Hokuriku Electric Power Company (9505) AI Stock Analysis

• Market Cap: €152.42B
• Dividend Yield: 3.42%
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 2.3
• Beta (1Y): 0.83
• Revenue Growth: 6.19%
• EPS Growth: 14.64%
• Country: JP
• Employees: 8,541
• Sector: Utilities
• Sector Strength: 74
• Industry: Renewable Utilities
• EPS (TTM): 52.84
• Shares Outstanding: 210,333,700
• 10 Day Avg. Volume: 1,034,160
• 30 Day Avg. Volume: 1,253,740
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.69
• 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

• Rating: 63 Neutral
• Price Target: ¥781.00 ▲(6.53%Upside)

The overall stock score for Hokuriku Electric Power Company is driven primarily by its strong valuation, suggesting the stock is undervalued with a low P/E ratio and attractive dividend yield. Additionally, improving financial performance indicates a positive recovery trend. Technical analysis supports a cautiously optimistic outlook, although high leverage remains a key risk factor.

Hokuriku Electric Power Company Business Overview & Revenue Model

Company Description

Hokuriku Electric Power Company, also known as Hokuriku Denryoku, is a Japanese electric utility company that operates primarily in the Hokuriku region, which includes Toyama, Ishikawa, and Fukui Prefectures. The company is involved in the generation, transmission, and distribution of electricity. It also engages in related businesses such as energy services, power plant maintenance, and energy consulting. Hokuriku Electric Power Company is committed to providing reliable and sustainable energy solutions to meet the needs of its customers and the community.

How the Company Makes Money

Hokuriku Electric Power Company generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers within its service area. The company operates a mix of power generation facilities, including thermal, hydroelectric, and nuclear power plants, which allows it to produce and supply electricity efficiently. Revenue streams also include fees for electricity transmission and distribution services. Additionally, the company may engage in energy trading and offer energy-related consulting and maintenance services, contributing to its income. Strategic partnerships with other utility companies and participation in government energy programs may also play a role in enhancing its revenue prospects.

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	841.29B	858.27B	808.24B	817.60B	613.76B	639.45B
Gross Profit	103.32B	101.03B	114.91B	-73.79B	-16.39B	17.83B
EBITDA	69.47B	167.39B	135.79B	-22.99B	64.97B	77.96B
Net Income	50.57B	65.15B	56.81B	-88.45B	-6.80B	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	197.45B	239.37B	225.04B	165.46B	105.60B	132.31B
Total Debt	1.16T	1.15T	1.19T	1.20T	943.21B	887.63B
Total Liabilities	1.46T	1.46T	1.53T	1.55T	1.31T	1.24T
Stockholders Equity	359.85B	380.73B	307.89B	233.49B	324.86B	338.62B
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: Neutral
• Last Price: 733.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 733.1 is above the 20-day moving average (MA) of 705.77, above the 50-day MA of 713.02, and below the 200-day MA of 824.62, indicating a neutral trend. The MACD of 6.44 indicates Negative momentum. The RSI at 57.05 is Neutral, neither overbought nor oversold. The STOCH value of 88.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
9501	79 Outperform	$830.09B	5.15	4.39%	―	-1.56%	-39.79%
9509	71 Outperform	¥160.17B	2.55	17.76%	2.56%	-5.42%	-0.85%
9506	71 Outperform	¥535.29B	2.93	19.86%	3.73%	-6.14%	-19.16%
Sector *	65 Neutral	¥336.27B	7.80	9.28%	2.78%	2.43%	8.54%
9505	63 Neutral	€152.42B	2.34	18.66%	3.42%	6.19%	14.64%
9511	56 Neutral	$50.29B	11.64	3.78%	2.16%	0.06%	80.78%
9504	49 Neutral	$267.35B	2.71	14.82%	5.93%	-6.11%	-26.15%

Hokuriku Electric Power Company Corporate Events

Hokuriku Electric Power Reports Revenue Growth Amid Profit Decline

Hokuriku Electric Power Company reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a 6.2% increase in operating revenues to ¥858,275 million. Despite this revenue growth, the company experienced declines in operating profit and ordinary profit by 12.1% and 15.4% respectively, while profit attributable to owners of the parent increased by 14.7% to ¥65,148 million. The company also announced an increase in annual dividends per share from ¥7.50 to ¥20.00, reflecting a higher payout ratio and an improved equity-to-asset ratio. Looking ahead, the company forecasts a decrease in operating revenues and profits for the fiscal year ending March 31, 2026.

Hokuriku Electric Power Advances LNG Unit Construction for Carbon Reduction

Hokuriku Electric Power Company has announced the commencement of preliminary surveys and facility design for the construction of an LNG-fired Unit 2 at the Toyama Shinko Thermal Power Station. This initiative is part of the company’s efforts to replace aging coal and oil-fired units with a high-efficiency, gas turbine combined cycle power generation facility, aiming to reduce annual CO2 emissions by approximately 2 million tons. The project aligns with the company’s roadmap to achieve carbon neutrality by 2050, with operations expected to begin in fiscal 2033.

Hokuriku Electric Power Announces Executive Appointments

Hokuriku Electric Power Company announced executive appointments for itself and its subsidiary, Hokuriku Electric Power Transmission & Distribution Company. These appointments, including the confirmation of Koji Matsuda as President, will be finalized at upcoming shareholder meetings, potentially impacting the company’s strategic direction and stakeholder relations.