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

• Market Cap: ¥215.79B
• 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: ¥1,161.00 ▲(5.55% 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

Integrated utility operations

A vertically integrated utility model (generation through retail) provides durable, regulated-like cash flows and operational control across the value chain. This reduces dependency on third-party suppliers, supports service reliability and steady revenue mix over the medium term.

Stable operating cash generation

Consistent positive operating cash flow shows core electricity sales generate cash to fund operations and service liabilities. Over 2–6 months this supports operational continuity and debt servicing capacity even while capex cycles drive FCF negative.

Improving return on equity

An improving ROE indicates management is extracting better returns from shareholder capital, while a moderate equity ratio suggests a balanced funding mix. Together these point to relative capital efficiency and the ability to support investments without overly diluting equity.

Negative Factors

High leverage

Significant leverage increases interest expense and refinancing risk, reducing financial flexibility. Over a multi-month horizon this constrains the company’s ability to pursue discretionary investments, raises sensitivity to rate moves, and may pressure credit metrics.

Persistent negative free cash flow

Ongoing negative FCF driven by heavy capex reflects an intensive investment cycle (grid, generation, or upgrades). This creates sustained reliance on external funding, limits cash available for reinvestment or payouts, and amplifies balance-sheet and liquidity risk.

Inconsistent revenue and earnings trends

Declining revenue and EPS growth indicate demand, pricing, or cost challenges that produce volatile margins. Such inconsistent top-line and earnings trends make cash flow and profit forecasting harder, complicating long-term investment planning and operational stability.

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: Negative
• Last Price: 1100.00
• 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 1100 is below the 20-day moving average (MA) of 1150.32, below the 50-day MA of 1115.34, and above the 200-day MA of 1011.80, indicating a neutral trend. The MACD of 4.42 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 5.65 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
9506	74 Outperform	¥578.77B	5.14	16.13%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥215.79B	13.52	14.57%	2.36%	-1.60%	-10.41%
9505	69 Neutral	¥217.01B	4.18	17.95%	2.31%	1.75%	38.58%
9504	69 Neutral	¥351.15B	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	¥59.74B	3.56	4.73%	2.31%	-1.96%	33.15%
9501	52 Neutral	¥1.04T	5.29	-22.13%	―	-2.28%	-794.92%

Hokkaido Electric Power Company,Incorporated Corporate Events

Hokkaido Electric Power Ups Output, Accelerates Work at Ishikariwan Shinko Plant

Hokkaido Electric Power has revised the planned output and construction schedule for its Ishikariwan Shinko LNG thermal power station, increasing total capacity and moving up work on a key unit. The adjustments reflect detailed design reviews of facility specifications aimed at optimizing plant performance and supporting long-term power supply in the Hokkaido region.

Under the new plan, the output of Units 2 and 3 will be raised, lifting total installed capacity from about 569,400 kW to 580,000 kW, while the start of construction for Unit 2 is brought forward from May 2027 to August 2026. The earlier construction timeline and incremental capacity expansion are expected to strengthen the company’s generation portfolio and enhance supply reliability as demand and decarbonization pressures evolve.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1186.00 price target. To see the full list of analyst forecasts on Hokkaido Electric Power Company,Incorporated stock, see the JP:9509 Stock Forecast page.

Mizuho Entities Plan Purchase of Hokkaido Electric’s 2031 Convertible Bonds

Hokkaido Electric Power said it has been notified that Mizuho Securities and its subsidiary Mizuho International plan to purchase portions of the company’s zero coupon convertible bonds due 2031, which are scheduled to be issued in overseas markets on March 2, 2026. The utility stressed it is not participating in these secondary transactions, which may see Mizuho entities temporarily hold up to 8.27% of its voting rights but with no current intention to convert the bonds into shares or exercise voting rights, framing the move as a credit and investment-structuring play rather than a shift in corporate control.

Mizuho International is expected to initially acquire the bonds, with Mizuho Securities potentially taking them on and then transferring them to an overseas special purpose company, while reserving the option for both Mizuho entities to reacquire the securities later. The arrangement could influence the company’s shareholder structure on paper, but the stated focus on credit investment and investor distribution suggests limited immediate impact on governance, although stakeholders may monitor any future changes in acquisition plans or conversion intentions.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1186.00 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 Sets Terms for 2031 Zero-Coupon Convertible Bonds

Hokkaido Electric Power has set the key terms for its Zero Coupon Convertible Bonds due 2031, following a board resolution on February 12, 2026. The bonds are structured as bonds with stock acquisition rights, with the asset contribution on exercise equal to the bond principal and a conversion price of ¥1,353 per share.

The conversion price represents a 23.96% premium to the company’s February 12 Tokyo Stock Exchange closing price of ¥1,091.5, underscoring management’s confidence in the firm’s equity value. The move refines the mechanics of a previously announced issuance and gives investors clearer visibility on potential future equity dilution and capital structure evolution.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1186.00 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 to Issue ¥40 Billion Zero-Coupon Convertible Bonds for Gas and Clean Energy Push

Hokkaido Electric Power Company has approved the issuance of ¥40 billion in zero-coupon convertible bonds due 2031, aiming to strengthen its financial base, diversify funding sources and reduce capital costs as it pushes forward with decarbonization and supply stability initiatives. The structure is expected to lower funding expenses while providing an equity-linked financing tool that supports the group’s long-term strategic priorities.

The company plans to allocate about ¥31 billion of the proceeds to finance the acquisition of gas production, gas sales and pipeline businesses in Hokkaido from Japan Petroleum Exploration, deepening its presence in the regional gas market. The remaining roughly ¥9 billion will fund investment in next-generation energy solutions such as hydrogen, ammonia, e-methane and CCUS, in line with its HEPCO Group Management Vision 2035, underscoring a strategic pivot toward cleaner energy and diversified revenue streams.

The most recent analyst rating on (JP:9509) stock is a Buy with a Yen1186.00 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 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.