Chubu Electric Power Company (9502) AI Stock Analysis

• Market Cap: ¥1.97T
• Dividend Yield: 2.75%
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.60
• Revenue Growth: 3.26%
• EPS Growth: -7.07%
• Country: JP
• Employees: 28,374
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 47.90
• Shares Outstanding: 758,000,000
• 10 Day Avg. Volume: 2,514,250
• 30 Day Avg. Volume: 2,171,170
• PEG Ratio: -0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 42.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 258.73
• Revenue Forecast (FY): ¥3.57T

• Rating: 67 Neutral
• Price Target: ¥2,821.00 ▲(27.88% Upside)
• Action: Downgraded Date: 01/07/26
• Date: Action: Downgraded 01/07/26

The score is driven by solid financial stability but weakened by deteriorating free cash flow. Valuation is a notable positive with a low P/E and reasonable dividend yield, while technicals are softer due to the stock trading below key short-term moving averages and low RSI.

Positive Factors

Regulated transmission & distribution revenue

Regulated network revenues provide predictable, cost-recovery based cash flows and a permitted return, reducing earnings volatility versus merchant generation. This structural revenue stream supports stable investment capacity, creditworthiness and dividend coverage over the next several months to years.

Solid balance-sheet metrics and ROE

A balanced leverage profile (debt/equity ~1.11) and a near-40% equity ratio signal a resilient capital structure for a utility. ROE of 7.3% indicates reasonable shareholder returns. Together these metrics support capacity for capex and refinancing without acute solvency risk over the medium term.

Integrated generation, procurement and renewables

Vertical integration across generation, fuel procurement, trading and retail creates multiple, coordinated revenue streams and operational flexibility. Ownership of generation plus trading capabilities helps manage fuel cost exposure and supports long-term margin stability while renewables add lower-cost generation capacity.

Negative Factors

Sharp free cash flow deterioration

A nearly 70% drop in free cash flow and FCF-to-net income of 0.14 materially reduce internally available funds for capex, debt paydown and dividends. Persistently weak FCF limits strategic flexibility and raises the need for external financing if capex or investment needs continue.

Modest profitability and low margins

Low gross and net margins restrict the buffer against rising fuel or procurement costs and reduce the cash available from operations. Coupled with only ~1.6% revenue growth, limited margin expansion constrains the firm's ability to self-fund transition investments or absorb sustained cost inflation.

Leverage limits financial flexibility

While within industry norms, a debt/equity around 1.11 means interest and principal obligations are meaningful. Elevated leverage can constrain capacity to fund large renewable or network projects without increasing leverage further, and raises sensitivity to rate moves or weaker cash flow periods.

Chubu Electric Power Company Business Overview & Revenue Model

Company Description

Chubu Electric Power Company, Incorporated, together with its subsidiaries, engages in the generation, transmission, distribution, and retail of electricity in Japan and internationally. The company operates through three segments: JERA, Power Network, and Customer Service & Sales. It generates electricity through thermal, nuclear, hydroelectric, wind, biomass, and solar sources. The company is also involved in the fuel upstream, power generation procurement, and wholesale of electricity and gas businesses; and provides power network services. In addition, it engages in the construction for the development and maintenance of electric utilities-related facilities; and manufacture of materials and machinery for electric utilities-related facilities. Further, the company is involved in the gas supply, on-site energy, consulting and investment, real estate management, IT businesses, etc. Chubu Electric Power Company, Incorporated was founded in 1951 and is headquartered in Nagoya, Japan.

How the Company Makes Money

Chubu Electric Power generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company operates a diversified energy portfolio that includes nuclear, thermal, and renewable energy sources, allowing it to meet the energy demands of its service area efficiently. Key revenue streams include electricity sales, grid services, and ancillary services related to energy management. Additionally, Chubu Electric has entered into strategic partnerships and joint ventures that enhance its capabilities in energy production and distribution, contributing to its overall earnings. The company also benefits from government policies promoting energy efficiency and renewable energy adoption, further supporting its revenue growth.

Chubu Electric Power Company Financial Statement Overview

Summary

Stable balance sheet (debt-to-equity 1.11, equity ratio 39.1%, ROE 7.3%) and modest profitability (net margin 5.5%), but cash generation is a key weakness with sharply lower free cash flow growth (-69.82%) and low FCF-to-net income (0.14).

Income Statement

Chubu Electric Power Company has shown a mixed performance in its income statement. The gross profit margin for 2025 is 6.6%, indicating moderate efficiency in cost management. The net profit margin for 2025 stands at 5.5%, reflecting some profitability but lower than in previous years. The revenue growth rate from 2024 to 2025 is 1.63%, showing stability but limited growth. The EBIT margin is 6.6%, and the EBITDA margin is 12.6%, suggesting a moderately healthy operational performance with room for improvement.

Balance Sheet

The balance sheet of Chubu Electric Power Company indicates a stable financial position. The debt-to-equity ratio is 1.11, which is reasonable for the industry, indicating balanced leveraging. The return on equity (ROE) for 2025 is 7.3%, which is a good return for shareholders. The equity ratio is 39.1%, showing a strong proportion of equity financing. Overall, the company maintains a solid balance between debt and equity, though the debt levels are relatively high.

Cash Flow

Cash flow analysis reveals some challenges in free cash flow management. The free cash flow growth rate from 2024 to 2025 is -69.82%, reflecting a significant decline. The operating cash flow to net income ratio is 1.49, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio is 0.14, highlighting constraints in generating free cash flow. These factors point to potential cash management issues.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	3.65T	3.67T	3.61T	3.99T	2.71T	2.94T
Gross Profit	224.11B	242.04B	343.34B	107.09B	-53.83B	145.69B
EBITDA	366.22B	464.24B	699.64B	255.06B	173.39B	403.63B
Net Income	187.87B	202.09B	403.14B	38.23B	-43.02B	147.20B
Balance Sheet
Total Assets	7.12T	7.12T	7.11T	6.46T	6.17T	5.69T
Cash, Cash Equivalents and Short-Term Investments	237.44B	293.55B	390.81B	361.32B	203.21B	176.46B
Total Debt	3.20T	3.09T	2.80T	2.92T	2.79T	2.42T
Total Liabilities	4.26T	4.27T	4.41T	4.29T	4.05T	3.58T
Stockholders Equity	2.79T	2.79T	2.59T	2.06T	2.02T	2.03T
Cash Flow
Free Cash Flow	0.00	28.80B	95.41B	46.75B	-210.47B	172.21B
Operating Cash Flow	0.00	301.35B	344.07B	295.80B	21.69B	384.15B
Investing Cash Flow	0.00	-391.77B	-388.33B	-196.93B	-262.02B	-215.81B
Financing Cash Flow	0.00	-27.65B	87.08B	73.25B	266.40B	-141.12B

Chubu Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2206.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9502, the sentiment is Positive. The current price of 2206 is below the 20-day moving average (MA) of 2481.28, below the 50-day MA of 2369.36, and above the 200-day MA of 2077.20, indicating a bullish trend. The MACD of 81.27 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9502.

Chubu Electric Power Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9503	75 Outperform	¥2.94T	7.70	14.42%	2.44%	2.08%	19.52%
9508	74 Outperform	¥914.96B	5.06	16.95%	3.00%	5.81%	102.00%
9531	72 Outperform	¥2.82T	13.32	11.05%	1.53%	5.72%	148.08%
9502	67 Neutral	¥1.97T	8.27	7.72%	2.75%	3.26%	-7.07%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9532	63 Neutral	¥2.57T	13.85	10.44%	1.98%	1.99%	95.71%
9501	52 Neutral	¥1.10T	-1.48	-22.13%	―	-2.28%	-794.92%