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

• Market Cap: ¥180.58B
• Dividend Yield: 2.27%
• Average Volume (3M): 5.23M
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.79
• Revenue Growth: -5.42%
• EPS Growth: -0.85%
• Country: JP
• Employees: 9,206
• Sector: Utilities
• Sector Strength: 76
• Industry: Renewable Utilities
• EPS (TTM): 92.93
• Shares Outstanding: 215,291,900
• 10 Day Avg. Volume: 5,059,720
• 30 Day Avg. Volume: 5,226,553
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.95
• 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: ¥756.51
• Price Target Upside: -10.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥930.00 ▲(9.99%Upside)

Hokkaido Electric Power Company is positioned as a potentially attractive investment due to its undervaluation and strong technical indicators. However, financial performance concerns, particularly high leverage and inconsistent revenues, weigh down the overall score. Investors should consider these risks against the stock's appealing valuation and technical strength.

Hokkaido Electric Power Company,Incorporated Business Overview & Revenue Model

Company Description

Hokkaido Electric Power Company, Incorporated (9509) is a Japanese electric utility company headquartered in Sapporo, Hokkaido. The company is primarily involved in the generation, transmission, and distribution of electricity across the Hokkaido region. It operates a combination of thermal, hydroelectric, and renewable energy power plants to meet the energy needs of its residential, commercial, and industrial customers. Hokkaido Electric Power Company also offers energy-related services and solutions, contributing to the regional infrastructure and energy security.

How the Company Makes Money

Hokkaido Electric Power Company generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers in the Hokkaido region. The company operates a diverse portfolio of power generation facilities, including thermal, hydroelectric, and renewable energy plants, which allows it to produce and supply electricity. Revenue is derived from electricity tariffs, which are regulated by the government, ensuring stable income streams. The company may also engage in energy-related services, such as consulting and infrastructure solutions, which provide additional revenue channels. Strategic partnerships and government regulations play a significant role in the company's operations and financial performance, impacting pricing and expansion opportunities.

Hokkaido Electric Power Company,Incorporated Financial Statement Overview

Summary

Hokkaido Electric Power Company's financial health displays both strengths and weaknesses. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	902.05B	953.78B	888.87B	663.41B	740.79B
Gross Profit	75.84B	187.70B	-22.53B	24.97B	53.77B
EBITDA	149.08B	174.61B	67.94B	103.77B	135.53B
Net Income	64.22B	66.20B	-22.19B	6.86B	36.16B
Balance Sheet
Total Assets	2.24T	2.14T	2.09T	1.99T	2.00T
Cash, Cash Equivalents and Short-Term Investments	156.32B	110.71B	89.87B	88.89B	83.77B
Total Debt	1.26T	1.24T	1.31T	1.27T	1.27T
Total Liabilities	1.84T	1.81T	1.84T	1.71T	1.71T
Stockholders Equity	391.93B	319.38B	244.81B	272.65B	277.10B
Cash Flow
Free Cash Flow	-42.54B	62.19B	-105.33B	24.55B	51.54B
Operating Cash Flow	125.59B	176.13B	-574.00M	102.34B	136.55B
Investing Cash Flow	-90.70B	-80.84B	-85.25B	-77.72B	-85.61B
Financing Cash Flow	10.73B	-74.65B	86.80B	-19.49B	-24.66B

Hokkaido Electric Power Company,Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 845.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 845.5 is above the 20-day moving average (MA) of 774.89, above the 50-day MA of 736.16, and above the 200-day MA of 790.56, indicating a bullish trend. The MACD of 21.08 indicates Negative momentum. The RSI at 64.62 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 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
9513	73 Outperform	$473.09B	5.11	7.15%	3.87%	4.66%	18.89%
9501	72 Outperform	¥922.38B	5.72	4.39%	―	-1.56%	-39.79%
9509	70 Outperform	¥180.58B	2.76	17.76%	2.27%	-5.42%	-0.85%
9503	68 Neutral	$1.95T	4.19	15.53%	3.29%	6.84%	-9.42%
9506	67 Neutral	$555.03B	2.99	19.86%	3.15%	-6.14%	-19.16%
Sector *	66 Neutral	¥346.97B	7.78	9.28%	2.63%	2.39%	8.81%
9504	66 Neutral	¥293.40B	2.93	14.82%	3.32%	-6.11%	-26.15%

Hokkaido Electric Power Company,Incorporated Corporate Events

Hokkaido Electric Power Faces Compliance Challenge

Hokkaido Electric Power Network Company, a subsidiary of Hokkaido Electric Power Co., Ltd., received a recommendation for business improvement from the Electricity and Gas Market Surveillance Commission. This recommendation followed the discovery that employees used non-public information in power generation operations, potentially undermining fair competition in the electricity market. The company acknowledges the breach of trust with stakeholders and commits to implementing a new compliance monitoring system to prevent future occurrences.

Hokkaido Electric Power Faces Compliance Challenge

Hokkaido Electric Power Company has received a recommendation for business improvement from the Electricity and Gas Market Surveillance Commission due to the misuse of non-public information in its operations. The company acknowledges the breach of fair competition principles and is committed to implementing a new compliance monitoring system to prevent future occurrences.

Hokkaido Electric Power Network Enhances Compliance Measures Following Investigation

Hokkaido Electric Power Network Company, a subsidiary of Hokkaido Electric Power Co., Ltd., submitted a report to the Electricity and Gas Market Surveillance Commission following an investigation into the handling of non-public information by an employee. The company is taking measures to strengthen compliance and prevent future occurrences, emphasizing the seriousness of adhering to regulations under the Electricity Business Act.

Hokkaido Electric Power Strengthens Compliance Measures After Information Handling Investigation

Hokkaido Electric Power Company has submitted a report to the Electricity and Gas Market Surveillance Commission following an investigation into the handling of non-public information by an employee. The company is taking measures to strengthen compliance and prevent recurrence under its new management system.

Hokkaido Electric Power Expands Business Scope with New Amendment

Hokkaido Electric Power Company has announced a proposal to amend its Articles of Incorporation to align with its ‘HEPCO Group Management Vision 2035.’ This amendment aims to expand the company’s business purposes to include new sectors such as agriculture, healthcare, and financial services, reflecting its commitment to fostering regional growth and addressing local challenges.

Hokkaido Electric Power Reports Decline in Fiscal 2025 Financial Results

Hokkaido Electric Power Company reported a decrease in its consolidated financial results for the fiscal year ended March 31, 2025, with operating revenue down by 5.4% and operating income decreasing by 25%. Despite these declines, the company maintained its dividend payments and plans to increase them in the next fiscal year. The financial outlook for the upcoming year predicts further declines in revenue and profit, which could impact the company’s market positioning and stakeholder confidence.

Hokkaido Electric Power Network Faces Regulatory Scrutiny Over Information Breach

Hokkaido Electric Power Network Company, a subsidiary of Hokkaido Electric Power Co., Ltd., has reported an incident involving the possession of non-public information by an employee. The information, related to transmission and supply operations, was reported to the Electricity and Gas Market Surveillance Commission, prompting a request for a report under the Electricity Business Act. The company is investigating the matter to prevent future occurrences and is committed to responding appropriately to regulatory requests.

Hokkaido Electric Power Faces Inquiry Over Non-Public Information Breach

Hokkaido Electric Power Company has reported an incident involving the possession of non-public information by one of its employees, which was originally prepared by Hokkaido Electric Power Network Co., Ltd. This information pertains to transmission and supply operations, and its unauthorized possession has prompted a request for a report by the Electricity and Gas Market Surveillance Commission under the Electricity Business Act. The company is taking the matter seriously, conducting an investigation, and formulating measures to prevent future occurrences, while complying with the report request.

Hokkaido Electric Power Adjusts Timeline for Ishikariwan Shinko Power Station

Hokkaido Electric Power Company has announced changes to the operational timeline for its Ishikariwan Shinko Thermal Power Station. The start of construction for Unit 3 has been moved to May 2030, with operations now scheduled for FY2033, following the company’s successful bid in the Long-Term Decarbonized Power Resource Auction. This adjustment is part of the company’s strategy to ensure predictability in long-term investment recovery and aligns with its carbon neutrality goals.