Korea Electric Power (KEP) AI Stock Analysis

• Market Cap: $22.79B
• Dividend Yield: 0.27%
• Average Volume (3M): 436.01K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.66
• Revenue Growth: 0.52%
• EPS Growth: 111.63%
• Country: US
• Employees: 22,481
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 1.99
• Shares Outstanding: 1,283,928,100
• 10 Day Avg. Volume: 394,990
• 30 Day Avg. Volume: 436,014
• PEG Ratio: -0.02
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: 4.71
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: $20.00
• Price Target Upside: 9.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.68
• Revenue Forecast (FY): $66.68B

• Rating: 69 Neutral
• Price Target: $19.50 ▲(6.79% Upside)

Korea Electric Power's stock score is driven by strong technical indicators and attractive valuation metrics. Financial performance shows positive trends in revenue and profitability, but high leverage and operational challenges pose risks. The earnings call provided a mixed outlook, with growth in revenue but concerns over sales volume and tariff adjustments.

Positive Factors

Revenue Growth

The 5.5% revenue growth indicates strong demand and effective pricing strategies, supporting long-term financial stability and market position.

Cash Flow Improvement

Improved cash generation enhances financial flexibility, allowing for strategic investments and debt reduction, strengthening long-term sustainability.

Nuclear Generation Increase

Increased nuclear generation capacity supports energy diversification and cost efficiency, crucial for long-term competitive advantage and regulatory compliance.

Negative Factors

Electricity Sales Volume Decline

Declining sales volume reflects potential demand challenges, impacting revenue growth and necessitating strategic adjustments to maintain market share.

Increase in Power Purchase Cost

Rising power purchase costs can pressure margins, reducing profitability and necessitating cost management strategies to sustain financial health.

Challenges with Industrial Tariffs

Inflexibility in adjusting industrial tariffs may limit revenue growth and financial recovery, requiring alternative strategies to enhance profitability.

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

Korea Electric Power generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers. Its revenue model is supported by regulated pricing mechanisms set by the government, which ensures a stable income stream. Key revenue streams include electricity sales, ancillary services, and power generation from its diverse portfolio of energy sources. Additionally, KEP earns income from investments in renewable energy projects and joint ventures, enhancing its market position and expanding its operational capabilities. Strategic partnerships with technology firms and participation in international energy projects further contribute to its revenue, allowing KEP to leverage innovative solutions and expand its global footprint.

Korea Electric Power Financial Statement Overview

Summary

Korea Electric Power shows a positive trajectory in revenue and profitability, with significant improvements in margins. However, high leverage and fluctuating operational margins present potential risks. The company demonstrates strong cash flow generation, but high debt levels could impact financial stability in the long term.

Income Statement

Korea Electric Power shows a positive trend in revenue growth, with a TTM revenue growth rate of 1.57%. The gross profit margin has improved significantly to 35.45% in TTM from 12.02% in 2024, indicating better cost management. The net profit margin also increased to 6.61% in TTM, reflecting enhanced profitability. However, the company has experienced volatility in EBIT and EBITDA margins over the years, which could indicate potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 3.18 in TTM, suggesting a high level of leverage, which could pose financial risks. However, the return on equity has improved to 15.57% in TTM, indicating better utilization of equity to generate profits. The equity ratio remains stable, reflecting a balanced asset structure.

Cash Flow

Korea Electric Power's free cash flow has grown by 60.58% in TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is 0.31, indicating efficient cash conversion. However, the free cash flow to net income ratio is relatively low at 0.18, suggesting limited free cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.81T	93.40T	87.48T	70.55T	60.01T	57.93T
Gross Profit	16.80T	11.23T	-2.22T	-30.36T	-3.63T	6.12T
EBITDA	26.85T	21.71T	9.93T	-18.56T	6.79T	16.54T
Net Income	6.33T	3.49T	-4.82T	-24.47T	-5.30T	1.99T
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Cash, Cash Equivalents and Short-Term Investments	6.09T	5.12T	7.14T	7.23T	4.38T	4.80T
Total Debt	27.79T	24.36T	23.65T	10.00T>	11.06T	9.74T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	42.52T	39.92T	35.85T	40.55T	63.78T	69.30T
Cash Flow
Free Cash Flow	3.33T	1.66T	-12.40T	-35.90T	-8.31T	-193.19B
Operating Cash Flow	19.19T	15.88T	1.52T	-23.48T	4.47T	13.21T
Investing Cash Flow	-19.89T	-14.09T	-13.07T	-14.95T	-12.35T	-14.83T
Financing Cash Flow	33.22B	-3.85T	12.66T	39.00T	8.44T	1.88T

Korea Electric Power Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.26
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 18.26 is above the 20-day moving average (MA) of 17.09, above the 50-day MA of 15.41, and above the 200-day MA of 12.15, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEP.

Korea Electric Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBR.B	74 Outperform	$24.41B	21.01	-5.50%	5.78%	1.52%	-159.17%
EBR	70 Outperform	―	―	-5.50%	5.72%	1.52%	-159.17%
KEP	69 Neutral	$22.79B	3.84	18.75%	0.27%	0.52%	111.63%
CMS	67 Neutral	$21.63B	20.52	12.34%	3.08%	10.96%	-0.77%
FE	67 Neutral	$25.94B	19.51	10.54%	3.93%	7.64%	48.61%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$27.25B	19.66	11.64%	3.35%	19.42%	-9.68%

Korea Electric Power Corporate Events

KEPCO Reports Strong Q3 2025 Financial Results

Korea Electric Power Corporation (KEPCO) reported its unaudited financial results for the third quarter of 2025, showing a notable increase in operating revenues and net income compared to the same period in 2024. The company’s operating revenues rose to 27,572 billion Korean Won, and net income increased to 3,790 billion Korean Won, indicating a strong financial performance. These results suggest a positive impact on KEPCO’s operations and may enhance its positioning in the energy market, benefiting stakeholders by potentially increasing investor confidence.

KEPCO Announces Additional KRW 9.993 Billion Contribution to KENTECH

On November 10, 2025, Korea Electric Power Corporation (KEPCO) announced an additional contribution of KRW 9.993 billion to the Korea Institute of Energy Technology (KENTECH). This contribution is part of a previously resolved total of KRW 45.9 billion, aimed at supporting the construction and operational expenses of KENTECH’s main facilities in 2025. This move underscores KEPCO’s commitment to advancing energy technology and strengthening its collaboration with government initiatives.

KEPCO to Announce Q3 2025 Earnings Results on November 13

On November 13, 2025, Korea Electric Power Corporation (KEPCO) is set to release its preliminary unaudited consolidated earnings results for the third quarter of the fiscal year 2025. The company will also hold a conference call to discuss these results, which could provide insights into its financial performance and future outlook, potentially impacting its market positioning and stakeholder interests.

KEPCO Reports Strong Financial Growth Amid Management Changes

In its quarterly business report for the period from January 1, 2025, to June 30, 2025, KEPCO reported significant financial results with a notable increase in sales and operating profit compared to the same period in 2024. Electricity sales rose from 42,995 billion Won to 45,462 billion Won, while operating profit increased from 2,550 billion Won to 5,889 billion Won. The company also experienced changes in its management team, with several appointments and resignations occurring between January and May 2025. These developments highlight KEPCO’s robust financial performance and ongoing strategic adjustments in its leadership structure, potentially impacting its operational efficiency and market positioning.