PPL Corp
Exchange: NYSESector: UtilitiesIndustry: Utilities - Regulated Electric
Headquartered in Allentown, Pa., PPL Corporation is one of the largest companies in the U.S. utility sector. PPL's seven high-performing, award-winning utilities serve 10 million customers in the United States and United Kingdom. With more than 12,000 employees, PPL is dedicated to providing exceptional customer service and reliability and delivering superior value for shareowners.
Did you know?
Earnings per share grew at a -6.3% CAGR.
Current Price
$37.60
+0.43%GoodMoat Value
$25.60
31.9% overvaluedProfile
Valuation (TTM)
Market Cap$27.81B
P/E23.55
EV$45.58B
P/B1.87
Shares Out739.74M
P/Sales3.08
Revenue$9.04B
EV/EBITDA12.47
PPL Corp (PPL) Stock Analysis
GoodMoat Analysis
PPL Corp is a regulated electric utility with a moderate moat from regulatory barriers and scale, but it currently fails the value investing quality gate. Its valuation appears unfavourable, trading at a significant premium to the GoodMoat target price, with weak free cash flow and low returns on capital.
Read full analysis
PPL Corp operates as a regulated electric utility, a business model that typically provides a moderate competitive moat. Applying the GoodMoat framework, its primary advantage stems from Section 1's 'Regulatory Barriers' criterion, as it holds government-granted monopolies in its service territories, a classic utility moat. It may also score on 'Scale Privilege' due to its infrastructure footprint. However, its overall Moat Score is likely modest, as many other criteria like Network Effects or Proprietary Data do not apply. More critically, the company struggles on quality indicators. Its Return on Equity of 7.9% is well below the high-quality threshold of 15-20%, and its Free Cash Flow Yield is negative at -5.1%. Revenue growth is slow at 2.8% YoY, and it carries significant leverage with a Debt/Equity ratio of 1.3. Following the Decision Framework, these weak quality metrics suggest the stock fails the 'Moat & Quality Gate' for further valuation analysis. Even if it passed, the valuation is concerning. At $37.16, the stock trades at a P/E of 23.3 and is 45% above the GoodMoat target price of $25.60, indicating a significant premium and no margin of safety. For a value investor focused on durable advantages, strong financials, and a margin of safety, PPL does not meet the core criteria and is an unfavourable candidate for further investigation based on this data. Analysis based on data as of 2024-05-15.
Market Cap$27.81B
Current Price$37.60
P/E Ratio23.55
Forward P/E—
PEG Ratio0.47
EPS$1.59
Book Value$20.12
P/B Ratio1.87
PPL Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 18.3B
Revenue
5.6B
FY19
5.5B
FY20
5.8B
FY21
7.9B
FY22
8.3B
FY23
8.5B
FY24
9.0B
FY25
Net Income
1.7B
FY19
1.5B
FY20
—
FY21
756M
FY22
740M
FY23
888M
FY24
1.2B
FY25
PPL 52-Week Range
$32.49
$39.81
50-Day MA: $38.26200-Day MA: $36.25
Did you know?
Earnings per share grew at a -6.3% CAGR.
PPL Corp (PPL) Financial Summary
PPL Corp (PPL) is a Utilities company in the Utilities - Regulated Electric industry, listed on NYSE. The stock currently trades at $37.60 with a market capitalization of $27.81B.
Key valuation metrics include a P/E ratio of 23.55, price-to-book ratio of 1.87, and EPS of $1.59. The company reports a profit margin of 13.1% and return on equity of 7.9%.
PPL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $27.81B |
| P/E Ratio | 23.55 |
| EPS | $1.59 |
| P/B Ratio | 1.87 |
| P/S Ratio | 3.08 |
| EV/EBITDA | 12.47 |
| Dividend Yield | 2.85% |
| Profit Margin | 13.1% |
| Return on Equity | 7.9% |
| Debt/Equity | 1.30 |
PPL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $5.60B | $1.75B |
| FY20 | $5.47B | $1.47B |
| FY21 | $5.78B | $-1.48B |
| FY22 | $7.90B | $756.00M |
| FY23 | $8.31B | $740.00M |
| FY24 | $8.46B | $888.00M |
| FY25 | $9.04B | $1.18B |
PPL Corp (PPL) Valuation
Based on GoodMoat's DCF model, PPL Corp has a fair value estimate of $25.60. At the current price of $37.60, the stock appears 46.9% overvalued relative to our intrinsic value estimate.
PPL Quality Indicators
PPL Corp maintains a profit margin of 13.1% and an operating margin of 25.2%. Return on equity stands at 7.9%. The current ratio is 0.86. Debt-to-equity ratio is 1.30.
About PPL Corp
Headquartered in Allentown, Pa., PPL Corporation is one of the largest companies in the U.S. utility sector. PPL's seven high-performing, award-winning utilities serve 10 million customers in the United States and United Kingdom. With more than 12,000 employees, PPL is dedicated to providing exceptional customer service and reliability and delivering superior value for shareowners.
PPL Free Cash Flow
PPL Corp generated $-1.40B in trailing twelve-month free cash flow, representing an FCF yield of -5.04%. This low FCF yield may reflect heavy reinvestment or growth spending.
PPL Shares Outstanding
PPL Corp has 0.74 billion shares outstanding at a share price of $37.60, giving it a market capitalization of $27.81B.