Electric Services
PPL Corporation, a utility holding company, delivers electricity and natural gas in the United States and the United Kingdom. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company serves customers in Louisville and adjacent areas in Kentucky; electric customers in central, southeastern, and western Kentucky; and electric customers in five counties in southwestern Virginia. It also delivers electricity to customers in 29 counties within eastern and central Pennsylvania; and generates electricity from coal, gas, hydro, and solar sources in Kentucky; and sells wholesale electricity to two municipalities in Kentucky. The company was founded in 1920 and is headquartered in Allentown, Pennsylvania.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 8.9% | 25% | 15% | 23% | 22% | 19% | -26% | 9.6% | 8.9% | 9.3% |
ROA | 7.5% | 9% | 7.4% | 6.6% | 6.2% | 5.8% | 4.3% | 3.6% | 4.2% | 4.2% |
ROE | 6.9% | 19% | 10% | 16% | 13% | 11% | -11% | 5.4% | 5.3% | 5.4% |
The average Net Margin over the past 5 years is +9.68%.
The trend of Net Margin over the past 5 years is -4.47%.
The average ROA over the past 5 years is +5.11%.
The trend of ROA over the past 5 years is -0.61%.
The average ROE over the past 5 years is +6.67%.
The trend of ROE over the past 5 years is -2.79%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | -21.88 | -644.07 | -31.79 | -53.06 | -35.33 | -49.52 | 39.48 | -33.74 | -24.95 | -18.29 |
Debt Equity | 2.03 | 1.95 | 1.99 | 1.90 | 1.78 | 1.86 | 0.85 | 1.03 | 1.13 | 1.14 |
MIN | ||||||||||
Graham Stability | - | - | 78% | 100% | 100% | 94% | -88% | 100% | 100% | -88% |
The Debt/FCF trailing twelve month is -18.29.
The trend of Debt/FCF over the past 5 years is 6.69.
Graham’s Stability measure stands at -0.88.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 1.4% | 1.3% | 3% | 5.2% | 3.6% |
Net Income | -13% | -17% | -20% | -2.1% | -4.9% |
Stockholders Equity | 5% | 3.6% | 1.4% | 0.11% | 1.6% |
FCF | - | - | - | - | - |
The Revenue CAGR over the past 5 years is +1.32%.
The trend of Revenue growth rate over the past 5 years is +3.62%.
The Earnings CAGR over the past 5 years is -16.56%.
The trend of Earnings growth rate over the past 5 years is -4.95%.
The Equity CAGR over the past 5 years is +3.63%.
The trend of Equity growth rate over the past 5 years is +1.61%.
The FCF CAGR over the past 5 years is +8.67%.
The trend of FCF growth rate over the past 5 years is -.