PPL Corporation
PPL Corporation Fundamental Analysis
PPL Corporation (PPL) shows weak financial fundamentals with a PE ratio of 23.13, profit margin of 13.06%, and ROE of 7.31%. The company generates $9.0B in annual revenue with weak year-over-year growth of 1.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PPL's fundamental strength across five key dimensions:
Efficiency Score
WeakPPL struggles to generate sufficient returns from assets.
Valuation Score
ModeratePPL shows balanced valuation metrics.
Growth Score
ModeratePPL shows steady but slowing expansion.
Financial Health Score
ExcellentPPL maintains a strong and stable balance sheet.
Profitability Score
WeakPPL struggles to sustain strong margins.
Key Financial Metrics
Is PPL Expensive or Cheap?
P/E Ratio
PPL trades at 23.13 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, PPL's PEG of 2.85 indicates potential overvaluation.
Price to Book
The market values PPL Corporation at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.74 times EBITDA. This is generally considered low.
How Well Does PPL Make Money?
Net Profit Margin
For every $100 in sales, PPL Corporation keeps $13.06 as profit after all expenses.
Operating Margin
Core operations generate 23.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.31 in profit for every $100 of shareholder equity.
ROA
PPL Corporation generates $2.61 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PPL Corporation generates strong operating cash flow of $2.63B, reflecting robust business health.
Free Cash Flow
PPL Corporation generates weak or negative free cash flow of $-1.40B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.89 in free cash annually.
FCF Yield
PPL converts -5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.13
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.85
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How PPL Stacks Against Its Sector Peers
| Metric | PPL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.13 | 19.20 | Worse (Expensive) |
| ROE | 7.31% | 1033.00% | Weak |
| Net Margin | 13.06% | 9191.00% | Weak |
| Debt/Equity | 0.85 | 6.63 | Strong (Low Leverage) |
| Current Ratio | 1.14 | 1.68 | Neutral |
| ROA | 2.61% | -237.00% (disorted) | Weak |
PPL outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PPL Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
49.16%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-49.78%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
-4.79%
Industry Style: Defensive, Dividend, Income
Declining