PPL Corporation [NYSE:PPL]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For PPL Corporation [PPL], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give PPL an Hold rating. Its stock price has been found in the range of 25.30 to 32.46. This is compared to its latest closing price of $31.73.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for PPL Corporation [PPL] is sitting at 2.60. This is compared to 1 month ago, when its average rating was 2.53.
For the quarter ending in Dec-18 PPL Corporation [PPL] generated $1.94 billion in sales. That’s 4.30% higher than the average estimate of $1.86 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 2 May (In 64 Days).
Fundamental Analysis of PPL Corporation [PPL]
Now let’s turn to look at profitability: with a current Operating Margin for PPL Corporation [PPL] sitting at +36.63 and its Gross Margin at +40.64, this company’s Net Margin is now 23.40%. These measurements indicate that PPL Corporation [PPL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 8.68, and its Return on Invested Capital has reached 7.10%. Its Return on Equity is 16.28, and its Return on Assets is 4.30. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates PPL financial performance.
Turning to investigate this organization’s capital structure, PPL Corporation [PPL] has generated a Total Debt to Total Equity ratio of 188.98. Similarly, its Total Debt to Total Capital is 65.40, while its Total Debt to Total Assets stands at 50.76. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 172.16, and its Long-Term Debt to Total Capital is 59.58. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 10.91 and its Total Debt to EBITDA Value is 5.45. The Enterprise Value to Sales for this firm is now 5.67, and its Total Debt to Enterprise Value stands at 0.53. PPL Corporation [PPL] has a Price to Book Ratio of 1.75, a Price to Cash Flow Ratio of 7.12 and P/E Ratio of 12.42. These metrics all suggest that PPL Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, PPL Corporation [PPL] earns $625,603 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.01 and its Total Asset Turnover is 0.18. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.47 and its Current Ratio is 0.53. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
PPL Corporation [PPL] has 715.92M shares outstanding, amounting to a total market cap of $22.86B. Its stock price has been found in the range of 25.30 to 32.46. At its current price, it has moved by -1.63% from its 52-week high, and it has moved 26.21% from its 52-week low.
This stock’s Beta value is currently 0.58, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 72.08. This RSI suggests that PPL Corporation is currently Overbought.
Conclusion: Is PPL Corporation [PPL] a Reliable Buy?
Shares of PPL Corporation [PPL], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.