Hokkaido Electric Power Company,Incorporated (9509) AI Stock Analysis

• Market Cap: ¥231.39B
• Dividend Yield: 2.36%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.91
• Revenue Growth: -1.60%
• EPS Growth: -10.41%
• Country: JP
• Employees: 9,206
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 17.69
• Shares Outstanding: 215,291,900
• 10 Day Avg. Volume: 3,993,260
• 30 Day Avg. Volume: 4,832,313
• PEG Ratio: -0.80
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -3.67
• 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: ¥1,290.00
• Price Target Upside: 17.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 173.97
• Revenue Forecast (FY): ¥868.50B

• Rating: 71 Outperform
• Price Target: ¥1,186.00 ▲(7.82% Upside)
• Action: Upgraded Date: 11/28/25
• Date: Action: Upgraded 11/28/25

The overall stock score of 71 reflects a combination of strong technical momentum and attractive valuation, offset by financial performance challenges. The stock is currently experiencing bullish momentum, but caution is advised due to overbought technical indicators. The low P/E ratio and reasonable dividend yield enhance its attractiveness, although financial stability concerns remain due to high leverage and inconsistent revenue growth.

Positive Factors

Stable Operating Cash Flow

Consistent operating cash flow indicates the utility reliably converts revenue into cash from core operations. Over 2-6 months this underpins the company’s ability to fund operations, service interest, and support regulated customer supplies even with cyclical earnings, boosting financial resilience.

Improved Return on Equity

An improving ROE signals the firm is generating higher profit per unit of shareholder equity. Over the medium term this reflects improving capital efficiency and management’s ability to extract returns from invested capital, supporting sustainable shareholder value creation.

Vertically Integrated Utility Model

Owning generation through retail and networks creates stable, diversified cash flows and regulatory protections. Vertical integration reduces counterparty dependence, supports margin capture across the value chain, and provides durable demand exposure tied to regional electricity consumption.

Negative Factors

High Leverage

Elevated debt relative to equity raises refinancing and interest-rate risk, constraining strategic flexibility. Over the next several months higher leverage can limit the company’s ability to absorb shocks, finance large projects internally, or invest in renewables without costly external funding.

Persistent Negative Free Cash Flow

Sustained negative free cash flow driven by heavy capex reduces internal funding for dividends, debt reduction, or growth. This structural cash need implies ongoing reliance on external financing or asset optimization, which can pressure credit metrics and strategic investment over months.

Inconsistent Revenue and Margin Trends

Volatile revenue growth and fluctuating gross margins hinder predictability of earnings and planning. Over a 2-6 month horizon, inconsistent top-line and cost control signal execution risk and expose the company to margin compression if commodity, regulatory, or operational pressures persist.

Hokkaido Electric Power Company,Incorporated Business Overview & Revenue Model

Company Description

Hokkaido Electric Power Company, Incorporated generates, transmits, and distributes electricity in Japan. The company undertakes electrical and telecommunication, civil engineering and construction, piping, air-conditioning and water supply/drainage facility, and disaster prevention equipment works; manufactures and sells electricity meters; and inspects and installs electric meters. It also engages in the management of buildings; environmental conservation business; sale of fuel, equipment, and materials; public bathhouse, cleaning/security service, and utility pole advertising businesses; provision of consulting services in the areas of construction, civil engineering, electricity, environment, energy, and repair of housing appliances; construction, maintenance, operation, and repair of power generation facilities and various plants; sale of electric power generated by thermal, hydroelectric, photovoltaic, and wind power; unloading, storage, and delivery of imported coal; and marine transport agency and customs clearance activities. In addition, the company provides Ethernet communications network and Internet connection services; installation, maintenance, supervision, and consulting of information communication networks; Internet data center and other information processing related services; and sells network-related machinery and equipment, information processing equipment, and software. Further, it is involved in the consultation, development, operation, and management of education-related information processing systems; leasing of LNG receiving facilities; and sale of corporate merchandise, gift products, sundries, food, etc. Additionally, the company engages in design, printing, and bookbinding operations; the production of closed captions; and the provision of document management, confidential-document destruction, and recycling services. The company was founded in 1951 and is headquartered in Sapporo, Japan.

How the Company Makes Money

Hokkaido Electric Power Company generates revenue primarily through the sale of electricity to its customers, which includes households, businesses, and government entities. The company's revenue model is based on regulated rates approved by the Japanese government, which allows it to charge customers for electricity consumption. Additionally, the company earns income from ancillary services, such as grid management and maintenance. Significant partnerships with the government and collaborations with other energy providers also enhance its operational efficiency and financial stability. The company is increasingly investing in renewable energy projects, which may contribute to future revenue streams as demand for sustainable energy solutions grows.

Hokkaido Electric Power Company,Incorporated Financial Statement Overview

Summary

Hokkaido Electric Power Company shows mixed financial health. Revenue and profit inconsistencies hinder the Income Statement's performance, while high leverage on the Balance Sheet poses potential risks. Despite negative Free Cash Flow, operating cash flow remains stable, showcasing the company's ability to generate cash. The firm must manage its costs and debt levels to enhance financial stability and investor confidence.

Income Statement

The company has shown mixed performance in the income statement. While Total Revenue increased from 2022 to 2024, it experienced a decline in 2025. Gross Profit Margin fluctuated significantly, indicating potential volatility in cost management. Despite a strong Net Profit Margin in 2025, Revenue Growth Rate and EBIT Margin have been inconsistent, posing challenges for sustained growth.

Balance Sheet

Hokkaido Electric Power Company exhibits a high Debt-to-Equity Ratio, reflecting significant leverage that could pose financial risks. However, Return on Equity improved over time, demonstrating efficient use of equity to generate profits. The Equity Ratio is moderate, indicating a balanced approach to funding assets with equity.

Cash Flow

The cash flow statement highlights the company's struggles with Free Cash Flow, which has been negative in recent years due to high capital expenditures. The Operating Cash Flow to Net Income Ratio is relatively stable, suggesting consistent cash generation relative to net income. Despite these challenges, the company maintained positive Operating Cash Flow.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2021
Income Statement
Total Revenue	901.98B	902.05B	953.78B	888.87B	663.41B	740.79B
Gross Profit	85.06B	75.84B	187.70B	-22.53B	24.97B	53.77B
EBITDA	166.97B	149.08B	174.61B	67.94B	103.77B	135.53B
Net Income	63.75B	64.22B	66.20B	-22.19B	6.86B	36.16B
Balance Sheet
Total Assets	2.26T	2.24T	2.14T	2.09T	1.99T	2.00T
Cash, Cash Equivalents and Short-Term Investments	144.37B	156.32B	110.71B	89.87B	88.89B	83.77B
Total Debt	1.45T	1.26T	1.41T	1.48T	1.39T	1.40T
Total Liabilities	1.82T	1.84T	1.81T	1.84T	1.71T	1.71T
Stockholders Equity	425.20B	391.93B	319.38B	244.81B	272.65B	277.10B
Cash Flow
Free Cash Flow	0.00	-42.54B	62.19B	-105.33B	24.55B	51.54B
Operating Cash Flow	0.00	125.59B	176.13B	-574.00M	102.34B	136.55B
Investing Cash Flow	0.00	-90.70B	-80.84B	-85.25B	-77.72B	-85.61B
Financing Cash Flow	0.00	10.73B	-74.65B	86.80B	-19.49B	-24.66B

Hokkaido Electric Power Company,Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1100.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9509, the sentiment is Positive. The current price of 1100 is below the 20-day moving average (MA) of 1150.40, below the 50-day MA of 1115.47, and above the 200-day MA of 1008.42, indicating a neutral trend. The MACD of 24.00 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 25.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9509.

Hokkaido Electric Power Company,Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9506	74 Outperform	¥605.76B	5.14	16.13%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥231.39B	13.52	14.57%	2.36%	-1.60%	-10.41%
9505	69 Neutral	¥214.40B	4.18	17.95%	2.31%	1.75%	38.58%
9504	69 Neutral	¥366.57B	16.42	15.45%	3.23%	-1.02%	79.80%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	63 Neutral	¥58.82B	3.56	4.73%	2.31%	-1.96%	33.15%
9501	52 Neutral	¥1.02T	5.29	-22.13%	―	-2.28%	-794.92%

Hokkaido Electric Power Company,Incorporated Corporate Events

Hokkaido Electric Power Confirms Reviewed Nine-Month Results, Profit Dips as Earnings Mix Shifts

Hokkaido Electric Power Company reported consolidated operating revenue of ¥617.7 billion for the nine months ended December 31, 2025, down 4.4% year on year, while operating income rose 22.7% to ¥79.2 billion and ordinary income increased 19.7% to ¥68.0 billion; profit attributable to owners of parent declined 10.7% to ¥48.8 billion, with basic profit per share falling to ¥232.58. The utility also reported a strengthened financial position, with total assets rising to ¥2.38 trillion and equity-to-asset ratio improving to 18.7%, and confirmed that certified public accountants have completed their interim review with no changes to the financial figures previously disclosed on January 30, 2026, providing investors with additional assurance on the stability and credibility of its reported results.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1116.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.

Hokkaido Electric Power Lifts Profitability but Cuts Full-Year Forecast, Raises Dividend

For the nine months ended December 31, 2025, Hokkaido Electric Power reported a 4.4% year-on-year decline in operating revenue to ¥617.7 billion, but operating and ordinary income rose 22.7% and 19.7% respectively, reflecting improved profitability despite lower sales, while profit attributable to owners fell 10.7% and basic profit per share dropped to ¥232.58. The company’s financial position strengthened, with total assets rising to ¥2.38 trillion and the equity ratio improving to 18.7%, and it plans to raise annual common dividends to ¥30 per share for the fiscal year ending March 31, 2026, even as it cut its full-year earnings forecast, projecting lower revenue and a sharp decline in profit attributable to owners, which signals expectation of margin pressures or rising costs in the coming quarter.

The most recent analyst rating on (JP:9509) stock is a Hold with a Yen1080.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.

Hokkaido Electric Launches Tomakomai-Centered Energy Chain to Drive Carbon Neutrality and Growth

Hokkaido Electric Power Company has unveiled a new energy supply chain initiative centered on the Tomakomai area to drive carbon neutrality in Hokkaido and underpin its long‑term growth. Leveraging the region’s heavy dependence on oil and coal, high household energy use and expected demand growth from digital industries, the utility plans a full‑scale entry into the gas business, including acquiring gas production, sales and pipeline operations from Japan Petroleum Exploration and building an integrated supply chain together with the Ishikari LNG terminal. It will roll out combined electricity‑and‑gas pricing and services to households, businesses and high heat‑demand customers, actively promoting fuel switching from oil and coal to gas across the island. In parallel, the company is studying installation of new LNG‑fired power sources and development of a large‑vessel LNG and ammonia terminal in Tomakomai to support rising electricity demand, stabilize the grid alongside nuclear and renewables, cut LNG procurement costs and ultimately transition from LNG to decarbonized fuels such as hydrogen and ammonia, reinforcing both regional decarbonization and the company’s competitive positioning.

The most recent analyst rating on (JP:9509) stock is a Hold with a Yen1064.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.

Hokkaido Electric Power Subsidiary HOKKAIDENKO Lifts Full-Year Profit Forecast

Hokkaido Electric Power Company announced that its subsidiary HOKKAIDENKO CORPORATION has sharply revised upward its earnings forecasts for the fiscal year ending March 31, 2026, reflecting stronger-than-expected operating trends. HOKKAIDENKO now expects consolidated net sales of ¥70.8 billion, up 4.7% from the previous forecast, and operating income of ¥3.96 billion, ordinary income of ¥4.15 billion, and profit attributable to owners of parent of ¥2.81 billion, implying profit growth of around 45% versus its prior outlook and exceeding last year’s actual results; non-consolidated forecasts were raised by similar magnitudes. The improved forecast underscores resilient demand in its engineering and construction business and signals a potentially positive contribution to Hokkaido Electric Power’s consolidated results, which the parent plans to disclose once calculations are completed.

The most recent analyst rating on (JP:9509) stock is a Hold with a Yen1333.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.