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

• Market Cap: ¥215.38B
• Dividend Yield: 2.36%
• Average Volume (3M): 4.83M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.93
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥1,159.00 ▲(5.36% 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

Integrated regional utility franchise

Hokkaido Electric's vertically integrated operations and regional focus create a durable, captive customer base and predictable load profile. Ownership of generation through retail and grid assets supports stable regulated cash flows and operational control, aiding long-term planning and capital allocation.

Stable operating cash generation

Consistent operating cash flow provides a structural buffer for the business to fund operations and service debt despite cyclical pressures. Over a multi-month horizon this resilience supports ongoing capex programs and maintenance, reducing short-term liquidity stress from volatile earnings.

Improving return on equity

An improving ROE indicates management has been enhancing profit generation from shareholders' capital, reflecting operational improvements or better asset utilization. Sustained ROE gains support long-term shareholder value and signal disciplined capital deployment across the utility's asset base.

Negative Factors

High financial leverage

Material leverage raises interest and refinancing risk, reducing financial flexibility for investments or rate-case timing. In a utility context, elevated debt can constrain capital spending choices and increase vulnerability to adverse demand or regulatory outcomes over the coming months.

Negative free cash flow from heavy capex

Persistent negative FCF driven by large capex needs forces reliance on external financing or retained earnings, pressuring the balance sheet. Over 2–6 months this can limit strategic flexibility, increase borrowing costs, and necessitate tougher prioritization of projects or tariff adjustments.

Inconsistent revenue and margin trends

Volatile revenue growth and fluctuating margins reduce earnings predictability and complicate budgeting, regulatory filings, and tariff recovery. Structural inconsistency suggests exposure to cost pass-through, demand swings, or generation mix shifts that could persist and affect profitability over the medium term.

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	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: 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 1108.72, above the 50-day MA of 1090.12, and above the 200-day MA of 960.21, indicating a neutral trend. The MACD of -14.22 indicates Positive momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 11.33 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	¥601.13B	6.14	7.92%	3.22%	-1.56%	9.17%
9503	75 Outperform	¥2.64T	6.90	14.42%	2.44%	2.08%	19.52%
9506	74 Outperform	¥557.78B	3.27	16.13%	3.47%	-8.73%	-6.98%
9509	71 Outperform	¥215.38B	3.69	14.57%	2.36%	-1.60%	-10.41%
9504	69 Neutral	¥355.83B	3.95	15.45%	3.23%	-1.02%	79.80%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9501	52 Neutral	¥930.71B	-1.25	-22.13%	―	-2.28%	-794.92%

Hokkaido Electric Power Company,Incorporated Corporate Events

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.