PPL Gross Profit vs. Profit Margin

PPL Stock  USD 34.45  0.40  1.15%   
Taking into consideration PPL's profitability measurements, PPL Corporation is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in December. Profitability indicators assess PPL's ability to earn profits and add value for shareholders.
 
Gross Profit  
First Reported
1985-09-30
Previous Quarter
492 M
Current Value
1.2 B
Quarterly Volatility
336.9 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
The value of Price To Sales Ratio is estimated to slide to 1.35. The value of Days Sales Outstanding is estimated to slide to 43.72. At this time, PPL's Net Income From Continuing Ops is quite stable compared to the past year. Change To Netincome is expected to rise to about 500.1 M this year, although the value of Total Other Income Expense Net is projected to rise to (670.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.650.6156
Notably Up
Very volatile
Net Profit Margin0.0960.089
Significantly Up
Pretty Stable
Operating Profit Margin0.210.1961
Notably Up
Pretty Stable
Pretax Profit Margin0.140.1112
Significantly Up
Pretty Stable
Return On Assets0.02390.0189
Significantly Up
Slightly volatile
Return On Equity0.05050.0531
Notably Down
Slightly volatile
For PPL profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PPL to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PPL Corporation utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PPL's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PPL Corporation over time as well as its relative position and ranking within its peers.
  

PPL's Revenue Breakdown by Earning Segment

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Is Electric Utilities space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PPL. If investors know PPL will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PPL listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.07)
Dividend Share
1.013
Earnings Share
1.11
Revenue Per Share
11.229
Quarterly Revenue Growth
0.011
The market value of PPL Corporation is measured differently than its book value, which is the value of PPL that is recorded on the company's balance sheet. Investors also form their own opinion of PPL's value that differs from its market value or its book value, called intrinsic value, which is PPL's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PPL's market value can be influenced by many factors that don't directly affect PPL's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PPL's value and its price as these two are different measures arrived at by different means. Investors typically determine if PPL is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PPL's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

PPL Corporation Profit Margin vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining PPL's current stock value. Our valuation model uses many indicators to compare PPL value to that of its competitors to determine the firm's financial worth.
PPL Corporation is regarded fifth in gross profit category among its peers. It also is regarded fifth in profit margin category among its peers . The ratio of Gross Profit to Profit Margin for PPL Corporation is about  29,015,075,377 . At this time, PPL's Gross Profit is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value PPL by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

PPL Profit Margin vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

PPL

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.89 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

PPL

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.1 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

PPL Profit Margin Comparison

PPL is currently under evaluation in profit margin category among its peers.

PPL Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in PPL, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PPL will eventually generate negative long term returns. The profitability progress is the general direction of PPL's change in net profit over the period of time. It can combine multiple indicators of PPL, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-163 M-171.2 M
Operating Income1.6 B2.2 B
Net Income740 MB
Income Tax Expense184 M195.8 M
Income Before Tax924 M1.4 B
Total Other Income Expense Net-706 M-670.7 M
Net Income Applicable To Common Shares869.4 MB
Net Income From Continuing Ops775 M999.9 M
Non Operating Income Net Other48.6 M46.2 M
Interest Income32 M30.4 M
Net Interest Income-618 M-648.9 M
Change To Netincome349.6 M500.1 M
Net Income Per Share 1.00  1.21 
Income Quality 2.38  2.26 
Net Income Per E B T 0.80  0.50 

PPL Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on PPL. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PPL position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PPL's important profitability drivers and their relationship over time.

Use PPL in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PPL position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PPL will appreciate offsetting losses from the drop in the long position's value.

PPL Pair Trading

PPL Corporation Pair Trading Analysis

The ability to find closely correlated positions to PPL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PPL when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PPL - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PPL Corporation to buy it.
The correlation of PPL is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PPL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PPL Corporation moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PPL can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your PPL position

In addition to having PPL in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Small Value Funds Thematic Idea Now

Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 35 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Small Value Funds Theme or any other thematic opportunities.
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When determining whether PPL Corporation is a strong investment it is important to analyze PPL's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact PPL's future performance. For an informed investment choice regarding PPL Stock, refer to the following important reports:
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You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
To fully project PPL's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PPL Corporation at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PPL's income statement, its balance sheet, and the statement of cash flows.
Potential PPL investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although PPL investors may work on each financial statement separately, they are all related. The changes in PPL's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on PPL's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.