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PPL Corp PPL

Morningstar Rating
$26.37 +0.13 (0.50%)
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Company Report

PPL Earnings: Increased Capital Investment Plan Supports Extended Growth Outlook

We are maintaining our $29 per share fair value estimate for PPL after the company reported full-year 2023 operating earnings of $1.60 per share compared with $1.41 in 2022. The company narrowed its full-year 2024 EPS guidance range to $1.63-$1.75, in line with our estimate. The company's 6%-8% annual earnings and dividend growth outlook was extended through 2027, consistent with our 7% earnings growth estimate. The company also announced a 7.3% dividend increase, in line with our expectations. PPL trades at a 9% discount to our fair value estimate as of Feb. 15 in a sector we view as 11% undervalued. The company has near-term regulatory clarity, with no rate cases planned across its service territories in 2024, after the company received a better-than-expected outcome at its Kentucky subsidiary.

Price vs Fair Value

PPL is trading at a 10% discount.
Price
$26.24
Fair Value
$13.00
Uncertainty
Low
1-Star Price
$73.88
5-Star Price
$73.60
Economic Moat
Dvwhms
Capital Allocation
Mmzdchw

Bulls Say, Bears Say

Bulls

PPL's domestic regulated earnings mix provides a stable base for earnings growth.

Bears

PPL's regulated operations in Kentucky and Pennsylvania offer investors less growth than some high-growth peers.

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News

Trading Information

Previous Close Price
$26.24
Day Range
$26.1426.57
52-Week Range
$22.2029.04
Bid/Ask
$26.00 / $26.80
Market Cap
$19.45 Bil
Volume/Avg
6.8 Mil / 6.0 Mil

Key Statistics

Price/Earnings (Normalized)
17.73
Price/Sales
2.33
Dividend Yield (Trailing)
3.66%
Dividend Yield (Forward)
3.93%
Total Yield
3.66%

Company Profile

PPL is a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island. The Pennsylvania regulated delivery and transmission segment distributes electricity to customers in central and eastern Pennsylvania. LG&E and KU are involved in regulated electricity generation, transmission, and distribution in Kentucky. The Kentucky utilities also serve gas customers. Rhode Island Energy operates electric and gas utilities in Rhode Island.
Sector
Utilities
Industry
Utilities - Regulated Electric
Stock Style Box
Mid Core
Total Number of Employees
6,629

Competitors

Valuation

Metric
PPL
FE
DUK
Price/Earnings (Normalized)
17.7314.4516.06
Price/Book Value
1.392.031.48
Price/Sales
2.331.642.41
Price/Cash Flow
10.2111.877.27
Price/Earnings
PPL
FE
DUK

Financial Strength

Metric
PPL
FE
DUK
Quick Ratio
0.590.320.25
Current Ratio
0.880.480.74
Interest Coverage
2.342.432.57
Quick Ratio
PPL
FE
DUK

Profitability

Metric
PPL
FE
DUK
Return on Assets (Normalized)
3.08%2.64%0.49%
Return on Equity (Normalized)
8.47%11.99%1.85%
Return on Invested Capital (Normalized)
5.87%6.06%2.77%
Return on Assets
PPL
FE
DUK
See how this stock stacks up to its competitors with Morningstar Investor

Utilities - Regulated Electric Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
NEE
NextEra Energy IncNvqssn$113.0 Bil
SO
Southern CoVwcrcsc$72.9 Bil
DUK
Duke Energy CorpTmvznp$69.9 Bil
NGG
National Grid PLC ADRXnpr$48.6 Bil
AEP
American Electric Power Co IncGzbxc$43.8 Bil
PCG
PG&E CorpDqdp$43.3 Bil
D
Dominion Energy IncVfmwhx$40.5 Bil
EXC
Exelon CorpWzwrwv$35.8 Bil
XEL
Xcel Energy IncQfgpm$32.0 Bil
PEG
Public Service Enterprise Group IncLwcvp$31.2 Bil

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