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.

Rewards

Trading at 84.8% below its fair value

Earnings are forecast to grow 1.94% per year

Earnings grew by 20.6% over the past year

Pays a high and reliable dividend of 4.8%

Risk Analysis

Debt is not well covered by operating cash flow

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer and undervalued.


Similar Companies

FirstEnergy

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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

0.2%

PPL

0.7%

US Electric Utilities

-0.3%

US Market


1 Year Return

10.5%

PPL

13.1%

US Electric Utilities

18.6%

US Market

Return vs Industry: PPL underperformed the US Electric Utilities industry which returned 13.1% over the past year.

Return vs Market: PPL underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

PPLIndustryMarket
7 Day0.2%0.7%-0.3%
30 Day3.2%1.2%2.2%
90 Day15.4%0.9%5.6%
1 Year15.1%10.5%16.8%13.1%21.1%18.6%
3 Year18.0%2.6%46.9%32.4%45.6%36.2%
5 Year33.1%-1.9%65.0%37.0%71.1%52.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPL ($34.37) is trading below our estimate of fair value ($226.44)

Significantly Below Fair Value: PPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PPL is good value based on its PE Ratio (13.8x) compared to the Electric Utilities industry average (23.9x).

PE vs Market: PPL is good value based on its PE Ratio (13.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PPL is poor value based on its PEG Ratio (7.1x)


Price to Book Ratio

PB vs Industry: PPL is good value based on its PB Ratio (2.1x) compared to the US Electric Utilities industry average (2.2x).


Next Steps

Future Growth

How is PPL forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

1.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PPL's forecast earnings growth (1.9% per year) is above the savings rate (1.7%).

Earnings vs Market: PPL's earnings (1.9% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: PPL's revenue (2.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PPL's revenue (2.6% 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 (13.3%).


Next Steps

Past Performance

How has PPL performed over the past 5 years?

3.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPL has high quality earnings.

Growing Profit Margin: PPL's current net profit margins (23.1%) are higher than last year (19.1%).


Past Earnings Growth Analysis

Earnings Trend: PPL's earnings have grown by 3.1% per year over the past 5 years.

Accelerating Growth: PPL's earnings growth over the past year (20.6%) exceeds its 5-year average (3.1% per year).

Earnings vs Industry: PPL earnings growth over the past year (20.6%) exceeded the Electric Utilities industry 2%.


Return on Equity

High ROE: PPL's Return on Equity (15.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PPL's financial position?


Financial Position Analysis

Short Term Liabilities: PPL's short term assets ($2.5B) do not cover its short term liabilities ($3.8B).

Long Term Liabilities: PPL's short term assets ($2.5B) do not cover its long term liabilities ($28.8B).


Debt to Equity History and Analysis

Debt Level: PPL's debt to equity ratio (193.5%) is considered high.

Reducing Debt: PPL's debt to equity ratio has increased from 157.3% to 193.5% over the past 5 years.

Debt Coverage: PPL's debt is not well covered by operating cash flow (10.9%).

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


Balance Sheet

Inventory Level: PPL has a high level of physical assets or inventory.

Debt Coverage by Assets: PPL's 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?

4.80%

Current Dividend Yield


Upcoming Dividend Payment

Purchase PPL before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: PPL's dividend (4.8%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: PPL's dividend (4.8%) is in the top 25% of dividend payers in the US market (3.7%)


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 (66.2%), 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 (65.6% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Bill Spence (62yo)

8.1yrs

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

Compensation vs Market: Bill's total compensation ($USD11.34M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.4yrs

Average Tenure

61yo

Average Age

Experienced Management: PPL's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

64yo

Average Age

Experienced Board: PPL's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

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 3.5%.


Management Team

  • Paul Thompson (61yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: US$2.75m
  • Bill Spence (62yo)

    Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$11.34m
  • Joanne Raphael (59yo)

    Executive VP

    • Tenure: 4.5yrs
    • Compensation: US$3.00m
  • Greg Dudkin (61yo)

    President of PPL Electric Utilities Corporation

    • Tenure: 7.8yrs
    • Compensation: US$2.60m
  • Joe Bergstein (48yo)

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Vince Sorgi (47yo)

    President & COO

    • Tenure: 0.4yrs
    • Compensation: US$2.94m
  • Tom Lynch (63yo)

    VP & Chief Human Resources Officer of PPL Services

    • Tenure: 3.9yrs
  • Andy Ludwig

    Vice President of Investor Relations

    • Tenure: 0.4yrs
  • Steve Phillips

    VP & Global Chief Compliance Officer

    • Tenure: 1.9yrs
  • Mark Brooks

    VP & Chief Information Security Officer

    • Tenure: 1yrs

Board Members

  • John Conway (74yo)

    Independent Lead Director

    • Tenure: 8.6yrs
    • Compensation: US$280.00k
  • Steve Elliott (72yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$285.00k
  • Armando Zagalo de Lima (60yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$250.00k
  • Paul Thompson (61yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: US$2.75m
  • Phoebe Wood (66yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$248.20k
  • Bill Spence (62yo)

    Chairman & CEO

    • Tenure: 8.1yrs
    • Compensation: US$11.34m
  • Craig Rogerson (62yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$270.00k
  • Natica Von Althann (68yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$273.50k
  • Keith Williamson (67yo)

    Independent Director

    • Tenure: 14.3yrs
    • Compensation: US$250.00k
  • Raja Madabhushi (57yo)

    Independent Director

    • Tenure: 8.4yrs
    • 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$24.720b
  • Shares outstanding: 723.03m
  • 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
PP9ETLX (Eurotlx)YesCommon StockITEURJan 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 Analysis2019/12/06 23:47
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.