Tohoku Electric Power Company (9506) AI Stock Analysis

• Market Cap: ¥647.49B
• Dividend Yield: 3.47%
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.84
• Revenue Growth: -8.73%
• EPS Growth: -6.98%
• Country: JP
• Employees: 24,234
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 502,882,600
• 10 Day Avg. Volume: 1,994,400
• 30 Day Avg. Volume: 2,276,696
• PEG Ratio: -0.15
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 31.76
• 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: ¥1,476.67
• Price Target Upside: 35.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,425.00 ▲(31.09% Upside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

Tohoku Electric Power Company scores well due to strong technical indicators and attractive valuation, suggesting potential for price appreciation. However, financial performance is mixed with high leverage and inconsistent revenue growth, which are risks that need addressing.

Positive Factors

Regulated utility business

Operating as a regulated integrated utility serving Tohoku and Niigata provides durable cash flow predictability. Regulated tariffs and captive demand reduce competitive exposure, enabling long-term planning for grid investment and steady revenue under stable structural demand.

Consistent operating cash flow

Persistent positive operating cash flow supports ongoing capital expenditure, maintenance of generation and transmission assets, and debt servicing. This internal cash generation strengthens financial resilience and funds long-term investments without relying solely on external financing.

Improving profitability metrics

A turnaround to positive net margins and improved ROE indicates better operational efficiency and cost control. Sustained margin improvement enhances retained earnings, supports reinvestment and dividend capacity, and improves the company's ability to finance energy transition projects.

Negative Factors

High leverage

Elevated debt levels constrain financial flexibility, increase interest expense sensitivity to rate changes, and limit headroom for large capital programs. Over the medium term this can raise refinancing risk and pressure credit metrics, complicating funding for grid upgrades or renewables.

Weak/volatile revenue growth

A material recent revenue decline and historical volatility reduce predictability of cash inflows. For a capital-intensive utility, inconsistent top-line makes tariff negotiations, investment planning, and fixed-cost recovery harder, weakening long-term earnings visibility and strategic flexibility.

Fluctuating free cash flow

Inconsistent free cash flow complicates prioritized capex, debt reduction and investments in modernization. Volatile FCF increases reliance on external funding at times of weakness, raising execution risk for multi-year projects and reducing buffer against operational or regulatory shocks.

Tohoku Electric Power Company Business Overview & Revenue Model

Company Description

Tohoku Electric Power Company (9506) is a major electric utility in Japan, primarily serving the Tohoku region. The company engages in the generation, transmission, and distribution of electricity, operating a diverse mix of energy sources including nuclear, hydroelectric, thermal, and renewable energy. In addition to electricity supply, Tohoku Electric Power also provides related services such as energy management, consulting, and telecommunications through its subsidiaries, ensuring a comprehensive approach to energy solutions.

How the Company Makes Money

Tohoku Electric Power generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. Its revenue model is based on regulated tariffs and contracts, which can fluctuate depending on energy market conditions, regulatory decisions, and fuel costs. Additionally, the company earns money through ancillary services and energy management solutions, including demand response and energy efficiency programs. Key revenue streams include electricity sales, capacity payments, and the operation of its thermal and renewable energy plants. Strategic partnerships with local governments and private enterprises for renewable energy projects also contribute to its earnings, helping to diversify its revenue sources and enhance its sustainability efforts.

Tohoku Electric Power Company Financial Statement Overview

Summary

Tohoku Electric Power Company shows mixed financial performance. Profitability is improving, but revenue growth is inconsistent. The high debt-to-equity ratio indicates financial risk, though cash flows are generally positive. The company needs to manage leverage and stabilize revenue growth.

Income Statement

Tohoku Electric Power Company has shown a recent increase in profitability with a net profit margin improving from previous losses. The EBIT margin is also positive, indicating operational efficiency. However, revenue growth is volatile, with a recent decline following previous increases, and gross profit margins are inconsistent.

Balance Sheet

The company's debt-to-equity ratio is high, indicating significant leverage which poses financial risk. However, the equity ratio is stable, and return on equity has improved recently, reflecting better utilization of equity. The financial structure suggests a need for careful management of debt levels.

Cash Flow

Operating cash flow has been consistently positive, indicating solid cash generation from operations. However, free cash flow has been fluctuating, with recent growth but overall inconsistency. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio reflects this inconsistency.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.57T	2.64T	2.82T	3.01T	2.10T	2.29T
Gross Profit	388.31B	280.33B	322.26B	-37.41B	110.11B	238.42B
EBITDA	457.16B	489.84B	510.48B	13.08B	128.72B	298.73B
Net Income	159.97B	182.81B	226.10B	-127.56B	-108.36B	29.38B
Balance Sheet
Total Assets	5.30T	5.40T	5.39T	5.24T	4.75T	4.50T
Cash, Cash Equivalents and Short-Term Investments	421.62B	551.49B	483.71B	506.75B	274.77B	205.29B
Total Debt	3.35T	2.93T	3.30T	3.38T	2.66T	2.45T
Total Liabilities	4.26T	4.39T	4.48T	4.58T	3.95T	3.57T
Stockholders Equity	1.01T	985.18B	827.70B	548.99B	699.66B	826.47B
Cash Flow
Free Cash Flow	0.00	16.25B	92.92B	-401.96B	-178.94B	-79.08B
Operating Cash Flow	0.00	410.33B	450.16B	-93.78B	97.19B	217.62B
Investing Cash Flow	0.00	-422.62B	-333.55B	-275.80B	-322.16B	-254.96B
Financing Cash Flow	0.00	34.15B	-96.05B	598.47B	293.24B	-5.77B

Tohoku Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1087.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9506, the sentiment is Positive. The current price of 1087 is below the 20-day moving average (MA) of 1213.42, below the 50-day MA of 1179.88, and below the 200-day MA of 1096.07, indicating a bullish trend. The MACD of 35.22 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 54.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9506.

Tohoku Electric Power Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9503	75 Outperform	¥3.02T	7.90	14.42%	2.44%	2.08%	19.52%
9506	74 Outperform	¥647.49B	3.80	16.13%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥252.64B	4.33	14.57%	2.36%	-1.60%	-10.41%
9505	69 Neutral	¥231.21B	3.24	17.95%	2.31%	1.75%	38.58%
9504	69 Neutral	¥392.15B	4.35	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	¥1.12T	-1.51	-22.13%	―	-2.28%	-794.92%

Tohoku Electric Power Company Corporate Events

Tohoku Electric Reshapes Leadership to Support Long-Term Vision

Tohoku Electric Power Company has announced a reorganization of its leadership structure, with changes to directors and titled executive officers effective April 1, 2026, and further director appointments to take effect following shareholder approval at the June 2026 annual general meeting. The reshuffle clarifies key roles such as the chief financial officer and chief information security officer, reinforces oversight of nuclear power plant siting and technology, and strengthens responsibility for sustainability, compliance and crisis management, as the company aligns its governance framework with its medium- to long-term vision and seeks to better position itself for future operational and regulatory challenges.

The most recent analyst rating on (JP:9506) stock is a Buy with a Yen1400.00 price target. To see the full list of analyst forecasts on Tohoku Electric Power Company stock, see the JP:9506 Stock Forecast page.

Tohoku Electric Power Outlines FY2025 Q3 Results and Strategic Energy Initiatives

Tohoku Electric Power has released its financial summary for the third quarter of fiscal 2025, covering April 1 to December 31, 2025, outlining consolidated results, segment performance, and trends in operating revenue, income, and key financial indicators along with its latest dividend and full-year forecasts. The materials also highlight major initiatives including efforts to strengthen supply–demand balance in East Japan, expand renewable energy and green businesses, attract data centers, enhance the power grid for next-generation networks, and advance the restart of the Onagawa Unit 2 and other nuclear reactors, all positioned as central to improving profitability, stabilizing its financial base, and capturing future growth in the Tohoku area.

The most recent analyst rating on (JP:9506) stock is a Buy with a Yen1400.00 price target. To see the full list of analyst forecasts on Tohoku Electric Power Company stock, see the JP:9506 Stock Forecast page.

Tohoku Electric Power Posts Lower Nine-Month Earnings but Boosts Dividend and Strengthens Balance Sheet

Tohoku Electric Power reported consolidated net sales of ¥1.73 trillion for the nine months ended 31 December 2025, down 10.1% year on year, while operating profit fell 8.7% to ¥183.2 billion and profit attributable to owners of the parent decreased 9.5% to ¥115.7 billion, reflecting a normalization from the prior year’s elevated earnings. Despite lower revenues and profits, the company’s financial position improved modestly, with total assets rising to ¥5.51 trillion, net assets increasing to ¥1.12 trillion and the equity ratio strengthening to 19.9%, alongside a maintained full-year outlook that projects lower sales and earnings but supports a higher annual dividend of ¥40 per share, signaling confidence in cash-flow stability and a continued emphasis on shareholder returns.

The most recent analyst rating on (JP:9506) stock is a Buy with a Yen1400.00 price target. To see the full list of analyst forecasts on Tohoku Electric Power Company stock, see the JP:9506 Stock Forecast page.