PPL Corporation (PPL) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on PPL

PPL Corporation's recent performance has been driven by constructive regulatory jurisdiction, stable capital investment, and rising demand in its service territories. The company's ability to predict equipment issues before they become a problem, as evidenced by its recent industry award for innovative distribution technology, is expected to enhance public safety, improve reliability, and drive operational efficiencies. Additionally, PPL's systematic expenditure to strengthen operations and its rising estimates are contributing to its positive performance.

1.c. Company Highlights

Last Price	33.86
Change Percentage	-0.88%
Open	34.1
Previous Close	34.16
Market Cap ( Millions)	25043
Volume	9087769
Year High	38.27
Year Low	31.22
M A 50	36.72
M A 200	35.59

FCF Yield	-3.41%
Dividend Yield	3.17%
ROE	6.96%
Debt / Equity	124.58%
Net Debt / EBIDTA	519.38%
Price To Book	1.75
Price Earnings Ratio	25.34
Price To FCF	-29.29
Price To sales	2.84
EV / EBITDA	12.62

2. PPL Corporation's Earnings Beat Expectations, Driven by Strong Operational Performance

PPL Corporation reported third-quarter GAAP earnings of $0.43 per share, with adjusted earnings from ongoing operations of $0.48 per share, beating analyst estimates of $0.46 per share. The company's financial performance was driven by higher sales volumes, lower operating costs, and increased earnings from capital investments, particularly in its Kentucky segment. Revenue growth is expected to continue, with analysts estimating a 4.3% increase in revenues for the next year. The company's ability to deliver strong operational performance while investing in infrastructure improvements is reflected in its narrowed 2025 ongoing earnings forecast range of $1.78 to $1.84 per share, maintaining a midpoint of $1.81 per share.

Publication Date: Nov -09

                                    📋 Highlights
                                    Q3 Earnings Growth::
                                                GAAP EPS rose to $0.43 (vs. $0.29 in 2024), with adjusted earnings at $0.48 (+$0.06 YoY).
2025 Earnings Forecast::
                                                Narrowed range to $1.78–$1.84/share, maintaining $1.81 midpoint for ongoing operations.
Infrastructure Investment::
                                                $4.3B in 2024 projects and $20B from 2025–2028, supporting 9.8% annual rate base growth.
Data Center Pipeline::
                                                20.5 GW total (11 GW announced, 5 GW under construction) with $1B+ CapEx for infrastructure.
EPS & Dividend Growth::
                                                Anticipates 6–8% annual EPS and dividend growth through 2028, backed by $300M+ base rate case settlements in KY.

                                

Regulatory Updates and Rate Case Proceedings

PPL's regulated utilities made significant progress in their rate case proceedings, with LG&E and KU reaching a proposed settlement agreement that includes a revised aggregate increase of approximately $235 million in annual revenues and an authorized ROE of 9.9%. PPL Electric Utilities also filed a request to increase annual base distribution revenues by $300 million, representing its first distribution base rate change in over a decade. These regulatory updates demonstrate PPL's commitment to investing in its infrastructure while balancing customer affordability.

Data Center Pipeline and Growth Opportunities

PPL's data center pipeline in Pennsylvania has grown to 20.5 gigawatts, with over 11 gigawatts publicly announced and 5 gigawatts under construction. The company has updated its CapEx estimates related to the 20.5 gigawatts to at least $1 billion, driven by the growing demand for data center capacity. As Vincent Sorgi noted, the company is closely monitoring the pipeline, particularly the 2.8 gigawatts of probability-weighted forecast, and is well-positioned to take advantage of growing interest in data center companies shoring up generation.

Valuation and Growth Prospects

With a P/E Ratio of 27.37 and an expected earnings growth rate of 6% to 8% per annum through at least 2028, PPL's valuation appears reasonable. The company's Dividend Yield of 2.94% provides a stable source of return, while its ROE of 6.96% indicates a relatively healthy return on equity. As PPL continues to invest in its infrastructure and capitalize on growth opportunities, its prospects for long-term growth and returns appear promising.

3. NewsRoom

PPL vs. AEE: Which Dividend-Paying Utility Looks More Attractive?

Nov -27

Source: zacks.com

Creative Planning Sells 8,634 Shares of Pembina Pipeline Corp. $PBA

Nov -24

Source: defenseworld.net

PPL to Pay Quarterly Stock Dividend Jan 2, 2026

Nov -21

Source: prnewswire.com

PPL Underperforms Its Industry in Six Months: How to Play the Stock?

Nov -20

Source: zacks.com

PPL Capital Funding, Inc. announces pricing of $1 billion of 3.000% Exchangeable Senior Notes

Nov -20

Source: prnewswire.com

PPL Capital Funding, Inc. announces proposed private placement of $1 billion of Exchangeable Senior Notes

Nov -19

Source: prnewswire.com

First Look: HD cuts outlook, NVDA watched, Alphabet stake, Novo cuts

Nov -18

Source: gurufocus.com

Campbell & CO Investment Adviser LLC Invests $304,000 in Pembina Pipeline Corp. $PBA

Nov -18

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.14%)

6. Segments

Kentucky Regulated

Expected Growth: 4%

Kentucky Regulated's 4% growth is driven by increasing electricity demand, favorable weather patterns, and a strong economy. Additionally, PPL Corporation's investments in grid modernization and renewable energy sources contribute to the segment's growth. Furthermore, the company's focus on operational efficiency and cost management also support its growth momentum.

Pennsylvania Regulated

Expected Growth: 5%

Pennsylvania Regulated segment of PPL Corporation is driven by a 5% growth rate, attributed to increasing electricity demand, infrastructure investments, and favorable regulatory environment. Additionally, the segment benefits from a rate base growth of 6.5%, driven by transmission and distribution capital expenditures, as well as a strong track record of cost management and operational efficiency.

Rhode Island Regulated

Expected Growth: 3%

Rhode Island Regulated segment's 3% growth is driven by increasing electricity demand, favorable weather patterns, and infrastructure investments. Additionally, PPL Corporation's focus on grid modernization, renewable energy integration, and customer-centric initiatives contribute to the segment's growth.

Corporate and Other

Expected Growth: 2%

PPL Corporation's Corporate and Other segment growth is driven by strategic investments in renewable energy, expansion of energy storage capabilities, and cost savings initiatives. Additionally, the company's focus on grid modernization and infrastructure upgrades contributes to its 2% growth. These efforts enhance operational efficiency, reduce costs, and position the company for long-term success.

7. Detailed Products

Electricity Generation

PPL Corporation generates electricity through its power plants, using a diverse mix of fuels including coal, natural gas, and renewable energy sources.

Electricity Transmission

PPL Corporation owns and operates a vast network of high-voltage transmission lines, substations, and switchyards that transport electricity from power plants to the grid.

Electricity Distribution

PPL Corporation distributes electricity to customers through its network of power lines, substations, and distribution transformers.

Natural Gas Distribution

PPL Corporation distributes natural gas to customers through its network of pipelines, providing a clean and efficient source of energy.

Renewable Energy

PPL Corporation invests in renewable energy sources, such as wind and solar power, to reduce its carbon footprint and provide clean energy to customers.

8. PPL Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for PPL Corporation is moderate due to the availability of alternative energy sources such as wind and solar power.

Bargaining Power Of Customers

The bargaining power of customers for PPL Corporation is low due to the lack of alternative energy providers in the region.

Bargaining Power Of Suppliers

The bargaining power of suppliers for PPL Corporation is moderate due to the presence of multiple fuel suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for PPL Corporation is low due to the high barriers to entry in the energy industry, including regulatory hurdles and high capital requirements.

Intensity Of Rivalry

The intensity of rivalry for PPL Corporation is high due to the presence of multiple energy providers in the region, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	52.86%
Debt Cost	5.30%
Equity Weight	47.14%
Equity Cost	8.04%
WACC	6.59%
Leverage	112.14%

11. Quality Control: PPL Corporation passed 0 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Pinnacle West Capital

A-Score: 6.4/10

Value: 5.9

Growth: 5.2

Quality: 4.1

Yield: 8.0

Momentum: 5.5

Volatility: 10.0

1-Year Total Return ->

CenterPoint Energy

A-Score: 6.4/10

Value: 5.7

Growth: 3.4

Quality: 6.0

Yield: 5.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Ameren

A-Score: 6.4/10

Value: 5.3

Growth: 4.8

Quality: 4.5

Yield: 6.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

PPL

A-Score: 6.3/10

Value: 4.9

Growth: 4.2

Quality: 4.1

Yield: 7.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

Alliant Energy

A-Score: 6.1/10

Value: 4.8

Growth: 4.2

Quality: 4.9

Yield: 6.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

CMS Energy

A-Score: 5.7/10

Value: 4.1

Growth: 4.1

Quality: 4.2

Yield: 6.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

33.48%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.59%

PPL Corporation - US69351T1060

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PPL

1.c. Company Highlights

Lower Growth

Medium Volatility

Stable Momentum

Earnings Beats

Revenues Miss

Earnings Miss

Revenues Beats

Average Quality

Average Growth

Lower Quality

Average Yield

2. PPL Corporation's Earnings Beat Expectations, Driven by Strong Operational Performance

Regulatory Updates and Rate Case Proceedings

Data Center Pipeline and Growth Opportunities

Valuation and Growth Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.14%)

6. Segments

Kentucky Regulated

Expected Growth: 4%

Pennsylvania Regulated

Expected Growth: 5%

Rhode Island Regulated

Expected Growth: 3%

Corporate and Other

Expected Growth: 2%

7. Detailed Products

Electricity Generation

Electricity Transmission

Electricity Distribution

Natural Gas Distribution

Renewable Energy

8. PPL Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: PPL Corporation passed 0 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

33.86$

Current Price

33.86$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA