PPL Corporation

PPL Corporation

PPLยทNYSE

$35.16

+0.40%
UtilitiesRegulated Electric

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.

At a Glance

Live Snapshot
Market Cap$26.45B
EPS1.6000
P/E Ratio21.97
Earnings Date07/30/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 22.0).

Valuation inputs: P/E 22.0, earnings yield +4.6%, momentum +0.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +7.9%, ROIC +4.1%).

Profitability stack: net margin +13.1%, ROE +7.9%, ROIC +4.1%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +67.1%, momentum +0.4%, net margin +13.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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PPL Corporation Market vs Earnings Trajectory

PPL ยท NYSE

Loading price and EPS data...

PPL Corporation

PPL Corporation Fair Value Envelope

PPL ยท NYSE

Our analysis suggests that PPL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $35.16, this represents a potential HIDDEN relative to our calculated worth for PPL Corporation.

Intrinsic Value
Current Price: $35.16
3Y+57.0%
5Y-16.0%
10Y-43.0%
3Y+14.0%
5Y+65.0%
10Y+20.0%
3Y+56.0%
5Y-20.0%
10Y-38.0%
3Y+52.0%
5Y-4.0%
10Y-9.0%
3Y+230.0%
5Y-394.0%
10Y+1991.0%
3Y+20.0%
5Y-6.0%
10Y+18.0%
PPL Corporation

PPL Corporation Profit Bridge

PPL ยท NYSE
Revenue9.04B
Cost of Goods Sold (5.51B)
Gross Profit3.53B
Operating Expenses (1.40B)
Operating Income2.13B
Interest Expense (808.00M)
Other Income/Expense-659.00M
Pretax Income1.47B
Income Tax (291.00M)
Net Income1.18B
Net Income
1.18B

Profitability Analysis

Gross Margin

39.1%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

23.6%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

13.1%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

19.8%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

39.05%
Gross Profit Margin
-3%
3Y+7.0%
5Y-23.0%
10Y-29.0%
23.57%
Operating Profit Margin
15%
3Y+36.0%
5Y-19.0%
10Y-40.0%
13.06%
Net Profit Margin
24%
3Y+37.0%
5Y-51.0%
10Y-48.0%
7.94%
Return on Equity
26%
3Y+46.0%
5Y-28.0%
10Y-59.0%
2.61%
Return on Assets
21%
3Y+31.0%
5Y-15.0%
10Y-47.0%
4.07%
Return on Invested Capital
13%
3Y+34.0%
5Y+35.0%
10Y-33.0%
PPL

PPL Corporation Cash Conversion Engine

PPL ยท NYSE
Net Income1.18B
Depreciation & Amortization1.42B
Stock-Based Compensation0.00
Change in Working Capital-79.00M
Others-87.00M
Capital Expenditures-4.03B
Free Cash Flow-1.40B

Cash Flow Quality Analysis

FCF Conversion Rate

-118.8%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

CapEx Intensity

153.3%

Very high capital intensity consumes most operating cash flow. Limited flexibility for dividends or debt reduction.

FCF Growth Trend

-201.3%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

-$79.00M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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PPL Corporation Funding & Solvency Profile

PPL ยท NYSE
Cash & Cash Equivalents1.24B
Net Receivables1.42B
Inventory0.00
Other Current Assets0.00
Total Current Assets3 B
Property, Plant & Equipment91.00M
Goodwill & Intangible Assets2.57B
Long-Term Investments0.00
Other Non-Current Assets0.00
Total Non-Current Assets91 M
Total Assets
46.30B

Financial Health Analysis

Current Ratio

1.64x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

1.11x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

6% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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PPL Corporation Street Expectations Map

PPL ยท NYSE

Wall Street analysts project that PPL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 41.63, with estimates ranging from a low of 39.00 to a high of 48.00.

Lowest Target
39.00
10.92%
Consensus Target
41.63
18.40%
Highest Target
48.00
36.52%

The consensus 1-year price target stands at 41.63, with estimates ranging from a low of 39.00 to a high of 48.00.

Analyst Consensus Analysis

Upside Potential

+18.4%

Strong upside potential. Consensus indicates attractive return opportunity with favorable risk-reward profile.

Analyst Agreement

21.6% spread

Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.

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PPL Corporation Insider Positioning

PPL ยท NYSE

During the last 12 months, insiders have sold $655K worth of PPL shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

18.0K

654.95K

Net Activity

-655K

-$655K

Top Buyers

No buying activity

Top Sellers

1
CJRI

Crockett John R Iii

Officer: President Of A Ppl Subsidiary

15.8K sharesโ€ข1 transactions

$577K

2
BDJ

Bonenberger David J

Officer: Evp & Coo-Utilities

2.2K sharesโ€ข1 transactions

$78K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $655K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.70%
Dividend Yield
-9%
3Y-16.0%
5Y-51.0%
10Y-30.0%
ย 

ppl Dividend History

PPL
10Y CAGR 3%
Latest $0.285
Annual $1.3875
Stable dividend payments
Last Period: +0%