Kyushu Electric Power Company (9508) AI Stock Analysis

• Market Cap: ¥952.07B
• Dividend Yield: 3%
• Average Volume (3M): 1.60M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.81
• Revenue Growth: 5.81%
• EPS Growth: 102.00%
• Country: JP
• Employees: 21,092
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 76.97
• 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: 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): 288.9
• Revenue Forecast (FY): ¥2.25T

• Rating: 74 Outperform
• Price Target: ¥2,256.00 ▲(31.32% Upside)
• Action: Upgraded Date: 11/26/25
• Date: Action: Upgraded 11/26/25

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

A 10.1% revenue increase year-over-year shows durable demand for core electricity sales in Kyushu and strengthens the top line. For a regulated/retail-focused utility, sustained revenue growth supports predictable cash inflows, underpins long-term network investment capacity, and offsets margin pressure.

Cash conversion efficiency

A high operating cash flow to net income ratio (3.36) indicates earnings are well backed by cash, reflecting quality of profits and reliable cash generation from operations. This durability supports ongoing maintenance, regulated capex and debt servicing over multiple quarters despite FCF volatility.

Improved equity ratio

An improving equity ratio suggests gradual strengthening of the capital structure and reduced relative reliance on liabilities. Over a multi-month horizon this trend increases resilience to funding shocks, improves credit profile modestly, and gives management more flexibility on long-term investments and regulatory obligations.

Negative Factors

High leverage

A debt-to-equity ratio near 3.74 signals material leverage that constrains financial flexibility and raises interest expense sensitivity. For a capital-intensive utility, high leverage limits room for renewables capex, increases refinancing risk, and can pressure credit metrics if earnings or cash flow weaken.

Plunging free cash flow

A 69% drop in free cash flow is a structural concern: it reduces internal funding for capex, dividends, and deleveraging. Persistently lower FCF forces higher external financing, constrains strategic investment, and limits ability to absorb regulatory or fuel-cost shocks across the next several quarters.

Margin compression

Declining gross and net margins point to rising generation/procurement costs or weaker pricing power. Sustained margin compression erodes free cash generation and shareholder returns, reduces capacity to fund modernization or transition costs, and makes the business more vulnerable to cost spikes.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: 1718.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1718 is below the 20-day moving average (MA) of 1862.47, below the 50-day MA of 1774.36, and above the 200-day MA of 1516.37, indicating a bullish trend. The MACD of 61.35 indicates Negative momentum. The RSI at 70.75 is Negative, neither overbought nor oversold. The STOCH value of 56.00 is Neutral, 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
9503	75 Outperform	¥3.02T	7.90	14.42%	2.44%	2.08%	19.52%
9508	74 Outperform	¥952.07B	5.26	16.95%	3.00%	5.81%	102.00%
9506	74 Outperform	¥647.49B	3.80	16.13%	3.47%	-8.73%	-6.98%
9504	69 Neutral	¥392.15B	4.35	15.45%	3.23%	-1.02%	79.80%
9502	67 Neutral	¥1.99T	8.39	7.72%	2.75%	3.26%	-7.07%
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%

Kyushu Electric Power Company Corporate Events

Kyushu Electric Power Lifts Profits and Strengthens Balance Sheet Despite Lower Sales

Kyushu Electric Power reported consolidated net sales of ¥1.65 trillion for the nine months ended December 31, 2025, down 3.8% year on year, but significantly improved profitability, with operating profit up 45.2% to ¥216.3 billion and profit attributable to owners of parent up 48.0% to ¥161.1 billion. The company’s equity-to-asset ratio rose to 19.2% from 17.3%, indicating a strengthening balance sheet, while it maintained a stable dividend policy with an interim dividend of ¥25 per share and a full-year forecast of ¥50 per share. For the full fiscal year ending March 31, 2026, Kyushu Electric forecasts net sales of ¥2.25 trillion, a 4.5% decline from the previous year, but expects to sustain robust earnings with operating profit projected to rise 5.2% to ¥210 billion and profit attributable to owners of parent up 8.7% to ¥140 billion, underscoring continued improvement in earnings efficiency despite lower top-line projections.

The most recent analyst rating on (JP:9508) stock is a Hold with a Yen1826.00 price target. To see the full list of analyst forecasts on Kyushu Electric Power Company stock, see the JP:9508 Stock Forecast page.