PPL (PPL)
Market Price (12/17/2025): $34.0 | Market Cap: $25.1 BilSector: Utilities | Industry: Electric Utilities
PPL (PPL)
Market Price (12/17/2025): $34.0Market Cap: $25.1 BilSector: UtilitiesIndustry: Electric Utilities
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.8%, Dividend Yield is 2.8% | Weak multi-year price returns2Y Excs Rtn is -7.7%, 3Y Excs Rtn is -43% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 65% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, CFO LTM is 2.6 Bil | Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -13% | |
| Low stock price volatilityVol 12M is 18% | Key risksPPL key risks include [1] executing its ambitious $20 billion infrastructure investment plan from 2025 through 2028 and [2] navigating competition for transmission projects within its Pennsylvania Regulated segment. | |
| Megatrend and thematic driversMegatrends include Smart Grids & Grid Modernization, and Electrification of Everything. Themes include Smart Metering, Grid Automation, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.8%, Dividend Yield is 2.8% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 29%, CFO LTM is 2.6 Bil |
| Low stock price volatilityVol 12M is 18% |
| Megatrend and thematic driversMegatrends include Smart Grids & Grid Modernization, and Electrification of Everything. Themes include Smart Metering, Grid Automation, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -7.7%, 3Y Excs Rtn is -43% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 65% |
| Not cash flow generativeFCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -13% |
| Key risksPPL key risks include [1] executing its ambitious $20 billion infrastructure investment plan from 2025 through 2028 and [2] navigating competition for transmission projects within its Pennsylvania Regulated segment. |
Valuation, Metrics & Events
PPL Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Here are five key points explaining potential reasons for a decline in PPL's stock:
1. Rising Interest Rates Outweighing Dividend Appeal. Utility stocks, like PPL, are often seen as bond substitutes due to their stable dividends. However, when interest rates rise, bonds become more attractive to investors, diverting capital away from dividend-yielding utility shares. This shift can decrease demand and pressure valuations in the utility sector. Higher interest rates also increase borrowing costs for utilities, which typically carry significant debt for capital-intensive infrastructure projects, negatively impacting their bottom line.
2. Underperformance Relative to the Utilities Sector. While specific future performance cannot be predicted, in a recent period, PPL's shares gained 1.8% over six months, significantly underperforming the industry's rise of 9.5%. Such underperformance compared to peers can signal underlying concerns or a lack of catalysts, leading investors to re-evaluate their positions.
3. Premium Valuation Compared to Industry Peers. PPL Corporation's shares have traded at a forward 12-month price/earnings (P/E) ratio of 17.4X, which is a premium compared to the Zacks Utility - Electric Power industry's average of 14.79X and the broader Zacks Utilities sector's average of 15.45X. A higher valuation can make a stock more susceptible to price corrections if earnings or growth expectations are not met, or if market sentiment shifts.
4. Increased Interest Expense and Operating Costs. PPL's third-quarter 2023 earnings results were partly driven by higher interest expense. Persistent increases in interest expenses or other operating and maintenance (O&M) costs can squeeze profit margins. While PPL aims for O&M savings by 2026, any unexpected rise in costs could negatively impact financial performance and subsequently the stock price.
5. Shifting Investor Sentiment and Economic Uncertainty. Despite utilities often being considered defensive stocks due to consistent demand for their services, they are not immune to broader market sentiment and economic uncertainty. Fluctuating risk appetites and overall economic concerns can lead investors to reduce exposure even to stable sectors, impacting stock performance.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PPL Return | -17% | 13% | 0% | -4% | 24% | 9% | 22% |
| Peers Return | � | � | � | � | � | � | � |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 110% |
Monthly Win Rates [3] | |||||||
| PPL Win Rate | 67% | 50% | 42% | 67% | 58% | 67% | |
| Peers Win Rate | � | � | � | � | � | � | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| PPL Max Drawdown | -47% | -7% | -18% | -21% | -6% | -2% | |
| Peers Max Drawdown | � | � | � | � | � | � | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: EXC, IMSR, ONE, CEG, SO. See PPL Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/16/2025 (YTD)
How Low Can It Go
| Event | PPL | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -26.8% | -25.4% |
| % Gain to Breakeven | 36.6% | 34.1% |
| Time to Breakeven | 315 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -49.4% | -33.9% |
| % Gain to Breakeven | 97.6% | 51.3% |
| Time to Breakeven | 1947 days | 148 days |
| 2018 Correction | ||
| % Loss | -35.6% | -19.8% |
| % Gain to Breakeven | 55.2% | 24.7% |
| Time to Breakeven | Not Fully Recovered days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -55.7% | -56.8% |
| % Gain to Breakeven | 125.5% | 131.3% |
| Time to Breakeven | Not Fully Recovered days | 1480 days |
Compare to EXC, IMSR, ONE, CEG, SO
In The Past
PPL's stock fell -26.8% during the 2022 Inflation Shock from a high on 1/11/2023. A -26.8% loss requires a 36.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Latest Trefis Analyses
| Title | Topic | Date | |
|---|---|---|---|
| DASHBOARDS | |||
| PPL Earnings Notes | |||
| With PPL Stock Sliding, Have You Assessed The Risk? | Return | ||
| PPL vs Apollo Asset Management: Which Is A Better Investment? | Counter-Intuitive Comparisons | ||
| PPL vs Eversource Energy: Which Is A Better Investment? | Counter-Intuitive Comparisons | ||
| null | |||
| Better Bet Than PPL Stock: Pay Less Than PPL To Get More From CCL, IBKR | |||
| Better Bet Than PPL Stock: Pay Less Than PPL To Get More From BIPC | |||
| PPL Dip Buy Analysis | |||
| PPL Total Shareholder Return (TSR): 26.7% in 2024 and 9.6% 3-yr compounded annual returns (above peer average) | |||
| PPL (PPL) Operating Cash Flow Comparison | Financials | ||
| ARTICLES | |||
| Mid Cap Stocks Trading At 52-Week High | July 23rd, 2025 |
Trade Ideas
Select past ideas related to PPL. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | PEG | Public Service Enterprise | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -0.9% | -0.9% | -2.4% |
| 09262025 | PCG | PG&E | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 2.2% | 2.2% | -0.8% |
| 09052025 | AES | AES | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.7% | 6.7% | -3.2% |
| 11302023 | PPL | PPL | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.4% | 38.6% | -1.7% |
| 02282023 | PPL | PPL | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -5.0% | 0.6% | -14.4% |
| 03312020 | PPL | PPL | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 12.1% | 23.8% | -11.8% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | PEG | Public Service Enterprise | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -0.9% | -0.9% | -2.4% |
| 09262025 | PCG | PG&E | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 2.2% | 2.2% | -0.8% |
| 09052025 | AES | AES | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 6.7% | 6.7% | -3.2% |
| 11302023 | PPL | PPL | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 11.4% | 38.6% | -1.7% |
| 02282023 | PPL | PPL | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -5.0% | 0.6% | -14.4% |
| 03312020 | PPL | PPL | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 12.1% | 23.8% | -11.8% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for PPL
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 43.76 |
| Mkt Cap | 69.3 |
| Rev LTM | 24,317 |
| Op Inc LTM | 3,017 |
| FCF LTM | -1,136 |
| FCF 3Y Avg | -1,608 |
| CFO LTM | 2,592 |
| CFO 3Y Avg | 3,735 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.2% |
| Rev Chg 3Y Avg | 6.2% |
| Rev Chg Q | 8.0% |
| QoQ Delta Rev Chg LTM | 2.0% |
| Op Mgn LTM | 20.8% |
| Op Mgn 3Y Avg | 19.8% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 26.5% |
| CFO/Rev 3Y Avg | 24.0% |
| FCF/Rev LTM | -6.6% |
| FCF/Rev 3Y Avg | -9.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 69.3 |
| P/S | 3.3 |
| P/EBIT | 12.6 |
| P/E | 24.3 |
| P/CFO | 10.9 |
| Total Yield | 7.0% |
| Dividend Yield | 2.9% |
| FCF Yield 3Y Avg | -4.4% |
| D/E | 0.7 |
| Net D/E | 0.7 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -4.7% |
| 3M Rtn | -0.1% |
| 6M Rtn | 4.1% |
| 12M Rtn | 16.9% |
| 3Y Rtn | 34.2% |
| 1M Excs Rtn | -5.7% |
| 3M Excs Rtn | -3.9% |
| 6M Excs Rtn | -9.5% |
| 12M Excs Rtn | 3.5% |
| 3Y Excs Rtn | -37.1% |
Segment Financials
Assets by Segment
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Kentucky Regulated | 17,029 | 16,904 | 16,360 | 15,943 | 15,597 |
| Pennsylvania Regulated | 14,294 | 13,565 | 13,336 | 12,347 | 11,918 |
| Rhode Island Regulated | 6,515 | 6,081 | |||
| Corporate and Other | 1,398 | 1,287 | 3,527 | 843 | 543 |
| Assets Held for Sale | 18,983 | ||||
| U.K. Regulated | 17,622 | ||||
| Total | 39,236 | 37,837 | 33,223 | 48,116 | 45,680 |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/5/2025 | 0.3% | 1.7% | -5.8% |
| 7/31/2025 | -1.0% | 0.3% | 1.4% |
| 4/30/2025 | 0.3% | -0.7% | -5.4% |
| 2/13/2025 | -0.3% | -1.1% | 1.9% |
| 11/1/2024 | -3.1% | -0.7% | 5.8% |
| 8/2/2024 | 1.1% | 0.7% | 5.3% |
| 5/1/2024 | 2.0% | 3.2% | 4.0% |
| 2/16/2024 | 0.7% | 1.3% | 2.6% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 15 |
| # Negative | 10 | 11 | 8 |
| Median Positive | 1.3% | 3.0% | 4.0% |
| Median Negative | -1.0% | -1.8% | -5.6% |
| Max Positive | 7.5% | 7.0% | 26.2% |
| Max Negative | -3.1% | -2.7% | -33.9% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 11052025 | 10-Q 9/30/2025 |
| 6302025 | 7312025 | 10-Q 6/30/2025 |
| 3312025 | 4302025 | 10-Q 3/31/2025 |
| 12312024 | 2132025 | 10-K 12/31/2024 |
| 9302024 | 11012024 | 10-Q 9/30/2024 |
| 6302024 | 8022024 | 10-Q 6/30/2024 |
| 3312024 | 5012024 | 10-Q 3/31/2024 |
| 12312023 | 2162024 | 10-K 12/31/2023 |
| 9302023 | 11022023 | 10-Q 9/30/2023 |
| 6302023 | 8042023 | 10-Q 6/30/2023 |
| 3312023 | 5042023 | 10-Q 3/31/2023 |
| 12312022 | 2172023 | 10-K 12/31/2022 |
| 9302022 | 11042022 | 10-Q 9/30/2022 |
| 6302022 | 8032022 | 10-Q 6/30/2022 |
| 3312022 | 5052022 | 10-Q 3/31/2022 |
| 12312021 | 2182022 | 10-K 12/31/2021 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |