Korea Electric Power (KEP) AI Stock Analysis

• Market Cap: $21.42B
• Dividend Yield: 0.29%
• Average Volume (3M): 707.23K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.73
• Revenue Growth: 0.52%
• EPS Growth: 111.63%
• Country: US
• Employees: 22,481
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.76
• Shares Outstanding: 1,283,928,100
• 10 Day Avg. Volume: 912,723
• 30 Day Avg. Volume: 707,225
• PEG Ratio: 0.02
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 6.02
• Enterprise Value/Market Cap: 7.59K
• Enterprise Value/Revenue: 1.66
• Enterprise Value/Gross Profit: 9.55
• Enterprise Value/Ebitda: 5.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.84
• Revenue Forecast (FY): $68.31B

• Rating: 66 Neutral
• Price Target: $17.50 ▼(-4.16% Downside)
• Action: Downgraded Date: 03/12/26
• Date: Action: Downgraded 03/12/26

The score is supported primarily by extremely attractive headline valuation (low P/E and very high yield) and a clear earnings turnaround. Offsetting this are elevated leverage and only moderate cash conversion, while technicals remain weak despite oversold signals; the latest earnings call reinforces improved operations but highlights ongoing provision and policy-related uncertainty.

Positive Factors

Earnings rebound & revenue growth

KEPCO’s return to positive net margins and multi-percent revenue growth reflects structural recovery in core electricity sales and generation. As the system operator of Korea’s grid, sustained profitability strengthens cash flow capacity for capex and reduces reliance on volatile non‑core receipts over a multi‑month horizon.

Improved cash generation

Substantially stronger operating and free cash flow indicates improving ability to self‑fund maintenance and investment cycles. For a capital‑intensive regulated utility, durable positive FCF supports reinvestment in the grid and nuclear assets and provides buffer against cyclical commodity cost swings.

Better generation mix & lower fuel costs

A higher nuclear share and materially lower fuel and purchased power costs reduce margin volatility and lower running generation costs. Over months, a steadier baseload from nuclear and reduced thermal exposure provides a structural margin tailwind for earnings stability in a regulated framework.

Negative Factors

High leverage

A sharp rise in leverage materially reduces financial flexibility for a utility that requires large, ongoing capex. Elevated debt ratios increase refinancing and interest‑rate vulnerability, constrain discretionary investment and dividends, and amplify downside risk if tariffs or volumes weaken over coming months.

Large provisions and contingent liabilities

Significant increases in nuclear‑site and emissions provisions represent accruing long‑term obligations that can consume cash and equity over time. These non‑operating charges raise the company’s structural cost base and limit the predictability of distributable earnings in the medium term.

Policy, tariff and governance uncertainty

As a state‑controlled utility, KEPCO’s revenue and payout policies depend on government decisions. Ongoing tariff reform and public‑corporation constraints limit predictable price pass‑through and shareholder returns, creating structural uncertainty about future revenue recovery and capital allocation.

Korea Electric Power Business Overview & Revenue Model

Company Description

Korea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2021, the company had a total of 763 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,459 megawatts. Its transmission system consisted of 34,923 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 892 substations with an installed transformer capacity of 344,286 megavolt-amperes; and distribution system included 132,376 megavolt-amperes of transformer capacity and 9,940,440 units of support with a total line length of 532,348 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also offers utility plant maintenance, resources development, electric power information technology, facility maintenance and service, electric meter reading, security, information, and communication line leasing services, as well as sells nuclear fuel. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju-si, South Korea.

How the Company Makes Money

KEPCO primarily makes money by selling electricity to end customers in South Korea and by earning regulated and market-based revenues across the power value chain. Its key revenue streams typically include: (1) Electricity sales: The largest source of revenue comes from billing customers for electricity consumption. Revenue is driven by total electricity demand (kWh sold) and applicable tariff structures set within Korea’s electricity pricing framework. (2) Wholesale power and generation-related income: Through its generation subsidiaries and related operations, KEPCO’s consolidated results reflect revenues linked to producing electricity and supplying it into the Korean power system; profitability depends heavily on fuel costs (e.g., LNG, coal, nuclear fuel), generation mix, and system operation conditions. (3) Transmission and distribution: KEPCO operates transmission and distribution networks; revenues and cost recovery for these functions are tied to Korea’s regulated electricity market and tariff design, with earnings influenced by allowed returns, grid investment needs, and losses/operating efficiency. (4) Other businesses: KEPCO also earns income from power-related engineering, construction, maintenance, ICT/energy solutions, and overseas projects/investments (often via subsidiaries), where revenue is generated through contracts, service fees, and investment returns. Across these streams, a major factor affecting earnings is the relationship between retail tariffs and procurement/generation costs; when fuel prices rise faster than tariff adjustments, margins can be pressured, and when costs fall or tariffs increase, margins can improve. Specific partnership terms, contract-level economics, and segment-level revenue figures are null.

Korea Electric Power Financial Statement Overview

Summary

Profitability has rebounded with solid revenue growth and a return to positive margins, but the balance sheet is a notable constraint due to sharply higher reported leverage (debt-to-equity ~2.9x) and cash conversion remains only moderate despite improved free cash flow.

Income Statement

TTM (Trailing-Twelve-Months) results show a clear earnings rebound with solid profitability (about 9% net margin) and strong year-over-year revenue growth, following deep losses in 2021–2023. The main weakness is volatility across the cycle—margins swung sharply from large negatives (2022) to positive levels (2024–TTM), suggesting earnings are still sensitive to costs, pricing/regulatory outcomes, and normalization effects.

Balance Sheet

Equity improved versus 2023–2024 and returns recovered in TTM (Trailing-Twelve-Months), but leverage is a key concern: TTM debt-to-equity is high (~2.9x), materially worse than 2023–2024 (~0.6–0.7x). While regulated utilities can carry meaningful debt, the sharp jump in reported leverage raises balance-sheet risk and reduces flexibility if rates, capex needs, or earnings weaken.

Cash Flow

Cash generation improved substantially versus 2022–2023, with positive operating cash flow and positive free cash flow in TTM (Trailing-Twelve-Months), and strong free-cash-flow growth. However, cash conversion remains the weak spot: free cash flow covers only a modest portion of net income in TTM, and operating cash flow relative to overall obligations remains low, indicating profits are not yet consistently translating into robust cash after funding needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	98.76T	93.40T	87.48T	70.55T	60.01T
Gross Profit	17.24T	11.23T	-2.22T	-30.36T	-3.63T
EBITDA	27.65T	21.71T	9.93T	-18.56T	6.79T
Net Income	8.66T	3.49T	-4.82T	-24.47T	-5.30T
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	6.40T	5.12T	7.14T	7.23T	4.38T
Total Debt	10.00T>	24.36T	23.65T	10.00T>	11.06T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	48.17T	39.92T	35.85T	40.55T	63.78T
Cash Flow
Free Cash Flow	5.14T	1.66T	-12.40T	-35.90T	-8.31T
Operating Cash Flow	21.16T	15.88T	1.52T	-23.48T	4.47T
Investing Cash Flow	-18.70T	-14.09T	-13.07T	-14.95T	-12.35T
Financing Cash Flow	-2.67T	-3.85T	12.66T	39.00T	8.44T

Korea Electric Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEP, the sentiment is Negative. The current price of 18.26 is below the 20-day moving average (MA) of 18.56, below the 50-day MA of 19.65, and above the 200-day MA of 15.66, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 33.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KEP.

Korea Electric Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEP	66 Neutral	$21.42B	3.57	19.07%	0.29%	0.52%	111.63%
CMS	66 Neutral	$23.74B	19.63	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.28B	25.33	8.04%	3.94%	7.64%	48.61%
DTE	62 Neutral	$30.55B	18.26	12.16%	3.45%	19.42%	-9.68%

Korea Electric Power Corporate Events

Korea Electric Power Sets March 25 AGM, Details 2025 Financial Position

Korea Electric Power Corporation has convened its fiscal year 2025 annual general meeting of shareholders for March 25, 2026, at its Naju headquarters, where investors will receive audit, management and internal accounting control reports, and vote on 2025 financial statements, 2026 directors’ remuneration limits and amendments to the Articles of Incorporation. The utility has also released headline consolidated financial position data as of December 31, 2025, showing total assets of roughly KRW 254.9 trillion versus KRW 246.8 trillion a year earlier, signaling balance-sheet expansion ahead of the AGM that will shape governance, capital allocation and disclosure practices for the coming year.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

Korea Electric Power posts sharp 2025 profit rebound on higher revenues

Korea Electric Power Corporation reported preliminary, unaudited consolidated results for the fourth quarter and full year ended December 31, 2025, showing moderate balance-sheet expansion with total assets rising to 255.1 trillion won and equity increasing to 49.4 trillion won. Total liabilities were broadly flat year-on-year, suggesting that the improvement in the company’s financial position was driven largely by earnings rather than additional leverage.

For the full year 2025, consolidated operating revenue climbed to 97.4 trillion won from 93.4 trillion won in 2024, while operating income improved sharply to 13.5 trillion won, indicating stronger underlying profitability. Net income attributable to owners of the company more than doubled to 8.6 trillion won, highlighting a significant turnaround that strengthens KEPCO’s capacity to fund investments and potentially enhance stakeholder returns.

Fourth-quarter 2025 consolidated results also showed resilience, with revenue inching up to 23.7 trillion won and net income rising to 1.4 trillion won compared with the same period a year earlier. Although quarterly operating income dipped slightly year-on-year, the steady revenue and higher bottom line underscore stable operating conditions heading into 2026.

On a separate (parent-only) basis, KEPCO posted 2025 operating revenue of 95.5 trillion won and operating income of 8.5 trillion won, both well above 2024 levels, while net income surged to 7.2 trillion won. Parent-level equity increased to 26.6 trillion won, with liabilities edging down, reinforcing the view that the utility’s financial structure is improving alongside profitability, even as the company cautioned that these figures remain subject to audit and potential revision.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

Korea Electric Power Board Proposes KRW 988.6 Billion Dividend for 2025

On February 26, 2026, KEPCO’s board approved a proposal to pay total cash dividends of KRW 988.6 billion for the 2025 fiscal year to shareholders of record as of December 31, 2025. The plan, which remains subject to approval at the annual general meeting on March 25, 2026, reflects a dividend of KRW 1,540 per share, corresponding to a market value dividend ratio of 3.2% based on the stipulated reference pricing period.

The proposed payout amount is calculated on KEPCO’s 641,964,077 outstanding voting shares, and dividends are scheduled to be distributed within one month after the shareholders’ meeting in line with Korean commercial law. The final dividend terms may still change depending on the external auditor’s review and the outcome of the shareholder approval process, leaving some uncertainty for investors regarding the ultimate size and timing of the distribution.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

KEPCO Sets March 25, 2026 Date for Annual Shareholders’ Meeting and Key Governance Votes

On February 26, 2026, KEPCO’s board resolved to convene its annual ordinary general meeting of shareholders on March 25, 2026, at 11:00 a.m. Seoul time at the company’s headquarters in Naju, Jeollanam-do. The meeting will focus on statutory reporting and key approvals that shape governance and financial oversight.

Shareholders are scheduled to receive an audit report, a management report on KEPCO’s operations, and an operations report on the internal accounting control system. They will also vote on the approval of the 2025 financial statements, the 2026 ceiling for directors’ remuneration, and amendments to the Articles of Incorporation, with electronic voting available for common shareholders between March 15 and March 24, 2026, under Korean law.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

Korea Electric Power Sets March Record Date for Extraordinary Shareholder Meeting

Korea Electric Power Corporation will close its shareholders’ registry from March 16 to March 24, 2026, in order to establish the list of shareholders eligible to vote at an upcoming extraordinary general meeting. Only investors recorded in KEPCO’s shareholder registry as of March 13, 2026, will be able to exercise voting rights at the EGM, a procedural step that clarifies voting entitlements and sets the timetable for corporate decision‑making.

The move, disclosed in a filing dated February 26, 2026, signals that KEPCO is preparing for potentially significant shareholder resolutions that require an extraordinary meeting rather than its regular annual gathering. By formally defining the record date and registry closure period, the utility provides transparency for investors and reduces uncertainty over who can participate in key governance decisions during the EGM.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

Korea Electric Power to Release 2025 Preliminary Earnings on February 26, 2026

Korea Electric Power Corporation announced that it plans to release its preliminary unaudited consolidated earnings results for the 2025 fiscal year on February 26, 2026. On the same day, the company will host a conference call from 5:00 p.m. to 6:00 p.m. Seoul time, conducted in Korean with English interpretation, to brief investors and analysts on the results.

This scheduled disclosure signals continued engagement with global capital markets and offers investors an early view into KEPCO’s 2025 financial performance ahead of final audited figures. The timing and structured communication underscore the company’s effort to maintain transparency for stakeholders, including international shareholders who rely on interpreted access to its financial updates.

The most recent analyst rating on (KEP) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

KEPCO Posts Strong Profit Rebound for Nine Months to September 2025

In its English summary of the quarterly business report for the period January 1 to September 30, 2025, KEPCO reported consolidated sales of 73.746 trillion won and operating profit of 11.541 trillion won, up from 69.870 trillion won in sales and 5.945 trillion won in operating profit a year earlier, reflecting significantly improved profitability in its core electricity sales and nuclear generation segments despite weaker thermal generation margins. The filing also highlighted a series of boardroom changes in 2025, including the appointment of new standing and non-standing directors and resignations of others, while confirming no change in major shareholders over the past five years and disclosing that KEPCO paid a 2024 dividend of 213 won per share, signaling continued shareholder returns amid recovering earnings and a strengthened operating position in Korea’s power sector.

The most recent analyst rating on (KEP) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.