Hokuriku Electric Power Company (9505) AI Stock Analysis

• Market Cap: ¥216.49B
• Dividend Yield: 2.31%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.76
• Revenue Growth: 1.75%
• EPS Growth: 38.58%
• Country: JP
• Employees: 8,541
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 210,333,700
• 10 Day Avg. Volume: 1,183,270
• 30 Day Avg. Volume: 1,015,083
• PEG Ratio: 0.18
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.65
• 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: ¥945.00
• Price Target Upside: -3.18% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,243.00 ▲(27.36% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Hokuriku Electric Power Company scores well due to its strong valuation metrics, indicating the stock is undervalued with a low P/E ratio and decent dividend yield. Technical analysis shows bullish momentum, although caution is warranted due to overbought signals. Financial performance is improving, but high leverage remains a concern. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable regulated utility model

An integrated regional utility model (generation, transmission, distribution, and retail) creates durable, predictable cash flows supported by regulated tariffs and network charges. This structural position limits competitive erosion in the near term and underpins revenue stability and planning over the next several months.

Improving equity ratio and ROE

A rising equity ratio and stronger ROE reflect improving balance-sheet resilience and more efficient use of capital. Structurally, higher equity cushions against shocks, supports credit metrics, and provides a firmer base for funding capex or reducing leverage without immediate reliance on volatile markets.

Positive free cash flow generation

Consistent positive free cash flow and an FCF-to-net-income ratio around 1.0 indicate earnings translate into cash, enabling sustainable capex funding, dividend support, and debt servicing. This cash conversion quality is a durable fundamental that underpins financial flexibility over the medium term.

Negative Factors

High leverage (debt-to-equity 3.02)

A debt-to-equity ratio above 3.0 signals substantial fixed obligations typical for utilities but materially limits flexibility. Elevated leverage increases refinancing and interest-rate risk, constrains strategic investment, and heightens vulnerability to adverse cash-flow shocks over the coming months unless debt is actively reduced.

Declining gross profit

A notable decline in gross profit and margin points to cost pressure or weaker generation economics. Sustained margin compression reduces the buffer to absorb fuel, procurement, or operational cost increases and can undermine net profitability and cash generation unless offset by tariff changes or structural cost improvements.

Operating cash flow weakened

Falling operating cash flow, even when free cash flow remains positive, signals pressure in core receipts or working capital timing. Persistent OCF weakness could strain liquidity for capex and debt service and would make meeting near-term obligations and reducing high leverage more difficult without corrective actions.

Hokuriku Electric Power Company Business Overview & Revenue Model

Company Description

Hokuriku Electric Power Company supplies electricity through integrated power generation, transmission, and distribution systems in Japan. The company generates electricity through hydroelectric, thermal, photovoltaic, and nuclear sources. It is also involved in the sale of LNG; maintenance of electric power equipment, hydroelectric power plant, and transformer equipment; operation of electrical and related facilities; construction of thermal and nuclear power plant equipment; design and execution of civil engineering and construction projects; electrical work; and energy solution business. In addition, the company engages in the development and maintenance of software; wide-area Ethernet service and corporate Internet connectivity; data center operations; environmental research, design, and execution of environmental greening projects; recycling and storage of confidential documents and archives; and sale of paper products. Further, it engages in the real estate leasing and management, temporary staffing, and equipment leasing activities; operation of the Hyakusen Yokocho online store; provision of nursing care/social welfare, and telephone pole advertising and travel services; manufacture and sale of concrete poles, piles, distribution switches, transformers, distribution boards, and other equipment; and manufacture, repair, and testing of power meters and other instrumentation. The company was incorporation in 1951 and is headquartered in Toyama, Japan.

How the Company Makes Money

Hokuriku Electric Power primarily makes money by selling electricity to end customers in its service area and, where applicable, through broader electricity market transactions. Its main revenue stream is retail electricity sales, where customers are billed based on electricity consumed under regulated or competitive tariff plans depending on customer class and applicable market rules. The company also earns revenue from its power generation operations by producing electricity (from its owned/operated power plants) and supplying it to meet customer demand, with monetization occurring through retail billing and/or wholesale sales into the market when it sells electricity externally. In addition, as an owner/operator of electricity networks, it can generate income associated with the use of transmission and distribution infrastructure (e.g., network-related charges/fees) under Japan’s electricity market framework. Overall earnings are influenced by electricity demand, fuel and procurement costs for generation, operational and maintenance costs for power plants and grid assets, and the regulatory/market mechanisms governing tariffs, network charges, and electricity trading. Specific significant partnerships contributing to earnings: null.

Hokuriku Electric Power Company Financial Statement Overview

Summary

Hokuriku Electric Power Company shows signs of recovering financial health, with improving profitability and cash generation despite previous challenges. While revenue and profit margins are on a positive trajectory, high leverage remains a significant risk. Continued focus on reducing debt and enhancing cash flow will be crucial for long-term financial stability.

Income Statement

The company experienced a modest revenue growth of 6.19% from 2024 to 2025, indicating a positive trend. However, the gross profit margin decreased as gross profit declined significantly compared to the previous year. Despite this, the net profit margin improved to 7.59% in 2025 from 7.03% in 2024, indicating better cost management. EBIT and EBITDA margins also showed recovery from previous losses, reflecting improved operational performance. Overall, profitability metrics are improving but still face challenges from past volatility.

Balance Sheet

The company's debt-to-equity ratio of 3.02 indicates a high level of leverage, typical for the utilities industry, which could pose financial risk. The equity ratio improved to 20.47% from 16.59% in 2024, suggesting a strengthening equity position. The return on equity increased to 17.11%, reflecting enhanced profitability. However, high debt levels continue to be a concern, requiring careful management to ensure stability.

Cash Flow

The operating cash flow decreased from 2024 to 2025, but the company managed to generate positive free cash flow despite this decline, showing effective capital expenditure control. The free cash flow to net income ratio of 1.01 indicates a solid cash generation capability relative to net income. However, overall cash flow management needs improvement to ensure sustained liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	850.60B	835.50B	808.24B	817.60B	613.76B	639.45B
Gross Profit	95.19B	135.31B	172.41B	-22.11B	33.92B	80.51B
EBITDA	159.75B	142.05B	180.14B	-10.27B	43.23B	76.52B
Net Income	66.71B	65.15B	56.81B	-88.45B	-6.76B	6.83B
Balance Sheet
Total Assets	1.84T	1.86T	1.86T	1.81T	1.66T	1.60T
Cash, Cash Equivalents and Short-Term Investments	208.31B	239.37B	225.04B	165.46B	105.60B	132.31B
Total Debt	1.16T	1.16T	1.19T	1.28T	1.04T	974.89B
Total Liabilities	1.42T	1.46T	1.53T	1.55T	1.32T	1.24T
Stockholders Equity	403.58B	380.73B	307.89B	233.49B	324.90B	338.63B
Cash Flow
Free Cash Flow	0.00	65.65B	152.85B	-179.47B	-52.42B	-30.30B
Operating Cash Flow	0.00	152.29B	223.33B	-97.05B	30.95B	56.64B
Investing Cash Flow	0.00	-234.06B	-69.47B	-88.84B	-111.04B	-84.91B
Financing Cash Flow	0.00	-48.87B	-93.73B	245.75B	52.78B	-3.30B

Hokuriku Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 976.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9505, the sentiment is Positive. The current price of 976 is below the 20-day moving average (MA) of 1065.34, below the 50-day MA of 1032.37, and above the 200-day MA of 897.96, indicating a bullish trend. The MACD of 12.39 indicates Negative momentum. The RSI at 55.48 is Neutral, neither overbought nor oversold. The STOCH value of 86.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9505.

Hokuriku Electric Power Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9503	75 Outperform	¥2.65T	6.37	14.42%	2.44%	2.08%	19.52%
9506	74 Outperform	¥561.28B	5.14	16.40%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥211.17B	13.52	13.70%	2.36%	-1.60%	-10.41%
9505	69 Neutral	¥216.49B	4.18	17.23%	2.31%	1.75%	38.58%
9504	69 Neutral	¥348.12B	16.42	12.27%	3.23%	-1.02%	79.80%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9501	52 Neutral	¥989.03B	5.29	-22.13%	―	-2.28%	-794.92%

Hokuriku Electric Power Company Corporate Events

Hokuriku Electric Power Lifts FY2026 Profit and Dividend Forecasts on Strong Hydropower

Hokuriku Electric Power Company has raised its consolidated earnings forecast for the fiscal year ending March 2026, keeping operating revenue unchanged at ¥780 billion but lifting operating profit from ¥70 billion to ¥89 billion and profit attributable to owners from ¥48 billion to ¥62 billion. The revision reflects stronger-than-expected hydropower output and a favorable market price and supply-demand environment, which more than offset the impact of the shutdown of Unit 2 at the Nanao Ohta Thermal Power Station.

In tandem with the improved profit outlook, the utility increased its forecast for the year-end dividend from ¥12.50 to ¥15.00 per share, bringing the expected annual dividend to ¥25.00. The move aligns with its shareholder return policy of balancing enhanced payouts with strengthening its financial base as its equity ratio partially recovers, signaling improved earnings quality and a more confident stance toward capital returns for investors.

The most recent analyst rating on (JP:9505) stock is a Buy with a Yen1156.00 price target. To see the full list of analyst forecasts on Hokuriku Electric Power Company stock, see the JP:9505 Stock Forecast page.

Hokuriku Electric Power Lifts Profits and Strengthens Balance Sheet Despite Lower Revenue

Hokuriku Electric Power reported a 7.0% year-on-year decline in consolidated operating revenues to ¥583.1 billion for the nine months ended December 31, 2025, but improved profitability, with operating profit up 2.1% to ¥80.1 billion and profit attributable to owners of parent rising 11.5% to ¥60.3 billion; basic earnings per share increased to ¥288.77, while the equity-to-asset ratio strengthened to 24.1% amid an expansion in net assets. The utility kept its full-year forecast unchanged, projecting lower revenue and profit for the year to March 31, 2026, but it plans to raise total annual dividends to ¥22.50 per share from ¥20.00, signaling confidence in cash generation, and it also reported a narrower consolidation scope after excluding three group companies, which may streamline reporting and group structure.

The most recent analyst rating on (JP:9505) stock is a Buy with a Yen1156.00 price target. To see the full list of analyst forecasts on Hokuriku Electric Power Company stock, see the JP:9505 Stock Forecast page.