Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Charlie and I have spent considerable time reading PPL's Q1 2026 10-Q, the rate-case dockets across Kentucky, Pennsylvania, and Rhode Island, and the company's investor materials. PPL is a competently run, three-state regulated utility holding company with the kind of regulatory monopoly that we ordinarily admire — but it is, at its core, a capital-intensive bond-substitute with allowed returns capped by commissions, a debt load growing faster than its rate base, and a free-cash-flow profile that is structurally negative through the planning horizon. We do not see the durable, compounding economics that define a wonderful business. The stock is priced as a quality utility, which removes any margin of safety we might otherwise demand. We rate PPL two stars (Sell).
Recent filings analysed: 8-K (2026-08-07), 8-K (2026-06-30), 8-K (2026-06-04), 8-K (2026-05-18).
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