tiprankstipranks
Trending News
More News >
Hokuriku Electric Power Company (JP:9505)
:9505

Hokuriku Electric Power Company (9505) AI Stock Analysis

Compare
1 Followers

Top Page

JP

Hokuriku Electric Power Company

(Frankfurt:9505)

Rating:63Neutral
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 (9505) vs. iShares MSCI Japan ETF (EWJ)

Hokuriku Electric Power Company Business Overview & Revenue Model

Company DescriptionHokuriku 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 MoneyHokuriku 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
45
Neutral
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
50
Neutral
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
60
Neutral
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue841.29B858.27B808.24B817.60B613.76B639.45B
Gross Profit103.32B101.03B114.91B-73.79B-16.39B17.83B
EBITDA69.47B167.39B135.79B-22.99B64.97B77.96B
Net Income50.57B65.15B56.81B-88.45B-6.80B6.83B
Balance Sheet
Total Assets1.84T1.86T1.86T1.81T1.66T1.60T
Cash, Cash Equivalents and Short-Term Investments197.45B239.37B225.04B165.46B105.60B132.31B
Total Debt1.16T1.15T1.19T1.20T943.21B887.63B
Total Liabilities1.46T1.46T1.53T1.55T1.31T1.24T
Stockholders Equity359.85B380.73B307.89B233.49B324.86B338.62B
Cash Flow
Free Cash Flow0.0065.65B152.85B-179.47B-52.42B-30.30B
Operating Cash Flow0.00152.29B223.33B-97.05B30.95B56.64B
Investing Cash Flow0.00-234.06B-69.47B-88.84B-111.04B-84.91B
Financing Cash Flow0.00-48.87B-93.73B245.75B52.78B-3.30B

Hokuriku Electric Power Company Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price733.10
Price Trends
50DMA
713.02
Positive
100DMA
764.55
Negative
200DMA
824.62
Negative
Market Momentum
MACD
6.44
Negative
RSI
57.05
Neutral
STOCH
88.41
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$830.09B5.154.39%-1.56%-39.79%
71
Outperform
¥160.17B2.5517.76%2.56%-5.42%-0.85%
71
Outperform
¥535.29B2.9319.86%3.73%-6.14%-19.16%
65
Neutral
¥336.27B7.809.28%2.78%2.43%8.54%
63
Neutral
€152.42B2.3418.66%3.42%6.19%14.64%
56
Neutral
$50.29B11.643.78%2.16%0.06%80.78%
49
Neutral
$267.35B2.7114.82%5.93%-6.11%-26.15%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:9505
Hokuriku Electric Power Company
733.10
-226.94
-23.64%
JP:9509
Hokkaido Electric Power Company,Incorporated
812.10
-249.38
-23.49%
JP:9501
Tokyo Electric Power Company Holdings
518.10
-311.30
-37.53%
JP:9504
Chugoku Electric Power Co
752.30
-241.95
-24.33%
JP:9506
Tohoku Electric Power Company
1,070.00
-255.41
-19.27%
JP:9511
Okinawa Electric Power Co
929.00
-111.12
-10.68%

Hokuriku Electric Power Company Corporate Events

Hokuriku Electric Power Reports Revenue Growth Amid Profit Decline
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025