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Ppl Corp. (PPL)
NYSE:PPL
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PPL
(NYSE:PPL)68Neutral
Positive Factors
Earnings Growth
PPL extended 6-8% EPS CAGR guidance through 2028, and noted that it anticipates delivering toward the top half of the guidance range.
Market Position
PPL is considered a top utility idea for 2025, driven by Kentucky generation opportunities and Pennsylvania transmission potential to support new data centers.
Negative Factors
Financial Strategy
The elevated spending drives an earlier and higher need for equity issuance than previously anticipated.
PPL (PPL) vs. S&P 500 (SPY)
Market Cap
$25.63B
Dividend Yield2.89%
Average Volume (3M)4.84M
Price to Earnings (P/E)29.0
Beta (1Y)0.36
Revenue Growth1.80%
EPS Growth19.78%
CountryUS
Employees6,653
SectorUtilities
Sector Strength79
IndustryRegulated Utilities
Share Statistics
EPS (TTM)1.20
Shares Outstanding738,294,070
10 Day Avg. Volume4,966,432
30 Day Avg. Volume4,839,689
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)N/A
Price to Sales (P/S)2.53
Price to Cash Flow (P/CF)8.40
P/FCF Ratio7.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.73Price Target Upside5.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
PPL Business Overview & Revenue Model
Company DescriptionPPL Corp. is a utility holding company, which engages in the generation, transmission, and distribution of electricity. It operates through the following segments: U.K. Regulated, Kentucky Regulated, and Pennsylvania Regulated. The U.K. Regulated segment includes regulated electricity distribution operations of Western Power Distribution. The Kentucky Regulated segment comprises of LKE's regulated electricity generation, transmission, and distribution operations of Louisville Gas and Electric Company and Kentucky Utilities Company; as well as regulated distribution and sale of natural gas of Louisville Gas and Electric Company. The Pennsylvania Regulated segment consists of regulated electricity transmission and distribution operations of PPL Electric Utilities Corporation. The company was founded in 1994 and is headquartered in Allentown, PA.
How the Company Makes MoneyPPL Corporation generates revenue primarily through its regulated utility operations, which provide electric service to residential, commercial, and industrial customers. The company's revenue model is based on the rates set by regulatory bodies, ensuring a stable income stream from its utility operations. These rates are determined by the cost of service plus a reasonable return on investment. Additionally, PPL benefits from regulatory frameworks that allow recovery of investments made in infrastructure improvements and environmental compliance. The company's earnings are also influenced by its operational efficiency, customer growth, and investments in modernizing its grid and expanding renewable energy sources.
PPL Financial Statement Overview
Summary
PPL demonstrates stability with improved profitability and operational efficiency. However, moderate revenue growth and a high debt load necessitate careful financial management. Enhanced cash conversion from profits and maintaining leverage within control will be key for continued financial health.Income Statement
The income statement shows a solid gross profit margin of 59.9% for 2024, up from previous years. Net profit margin improved to 10.5% from 8.9% in 2023, indicating better cost management. Revenue growth from 2023 to 2024 was modest at 1.8%, showing stability in sales despite industry challenges. EBIT and EBITDA margins remained stable, reflecting consistent operational efficiency.72
Positive
Balance Sheet
The balance sheet indicates a debt-to-equity ratio of 0.78 in 2024, suggesting manageable leverage levels. Return on equity improved slightly to 27.1%, highlighting efficient use of equity to generate profits. The equity ratio is not calculable due to missing total assets, but reduced equity compared to liabilities may signal potential risks if leverage increases.65
Positive
Cash Flow
Cash flow analysis reveals a challenging situation with a 100% increase in free cash flow compared to 2023, reaching $723 million. However, the operating cash flow to net income ratio decreased to 0.81, indicating less cash being converted from profits. Free cash flow to net income is positive, showing improvement but still requires cautious monitoring.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 8.46B | 8.31B | 7.90B | 5.78B | 7.61B | Gross Profit |
| 5.07B | 3.28B | 2.89B | 2.71B | 4.40B | EBIT |
| 1.74B | 1.63B | 1.37B | 1.42B | 2.80B | EBITDA |
| 3.21B | 2.93B | 2.66B | 2.58B | 2.67B | Net Income Common Stockholders |
| 888.00M | 740.00M | 756.00M | 18.00M | 1.47B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 306.00M | 331.00M | 356.00M | 3.57B | 708.00M | Total Assets |
| 41.07B | 39.24B | 37.84B | 33.22B | 48.12B | Total Debt |
| 2.54B | 15.60B | 14.23B | 11.21B | 24.79B | Net Debt |
| 2.54B | 15.27B | 13.87B | 7.64B | 24.08B | Total Liabilities |
| 26.99B | 25.30B | 23.92B | 19.50B | 34.74B | Stockholders Equity |
| 3.27B | 13.93B | 13.91B | 13.72B | 13.37B |
| Cash Flow | Free Cash Flow | |||
| 723.00M | -632.00M | -425.00M | 297.00M | -503.00M | Operating Cash Flow |
| 723.00M | 1.76B | 1.73B | 2.27B | 2.75B | Investing Cash Flow |
| -643.00M | -2.38B | -5.65B | 7.96B | -3.26B | Financing Cash Flow |
| -89.00M | 650.00M | 709.00M | -7.39B | 386.00M |
PPL Technical Analysis
Positive
34.72
Price Trends
33.33
Positive
33.08
Positive
31.35
Positive
Market Momentum
0.48
Negative
55.11
Neutral
77.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPL, the sentiment is Positive. The current price of 34.72 is above the 20-day moving average (MA) of 34.47, above the 50-day MA of 33.33, and above the 200-day MA of 31.35, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 77.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPL.
PPL Risk Analysis
PPL disclosed 27 risk factors in its most recent earnings report. PPL reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PPL Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $90.39B | 20.48 | 9.03% | 3.50% | 4.46% | 54.09% | |
77 Outperform | $99.64B | 22.75 | 13.25% | 3.17% | 5.83% | 10.23% | |
74 Outperform | $35.42B | 19.49 | 8.29% | 3.21% | 4.23% | -27.02% | |
73 Outperform | $56.12B | 18.85 | 73.81% | 3.36% | 2.76% | 31.53% | |
72 Outperform | $43.91B | 17.81 | 9.14% | 3.46% | 5.98% | 4.99% | |
68 Neutral | $25.63B | 28.99 | 27.15% | 2.89% | 1.80% | 19.78% | |
65 Neutral | $12.05B | 15.92 | 6.71% | 4.32% | 8.04% | 3.76% |
* Utilities Sector Average
Performance Comparison
PPL
PPL
34.72
8.78
33.85%
AEP
American Electric Power
105.24
24.43
30.23%
ED
Consolidated Edison
102.15
15.33
17.66%
DUK
Duke Energy
116.41
25.84
28.53%
EXC
Exelon
43.68
8.43
23.91%
SO
Southern Co
89.89
23.61
35.62%
PPL Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: 0.58% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted successful infrastructure investments, achieved O&M savings, and an updated growth forecast. However, it also noted missed earnings targets, higher operating costs, and significant equity financing needs.Highlights
Successful Infrastructure Investments
Executed $3.1 billion of planned infrastructure investments on time and on budget to strengthen grid reliability and resilience.
O&M Savings Achieved
Achieved the top end of cumulative annual O&M savings target of $130 million from a 2021 baseline.
Integration of Rhode Island Energy
Completed the integration of Rhode Island Energy into PPL, exiting the transition services agreement with National Grid.
Updated Growth Forecast
Announced 2025 ongoing earnings forecast range of $1.75 to $1.87 per share, representing 7% growth from the original 2024 forecast midpoint.
Increased Capital Plan
Refreshed capital plan includes $20 billion in expected infrastructure investments from 2025 through 2028.
Dividend Increase
Announced a quarterly common stock dividend of 27.25 cents per share, representing approximately a 6% increase.
Lowlights
Missed Earnings Target
Fell short of the increased ongoing earnings midpoint guidance of $1.70 per share, ending the year at $1.69 per share.
Higher Operating Costs
Higher operating costs in several areas including increased vegetation management costs and an increase in uncollectibles.
Equity Financing Needs
Expect to need $2.5 billion of equity through 2028 to support significant capital investments.
Lower Rhode Island Segment Results
Rhode Island segment results decreased by $0.03 per share compared to the same period a year ago.
Higher Interest Expense
Higher interest expense from increased holding company debt balances and higher income taxes.
Company Guidance
During PPL Corporation's Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics and updates. PPL delivered ongoing earnings of $1.69 per share, aligning with the midpoint of their original 2024 guidance, despite a slight shortfall from the increased guidance of $1.70 due to mild December weather. The company executed $3.1 billion in infrastructure investments and achieved $130 million in O&M savings from a 2021 baseline. For 2025, PPL forecasts ongoing earnings between $1.75 and $1.87 per share, with a midpoint of $1.81, signifying a 7% growth from the 2024 forecast. They are extending their 6% to 8% annual earnings and dividend growth through at least 2028, underpinned by a $20 billion capital plan for 2025-2028, which anticipates a 9.5% to 10% annual rate base growth. The plan includes $2.5 billion equity needs through 2028. PPL also announced a quarterly dividend increase of approximately 6%, resulting in an annualized dividend of $1.09 per share.PPL Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
PPL Corporation Reports 2024 Earnings and Dividend Increase
Positive
Feb 13, 2025
PPL Corporation announced its 2024 earnings, reporting $1.20 per share in GAAP earnings and $1.69 per share from ongoing operations, reflecting a strategic focus on infrastructure investments and operational efficiencies. The company extended its growth targets through 2028, increasing its capital plan to $20 billion, and announced a 6% increase in its quarterly dividend, positioning itself for sustained growth in the utility sector.
Executive/Board ChangesBusiness Operations and Strategy
PPL Restructures Executive Roles, EVP Position Eliminated
Neutral
Jan 15, 2025
On January 13, 2025, PPL Corporation announced an internal restructuring that led to the elimination of the Executive Vice President and Chief Operating Officer position, resulting in Francis X. Sullivan’s separation effective April 4, 2025. Mr. Sullivan will receive severance payments and benefits, subject to certain conditions, and his duties will be reassigned to other officers. His stock grants will vest, and he will be eligible for a pro rata bonus for his work in 2025, marking a significant shift in the company’s executive structure and strategy.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.