: PPL's earnings have grown by 1.4% 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 (-1.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (7.1%).


Return on Equity

High ROE: PPL's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is PPL's financial position?


Financial Position Analysis

Short Term Liabilities: PPL's short term assets ($3.3B) do not cover its short term liabilities ($5.2B).

Long Term Liabilities: PPL's short term assets ($3.3B) do not cover its long term liabilities ($28.3B).


Debt to Equity History and Analysis

Debt Level: PPL's debt to equity ratio (183.1%) is considered high.

Reducing Debt: PPL's debt to equity ratio has reduced from 195.1% to 183.1% over the past 5 years.

Debt Coverage: PPL's debt is not well covered by operating cash flow (11.1%).

Interest Coverage: PPL's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

5.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PPL's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: PPL's dividend (5.79%) is in the top 25% of dividend payers in the US market (4.35%)


Stability and Growth of Payments

Stable Dividend: PPL's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.6%), PPL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPL's dividends in 3 years are forecast to be covered by earnings (65.7% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Vince Sorgi (48 yo)

0.17

Tenure

US$4,731,409

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 serves as President of PPL Corporation s ...


CEO Compensation Analysis

Compensation vs Market: Vince's total compensation ($USD4.73M) is below average for companies of similar size in the US market ($USD11.30M).

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

NamePositionTenureCompensationOwnership
Vincent Sorgi
President0.17yrUS$4.73m0.0059%
$ 1.3m
Joseph Bergstein
Senior VP & CFO1.08yrsUS$2.23m0.0044%
$ 971.3k
Joanne Raphael
Executive VP5.17yrsUS$4.51m0.0060%
$ 1.3m
Paul Thompson
Chairmanno dataUS$5.42m0.0022%
$ 480.1k
Gregory Dudkin
President of PPL Electric Utilities Corporation8.42yrsUS$3.26m0.0048%
$ 1.1m
Mark Brooks
VP & Chief Information Security Officer1.67yrsno datano data
Andy Ludwig
Vice President of Investor Relations1.08yrsno datano data
Steven Phillips
VP & Global Chief Compliance Officer2.58yrsno datano data
Ryan Hill
Senior Director of Corporate Communicationsno datano datano data
Thomas Lynch
VP & Chief Human Resources Officer of PPL Services4.58yrsno datano data
Tadd Henninger
VP of Finance & Treasurer2.58yrsno data0.00039%
$ 85.9k
Vijay Singh
President of PPL Renewables0.58yrno datano data

2.1yrs

Average Tenure

60yo

Average Age

Experienced Management: PPL's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vincent Sorgi
President0.17yrUS$4.73m0.0059%
$ 1.3m
Paul Thompson
Chairmanno dataUS$5.42m0.0022%
$ 480.1k
John Conway
Independent Lead Director9.25yrsUS$280.00k0.00058%
$ 127.7k
Steven Elliott
Independent Director9.58yrsUS$285.00kno data
Armando Zagalo de Lima
Independent Director6.08yrsUS$250.00kno data
Phoebe Wood
Independent Director2.58yrsUS$265.00kno data
William Spence
Non-Executive Chairman8.33yrsUS$14.14m0.039%
$ 8.6m
Craig Rogerson
Independent Director14.92yrsUS$270.00kno data
Natica Von Althann
Independent Director10.67yrsUS$275.00kno data
Keith Williamson
Independent Director14.92yrsUS$260.00kno data
Venkata Madabhushi
Independent Director9.08yrsUS$250.00kno data

9.2yrs

Average Tenure

63yo

Average Age

Experienced Board: PPL's board of directors are considered experienced (9.2 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 been diluted in the past year, with total shares outstanding growing by 6.4%.


Top Shareholders

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$22.025b
  • Shares outstanding: 768.76m
  • Website: https://www.pplweb.com

Number of Employees


Location

  • PPL Corporation
  • Two North Ninth Street
  • Allentown
  • Pennsylvania
  • 18101-1179
  • 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
PP9ETLX (Eurotlx)YesCommon StockITEURJan 1968
P1PL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

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 Analysis2020/08/11 00:19
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.