Fact based stock research
PPL (NYSE:PPL)

US69351T1060

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

PPL stock research in summary

pplweb.com

ANALYSIS: With an Obermatt Combined Rank of 91 (better than 91% compared with investment alternatives), PPL (Electric Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of PPL are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives). But they show above-average growth (Growth Rank of 59) and are safely financed (Safety Rank of 95, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 91, is a strong buy recommendation based on PPL's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company PPL exhibits low value (Obermatt Value Rank of 43), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 59). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 95) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	43
Growth Rank	59
Safety Rank	95
Combined Rank	91

Country	USA
Industry	Electric Utilities
Index	Low Emissions, Customer Focus US, SDG 13, SDG 6, SDG 7, SDG 8, SDG 9, S&P 500
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: PPL

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	33	47	43
GROWTH
GROWTH	1	3	97	59
SAFETY
SAFETY	67	77	91	95
SENTIMENT
SENTIMENT	n/a	95	93	^new
360° VIEW
360° VIEW	n/a	49	100	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better PPL is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	24	33	47	43
GROWTH
GROWTH	1	3	97	59
SAFETY
SAFETY	67	77	91	95
COMBINED
COMBINED	18	23	99	91

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of PPL the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), PPL shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for PPL. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 64, which means that the stock price is lower compared with invested capital than for 64% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 30 which means the stock price compared with what market professionals expect for future profits is higher than 70% of comparable companies, indicating a low value concerning PPL's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 64 and for the dividend yields rank which is lower than for 63% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on PPL's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for PPL, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	12	18	36	30
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	1	54	48	40
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	71	59	65	64
DIVIDEND YIELD
DIVIDEND YIELD	94	31	39	37
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	24	33	47	43

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of PPL; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 59 (better than 59% compared with alternatives), PPL shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for PPL. Profit Growth has a rank of 52 which means that currently professionals expect the company to grow its profits more than 52% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 87, and Stock Returns has a rank of 79 which means that the stock returns have recently been above 79% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 14 (86% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 59, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	1	17	59	14
PROFIT GROWTH
PROFIT GROWTH	36	3	83	52
CAPITAL GROWTH
CAPITAL GROWTH	n/a	30	100	87
STOCK RETURNS
STOCK RETURNS	29	25	55	79
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	1	3	97	59

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of PPL.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 95 (better than 95% compared with alternatives) for 2024, the company PPL has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of PPL is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for PPL. Leverage is at 80, meaning the company has a below-average debt-to-equity ratio. It has less debt than 80% of its competitors. Refinancing is at a rank of 89, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 89% of its competitors. Finally, Liquidity is also good at a rank of 76, which means that the company generates more profit to service its debt than 76% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 95 (better than 95% compared with alternatives), PPL has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with PPL but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	82	62	80	80
REFINANCING
REFINANCING	18	100	73	89
LIQUIDITY
LIQUIDITY	88	36	70	76
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	67	77	91	95

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of PPL and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	45	80	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	42	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	85	87	^new
MARKET PULSE
MARKET PULSE	n/a	98	68	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	95	93	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for PPL.
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