Chugoku Electric Power Co (9504) AI Stock Analysis

• Market Cap: $356.88B
• Dividend Yield: 3.23%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.58
• Revenue Growth: -1.02%
• EPS Growth: 79.80%
• Country: JP
• Employees: 12,776
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 105.55
• Shares Outstanding: 387,154,700
• 10 Day Avg. Volume: 1,738,140
• 30 Day Avg. Volume: 1,967,763
• PEG Ratio: -0.12
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -1.61
• Enterprise Value/Market Cap: 8.87
• Enterprise Value/Revenue: 2.07
• Enterprise Value/Gross Profit: 23.64
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,141.00 ▲(14.59% Upside)

Chugoku Electric Power Co's stock score is primarily driven by its strong technical analysis and attractive valuation. The stock shows robust bullish momentum and is trading above key moving averages, indicating positive market sentiment. Despite financial performance challenges, particularly with revenue volatility and high leverage, the low P/E ratio and solid dividend yield enhance its investment appeal.

Positive Factors

Renewable Energy Initiatives

Chugoku Electric Power Co's focus on renewable energy partnerships positions it well for long-term growth as demand for sustainable energy increases.

Equity Base Improvement

An improved equity base enhances financial stability and provides a stronger foundation for future investments and growth opportunities.

Profitability Recovery

Improved profit margins indicate a recovery in operational efficiency, which can lead to sustained profitability and competitive advantage.

Negative Factors

High Leverage Risk

High leverage increases financial risk, potentially limiting the company's ability to invest in growth and weather economic downturns.

Revenue Volatility

Revenue volatility can lead to financial instability, making it challenging to plan long-term investments and maintain consistent profitability.

Cash Flow Challenges

Challenges in cash flow generation can hinder the company's ability to fund operations and invest in future growth, impacting long-term sustainability.

Chugoku Electric Power Co Business Overview & Revenue Model

Company Description

Chugoku Electric Power Co (9504) is a prominent utility company based in Japan, primarily engaged in the generation, transmission, and distribution of electricity. The company operates in the energy sector, with a significant focus on providing reliable power supply to homes and businesses in the Chugoku region. Chugoku Electric Power Co's core services encompass thermal power generation, hydroelectric power production, and the management of renewable energy sources, contributing to a balanced energy mix for its customers.

How the Company Makes Money

Chugoku Electric Power Co generates revenue through various streams associated with its core operations in electricity supply. The primary source of income comes from the sale of electricity to residential, commercial, and industrial customers. Additionally, the company earns revenue from its power generation activities, particularly through the operation of thermal and hydroelectric plants. The company may also benefit from regulatory frameworks that allow for cost recovery and rate adjustments. Furthermore, Chugoku Electric Power Co is involved in partnerships with other energy providers and agencies to enhance its infrastructure and expand its renewable energy initiatives, which can lead to additional revenue opportunities. Factors such as changes in energy demand, regulatory policies, and market competition also influence its earnings.

Chugoku Electric Power Co Financial Statement Overview

Summary

Chugoku Electric Power Co's financial performance is mixed. While there are signs of recovery in profitability, revenue volatility and high leverage pose significant risks. The balance sheet shows moderate health with improved equity but high debt levels. Cash flow challenges persist, with negative free cash flow growth.

Income Statement

Chugoku Electric Power Co's income statement reveals mixed performance. The company's revenue has been volatile, with a significant decline in 2025, indicating potential instability. Gross profit and EBIT margins have improved from previous years' negative figures, showing a recovery trend. However, the net profit margin has decreased, and revenue growth remains a concern, reflecting challenges in achieving consistent profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, presenting financial leverage risk. The company's equity ratio has improved slightly, demonstrating a stronger equity base. Return on equity is positive, indicating some profitability relative to shareholder investments. Overall, the balance sheet reflects moderate financial health with risks linked to high leverage.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow growth and fluctuating operating cash flow. The operating cash flow to net income ratio is positive, suggesting some operational efficiency. However, the negative free cash flow to net income ratio points to issues in generating sufficient cash from operations after capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.53T	1.53T	1.63T	1.69T	1.14T	1.31T
Gross Profit	133.87B	129.15B	206.78B	-68.89B	-60.74B	34.28B
EBITDA	259.29B	245.30B	310.39B	-74.65B	36.42B	115.86B
Net Income	101.92B	98.47B	133.50B	-155.38B	-39.70B	14.56B
Balance Sheet
Total Assets	4.38T	4.36T	4.13T	4.04T	3.57T	3.39T
Cash, Cash Equivalents and Short-Term Investments	305.60B	286.73B	301.35B	254.78B	66.58B	59.88B
Total Debt	3.22T	2.93T	2.98T	2.78T	2.32T	2.03T
Total Liabilities	3.67T	3.66T	3.52T	3.58T	2.96T	2.72T
Stockholders Equity	714.66B	707.53B	604.87B	447.49B	605.77B	657.19B
Cash Flow
Free Cash Flow	0.00	-192.33B	65.43B	-265.80B	-185.62B	-75.80B
Operating Cash Flow	0.00	186.02B	271.39B	-62.70B	310.00M	110.23B
Investing Cash Flow	0.00	-358.84B	-202.02B	-225.02B	-206.39B	-172.76B
Financing Cash Flow	0.00	161.18B	-17.13B	464.96B	212.58B	75.24B

Chugoku Electric Power Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 995.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9504, the sentiment is Positive. The current price of 995.7 is above the 20-day moving average (MA) of 988.42, above the 50-day MA of 946.23, and above the 200-day MA of 837.70, indicating a bullish trend. The MACD of 9.35 indicates Positive momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 64.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9504.

Chugoku Electric Power Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9513	82 Outperform	¥565.44B	5.29	7.92%	3.22%	-1.56%	9.17%
9503	75 Outperform	¥2.63T	6.13	14.42%	2.44%	2.08%	19.52%
9506	74 Outperform	¥568.02B	3.51	16.13%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥214.56B	3.73	14.57%	2.36%	-1.60%	-10.41%
9504	69 Neutral	$356.88B	3.19	15.45%	3.23%	-1.02%	79.80%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9501	52 Neutral	$1.04T	-1.44	-22.13%	―	-2.28%	-794.92%

Chugoku Electric Power Co Corporate Events

Chugoku Electric Power Co. Reports Improved Profits Amid Revenue Decline

Chugoku Electric Power Co. reported its consolidated financial results for the six months ended September 30, 2025, showing a decline in operating revenues by 2.1% compared to the previous year. However, the company experienced significant growth in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 30.1%, 29.2%, and 25.3% respectively. The company’s financial position improved with an increase in total assets and net assets, and a slight improvement in the shareholders’ equity ratio. The company also announced revisions to its dividend forecast, reflecting a positive outlook for the fiscal year ending March 31, 2026.

Chugoku Electric Power Unveils New Shareholder Return Strategy

Chugoku Electric Power Co., Inc. announced a new direction for shareholder returns starting from FY 3/2027, aligning with its ‘Chugoku Electric Power Group Corporate Vision 2040.’ The company plans to introduce a dividend on equity (DOE) approach to ensure stable dividends while rebuilding its financial base, targeting a DOE of 2% until the Shimane Nuclear Power Station Unit 3 becomes operational. Post-operation, the company aims to enhance shareholder returns further, reflecting improved business performance and cash flow.

Chugoku Electric Power Unveils Vision 2040 for Growth and Transformation

Chugoku Electric Power Co., Inc. has announced its ‘Chugoku Electric Power Group Corporate Vision 2040’, a strategic plan aimed at leveraging changes in the energy sector for growth and transformation. This vision addresses increasing electricity demand and societal expectations in the Chugoku region, positioning the company to meet stakeholder expectations by 2040. The company also released its ‘Chugoku Electric Power Group Integrated Report 2025’, which includes details of this new corporate vision.