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

• Market Cap: €207.37B
• Dividend Yield: 2.35%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.84
• Revenue Growth: -1.60%
• EPS Growth: -10.41%
• Country: JP
• Employees: 9,206
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 148.17
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,390.00 ▲(35.54% Upside)

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

Diverse Energy Portfolio

A diverse energy portfolio allows Hokkaido Electric Power to mitigate risks associated with reliance on a single energy source, enhancing its ability to adapt to changing market demands and regulatory environments.

Stable Operating Cash Flow

Consistent operating cash flow demonstrates the company's ability to generate cash from its core operations, which is crucial for maintaining financial health and funding future investments.

Investment in Renewable Energy

Investing in renewable energy aligns with global sustainability trends and positions the company to capitalize on growing demand for clean energy solutions, potentially enhancing long-term revenue streams.

Negative Factors

High Leverage

High leverage can strain the company's financial flexibility and increase vulnerability to interest rate hikes, potentially impacting its ability to invest in growth opportunities.

Revenue Inconsistencies

Inconsistent revenue growth can indicate challenges in market demand or pricing power, which may affect the company's ability to sustain long-term profitability and growth.

Negative Free Cash Flow

Negative Free Cash Flow suggests that the company may face challenges in funding operations and investments without relying on external financing, which could impact its financial stability.

Hokkaido Electric Power Company,Incorporated Business Overview & Revenue Model

Company Description

Hokkaido Electric Power Company, Incorporated (9509) is a major electric utility company based in Hokkaido, Japan. It is primarily engaged in the generation, transmission, and distribution of electricity to residential, commercial, and industrial customers across the Hokkaido region. The company operates a diverse portfolio of energy sources, including thermal, hydroelectric, and renewable energy facilities, aiming to provide reliable and sustainable energy solutions to its customers.

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 performance. Revenue and profit inconsistencies hinder the Income Statement, while high leverage on the Balance Sheet poses potential risks. Despite negative Free Cash Flow, stable operating cash flow indicates consistent cash generation. Improvement in cost management and debt levels is necessary for financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 1025.50
• 50DMA: Negative
• 100DMA: Negative
• 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:9509, the sentiment is Negative. The current price of 1025.5 is below the 20-day moving average (MA) of 1102.25, below the 50-day MA of 1097.41, and above the 200-day MA of 897.49, indicating a neutral trend. The MACD of -15.88 indicates Positive momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	82 Outperform	$574.41B	5.34	7.92%	3.29%	-1.56%	9.17%
9503	75 Outperform	$2.75T	6.42	14.42%	2.44%	2.08%	19.52%
9506	74 Outperform	¥555.28B	3.38	16.13%	3.67%	-8.73%	-6.98%
9509	71 Outperform	€207.37B	3.55	14.57%	2.35%	-1.60%	-10.41%
9504	69 Neutral	$334.11B	2.99	15.45%	3.31%	-1.02%	79.80%
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%

Hokkaido Electric Power Company,Incorporated Corporate Events

Hokkaido Electric Power Reports Mixed Financial Results Amid Revenue Decline

Hokkaido Electric Power Company reported a slight decrease in operating revenue for the six months ending September 30, 2025, with a 1.1% decline compared to the previous year. Despite this, the company saw significant increases in operating and ordinary income by 21.0% and 22.0% respectively, although the profit attributable to owners of the parent decreased by 11.5%. The company announced a revision in its financial forecast for the fiscal year ending March 31, 2026, expecting a decrease in operating revenue and profit attributable to owners of the parent, indicating potential challenges ahead.