PPLNEUTRAL

PPL Return on Equity (ROE) Analysis

8.6%

Updated 1275h 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

34th percentile

PPL

8.6%

Sector Median

13.2%

Sector Avg

16.4%

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.

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.

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PPL

8.6%

Sector Median

13.2%

Sector Avg

16.4%

How PPL's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.