Kyushu Electric Power Company (9508) AI Stock Analysis

• Market Cap: $745.49B
• Dividend Yield: 3.02%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.82
• Revenue Growth: 5.81%
• EPS Growth: 102.00%
• Country: JP
• Employees: 21,092
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): N/A
• Shares Outstanding: 474,183,930
• 10 Day Avg. Volume: 1,309,190
• 30 Day Avg. Volume: 1,602,236
• PEG Ratio: -0.20
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 7.94
• Enterprise Value/Market Cap: 5.87
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 12.59
• Enterprise Value/Ebitda: 9.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥1,921.00 ▲(17.71% Upside)

The stock's strong technical indicators and attractive valuation are the primary drivers of its score. Despite financial challenges, particularly in profitability and cash flow, the stock's bullish momentum and low P/E ratio suggest potential for growth. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Stable revenue growth of 10.1% indicates strong demand for services and successful expansion efforts, supporting long-term business stability.

Diversified Energy Portfolio

A diverse energy portfolio reduces dependency on a single energy source, enhancing resilience and adaptability to market changes and regulatory shifts.

Regulated Pricing Model

The regulated pricing model ensures predictable revenue, reducing volatility and providing financial stability, crucial for long-term planning and investment.

Negative Factors

Profitability Challenges

Declining profit margins indicate rising costs or pricing pressures, which can erode profitability and affect the company's ability to invest in growth.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to finance new projects or weather economic downturns.

Cash Flow Concerns

Significant decline in free cash flow suggests challenges in cash generation, which may impact the company's ability to fund operations and growth initiatives.

Kyushu Electric Power Company Business Overview & Revenue Model

Company Description

Kyushu Electric Power Company, Incorporated engages in the power generation, transmission, distribution, and sales in Japan and internationally. The company operates through Domestic Electric Power, Other Energy Service, ICT Service, and Other segments. It generates electricity from nuclear, thermal, hydroelectric, geothermal, internal combustion, wind, solar, poultry dung fuel, and biomass power energy sources. The company also receipts, stores, vaporizes, delivers, and sells LNG; purchases, operates, charters, and rents LNG carriers; manufactures and sells electric machinery, specialist equipment, concrete poles, HV and LV insulators, and other products; constructs, maintains, and repairs power generation facilities; buys, leases, manages, cleans, and maintains real estate properties; acquires and owns securities; recycles used confidential documents; and offers geothermal technical and air cargo transportation services, as well as housing and building reviews, assessments and guarantees. In addition, it installs, maintains, and manages electrical measurement equipment; and manufactures, installs, and maintains steel structures. Further, the company offers telecommunication devices, and fiber-optic cable and broadband services; elderly nursing home management and nursing, temporary staffing, and job-placement services; information systems; and computer software. Additionally, it is involved in the heat supply activities; environmental preservation work; consultation, planning, investigation, measurement, design, drafting, and care of civil engineering/construction projects; clerical work acceptance on trust and consulting business; data center business; investment activities; Internet website planning, development, and management; planning and operation of e-sports; management of golf courses; subtitle production for broadcasting; and ownership of mining interests and assets. The company was incorporated in 1951 and is headquartered in Fukuoka City, Japan.

How the Company Makes Money

Kyushu Electric Power Company generates revenue primarily through the sale of electricity and gas to residential, commercial, and industrial customers. The company operates under a regulated pricing model, where electricity rates are approved by the government, providing a stable revenue stream. Additionally, Kyushu Electric earns income from its investments in renewable energy projects, which have become increasingly significant due to Japan's commitment to reducing carbon emissions. The company also benefits from strategic partnerships and joint ventures that enhance its energy generation capacity and technological advancements, further contributing to its profitability. Moreover, the company has diversified its revenue sources by providing energy-related services and products, including energy management systems and consulting, which augment its traditional utility services.

Kyushu Electric Power Company Financial Statement Overview

Summary

Kyushu Electric Power Company shows stable revenue growth but faces profitability challenges with declining margins. The company is highly leveraged, with slight improvements in equity ratios. Cash flow generation is a concern due to a significant drop in free cash flow.

Income Statement

The income statement shows a mixed performance. Revenue has grown by 10.1% from 2024 to 2025, indicating a positive trajectory. However, the gross profit margin decreased to 8.47% in 2025 from 11.91% in 2024, reflecting cost pressures. Net profit margin also decreased to 5.46% in 2025 from 7.78% in 2024, pointing to challenges in maintaining profitability. The EBIT margin remained stable at approximately 8.46%, and the EBITDA margin decreased slightly to 19.80% from 23.51% in 2024.

Balance Sheet

The balance sheet indicates a stable yet leveraged financial position. The debt-to-equity ratio increased to 3.74 in 2025 from 3.76 in 2024, suggesting high leverage but slight improvement. Return on equity (ROE) decreased to 12.88% in 2025 from 18.69% in 2024, indicating reduced profitability for shareholders. The equity ratio improved to 17.31% in 2025 from 15.96% in 2024, reflecting increased equity financing relative to assets.

Cash Flow

The cash flow statement shows mixed signals. Free cash flow declined significantly by 69.23% from 2024 to 2025, indicating cash generation challenges. The operating cash flow to net income ratio is strong at 3.36, suggesting efficient cash conversion from profits. However, the free cash flow to net income ratio decreased to 0.60, showing reduced free cash available to shareholders.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.35T	2.36T	2.14T	2.22T	1.74T	1.52T
Gross Profit	347.87B	199.56B	254.92B	-73.00B	48.62B	77.40B
EBITDA	478.88B	466.70B	502.98B	193.28B	289.70B	300.10B
Net Income	138.87B	128.77B	166.44B	-56.43B	6.87B	31.84B
Balance Sheet
Total Assets	5.71T	5.77T	5.73T	5.60T	5.34T	5.13T
Cash, Cash Equivalents and Short-Term Investments	252.37B	362.58B	392.76B	295.45B	261.66B	234.16B
Total Debt	3.34T	3.74T	3.35T	4.02T	3.26T	3.11T
Total Liabilities	4.66T	4.74T	4.81T	4.99T	4.67T	4.44T
Stockholders Equity	1.02T	999.47B	890.53B	582.06B	645.50B	653.58B
Cash Flow
Free Cash Flow	0.00	77.74B	252.62B	-306.96B	-60.26B	-98.31B
Operating Cash Flow	0.00	431.88B	586.08B	30.50B	257.81B	253.46B
Investing Cash Flow	0.00	-358.87B	-344.32B	-328.87B	-320.88B	-330.59B
Financing Cash Flow	0.00	-91.38B	-150.53B	324.77B	79.43B	95.55B

Kyushu Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1632.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9508, the sentiment is Positive. The current price of 1632 is below the 20-day moving average (MA) of 1647.40, above the 50-day MA of 1569.27, and above the 200-day MA of 1380.39, indicating a neutral trend. The MACD of 17.82 indicates Positive momentum. The RSI at 50.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9508.

Kyushu Electric Power Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9513	82 Outperform	$574.41B	5.34	7.92%	3.28%	-1.56%	9.17%
9503	75 Outperform	$2.75T	6.42	14.42%	2.44%	2.08%	19.52%
9508	74 Outperform	$745.49B	4.19	16.95%	3.02%	5.81%	102.00%
9506	74 Outperform	¥555.28B	3.38	16.13%	3.68%	-8.73%	-6.98%
9502	72 Outperform	$1.79T	8.06	7.72%	2.82%	3.26%	-7.07%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9501	52 Neutral	$1.23T	-1.65	-22.13%	―	-2.28%	-794.92%

Kyushu Electric Power Company Corporate Events

Kyushu Electric Power Reports Strong Profit Growth Amid Sales Decline

Kyushu Electric Power Company reported a decrease in net sales by 2% for the six months ending September 30, 2025, compared to the previous year. However, the company saw significant improvements in operating profit, ordinary profit, and profit attributable to owners of the parent, with increases of 56.2%, 60.1%, and 65.9% respectively. This indicates a strong operational performance despite a challenging market environment. The company has revised its forecast for the fiscal year ending March 31, 2026, projecting a slight decline in net sales but expecting growth in operating profit and profit attributable to owners, suggesting a focus on efficiency and profitability.

Kyushu Electric Power Company to Transition to Holding Company Structure

Kyushu Electric Power Company has resolved to transition to a holding company structure to optimize group management and enhance business operations. This strategic move aims to strengthen the company’s competitiveness and governance by allowing autonomous and prompt business operations tailored to specific business environments, while ensuring continuous improvement in nuclear safety.