PPL PPL
PPL Corporation is a regulated utility that generates, transmits, and distributes electricity in Pennsylvania, Kentucky, and Virginia, with a business model based on regulated rates and a growing asset base. PPL shows acceptable financial health (6.48) but with high leverage (net debt/EBITDA 5.33) and negative free cash flow conversion (-51.57), which weighs on quality (3.58). Its valuation is reasonable (P/E 18.95) and the dividend is attractive (3.56%), although momentum is weak (6th percentile of 52-week range).
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
PPL Corporation is a regulated utility that generates, transmits, and distributes electricity in Pennsylvania, Kentucky, and Virginia, with a business model based on regulated rates and a growing asset base. PPL shows acceptable financial health (6.48) but with high leverage (net debt/EBITDA 5.33) and negative free cash flow conversion (-51.57), which weighs on quality (3.58). Its valuation is reasonable (P/E 18.95) and the dividend is attractive (3.56%), although momentum is weak (6th percentile of 52-week range).
Score by category
| Category | Score |
|---|---|
| Financial health | 6.1 |
| Quality / Moat | 3.6 |
| Valuation | 4.7 |
| Growth | 6.3 |
| Dividend | 7.3 |
| Momentum | 3.8 |
| Risk & Context | 7.6 |
OVERALL SCORE: 5.8/10
Context and risks
PPL operates in a regulated sector in the US, where governance is solid but regulatory risk is inherent to rate-setting. The rise in 10-year Treasury yields (5.17%) increases the cost of capital and pressures the valuation of a utility with high debt (net debt/EBITDA 5.33), although the regulatory framework allows cost pass-through to tariffs with a time lag.
Verdict: Hold; the dividend and stable regulation provide support, but leverage and sensitivity to rates limit upside potential.
Main risk: High leverage (net debt/EBITDA 5.33) and negative free cash flow conversion (-51.57) make PPL vulnerable to a rising rate environment, which increases debt service costs and pressures valuation.
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