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PPL

NEUTRAL
$37.6 Live
PPL Corporation · NYSE
Target $42.13 (+12.1%)
$33.12 52W Range $40.11

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AI Analysis

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Confidence
80%
PPL Corporation presents a stable but uninspiring profile, anchored by a Piotroski F-Score of 4/9, which indicates stable financial health without strong momentum. The stock is currently priced at $37.60, sitting comfortably between its conservative Graham Number ($26.62) and its growth-based Intrinsic Value ($46.91). While the company shows impressive year-over-year earnings growth of 49.9%, this is contrasted by sluggish revenue growth (2.8%) and a bearish technical trend (0/100). Overall, it functions as a typical regulated utility: low risk, moderate reward, but currently facing liquidity pressures.

Key Strengths

Strong earnings growth (49.9% YoY) significantly outperforming revenue growth
Superior profit margins (13.06%) compared to the utility sector average (7.08%)
Debt-to-Equity ratio (1.31) is lower than the sector average (1.66)
Regulated business model provides a predictable revenue floor
Trading below the analyst mean target price of $42.13

Key Risks

Poor short-term liquidity with a Current Ratio of 0.86 and Quick Ratio of 0.63
Severe bearish technical trend (0/100) suggesting lack of market conviction
Organic revenue growth (2.8%) is significantly lower than the sector average (21.73%)
High payout ratio (68.55%) limits the room for aggressive dividend increases
Recent Q/Q EPS growth decline of -14.6% indicates potential volatility
AI Fair Value Estimate
Based on comprehensive analysis
$39.25
+4.4% above current price

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