PPLNEUTRAL

PPL Return on Equity (ROE) Analysis

8.6%

Updated 153h ago·SEC filings & market data

Key Takeaway

For every $100 of shareholder equity, PPL earns $8.60 in profit, so its Return on Equity (ROE) of 8.6% measures how efficiently the company uses invested capital.

Sector Performance

33th percentile

PPL

8.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

8.3%(Aug 2026)

↑ Improving

📊

Deep Analysis

For every $100 of shareholder equity, PPL earns $8.60 in profit, so its Return on Equity (ROE) of 8.6% measures how efficiently the company uses invested capital.

That level sits below the sector median of 13.5%, placing PPL at the 32nd percentile among peers, meaning most competitors generate higher returns from equity. The year-over-year change is not available, but the quarter-over-quarter increase of +3.6% moved ROE from 8.3% to 8.6%, with the prior eight-quarter trend also not available. The combination of an ROE below the sector median and only a recent quarterly uptick points to average profitability that lacks a clear momentum signal. Because the improvement is small and historical context is missing, the risk/opportunity profile is balanced rather than compelling. This metric supports the overall NEUTRAL verdict, as PPL’s profitability is neither strong enough to warrant bullishness nor weak enough to justify a bearish view.

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.

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

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.