PPL Corp

Where It Passes

Where It Falls Short

• Debt & Leverage0% pass✗ 15▾

  All 12 investors flag PPL's debt & leverage

  LT Debt vs Net Current AssetsLT Debt $19.9B vs NCA $-1.1B

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.33, IC: 2.6x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.33

  ✗Lynch< 0.33

  Cash - Long-term Debt$-19.5B

  ✗LynchPositive preferred

  LT Debt / Total Assets Change38.84% -> 39.76%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.75

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.33

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.33

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=2.6x, D/EBITDA=N/A (D&A unavailable)

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.33

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.3289; #3502/4210 (top 83.2%)

  ✗AsnessTop 30% of eligible cross-section
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio0.75

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)4.7%

  ✗Buffett> 10%

  ROIC - WACC-5.3%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)6.3%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.86 -> 0.86

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.21x -> 0.20x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.75

  ✗Dreman> 1.5

  Return on Invested Capital5.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=4.5%; FY2024: ROIC=4.5%; FY2025: ROIC=5.0%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC1.9% (RR=37% x ROIC=5.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 5.0%)

  ✗SleepROIC > 12% in a majority of years
• Valuation models0% pass✗ 6▾

  PPL overvalued: all 6 models price fair value below $35.67 (median $20.27)

  Graham fair value$26.62

  ✗Graham-34.0% margin vs $35.67

  Greenblatt fair value$19.28

  ✗Greenblatt-85.0% margin vs $35.67

  Dreman fair value$18.95

  ✗Dreman-88.2% margin vs $35.67

  Akre fair value$27.65

  ✗Akre-29.0% margin vs $35.67

  Marks fair value$21.25

  ✗Marks-67.9% margin vs $35.67

  Templeton fair value$8.64

  ✗Templeton-312.8% margin vs $35.67
• Valuation8% pass✓ 5✗ 23▾

  12 of 13 flag PPL's valuation — Graham, Lynch, Greenblatt +9 more

  Net income / market capitalization+4.90%; #1720/6340 (top 27.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS28.2x

  ✗Graham<= 15x

  Price-to-Book Ratio1.8x

  ✗Graham<= 1.5x

  P/E x P/B50.80

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)P/E 22.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.1%, ROC=6.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS22.4x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)10.2x

  ✗Dreman< 8x

  Price / Book Value per Share1.8x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=22.4x

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=22.4x, FCF Yield=-5.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=22.4x, P/B=1.8x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-88.2% (IV=$18.95 vs Price=$35.67)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low109% of trailing low ($32.58)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.5664; #2621/6449 (top 40.6%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS22.4x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E-0.03

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share2.18x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change+13.9%

  ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.3596; #3075/5247 (top 58.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-7.78%; #3141/4519 (top 69.5%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date+0.79%; #2612/6202 (top 42.1%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability13% pass✓ 11✗ 24▾

  14 of 16 flag PPL's profitability — Graham, Buffett, Lynch +11 more

  Net income / market capitalization+4.90%; #1720/6340 (top 27.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)17/28 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)26/28 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)2.8%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)23.5% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)0.64

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)P/E 22.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-3.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE8.6%

  ✗Lynch> 15%

  EBIT / Enterprise Value5.1%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=5.1%, ROC=6.3%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets2.61%

  ✓PiotroskiROA > 0

  ROA Change YoY2.16% -> 2.61% (delta: +0.45%)

  ✓PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=5.81%, ROA=2.61%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue16.8%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity8.6%

  ✗Dreman> 12%

  Margin of SafetyP/E=22.4x, P/B=1.8x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity6.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-88.2% (IV=$18.95 vs Price=$35.67)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency26/27 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue24.5%

  ✓Ackman>= 15%

  Net Income / Shareholders Equity8.6%

  ✗Ackman>= 15%

  5-Year EPS CAGR-3.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend19.6% (2023) -> 23.5% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 19.6% -> 23.5%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+8.65%; #2011/5226 (top 38.5%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0266; #1758/5884 (top 29.9%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR-3.6% over 5 years

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years9/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag PPL's cash flow — Buffett, Lynch, Dreman +5 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing$-2.1B

  ✗LynchPositive and growing

  Operating Cash Flow$2.6B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=5.81%, ROA=2.61%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)10.2x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=22.4x, FCF Yield=-5.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/18 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-7.8%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency26/26 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-2.1B

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-7.78%; #3141/4519 (top 69.5%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Verdicts33% pass✓ 5✗ 10▾

  Split decision: 9 FAIL · 5 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (2/9)✗BuffettFAIL (0/9)✗LynchFAIL (0/7)✗GreenblattRank #1474✓PiotroskiPASS (F-Score 5)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (0/6)✗MarksFAIL (2/5)✓AckmanPASS (5/9)✓TempletonPASS (4/8)✓SleepPASS (3/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Growth38% pass✓ 5✗ 8▾

  5 of 8 flag PPL's growth — Graham, Lynch, Dreman +2 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)P/E 22.4x (growth N/A)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR-3.6%

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 19.5% vs Rev: 7.5%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction$2.47 (2008) -> $1.59 (2025)

  ✗DremanPositive over recent years

  EPS CAGR-2.6% CAGR over 17 years

  ✗Dreman> 5% annualized

  Positive Net Income Frequency26/27 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth5.2%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency3/5 years with positive EPS growth

  ✓AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR-3.6% CAGR over 5 years

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendrevenue up, operating margin 19.6% -> 23.5%

  ✓SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR10.6%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR-3.6% over 5 years

  ✗Neff7%-20% annualized