PPL (PPL) AI Stock Analysis

• Market Cap: $24.93B
• Dividend Yield: 3.23%
• Average Volume (3M): 4.88M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.24
• Revenue Growth: 5.62%
• EPS Growth: 30.02%
• Country: US
• Employees: 6,653
• Sector: Utilities
• Sector Strength: 80
• Industry: Regulated Electric
• EPS (TTM): 0.60
• Shares Outstanding: 739,263,900
• 10 Day Avg. Volume: 4,109,616
• 30 Day Avg. Volume: 4,879,174
• PEG Ratio: -2.04
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -39.85
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 14.09
• Enterprise Value/Ebitda: 3.59
• 1Y Price Target: $38.45
• Price Target Upside: 11.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 76 Outperform
• Price Target: $38.00 ▲(10.53%Upside)

PPL's strong financial performance and positive earnings call highlights are the most significant factors driving the stock score. However, technical analysis indicates bearish trends, and valuation concerns due to a high P/E ratio weigh on the overall score.

Positive Factors

Earnings Growth

The company's ongoing EPS grew by 9%, boosting confidence in meeting future guidance.

Market Performance

PPL's shares have outperformed the S&P Utilities, reflecting attractive EPS growth prospects and a strong balance sheet.

Strategic Initiatives

PPL continues to advance several strategic initiatives, enhancing its market position.

Negative Factors

Financial Challenges

The elevated spending drives an earlier and higher need for equity issuance than previously anticipated.

Market Disconnect

Despite significant growth opportunities, shares of PPL have remained flat, suggesting a disconnect between potential and market performance.

Regulatory Challenges

The proposed energy legislation in Pennsylvania is seen as provocative, and there is caution regarding its passage.

PPL Business Overview & Revenue Model

Company Description

PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. The company operates through two segments: Kentucky Regulated and Pennsylvania Regulated. It serves approximately 429,000 electric and 333,000 natural gas customers in Louisville and adjacent areas in Kentucky; 538,000 electric customers in central, southeastern, and western Kentucky; and 28,000 electric customers in five counties in southwestern Virginia. The company also provides electric services to approximately 1.4 million customers in Pennsylvania; and generates electricity from coal, gas, hydro, and solar sources in Kentucky; and sells wholesale electricity to two municipalities in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

How the Company Makes Money

PPL Corporation generates revenue primarily from the sale of electricity and natural gas to residential, commercial, and industrial customers. The company's revenue model is based on regulated rates approved by public utility commissions, ensuring a stable and predictable income stream. PPL's earnings are driven by its subsidiaries, which include electricity distribution networks and power generation facilities. The company benefits from long-term regulatory frameworks that allow for the recovery of operational costs and capital investments. Additionally, PPL may engage in strategic partnerships and investments in renewable energy projects, contributing to its growth and sustainability objectives.

PPL Financial Statement Overview

Summary

PPL shows strong revenue growth and profitability, with a solid net profit margin of 11.5%. The balance sheet is stable with moderate leverage, though cash flow management needs improvement due to negative free cash flow.

Income Statement

PPL demonstrates strong revenue growth with a 3.0% increase in TTM revenue compared to the previous year. The gross profit margin stands at 37.5% for TTM, indicating efficient cost management. Net profit margin improved to 11.5%, showing solid profitability. EBIT and EBITDA margins are healthy at 21.7% and 38.7% respectively, reflecting strong operational performance.

Balance Sheet

PPL maintains a stable balance sheet with a debt-to-equity ratio of 1.21, indicating moderate leverage. The company has a return on equity of 6.96%, which is reasonable for the industry. An equity ratio of 34.2% suggests a balanced capital structure, though there is room for improvement in reducing liabilities.

Cash Flow

PPL's cash flow management shows some challenges with a negative free cash flow of -$431 million in TTM. However, the operating cash flow to net income ratio is strong at 2.58, indicating efficient conversion of earnings into cash. The free cash flow to net income ratio is negative, highlighting potential cash constraints that need addressing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.66B	8.46B	8.31B	7.90B	5.78B	7.61B
	Gross Profit
3.25B	3.39B	3.28B	2.89B	2.71B	4.40B
	EBIT
1.88B	1.74B	1.63B	1.37B	1.42B	2.80B
	EBITDA
3.35B	3.22B	2.93B	2.66B	2.58B	2.67B
	Net Income Common Stockholders
995.00M	888.00M	740.00M	756.00M	18.00M	1.47B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
312.00M	306.00M	331.00M	356.00M	3.57B	708.00M
	Total Assets
41.81B	41.07B	39.24B	37.84B	33.22B	48.12B
	Total Debt
17.29B	16.81B	15.60B	14.23B	11.21B	24.79B
	Net Debt
16.97B	16.50B	15.27B	13.87B	7.64B	24.08B
	Total Liabilities
27.51B	26.99B	25.30B	23.92B	19.50B	34.74B
	Stockholders Equity
14.30B	14.08B	13.93B	13.91B	13.72B	13.37B
Cash Flow		Free Cash Flow
-431.00M	-465.00M	-632.00M	-425.00M	297.00M	-503.00M
	Operating Cash Flow
2.57B	2.34B	1.76B	1.73B	2.27B	2.75B
	Investing Cash Flow
-3.01B	-2.82B	-2.38B	-5.65B	7.96B	-3.26B
	Financing Cash Flow
458.00M	435.00M	650.00M	709.00M	-7.39B	386.00M

PPL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 34.38 is above the 20-day moving average (MA) of 34.18, below the 50-day MA of 34.74, and above the 200-day MA of 33.13, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 50.97 is Neutral, neither overbought nor oversold. The STOCH value of 33.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PPL.

PPL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	77 Outperform	$26.46B	21.22	10.23%	2.96%	8.96%	3.75%
PPL	76 Outperform	$24.93B	25.18	7.00%	3.23%	5.62%	30.02%
DTE	72 Outperform	$27.99B	18.22	13.28%	3.23%	11.16%	20.94%
FE	72 Outperform	$23.21B	21.39	8.69%	4.43%	7.92%	1.54%
ES	71 Outperform	$24.08B	28.30	5.63%	4.59%	10.82%	―
CNP	67 Neutral	$23.66B	24.37	9.22%	2.43%	4.76%	4.08%
Sector *	64 Neutral	$8.55B	10.42	4.24%	4.64%	4.05%	-13.04%

PPL Corporate Events

PPL Shareholders Elect Directors, Approve Executive Compensation

At the Annual Meeting of Shareowners of PPL Corporation held on May 16, 2025, all ten nominees for the office of director were elected. Additionally, the shareowners approved the 2024 compensation of the Company’s named executive officers and ratified the appointment of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2025. However, a proposal for independent evaluation of greenhouse gas reduction targets was rejected.

The most recent analyst rating on (PPL) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Subsidiaries Seek Revenue Increases for System Upgrades

On May 15, 2025, LG&E and KU announced plans to request revenue increases from the Kentucky Public Service Commission to support system enhancements aimed at improving reliability and resilience against severe weather. The proposed increases include 8.3% for LG&E electricity, 11.5% for KU electricity, and 14.0% for LG&E gas, with new rates potentially effective from January 1, 2026. These enhancements are part of ongoing efforts to upgrade aging infrastructure, improve customer service, and maintain competitive rates despite rising costs. The companies emphasize the importance of these investments in light of increasing severe weather events and the need for modernized systems.

The most recent analyst rating on (PPL) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Reaffirms 2025 Earnings Guidance in May 2025

In May 2025, PPL Corporation’s senior management will engage with analysts and investors to discuss the company’s corporate strategy and business outlook. During these meetings, PPL plans to reaffirm its 2025 earnings guidance of $1.75 to $1.87 per share, maintaining a midpoint of $1.81 per share, as previously presented in their April 30, 2025 earnings call.

PPL Reports 35% Increase in Q1 2025 Earnings

PPL Corporation announced its first-quarter 2025 earnings, reporting a 35% increase in GAAP earnings to $414 million, or $0.56 per share, compared to the same period in 2024. The company reaffirmed its ongoing earnings forecast for 2025 and its annual EPS and dividend growth targets through 2028, highlighting strong financial discipline and operational execution, with a focus on creating utilities of the future.