PPL (PPL) AI Stock Analysis

• Market Cap: $26.81B
• Dividend Yield: 2.95%
• Average Volume (3M): 5.10M
• Price to Earnings (P/E): 27.3
• Beta (1Y): 0.18
• 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: 739,515,260
• 10 Day Avg. Volume: 5,038,672
• 30 Day Avg. Volume: 5,101,194
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $41.40
• Price Target Upside: 13.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $39.00 ▲(6.85% Upside)

PPL's overall stock score is primarily supported by positive earnings call sentiment and solid financial performance. However, technical indicators suggest bearish momentum, and the valuation appears stretched. The company's high debt levels and negative free cash flow also pose risks that need addressing.

Positive Factors

Infrastructure Investment

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

Regulatory Achievements

Regulatory approvals for new projects support PPL's expansion and adaptation to growing energy needs, ensuring compliance and operational continuity.

Data Center Expansion

Expansion in data center projects reflects growing demand for digital infrastructure, positioning PPL as a key player in a high-growth sector.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, especially in volatile markets, potentially impacting future investment capabilities.

Negative Free Cash Flow

Negative free cash flow suggests challenges in generating sufficient cash to cover expenses, which could hinder growth and debt reduction efforts.

Challenges in Cost Recovery

Inability to recover costs can strain financial resources and affect profitability, necessitating strategic adjustments to maintain financial health.

PPL Business Overview & Revenue Model

Company Description

PPL Corporation (PPL) is an energy company, primarily engaged in the generation and distribution of electricity. Headquartered in Allentown, Pennsylvania, the company operates through various segments, including PPL Electric Utilities, which serves customers in Pennsylvania, and PPL Energy Supply, focused on generating and selling electricity. PPL also has a significant presence in the UK energy market through its subsidiary, Western Power Distribution, which provides electricity distribution services across several regions.

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	8.98B	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	3.65B	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	-31.00M	41.07B	39.24B	37.84B	33.22B	48.12B
Cash, Cash Equivalents and Short-Term Investments	647.00M	306.00M	331.00M	356.00M	3.57B	442.00M
Total Debt	-140.00M	16.81B	15.60B	14.23B	11.21B	15.86B
Total Liabilities	0.00	26.99B	25.30B	23.92B	19.50B	34.74B
Stockholders Equity	0.00	14.08B	13.93B	13.91B	13.72B	13.37B
Cash Flow
Free Cash Flow	189.00M	-465.00M	-632.00M	-425.00M	297.00M	476.00M
Operating Cash Flow	1.05B	2.34B	1.76B	1.73B	2.27B	2.75B
Investing Cash Flow	-1.44B	-2.82B	-2.38B	-5.65B	7.96B	-3.26B
Financing Cash Flow	641.00M	435.00M	650.00M	709.00M	-7.39B	386.00M

PPL Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 36.50
• 50DMA: Negative
• 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 Neutral. The current price of 36.5 is below the 20-day moving average (MA) of 37.13, below the 50-day MA of 36.61, and above the 200-day MA of 34.98, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.53 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	72 Outperform	$27.56B	22.38	11.47%	2.74%	22.71%	22.86%
CMS	72 Outperform	$22.08B	20.95	12.34%	3.00%	10.96%	-0.77%
FE	72 Outperform	$26.39B	19.85	10.54%	3.84%	7.64%	48.61%
PPL	66 Neutral	$26.81B	27.25	7.65%	2.95%	8.42%	32.48%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ES	65 Neutral	$27.40B	20.28	―	4.15%	13.12%	―
DTE	65 Neutral	$27.71B	19.99	11.64%	3.25%	19.42%	-9.68%

PPL Corporate Events

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.

The most recent analyst rating on (PPL) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

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.

The most recent analyst rating on (PPL) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

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.

The most recent analyst rating on (PPL) stock is a Buy with a $43.00 price target. To see the full list of analyst forecasts on PPL stock, see the PPL Stock Forecast page.

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.

The most recent analyst rating on (PPL) stock is a Buy with a $38.00 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 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.