PPL (PPL) AI Stock Analysis

• Market Cap: $25.40B
• Dividend Yield: 3.14%
• Average Volume (3M): 7.00M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.14
• Revenue Growth: 8.42%
• EPS Growth: 32.48%
• Country: US
• Employees: 6,653
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.48
• Shares Outstanding: 739,739,200
• 10 Day Avg. Volume: 7,631,344
• 30 Day Avg. Volume: 7,000,581
• PEG Ratio: 1.35
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 2.83
• P/FCF Ratio: -51.50
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: 5.07
• Enterprise Value/Gross Profit: 12.15
• Enterprise Value/Ebitda: 12.92
• 1Y Price Target: $40.58
• Price Target Upside: 16.79% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.81
• Revenue Forecast (FY): $8.76B

• Rating: 66 Neutral
• Price Target: $37.00 ▲(6.47% Upside)

PPL's overall stock score is driven by a strong earnings call and strategic infrastructure investments, which are offset by technical weaknesses and cash flow challenges. The company's valuation is moderate, with a high P/E ratio balanced by a decent dividend yield. Corporate events support financial flexibility but also highlight regulatory challenges.

Positive Factors

Infrastructure Investment

Significant infrastructure investments indicate a strong commitment to long-term growth and modernization, enhancing service reliability and capacity.

Data Center Expansion

The expansion of data centers supports increased electricity demand and positions PPL as a key player in the growing digital infrastructure market.

Regulatory Achievements

Regulatory approvals for new generation resources enhance PPL's ability to meet future energy needs and support regional economic growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could limit PPL's ability to finance future investments without additional borrowing.

Higher Interest Expenses

Rising interest expenses can erode profitability and reduce financial flexibility, impacting long-term financial health and investment capacity.

Debt Levels

Moderate leverage suggests reliance on debt financing, which may constrain financial flexibility and increase vulnerability to interest rate changes.

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 generates revenue through several key streams: regulated utility operations, which involve the transmission and distribution of electricity to consumers; wholesale power generation, where PPL sells electricity produced from its power plants to other utilities or energy markets; and renewable energy projects, which contribute to its earnings through the sale of power and renewable energy credits. Additionally, PPL benefits from significant partnerships, including agreements with local governments and organizations for large-scale energy projects, as well as regulatory frameworks that allow for stable returns on investments in infrastructure. The company's earnings are also influenced by energy market conditions and regulatory decisions affecting pricing and operations.

PPL Financial Statement Overview

Summary

PPL's financial performance is solid, with strong revenue growth and stable margins. However, the balance sheet shows moderate leverage, and cash flow challenges indicate a need for improved cash management.

Income Statement

PPL's income statement shows a solid performance with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 1.97%. The company maintains healthy gross and EBIT margins, indicating efficient cost management. However, the net profit margin is relatively modest at 11.22%, suggesting room for improvement in profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.25, which is manageable but indicates a reliance on debt financing. The return on equity is modest at 6.96%, suggesting moderate efficiency in generating returns from shareholders' equity. The equity ratio of 32.79% indicates a balanced capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in the TTM period. The operating cash flow to net income ratio of 0.48 indicates that cash generation from operations is not fully covering net income. The negative free cash flow to net income ratio highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.98B	8.46B	8.31B	7.90B	5.78B	5.47B
Gross Profit	3.75B	3.39B	3.28B	2.89B	2.71B	2.79B
EBITDA	3.52B	3.21B	2.92B	2.66B	2.56B	2.67B
Net Income	1.09B	888.00M	740.00M	756.00M	-1.48B	1.47B
Balance Sheet
Total Assets	43.94B	41.07B	39.24B	37.84B	33.22B	48.12B
Cash, Cash Equivalents and Short-Term Investments	1.12B	306.00M	331.00M	356.00M	3.57B	442.00M
Total Debt	18.99B	16.81B	15.60B	14.23B	11.21B	15.86B
Total Liabilities	29.53B	26.99B	25.30B	23.92B	19.50B	34.74B
Stockholders Equity	14.41B	14.08B	13.93B	13.91B	13.72B	13.37B
Cash Flow
Free Cash Flow	-1.14B	-465.00M	-632.00M	-425.00M	297.00M	476.00M
Operating Cash Flow	2.59B	2.34B	1.76B	1.73B	2.27B	2.75B
Investing Cash Flow	-3.73B	-2.82B	-2.38B	-5.65B	7.96B	-3.26B
Financing Cash Flow	1.68B	435.00M	650.00M	709.00M	-7.39B	386.00M

PPL Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 34.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 34.75 is above the 20-day moving average (MA) of 34.70, below the 50-day MA of 35.88, and below the 200-day MA of 35.01, indicating a neutral trend. The MACD of -0.52 indicates Negative momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PPL.

PPL Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEE	68 Neutral	$26.65B	18.95	11.47%	2.88%	22.71%	22.86%
CMS	67 Neutral	$21.38B	20.28	12.34%	3.07%	10.96%	-0.77%
FE	67 Neutral	$25.71B	19.33	10.54%	3.96%	7.64%	48.61%
PPL	66 Neutral	$25.40B	23.37	7.65%	3.14%	8.42%	32.48%
ES	66 Neutral	$25.24B	18.49	8.65%	4.48%	13.12%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$26.77B	19.31	11.64%	3.44%	19.42%	-9.68%

PPL Corporate Events

Rhode Island Energy Proposes Rate Increase for 2026

On November 26, 2025, Rhode Island Energy announced its filing for a rate increase with the Rhode Island Public Utilities Commission, effective September 1, 2026. This is the first comprehensive rate review since 2017, aimed at aligning electric and gas distribution rates with operational costs and supporting infrastructure upgrades, customer service improvements, and affordability programs. The proposed rate plan seeks to collect additional revenue of $180.7 million in the first year and $49.4 million in the second year, with a focus on system reliability, customer experience enhancements, and affordability measures. The company cites inflation and increased costs as reasons for the proposal, which could impact residential customers’ bills significantly.

PPL Issues $1.15 Billion in Exchangeable Notes

On November 24, 2025, PPL Capital Funding, Inc., a subsidiary of PPL Corporation, issued $1.15 billion in 3.000% Exchangeable Senior Notes due 2030. The issuance was conducted through a private placement aimed at qualified institutional buyers under Rule 144A of the Securities Act of 1933. The net proceeds of $1.14 billion from the sale are intended for repaying short-term debt and general corporate purposes. These senior, unsecured notes are guaranteed by PPL Corporation and are exchangeable for the company’s common stock under specified conditions. The issuance strengthens PPL’s financial positioning by addressing short-term liabilities and potentially enhancing liquidity, while offering investors a structured opportunity to engage with PPL’s equity through the exchangeable feature of the notes.

PPL Announces $1 Billion Private Placement of Notes

On November 19, 2025, PPL Corporation announced the pricing of a $1 billion private placement of 3.000% Exchangeable Senior Notes due 2030 through its subsidiary, PPL Capital Funding, Inc. The notes, which are fully guaranteed by PPL Corporation, are aimed at institutional buyers and will generate approximately $988.8 million in net proceeds, intended for repaying short-term debt and general corporate purposes. This financial maneuver is expected to bolster PPL’s operational flexibility and strengthen its market position by addressing short-term liabilities and supporting corporate strategies.

PPL Announces $1 Billion Senior Notes Offering

On November 19, 2025, PPL Corporation announced a private placement of $1 billion in Exchangeable Senior Notes due 2030 through its subsidiary, PPL Capital Funding, Inc. The notes, guaranteed by PPL Corporation, aim to repay short-term debt and support general corporate purposes. This strategic move is expected to enhance PPL’s financial flexibility and strengthen its market position, while offering institutional buyers a secure investment opportunity.

PPL Reports Strong Q3 2025 Earnings Growth

PPL Corporation announced its third-quarter 2025 financial results, reporting a significant increase in earnings compared to the previous year. The company narrowed its 2025 earnings forecast and reaffirmed its growth targets, highlighting a strong performance supported by disciplined execution and robust capital investment. PPL also achieved key regulatory milestones, including approval for new generation resources in Kentucky, which underscores its strategic focus on balancing customer affordability with infrastructure development.

PPL Gains Approval for New Gas Units in Kentucky

On October 28, 2025, the Kentucky Public Service Commission approved LG&E and KU’s plans to construct two new natural gas combined-cycle units and upgrade environmental controls at Ghent Generating Station. This decision supports Kentucky’s economic growth by ensuring reliable energy supply but did not approve certain rate mechanisms and extended operations for Mill Creek Unit 2. The utilities plan to have the new units operational by 2030 and 2031, respectively, and continue to evaluate the order’s implications.

PPL Reaches Agreement on Revenue Increase with Stakeholders

On October 20, 2025, LG&E and KU announced an agreement with key stakeholders to resolve issues regarding their request for increased annual electricity and gas revenues, filed with the Kentucky Public Service Commission (KPSC) in May 2025. The agreement proposes a $235 million increase in revenues and includes commitments to system enhancements, technology upgrades, and customer service improvements. It also introduces new rate mechanisms and a commitment to refrain from further base rate increases until August 2028. The agreement aims to strengthen system reliability and meet increased energy demands while minimizing the impact on customers’ bills. A KPSC hearing is scheduled for November 3, 2025, with a ruling expected by the end of the year.

PPL Requests Rate Increase for Grid Modernization

On September 30, 2025, PPL Electric Utilities announced a request to the Pennsylvania Public Utility Commission for an increase in distribution rates, aiming for implementation by July 1, 2026. This request, the first in a decade, seeks to raise annual base rate distribution revenue by approximately $356 million to support ongoing investments in grid modernization and resilience against severe weather and cyber threats. The proposed rate increase is intended to fund essential improvements and enhance customer service, with the company emphasizing its commitment to maintaining affordability and supporting customers through flexible payment options and energy-saving programs.