Hokuriku Electric Power Company (9505) AI Stock Analysis

• Market Cap: ¥203.42B
• Dividend Yield: 2.31%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.69
• Revenue Growth: 1.75%
• EPS Growth: 38.58%
• Country: JP
• Employees: 8,541
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 96.46
• 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): 0.20
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ¥1,141.00 ▲(17.11% Upside)

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

Revenue Growth

Consistent revenue growth indicates a stable demand for electricity services and effective market positioning, supporting long-term business sustainability.

Profitability Improvement

Improved profit margins suggest effective cost management and operational efficiency, enhancing the company's financial health and competitive edge.

Equity Position

A stronger equity position reflects improved financial stability and resilience, providing a buffer against economic fluctuations and supporting growth initiatives.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Management

Declining operating cash flow highlights challenges in liquidity management, which could affect the company's ability to fund operations and investments sustainably.

Gross Profit Margin Decline

A declining gross profit margin may indicate increased operational costs or pricing pressures, which could impact future profitability and competitive positioning.

Hokuriku Electric Power Company Business Overview & Revenue Model

Company Description

Hokuriku Electric Power Company (9505) is a major utility provider in Japan, primarily engaged in the generation, transmission, and distribution of electricity. The company serves the Hokuriku region, which includes the prefectures of Ishikawa, Toyama, and Fukui. Its core services encompass the operation of thermal, hydroelectric, and renewable energy power plants, alongside the provision of energy-related services such as energy efficiency consulting and infrastructure development. Hokuriku Electric Power is committed to enhancing energy sustainability and promoting the effective use of renewable resources.

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's revenue model is built on a regulated tariff system, where prices are set by the government to ensure fair access to energy while covering operational costs. Key revenue streams include electricity sales, grid services, and ancillary services such as energy management solutions. The company also benefits from partnerships with local governments and businesses to promote energy-efficient practices and invest in renewable energy projects, which can provide additional revenue opportunities. Factors contributing to its earnings include the demand for electricity, regulatory changes, and advancements in energy technology.

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. Revenue and profit margins are on a positive trajectory, but 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.72B	858.27B	808.24B	817.60B	613.76B	639.45B
Gross Profit	101.31B	101.03B	114.91B	-73.79B	-16.39B	17.83B
EBITDA	169.23B	167.39B	135.79B	-22.99B	64.97B	77.96B
Net Income	66.72B	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	1.15T	1.19T	1.28T	1.04T	973.25B
Total Liabilities	1.42T	1.46T	1.53T	1.55T	1.31T	1.24T
Stockholders Equity	403.58B	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: Positive
• Last Price: 974.30
• 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:9505, the sentiment is Positive. The current price of 974.3 is above the 20-day moving average (MA) of 970.39, above the 50-day MA of 926.58, and above the 200-day MA of 823.51, indicating a bullish trend. The MACD of 10.60 indicates Positive momentum. The RSI at 55.88 is Neutral, neither overbought nor oversold. The STOCH value of 71.48 is Neutral, 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
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%
9505	69 Neutral	¥203.42B	2.95	17.95%	2.31%	1.75%	38.58%
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%
9511	63 Neutral	$58.06B	9.78	4.73%	2.31%	-1.96%	33.15%
9501	52 Neutral	$1.04T	-1.44	-22.13%	―	-2.28%	-794.92%

Hokuriku Electric Power Company Corporate Events

Hokuriku Electric Power Revises Earnings and Dividend Forecasts Upward

Hokuriku Electric Power Company has revised its earnings and year-end dividend forecasts for the fiscal year ending March 2026, citing increased electricity sales and favorable fuel cost adjustments as key factors. The company anticipates a significant rise in profits, reflecting a 60% increase in profit attributable to owners of the parent, and has adjusted its dividend forecast in line with these improved earnings, aiming to enhance shareholder returns.

Hokuriku Electric Power Reports Mixed Financial Results for H1 2025

Hokuriku Electric Power Company reported its consolidated financial results for the six months ending September 30, 2025, showing a decrease in operating revenues by 4.1% compared to the previous year. However, the company saw an increase in operating profit by 6.7% and ordinary profit by 9.2%, indicating improved operational efficiency. The company also announced revisions to its cash dividend forecast and earnings forecast for the fiscal year ending March 31, 2026, reflecting adjustments in its financial strategy.