Korea Electric Power (KEP)
NYSE:KEP
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Korea Electric Power
(NYSE:KEP)
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Rating:64Neutral
Price Target:
$12.50
▼(-31.54% Downside)
Action:Reiterated
Date:06/12/26
The score is supported by very attractive valuation (low P/E and solid dividend yield) and improved profitability/cash generation. These positives are tempered by a leveraged balance sheet and weak technical trend/momentum despite oversold signals.
Positive Factors
Market dominance & integrated utility
As the dominant, state-controlled national utility with integrated generation, transmission and distribution, KEPCO benefits from stable, broad customer exposure and regulated cash flows. This structural market position supports predictable demand, long-term contracts, and limited domestic competition, underpinning durable revenue base and strategic policy support.
Negative Factors
High leverage
KEPCO’s elevated leverage (~2.8x debt/equity) constrains financial flexibility and raises refinancing and interest-service risk. In a regulated utility, limited ability to rapidly adjust tariffs amplifies sensitivity to cost shocks, reducing room to absorb volatility in fuel costs or unexpected capital needs without external support or higher rates over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Market dominance & integrated utility
As the dominant, state-controlled national utility with integrated generation, transmission and distribution, KEPCO benefits from stable, broad customer exposure and regulated cash flows. This structural market position supports predictable demand, long-term contracts, and limited domestic competition, underpinning durable revenue base and strategic policy support.
Read all positive factors
Korea Electric Power (KEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.54B
Dividend Yield0.29%
Average Volume (3M)1.17M
Price to Earnings (P/E)3.0
Beta (1Y)0.81
Revenue Growth1.27%
EPS Growth64.03%
CountryUS
Employees22,481
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)6825.94
Shares Outstanding1,283,928,100
10 Day Avg. Volume1,426,755
30 Day Avg. Volume1,173,290
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.64
Price to Sales (P/S)0.32
P/FCF Ratio6.02
Enterprise Value/Market Cap8.84K
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit13.61
Enterprise Value/Ebitda7.10
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.2
Revenue Forecast (FY)$65.94B
Korea Electric Power Business Overview & Revenue Model
Company Description
Korea Electric Power Corporation (KEPCO) functions as a comprehensive electric utility, responsible for the generation, transmission, and distribution of electricity within South Korea and in various international markets. Its operations are organ...
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 sourc...
Korea Electric Power Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 07, 2026
Earnings Call Sentiment Neutral
The call presented a mix of solid operating improvements (revenue +4.3%, lower fuel costs -13.8%, positive net income of KRW 8,007.2 billion, improved generation mix and lower interest expense) alongside material one-off and provision-related headwinds (nearly KRW 904.5 billion increase in nuclear site recovery provisions, higher emissions provisions, Q4 subsidiary/overseas costs and FX impacts, high borrowings and modest volume decline). Management expects improved nuclear capacity factors in 2026 and ongoing tariff discussions with the government, but several uncertainties (tax grace period ending, overseas recoveries, dividend policy constrained by public-corporation rules) temper near-term clarity. Overall the results show underlying resilience but are offset by significant one-off charges and policy/financial risks.Positive Updates
Revenue Growth
Consolidated revenue increased 4.3% year-over-year to KRW 97,434.5 billion.
Negative Updates
Operating Income Miss vs. Expectations
Management acknowledged operating income underperformed expectations by roughly KRW 1 trillion, attributed mainly to higher 'other costs' and subsidiary-related charges concentrated in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Consolidated revenue increased 4.3% year-over-year to KRW 97,434.5 billion.
Read all positive updates
Company Guidance
KEPCO’s forward guidance for 2026 was modest: total power sales should tick up from 549.4 TWh (2025: –0.1% Y‑o‑y) as economic growth and more operating days return, and on an annual basis they expect higher nuclear contribution (nuclear capacity factor mid– to high‑80%), coal to fall (coal capacity factor mid‑40%) and LNG to remain largely flat (LNG capacity factor early– to mid‑20%); they also expect the adjustment coefficient to be slightly higher in 2026 vs. 2025 and reaffirmed the quarterly fuel cost pass‑through while noting tariff reform work (seasonal/time‑of‑use/regional pricing) is ongoing with government. Key 2025 metrics cited in support were consolidated operating income KRW 13,524.8bn, revenue KRW 97,434.5bn (+4.3%), power sales +4.6% (amount not specified), COGS & SG&A KRW 83,909.7bn (‑1.3%), fuel costs KRW 19,036.4bn (‑13.8%), purchased power KRW 34,052.7bn (‑1.8%), depreciation KRW 11,667.8bn (+2.3%), interest expense KRW 4,339.5bn (‑KRW 325.6bn Y‑o‑y), net income KRW 8,007.2bn, consolidated borrowings KRW 129.8tn (stand‑alone KRW 84.9bn), 2025 RPS expense KRW 3,989.7bn consolidated (KRW 4,818.8bn stand‑alone), coal price reference ~US$105.7/ton, LNG JKM KRW 980,000/ton and S&P ~KRW 112.7/kWh, and noted provision movements (GHG +KRW 120.6bn to KRW 340.6bn; nuclear site provisions and KHNP items also materially changed); dividend policy and precise timing/impact of tariff changes remain subject to government discussions.Korea Electric Power Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.36T | 96.57T | 93.40T | 87.48T | 70.55T | 60.01T |
| Gross Profit | 11.40T | 15.86T | 11.23T | -2.22T | -30.36T | -3.63T |
| EBITDA | 21.84T | 29.72T | 23.27T | 9.93T | -18.56T | 6.79T |
| Net Income | 6.22T | 8.54T | 3.49T | -4.82T | -24.47T | -5.30T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 7.07T | 6.40T | 5.12T | 7.14T | 7.23T | 4.38T |
| Total Debt | 10.00T> | 10.00T> | 24.36T | 23.65T | 10.00T> | 11.06T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 49.53T | 48.17T | 39.92T | 35.85T | 40.55T | 63.78T |
Cash Flow | ||||||
| Free Cash Flow | 5.17T | 5.14T | 1.57T | -12.40T | -35.90T | -8.31T |
| Operating Cash Flow | 21.47T | 21.16T | 15.88T | 1.52T | -23.48T | 4.47T |
| Investing Cash Flow | -16.22T | -18.70T | -14.09T | -13.07T | -14.95T | -12.35T |
| Financing Cash Flow | -5.76T | -2.67T | -3.85T | 12.66T | 39.00T | 8.44T |
Korea Electric Power Technical Analysis
Neutral
18.26
Price Trends
14.05
Negative
16.35
Negative
16.04
Negative
Market Momentum
-0.37
Negative
49.83
Neutral
76.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEP, the sentiment is Neutral. The current price of 18.26 is above the 20-day moving average (MA) of 12.87, above the 50-day MA of 14.05, and above the 200-day MA of 16.04, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 76.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $17.54B | 2.96 | 18.58% | 0.29% | 1.27% | 64.03% | |
61 Neutral | $27.38B | 25.88 | 8.38% | 3.94% | 11.30% | -1.99% | |
58 Neutral | $22.75B | 20.10 | 12.35% | 3.10% | 13.31% | 6.97% | |
58 Neutral | $30.80B | 24.36 | 10.43% | 3.45% | 22.33% | -17.75% |
* Utilities Sector Average
KEP
Korea Electric Power
13.23
2.53
23.64%
CMS
CMS Energy
74.03
7.28
10.90%
DTE
DTE Energy
148.85
20.28
15.78%
FE
FirstEnergy
47.70
9.51
24.91%
Korea Electric Power Corporate Events
KEPCO Calls June 17 EGM to Reshape Board and Bolster Strategy Leadership
Jun 2, 2026
KEPCO’s board on June 2, 2026 resolved to convene an extraordinary general meeting of shareholders on June 17, 2026 in Naju, with voting rights granted to investors recorded in the share registry as of May 4, 2026. The meeting will receive t...
Korea Electric Power Faces $1.1 Billion Arbitration Claim Over UAE Nuclear Services
May 22, 2026
Korea Electric Power Corporation disclosed that its subsidiary Korea Hydro Nuclear Power Co., Ltd. initiated arbitration on May 21, 2026 at the Korean Commercial Arbitration Board over an operational support services contract tied to the UAE nucl...
Korea Electric Power Shareholders Approve New Audit Chief at May 21 EGM
May 21, 2026
At an extraordinary general meeting of shareholders held on May 21, 2026, Korea Electric Power Corporation secured approval to elect Kim Tae-Ok as a standing director, serving as Comptroller Auditor General and a member of the audit committee. Th...
Korea Electric Power posts higher Q1 2026 profit on stable revenues
May 13, 2026
Korea Electric Power Corporation reported its unaudited results for the first quarter ended March 31, 2026, showing broadly stable revenue and modest profit growth versus a year earlier. The filing, released on May 13, 2026, underscores KEPCO̵...
Korea Electric Power to Release Q1 2026 Preliminary Results on May 13
May 8, 2026
Korea Electric Power Corporation said it will release its preliminary unaudited consolidated earnings for the first quarter of 2026 on May 13, 2026. The move will give investors an early view of the utility’s financial performance at a time ...
KEPCO Calls May 21 Extraordinary Shareholders’ Meeting to Elect New Audit Chief
May 7, 2026
KEPCO has called an extraordinary general meeting of shareholders for May 21, 2026, at its Naju headquarters, following a board resolution passed on May 6, 2026. Shareholders of record as of April 13, 2026 will be eligible to vote, with the meetin...
KEPCO Overhauls Board With New Non-Standing Directors Focused on Energy Transition
May 7, 2026
On May 7, 2026, KEPCO announced that the Minister of Finance and Economy had appointed six new non-standing directors for a two-year term running from May 8, 2026 to May 7, 2028, replacing the outgoing slate of non-standing board members. The newl...
Korea Electric Power Shareholders Back Election of New Standing Board Member
Apr 27, 2026
At an extraordinary general meeting of shareholders held on April 27, 2026, Korea Electric Power Corporation secured approval to elect Kim Jae-Koon as a standing member of the company. The vote saw 498,013,829 shares in attendance out of 641,964,0...
Korea Electric Power Sets Record Date for Voting Ahead of Extraordinary Shareholders’ Meeting
Apr 17, 2026
Korea Electric Power Corporation (KEPCO) is South Korea’s state-run electric utility, overseeing electricity generation, transmission and distribution nationwide for a broad base of residential, commercial and industrial consumers. As the do...
KEPCO Calls April 27 EGM to Elect New Standing Director Focused on Grid Expansion
Apr 10, 2026
KEPCO’s board on April 10, 2026 resolved to convene an extraordinary general meeting of shareholders on April 27, 2026 at its Naju headquarters, with voting rights granted to shareholders of record as of March 13, 2026. The agenda includes r...
KEPCO Commits KRW 48.8 Billion to Energy Technology Institute in 2026
Mar 30, 2026
On March 27, 2026, KEPCO’s board approved a KRW 48.8 billion initial contribution in 2026 to the Korea Institute of Energy Technology (KENTECH), a specialized energy technology institution. The funds will support construction of KENTECH̵...
Korea Electric Power Sets April Record Date for Extraordinary Shareholders’ Meeting
Mar 27, 2026
Korea Electric Power Corporation (KEPCO) is South Korea’s dominant electric utility, overseeing nationwide electricity generation, transmission, and distribution for a broad base of residential, commercial, and industrial users. As a core co...
Korea Electric Power Wins Overwhelming Shareholder Backing at March 25 AGM
Mar 25, 2026
Korea Electric Power Corporation is South Korea’s state-run electric utility, responsible for power generation, transmission and distribution nationwide. It operates major generation assets and grid infrastructure, giving it a dominant role ...
Korea Electric Power Reports Fatal Industrial Accident at Indian Subsidiary’s Thermal Plant
Mar 20, 2026
Korea Electric Power Corporation disclosed that its subsidiary, KEPCO Plant Service Engineering, was involved in a fatal industrial accident at the Bhavnagar Thermal Power Plant in India on March 17, 2026. The incident occurred during an internal...
Korea Electric Power amends 2025 audited results filed in March
Mar 13, 2026
On March 10, 2026, KEPCO filed its audited consolidated financial statements for the year ended December 31, 2025, prepared under K-IFRS, and on March 12, 2026 it amended and restated that audit report. The 2025 audit, which included an unmodified...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.