PPL (PPL) AI Stock Analysis

• Market Cap: $26.99B
• Dividend Yield: 2.97%
• Average Volume (3M): 4.81M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.22
• Revenue Growth: 6.62%
• EPS Growth: 17.35%
• Country: US
• Employees: 6,653
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.32
• Shares Outstanding: 739,515,260
• 10 Day Avg. Volume: 4,079,083
• 30 Day Avg. Volume: 4,810,190
• 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: 1.58
• Enterprise Value/Revenue: 4.84
• Enterprise Value/Gross Profit: 11.89
• Enterprise Value/Ebitda: 12.65
• 1Y Price Target: $38.43
• Price Target Upside: 5.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 67 Neutral
• Price Target: $38.00 ▲(4.11% Upside)

PPL's overall score is driven by a positive earnings outlook and strategic infrastructure investments, despite concerns over high leverage and negative cash flow. Technical indicators and valuation suggest caution, but the company's growth plans and dividend yield offer potential upside.

Positive Factors

Infrastructure Investment

Significant infrastructure investments are expected to drive long-term growth and enhance service reliability, supporting future earnings.

Earnings and Dividend Growth

Projected earnings and dividend growth indicate strong financial health and shareholder value, enhancing investor confidence over the long term.

Regulatory Advances

Positive regulatory developments support new projects and cost recovery, reducing investment lag and enhancing operational efficiency.

Negative Factors

High Debt Levels

High leverage poses risks to financial stability, potentially impacting cash flow and limiting the company's ability to invest in growth.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation, which could hinder the company's ability to fund operations and investments.

Sales Volume Decline

Declining sales volumes may impact revenue growth, requiring strategic adjustments to maintain market position and profitability.

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 primarily through its regulated utility operations, which include the distribution of electricity to residential, commercial, and industrial customers. The company earns a stable income from the sale of electricity, which is regulated by state utility commissions that allow for cost recovery and a return on investment. Additionally, PPL makes money through its generation segment, where it sells electricity into wholesale markets, leveraging its diverse energy portfolio, including nuclear, natural gas, and renewable energy sources. The company also benefits from long-term power purchase agreements (PPAs) and has established partnerships with various stakeholders in the energy sector, contributing to its overall revenue stability and growth.

PPL Financial Statement Overview

Summary

PPL demonstrates solid revenue growth and profitability with strong margins. However, high debt levels and negative free cash flow are areas of concern. The company needs to focus on improving cash flow management and reducing leverage to enhance financial stability.

Income Statement

PPL has shown consistent revenue growth, with a TTM revenue growth rate of 1.66%. The gross profit margin is healthy at 40.72%, and the net profit margin has improved to 11.22% in the TTM. EBIT and EBITDA margins are strong, indicating efficient operations. However, the revenue growth rate has slowed compared to previous years.

Balance Sheet

The debt-to-equity ratio is relatively high at 1.25, indicating significant leverage, which could pose risks if not managed properly. Return on equity is modest at 6.96%, reflecting moderate profitability. The equity ratio stands at 33.73%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Operating cash flow is positive, but free cash flow is negative, with a decline in free cash flow growth rate by 20.19% in the TTM. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income to cash. The negative free cash flow to net income ratio suggests cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.81B	8.46B	8.31B	7.90B	5.78B	5.47B
Gross Profit	3.59B	3.39B	3.28B	2.89B	2.71B	2.79B
EBITDA	3.37B	3.21B	2.92B	2.66B	2.56B	2.67B
Net Income	988.00M	888.00M	740.00M	756.00M	-1.48B	1.47B
Balance Sheet
Total Assets	42.36B	41.07B	39.24B	37.84B	33.22B	48.12B
Cash, Cash Equivalents and Short-Term Investments	294.00M	306.00M	331.00M	356.00M	3.57B	442.00M
Total Debt	17.80B	16.81B	15.60B	14.23B	11.21B	15.86B
Total Liabilities	28.08B	26.99B	25.30B	23.92B	19.50B	34.74B
Stockholders Equity	14.29B	14.08B	13.93B	13.91B	13.72B	13.37B
Cash Flow
Free Cash Flow	-855.00M	-465.00M	-632.00M	-425.00M	297.00M	476.00M
Operating Cash Flow	2.41B	2.34B	1.76B	1.73B	2.27B	2.75B
Investing Cash Flow	-3.27B	-2.82B	-2.38B	-5.65B	7.96B	-3.26B
Financing Cash Flow	857.00M	435.00M	650.00M	709.00M	-7.39B	386.00M

PPL Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 36.5 is above the 20-day moving average (MA) of 35.91, above the 50-day MA of 36.03, and above the 200-day MA of 34.17, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.46 is Neutral, neither overbought nor oversold. The STOCH value of 84.87 is Negative, 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	75 Outperform	27.27B	22.15	9.96%	2.78%	17.32%	3.35%
FE	73 Outperform	25.45B	19.46	10.18%	3.93%	6.44%	49.07%
DTE	70 Neutral	28.80B	19.96	12.31%	3.17%	14.35%	3.62%
CMS	69 Neutral	21.45B	21.15	12.19%	3.02%	8.25%	4.37%
PPL	67 Neutral	$26.99B	27.30	6.96%	2.97%	6.62%	17.35%
ES	62 Neutral	25.64B	29.74	5.48%	4.34%	14.44%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

PPL Corporate Events

PPL’s LG&E and KU Issue $700M Bonds

On August 13, 2025, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU) issued $700 million each in First Mortgage Bonds due 2055, with an interest rate of 5.850%. These bonds are secured by liens on the companies’ real and tangible personal property in Kentucky, used for electricity and natural gas operations. The proceeds will be used to repay existing bonds, short-term debt, and for general corporate purposes.

The most recent analyst rating on (PPL) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Corporation Enters Forward Contracts for Stock Sale

In August 2025, PPL Corporation entered into forward contracts to sell 27.4 million shares of its common stock at an average price of $35.90 per share, with expected net proceeds of approximately $984 million. These contracts, part of PPL’s at-the-market program, aim to address a significant portion of its $2.5 billion equity requirement through 2028, with settlements scheduled through August 2027.

The most recent analyst rating on (PPL) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL Secures $500M Through First Mortgage Bonds

On August 6, 2025, PPL Electric Utilities Corporation entered into an underwriting agreement with several financial institutions for the offering and sale of $500 million in First Mortgage Bonds, 5.55% Series due 2055. The issuance, completed on August 11, 2025, aims to secure funds for repaying short-term debt and general corporate purposes, potentially strengthening PPL Electric’s financial positioning and operational capabilities.

The most recent analyst rating on (PPL) stock is a Buy with a $36.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

PPL’s LG&E and KU Announce $700M Bond Offering

On August 4, 2025, LG&E and KU entered into separate underwriting agreements for the offering and sale of $700 million aggregate principal amount of 5.850% First Mortgage Bonds due 2055. Both companies plan to issue these bonds around August 13, 2025, with the proceeds intended to repay existing bonds, short-term debt, and for other corporate purposes. This strategic financial move is expected to impact their debt structure and support their operational funding.

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.