PPLNEUTRAL

Return on Equity (ROE)

8.3%

Higher than 20% of Utilities sector peers

Updated 177h ago

Sector Performance

20th percentile

PPL

8.3%

Sector Median

9.6%

Sector Avg

8.1%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder investment.

PPL’s current ROE of 8.3% means it earns $0.083 per $1 of equity. This is below the utilities sector median of 9.6%, placing PPL in the 20th percentile among peers — meaning 80% of sector companies achieve a higher ROE. The year-over-year and quarter-over-quarter changes are both N/A, and no trend data is available for the last eight quarters. Because ROE is below the sector median and no trend can be assessed, the current level suggests limited relative profitability without evidence of improvement, which points to moderate risk versus opportunity. This metric directly supports the overall NEUTRAL verdict: the below-median ROE is a weakness, but the lack of trend data prevents a negative conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PPL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PPL's Return on Equity (ROE) compare to its sector?

PPL's Return on Equity (ROE) of 8.3% compares to a Utilities sector median of 9.6%, placing it in the 20th percentile.

Who are PPL's closest peers by Return on Equity (ROE)?

The closest Utilities peers by Return on Equity (ROE) include: PNW (9.6%), PCG (8.8%), ATO (8.8%), AEE (10.9%), LNT (11.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.