PPL Corp Stock Analysis, Valuation (NYSE:PPL)

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$29.88 $0.32 (1.08%) PPL stock closing price Aug 17, 2018 (Closing)

Take a look at Amigobulls PPL Corp stock analysis video. Our PPL analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

PPL Corp Stock Rating 3.5/5

Amigobulls PPL stock analysis uses latest quarter 2018 Q2 financial data like PPL Corp revenue growth, profit margins and cash flows. We compare PPL Corp valuation with its sector peers to gauge relative attractiveness of PPL stock. Based on a company's historical fundamentals we arrive at PPL Corp stock rating which is indicative of the company's financial performance.

Should you buy PPL stock?

  • PPL Corp's average operating margin of 40.97 was exceptional.
  • LTM Net margins were good at 15.4% for PPL Corp.
  • The price to earnings multiple of 12.3 is attractive when compared with the sector average PE ratio of 20.1.
  • PPL Corp is a dividend paying stock with a high yield of 5.48.
  • PPL Corp generates a high return on invested capital of 5.5.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for PPL Corp at 11.1.

Should you sell PPL stock?

  • The company saw an average annual sales decline of -6.4 in sales over the last 5 years.
  • PPL Corp has a debt/equity ratio of 1.96, which is worse than the average in the Utilities sector.
  • The company is trading at a price to sales multiple of 2.7, which is overvalued in comparison to the Utilities sector average multiple of 2.1.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -8.7.

Comments on this video and PPL Corp stock

Investors can use Amigobulls PPL Corp stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, PPL Corp revenue growth and profit or net income are two main metrics which help in identifying whether PPL stock is overvalued or undervalued. Investors could make use of PPL technical analysis to check whether the fundamental story is reflected in the market sentiment.