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Korea Electric Power (KEP)
:KEP
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Korea Electric Power
(NYSE:KEP)
63Neutral
Korea Electric Power (KEP) vs. S&P 500 (SPY)
Market Cap
$9.91B
Dividend YieldN/A
Average Volume (3M)177.62K
Price to Earnings (P/E)3.9
Beta (1Y)0.56
Revenue Growth1.51%
EPS GrowthN/A
CountryUS
Employees22,481
SectorUtilities
Sector Strength88
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.99
Shares Outstanding1,283,928,100
10 Day Avg. Volume193,613
30 Day Avg. Volume177,623
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Korea Electric Power Business Overview & Revenue Model
Company DescriptionKorea Electric Power Corporation (KEPCO) is a South Korean public utility company that operates in the electricity generation, transmission, and distribution sectors. As the largest utility provider in South Korea, KEPCO is responsible for generating and supplying electricity to both residential and commercial customers across the nation. The company also engages in the development of electric power resources, construction of electric power facilities, and provision of consulting services related to electric power systems globally.
How the Company Makes MoneyKEPCO generates revenue primarily through the sale of electricity to residential, commercial, and industrial consumers in South Korea. The company's revenue streams are largely derived from its operations in electricity generation, transmission, and distribution. KEPCO owns and operates power generation facilities, including nuclear, coal, hydroelectric, and renewable energy plants, allowing it to produce electricity and sell it at regulated rates. Additionally, KEPCO is involved in overseas projects and consulting services, which serve as supplementary revenue streams. The company also benefits from government policies and regulations that support and stabilize the energy market in South Korea. Strategic partnerships and investments in renewable energy and smart grid technologies further contribute to KEPCO's earnings, positioning the company to capitalize on the global shift towards sustainable energy solutions.
Korea Electric Power Financial Statement Overview
Summary
Korea Electric Power has shown strong recovery in 2024 with improved profitability and cash generation. The income statement and cash flow metrics have turned around from previous years' losses. However, high leverage with a debt-to-equity ratio of 3.41 poses a significant risk, necessitating careful debt management.Income Statement
Korea Electric Power's revenue has shown a significant recovery trajectory with a 6.8% growth from 2023 to 2024, rebounding from previous declines. The company has managed to improve its gross profit from a negative position in 2023 to a positive level in 2024, indicating better operational efficiency. The net profit margin improved significantly, moving from a negative margin in 2023 to a 3.74% in 2024. However, historical volatility in profits suggests potential risks in sustaining current margins.72
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 3.41 in 2024, which is a concern for financial stability. Despite this, there has been a steady increase in stockholders' equity, indicating a strengthening equity base. The equity ratio stands at 16.17% in 2024, reflecting a moderate capital structure but with potential risks due to high debt levels.65
Positive
Cash Flow
Cash flow from operations has improved significantly, with positive free cash flow in 2024 compared to negative values in prior years, showing better cash management. The operating cash flow to net income ratio indicates strong cash generation relative to net income. However, the company's free cash flow growth rate remains a concern, as historical fluctuations highlight potential volatility in cash generation capabilities.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 93.40T | 87.48T | 71.26T | 60.57T | 58.57T | Gross Profit |
| 11.23T | -2.22T | -29.65T | -2.98T | 6.76T | EBIT |
| 8.36T | -4.25T | -32.66T | -3.84T | 5.89T | EBITDA |
| 21.71T | 9.93T | -19.87T | 6.23T | 16.26T | Net Income Common Stockholders |
| 3.49T | -4.82T | -24.43T | -5.23T | 1.99T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.24T | 7.31T | 7.52T | 4.50T | 4.83T | Total Assets |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Total Debt |
| 10.00T> | 10.00T> | 4.16T | 66.57T | 4.62T | Net Debt |
| 10.00T> | 10.00T> | 928.36B | 63.94T | 2.59T | Total Liabilities |
| 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | Stockholders Equity |
| 39.92T | 35.85T | 40.55T | 63.77T | 69.30T |
| Cash Flow | Free Cash Flow | |||
| 1.66T | -12.40T | -35.90T | -8.31T | -193.19B | Operating Cash Flow |
| 15.88T | 1.52T | -23.48T | 4.47T | 13.21T | Investing Cash Flow |
| -14.09T | -13.07T | -14.95T | -12.35T | -14.83T | Financing Cash Flow |
| -3.85T | 12.66T | 39.00T | 8.44T | 1.88T |
Korea Electric Power Technical Analysis
Positive
7.80
Price Trends
7.50
Positive
7.53
Positive
7.59
Positive
Market Momentum
-0.01
Positive
40.67
Neutral
21.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEP, the sentiment is Positive. The current price of 7.8 is above the 20-day moving average (MA) of 7.54, above the 50-day MA of 7.50, and above the 200-day MA of 7.59, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.67 is Neutral, neither overbought nor oversold. The STOCH value of 21.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEP.
Korea Electric Power Risk Analysis
Korea Electric Power disclosed 31 risk factors in its most recent earnings report. Korea Electric Power reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Korea Electric Power Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $15.70B | 8.59 | 9.37% | 8.26% | -0.26% | 107.20% | |
73 Outperform | $8.74B | 19.80 | 9.65% | 3.98% | 11.63% | 5.61% | |
72 Outperform | $14.99B | 17.20 | 8.91% | 4.06% | 5.73% | 19.34% | |
72 Outperform | $15.52B | 22.49 | 10.01% | 3.31% | -1.12% | -3.22% | |
70 Neutral | $10.81B | 17.30 | 9.42% | 4.00% | 9.13% | 21.11% | |
65 Neutral | $11.76B | 15.57 | 6.23% | 4.62% | 5.52% | -8.96% | |
63 Neutral | $9.91B | 3.94 | 9.32% | ― | 1.51% | ― |
* Utilities Sector Average
Performance Comparison
KEP
Korea Electric Power
7.80
<0.01
0.13%
LNT
Alliant Energy
60.42
13.61
29.07%
EBR.B
Centrais Elc Braz Pfb B Elbras
7.30
-0.90
-10.98%
OGE
OGE Energy
43.29
11.58
36.52%
PNW
Pinnacle West Capital
90.28
21.11
30.52%
EVRG
Evergy
65.48
16.20
32.87%
Korea Electric Power Earnings Call Summary
Earnings Call Date: Feb 28, 2025 | % Change Since: -2.26% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Neutral
KEPCO reported positive operating profit and revenue growth, with significant cost reductions. However, challenges include a decline in other income, increased interest expenses, and potential delays in nuclear power projects.Highlights
Increased Operating Profit and Net Income
KEPCO recorded an accumulated consolidated operating profit of KRW 5,945.7 billion and a net income of KRW 2,590 billion for Q3 2024.
Revenue Growth
Sales increased by 6.4% year-on-year to KRW 69,869.8 billion, with a significant 8.0% increase in income from electricity sales.
Reduced Cost of Sales
Cost of sales and selling and administrative expenses decreased by 11.4%, with fuel costs down by 18.6% and power purchase costs down by 11.6%.
Power Sales Increase
Power sales increased by 1.7% year-on-year to 421 terawatt hours, driven by increased semiconductor exports and higher demand for cooling.
Lowlights
Decline in Other Income
Other income, including from overseas business, declined by 19.5%.
Interest Expense Increase
Interest expense increased by KRW 112.5 billion year-on-year to KRW 3,422.9 billion due to a higher average balance of borrowings.
Financial Income Deficit
Financial income was negative at KRW 462 billion, affected by factors such as interest rates and foreign exchange.
Potential Nuclear Power Plant Delays
There is consideration of postponing the completion of Shin-Hanul Unit 3 due to construction delays.
Company Guidance
During the third-quarter earnings call for 2024, KEPCO reported a consolidated operating profit of KRW 5,945.7 billion, with net income reaching KRW 2,590 billion. Sales increased by 6.4% to KRW 69,869.8 billion, primarily driven by an 8.0% rise in electricity sales, totaling KRW 66,727.9 billion. Despite a decline in other income by 19.5% to KRW 3,141.9 billion, cost efficiencies were observed with a 11.4% reduction in cost of sales and selling expenses to KRW 63,924.1 billion. The company's power sales volume grew by 1.7% year-on-year to 421 terawatt hours. KEPCO's fuel costs showed significant variances with coal at KRW 190,000 per ton, LNG at KRW 1.09 million per ton, and oil at KRW 974 per liter. The financial expenses saw a reduction, attributed to decreased foreign exchange losses. The company also highlighted its ongoing financial stabilization efforts, which include a KRW 30 trillion plan to improve its financial health. However, KEPCO did not provide any guidance on future tariff increases or specific forecasts for fuel costs in the fourth quarter and 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.