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Tohoku Electric Power Company
(9506)
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Rating:72Outperform
Price Target:
¥1,474.00
▲(12.22% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by improving fundamentals (profitability recovery and a much healthier balance sheet), tempered by declining revenue, 2026 margin compression, and inconsistent free cash flow. Technicals are supportive with a clear uptrend, while valuation is a key positive due to the low P/E and attractive dividend yield.
Positive Factors
Profitability Recovery
The return to sustained profitability improves the company’s ability to fund operations, service obligations, and invest in its regulated electricity infrastructure. It indicates a meaningful recovery in the earnings base, although recent margin pressure limits its durability.
Negative Factors
Three-Year Revenue Decline
Persistent revenue contraction raises concern about underlying demand, customer mix, or pricing power across the service area. For a utility with substantial fixed infrastructure, continued top-line weakness can constrain operating leverage and make earnings recovery less durable.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to sustained profitability improves the company’s ability to fund operations, service obligations, and invest in its regulated electricity infrastructure. It indicates a meaningful recovery in the earnings base, although recent margin pressure limits its durability.
Read all positive factors
Tohoku Electric Power Company (9506) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥654.49B
Dividend Yield3.05%
Average Volume (3M)2.28M
Price to Earnings (P/E)8.0
Beta (1Y)0.79
Revenue Growth2.21%
EPS Growth-47.89%
CountryJP
Employees18,403
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)166.64
Shares Outstanding502,882,600
10 Day Avg. Volume1,994,400
30 Day Avg. Volume2,276,696
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.53
Price to Sales (P/S)0.25
P/FCF Ratio-23.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,415.00Price Target Upside7.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)220.08
Revenue Forecast (FY)¥2.42T
Tohoku Electric Power Company Business Overview & Revenue Model
Company Description
Tohoku Electric Power Co., Inc. operates as a comprehensive energy enterprise, providing services both within Japan and globally. Its operations are compartmentalized into three primary areas: electricity generation and retail, power grid manageme...
How the Company Makes Money
Tohoku Electric Power Company primarily makes money by supplying electricity to end users within its service area and through regulated network-related operations. Key revenue streams typically include: (1) Electricity retail/sales: revenue from s...
Tohoku Electric Power Company Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
68
Positive
Cash Flow
54
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.62T | 2.37T | 2.64T | 2.82T | 3.01T | 2.10T |
| Gross Profit | 253.79B | 160.38B | 280.33B | 322.26B | -180.06B | -28.74B |
| EBITDA | 374.51B | 379.34B | 493.44B | 510.48B | 15.52B | 130.15B |
| Net Income | 83.38B | 84.97B | 182.81B | 226.10B | -127.56B | -108.36B |
Balance Sheet | ||||||
| Total Assets | 5.68T | 5.73T | 5.45T | 5.43T | 5.24T | 4.75T |
| Cash, Cash Equivalents and Short-Term Investments | 568.81B | 660.70B | 551.49B | 530.45B | 506.75B | 274.77B |
| Total Debt | 3.58T | 3.49T | 2.94T | 2.96T | 3.08T | 2.38T |
| Total Liabilities | 4.52T | 4.60T | 4.45T | 4.51T | 4.61T | 3.97T |
| Stockholders Equity | 1.14T | 1.11T | 985.18B | 827.70B | 548.99B | 699.66B |
Cash Flow | ||||||
| Free Cash Flow | -25.22B | -25.22B | 16.25B | 92.92B | -401.96B | -178.94B |
| Operating Cash Flow | 370.16B | 370.16B | 410.33B | 450.16B | -93.78B | 97.19B |
| Investing Cash Flow | -375.69B | -375.69B | -422.62B | -333.55B | -275.80B | -322.16B |
| Financing Cash Flow | 115.19B | 115.19B | 34.15B | -96.05B | 598.47B | 293.24B |
Tohoku Electric Power Company Technical Analysis
Positive
1313.50
Price Trends
1139.84
Positive
1113.12
Positive
1119.75
Positive
Market Momentum
50.08
Negative
73.18
Negative
91.52
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 1313.5 is above the 20-day moving average (MA) of 1230.37, above the 50-day MA of 1139.84, and above the 200-day MA of 1119.75, indicating a bullish trend. The MACD of 50.08 indicates Negative momentum. The RSI at 73.18 is Negative, neither overbought nor oversold. The STOCH value of 91.52 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ¥654.49B | 7.95 | 7.93% | 3.50% | 2.21% | -47.89% | |
69 Neutral | ¥2.76T | 6.98 | 11.51% | 3.17% | -2.90% | -7.99% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | ¥203.80B | 4.22 | 12.63% | 2.31% | -7.27% | -27.05% | |
56 Neutral | ¥220.61B | 7.99 | 9.95% | 3.18% | -3.77% | -56.08% | |
55 Neutral | ¥353.09B | 9.42 | 9.14% | 2.87% | -4.69% | -62.74% | |
51 Neutral | ¥858.77B | 2.17 | -14.76% | ― | -5.31% | ― |
* Utilities Sector Average
JP:9506
Tohoku Electric Power Company
1,313.50
185.20
16.41%
JP:9504
Chugoku Electric Power Co
980.30
105.70
12.09%
JP:9505
Hokuriku Electric Power Company
983.50
97.11
10.96%
JP:9503
Kansai Electric Power Company
2,591.50
580.11
28.84%
JP:9501
Tokyo Electric Power Company Holdings
517.80
-212.30
-29.08%
JP:9509
Hokkaido Electric Power Company,Incorporated
1,076.00
-38.50
-3.45%
Tohoku Electric Power Company Corporate Events
Tohoku Electric Power to Dispose of Treasury Stock for Performance-Linked Executive Compensation
Jul 29, 2026
Tohoku Electric Power Company has approved the disposition of 635,200 shares of treasury stock via a third-party allotment to The Master Trust Bank of Japan, at a price of 1,164 yen per share, for a total value of about 739 million yen. The move, ...
Tohoku Electric Power Sets FY2026 Outlook and Highlights Grid and Nuclear Initiatives
Jul 29, 2026
Tohoku Electric Power reported its financial summary for the first quarter of FY2026, covering April 1 to June 30, 2026, along with trends in operating revenue, income, and key financial indicators. The release outlines changes in consolidated ord...
Tohoku Electric Power lifts Q1 revenue but profits edge lower, keeps dividend plan intact
Jul 29, 2026
Tohoku Electric Power reported a sharp 46.7% year-on-year rise in consolidated net sales to ¥785.3 billion for the three months ended June 30, 2026, while operating profit fell 6.6% to ¥60.1 billion and profit attributable to owners of p...
Tohoku Electric Power Extends Performance-Linked Stock Compensation for Executives
Jun 25, 2026
Tohoku Electric Power Company has decided to continue its performance-linked stock compensation system for internal directors and executive officers, first introduced in 2020, to strengthen the alignment between management remuneration, company pe...
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.