PPL Corp. (PPL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Edison International

Eversource Energy

PPL Corp.

Public Service Enterprise Group, Inc.

FirstEnergy Corp.

Consolidated Edison, Inc.

WEC Energy Group, Inc.

Ameren Corp.

Entergy Corp.

Xcel Energy, Inc.

DTE Energy Co.

Why is PPL Corp. ?

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 122.35 %
INTEREST COVERAGE RATIO(Q) Lowest at 384.34
PRE-TAX PROFIT(Q) At USD 230 MM has Fallen at -27.73%

With ROCE of 6.09%, it has a expensive valuation with a 1.35 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.23%, its profits have risen by 28.6% ; the PEG ratio of the company is 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 2.23% in the last 1 year, much lower than market (S&P 500) returns of 14.11%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to PPL Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is PPL Corp. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

PPL Corp.

2.1%

1.05

17.98%

S&P 500

30.29%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.52%

EBIT Growth (5y)

-5.42%

EBIT to Interest (avg)

2.42

Debt to EBITDA (avg)

4.54

Net Debt to Equity (avg)

1.18

Sales to Capital Employed (avg)

0.28

Tax Ratio

20.02%

Dividend Payout Ratio

68.61%

Pledged Shares

Institutional Holding

91.81%

ROCE (avg)

6.51%

ROE (avg)

5.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.96

EV to EBIT

22.18

EV to EBITDA

13.43

EV to Capital Employed

1.43

EV to Sales

5.24

PEG Ratio

0.85

Dividend Yield

2.80%

ROCE (Latest)

6.44%

ROE (Latest)

7.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,629 MM

ROCE(HY)

Highest at 8.15%

RAW MATERIAL COST(Y)

Fallen by -17.47% (YoY

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 122.73 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 76.33%

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.21 times

Here's what is working for PPL Corp.

Operating Cash Flow

Highest at USD 2,629 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Raw Material Cost

Fallen by -17.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 368 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for PPL Corp.

Debt-Equity Ratio

Highest at 122.73 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 12.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 76.33%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income

Highest at USD 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income