PPL Corp (PPLC) stock analysis

P/E below its 5-year median

PPL's P/E of 21.1 is below its own 5-year median of 27.1.

P/E below the industry

PPL's P/E of 21.1 is below the Electric Services median of 21.7.

EV/EBITDA below its 5-year median

PPL's EV/EBITDA of 20.7 is below its 5-year median of 23.5.

P/S above the industry

PPL's price-to-sales of 2.85 is above the Electric Services median of 2.75 (book value is negative, so we use sales).

Trading above fair value

The share price of $35.65 is above our fair value estimate of $35.02.

Margin of safety under 20%

The price is 1.8% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 15.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 28.1% over the last twelve months, against a 5-year average of -4.3% a year.

Growth against the industry

Needs revenue for this year and last.

Guidance unchanged

The latest outlook (through at least 2029 annual EPS growth target, Aug 7, 2026) was maintained, so it neither adds nor takes away points.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings shrank over 5 years

Net income shrank 4.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 13.5% over the last twelve months, against a 5-year average of 3.3%.

Net margin above the industry

PPL's net margin of 13.5% is above the Electric Services median of 8.8%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 13.1% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense 2.6 times; we look for at least 5.

Short-term assets don't cover short-term debts

Current assets are 0.91 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.98; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

PPL paid dividends worth 3.2% of the share price over the last twelve months.

Yield below Treasuries

The 3.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; PPL yields 3.2%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 64.6% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.