Tohoku Electric Power Company (9506) AI Stock Analysis

• Market Cap: ¥574.77B
• Dividend Yield: 3.05%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.84
• Revenue Growth: -8.33%
• EPS Growth: -22.92%
• Country: JP
• Employees: 24,234
• Sector: Utilities
• Sector Strength: 87
• Industry: Renewable Utilities
• EPS (TTM): 75.42
• Shares Outstanding: 502,882,600
• 10 Day Avg. Volume: 2,457,560
• 30 Day Avg. Volume: 2,072,493
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,566.53
• Price Target Upside: 36.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 72 Outperform
• Price Target: ¥1,204.00 ▲(4.70% Upside)

Tohoku Electric Power Company's stock score is driven by strong valuation metrics, indicating potential undervaluation and attractive dividend yield. Technical analysis supports a positive trend, while financial performance shows improvement but highlights risks due to high leverage and inconsistent revenue growth.

Tohoku Electric Power Company Business Overview & Revenue Model

Company Description

Tohoku Electric Power Company, Incorporated (9506) is a leading Japanese utility company primarily engaged in the generation, transmission, and distribution of electricity. Serving the Tohoku region and parts of the Niigata Prefecture, the company plays a critical role in providing reliable energy solutions. Tohoku Electric Power operates various types of power plants, including thermal, nuclear, hydroelectric, and renewable energy facilities, to meet the diverse energy needs of its customers. In addition to electricity, the company is involved in energy-related services and businesses that contribute to regional development and sustainability.

How the Company Makes Money

Tohoku Electric Power Company generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. The company earns money by setting electricity rates approved by the government, which reflect the costs of power generation, transmission, distribution, and maintenance of infrastructure. Revenue streams are bolstered by the efficient operation of its diverse power generation assets, including thermal and nuclear plants, as well as investments in renewable energy sources. Additionally, Tohoku Electric Power explores ancillary services and energy-related businesses, such as energy efficiency solutions and consulting services, which contribute to its overall earnings. Strategic partnerships and government policies on energy supply and sustainability also impact the company's financial performance, as they enable the company to innovate and expand its service offerings.

Tohoku Electric Power Company Financial Statement Overview

Summary

Tohoku Electric Power Company demonstrates a mixed financial performance. While there is an improvement in profitability and operational efficiency, revenue growth is uneven, and the high debt-to-equity ratio poses financial risk. Cash flows are positive, but free cash flow variability indicates potential liquidity management challenges.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.64T	2.82T	3.01T	2.10T	2.29T
Gross Profit	280.33B	322.26B	-180.05B	-28.74B	87.92B
EBITDA	491.79B	508.04B	13.08B	137.96B	306.65B
Net Income	182.81B	226.10B	-127.56B	-108.36B	29.38B
Balance Sheet
Total Assets	5.40T	5.39T	5.21T	4.73T	4.47T
Cash, Cash Equivalents and Short-Term Investments	551.49B	483.71B	506.75B	274.77B	205.29B
Total Debt	3.35T	3.29T	3.08T	2.37T	2.14T
Total Liabilities	4.39T	4.48T	4.58T	3.95T	3.57T
Stockholders Equity	985.18B	827.70B	548.99B	699.66B	826.47B
Cash Flow
Free Cash Flow	16.25B	92.92B	-401.96B	-178.94B	-79.08B
Operating Cash Flow	410.33B	450.16B	-93.78B	97.19B	217.62B
Investing Cash Flow	-422.62B	-333.55B	-275.80B	-322.16B	-254.96B
Financing Cash Flow	34.15B	-96.05B	598.47B	293.24B	-5.77B

Tohoku Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1150.00
• 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:9506, the sentiment is Positive. The current price of 1150 is above the 20-day moving average (MA) of 1083.40, above the 50-day MA of 1045.79, and above the 200-day MA of 1100.32, indicating a bullish trend. The MACD of 19.69 indicates Negative momentum. The RSI at 69.49 is Neutral, neither overbought nor oversold. The STOCH value of 82.92 is Negative, 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
9513	73 Outperform	¥512.81B	4.30	9.38%	3.55%	5.85%	39.06%
9506	72 Outperform	¥574.77B	3.60	17.06%	3.05%	-8.33%	-22.92%
9501	72 Outperform	$1.07T	5.86	-25.31%	―	-0.78%	-467.97%
9509	70 Outperform	€215.69B	3.38	17.25%	1.90%	-2.86%	3.20%
9503	68 Neutral	$2.15T	4.92	14.81%	3.00%	4.75%	-0.16%
Sector *	66 Neutral	¥379.87B	6.99	9.30%	2.60%	3.14%	-4.97%
9504	60 Neutral	$317.14B	3.11	15.39%	3.09%	-1.90%	8.34%

Tohoku Electric Power Company Corporate Events

Tohoku Electric Power Reports Decline in Q1 2025 Financial Results

Tohoku Electric Power Company reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales, operating profit, and ordinary profit all experiencing substantial year-on-year decreases. The company’s comprehensive income also dropped sharply, reflecting challenging market conditions. Despite the downturn, the company maintained its dividend forecast, indicating a commitment to shareholder returns amidst financial pressures.

The most recent analyst rating on (JP:9506) stock is a Buy with a Yen1750.00 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 Announces Director Change

Tohoku Electric Power Co., Inc. announced a change in its board of directors, with Michikazu Mukoyama set to replace Osamu Kawanobe as an outside director following Kawanobe’s resignation due to personal reasons. This change, effective after the General Meeting of Shareholders in June 2025, ensures compliance with legal requirements and may influence the company’s strategic direction and governance.

The most recent analyst rating on (JP:9506) stock is a Buy with a Yen1750.00 price target. To see the full list of analyst forecasts on Tohoku Electric Power Company stock, see the JP:9506 Stock Forecast page.