Is PPL a high-quality business?

AlphaMadera's AlphaQuality grade scores PPL Corporation on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how PPL compares to a Buffett-style quality bar.

What is PPL Corporation's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to PPL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes PPL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

PPL - PPL Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $41.63 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D+ 41.3 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D 38.6

5yr Avg ROIC 4.0% 30/100
Operating Margin Trend +0.11 pp/yr 58/100

Capital Efficiency

Weight: 15%

D+ 41.8

5yr Avg ROE 2.8% 24/100
5yr Share-Count CAGR -0.6% 75/100

Growth Quality

Weight: 15%

A 89.4

5yr Revenue CAGR 11.8% 85/100
5yr EPS CAGR 16.2% 90/100
Revenue-Growth Years (5) 5/5 100/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -5.8% 0/100
5yr FCF/NI Conversion -0.78x 0/100

Balance Sheet

Weight: 20%

F 23.3

Net Debt / EBITDA 4.96x 16/100
Interest Coverage (EBIT/Int) 2.82x 42/100
Altman Z-Score 0.98 15/100

Stability

Weight: 15%

C+ 61.4

EPS Volatility (σ/μ) 0.40 44/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

5 of 5 gurus held; 2 new buys; 3 added.

Holders: 5 +2
Avg Δ position: +257.1%
New buys: 2
Full exits: 0

Soros new
Wood new
Dalio increased +675%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.