PPL (PPL) AI Stock Analysis

• Market Cap: $26.99B
• Dividend Yield: 2.9%
• Average Volume (3M): 6.52M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.22
• Revenue Growth: 6.62%
• EPS Growth: 17.35%
• Country: US
• Employees: 6,653
• Sector: Utilities
• Sector Strength: 63
• Industry: Regulated Electric
• EPS (TTM): 0.32
• Shares Outstanding: 739,515,260
• 10 Day Avg. Volume: 4,978,140
• 30 Day Avg. Volume: 6,519,546
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: $38.57
• Price Target Upside: 5.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $41.00 ▲(12.33% Upside)

PPL's overall stock score is driven by strong earnings call insights and positive technical analysis. However, financial performance concerns, particularly high debt levels and negative free cash flow, weigh on the score. Valuation metrics suggest the stock may be overvalued, but the attractive dividend yield provides some offsetting benefits.

Positive Factors

Earnings Growth

The company's Q1 ongoing EPS grew by 9%, boosting confidence in meeting future guidance.

Strategic Initiatives

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

Negative Factors

Economic Exposure

Kentucky economy exposed to industrial activity during a rate case, equity issuances in the plan, coal retirements & environment compliance capex.

Regulatory Risks

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 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	-344.00M	-465.00M	-632.00M	-425.00M	297.00M	-503.00M
Operating Cash Flow	1.99B	2.34B	1.76B	1.73B	2.27B	2.75B
Investing Cash Flow	-2.02B	-2.82B	-2.38B	-5.65B	7.96B	-3.26B
Financing Cash Flow	356.00M	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: Positive
• 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 36.5 is below the 20-day moving average (MA) of 36.61, above the 50-day MA of 35.69, and above the 200-day MA of 34.23, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 52.77 is Neutral, neither overbought nor oversold. The STOCH value of 30.84 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	75 Outperform	$26.97B	21.90	10.29%	2.74%	17.32%	3.35%
FE	73 Outperform	$25.10B	19.19	10.33%	4.00%	6.44%	49.07%
PPL	71 Outperform	$26.99B	27.23	6.96%	2.90%	6.62%	17.35%
DTE	71 Outperform	$28.16B	19.52	12.61%	3.14%	14.35%	3.62%
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
CMS	66 Neutral	$21.41B	21.11	12.48%	2.99%	8.25%	4.37%
ES	66 Neutral	$23.64B	27.42	5.63%	4.63%	14.44%	―

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.

PPL Reports Q2 2025 Earnings, Reaffirms Forecast

On July 31, 2025, PPL Corporation announced its second-quarter 2025 earnings, reporting a GAAP earnings per share of $0.25 and ongoing earnings per share of $0.32, down from $0.38 in 2024 due to timing and weather factors. Despite this, PPL reaffirmed its 2025 earnings forecast range and projected strong earnings growth in the second half of the year, driven by higher returns on capital investments and lower operational costs. The company also highlighted its joint venture with Blackstone Infrastructure to develop electric generation stations for data centers, showcasing its commitment to innovation and stakeholder engagement.

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 Announces Agreement on Future Energy Projects

On July 29, 2025, LG&E and KU announced a stipulation agreement with several intervenors regarding future generation-related construction projects, filed with the Kentucky Public Service Commission (KPSC). The agreement includes the construction of two 645 MW natural gas combined-cycle units and a selective catalytic reduction system, while withdrawing a battery storage project proposal. The stipulation, subject to KPSC approval, aims to address Kentucky’s growing energy needs amid economic development. The projected capital expenditures for these projects are approximately $4.1 billion, with the stipulation set for a hearing on August 4, 2025, and a ruling expected in the fourth quarter of 2025.

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 and Blackstone Announce Joint Venture in Pennsylvania

On July 15, 2025, PPL Corporation and Blackstone Infrastructure announced a joint venture to build, own, and operate new gas-fired, combined-cycle generation stations to power data centers in Pennsylvania. This initiative, revealed at the Pennsylvania Energy and Innovation Summit, aims to address the growing power demand from data centers and mitigate electricity price increases by leveraging the Marcellus and Utica shale basins. The joint venture, with PPL owning 51% and Blackstone 49%, plans to enter long-term energy services agreements and has already secured land for development, although no agreements with hyperscalers have been finalized. This move is part of a broader strategy to support economic development and address resource adequacy concerns in the PJM Interconnection region, with Pennsylvania Governor Josh Shapiro expressing support for the investment’s potential to create jobs and drive economic growth.

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 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.