Korea Electric Power (KEP) AI Stock Analysis

• Market Cap: $20.75B
• Dividend Yield: 0.28%
• Average Volume (3M): 420.11K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.65
• Revenue Growth: 0.52%
• EPS Growth: 111.63%
• Country: US
• Employees: 22,481
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 2.00
• Shares Outstanding: 1,283,928,100
• 10 Day Avg. Volume: 440,685
• 30 Day Avg. Volume: 420,106
• 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: 5.17
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.38
• Revenue Forecast (FY): $69.48B

• Rating: 71 Outperform
• Price Target: $17.00 ▲(14.86% Upside)

Korea Electric Power's stock is supported by strong technical indicators and attractive valuation metrics, suggesting potential for growth. However, financial performance is mixed due to high leverage and operational margin volatility. Earnings call insights reveal both opportunities and challenges, with potential tariff adjustments being a key factor for future financial health.

Korea Electric Power Business Overview & Revenue Model

Company Description

Korea Electric Power Corporation (KEP) is the largest electric utility in South Korea, primarily engaged in the generation, transmission, and distribution of electricity. Established in 1961, the company operates a diversified power generation portfolio, including nuclear, coal, natural gas, and renewable energy sources. KEP plays a crucial role in supporting the nation's energy needs and is also involved in energy trading and various infrastructure projects related to electricity and energy efficiency.

How the Company Makes Money

KEP generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers in South Korea. Its revenue model is largely based on regulated electricity tariffs set by the government, which allows the company to earn a stable income. Key revenue streams include sales from its various power generation facilities, where electricity is produced and sold at predetermined rates. Additionally, KEP benefits from government incentives for renewable energy projects, as well as participation in energy trading markets. The company also engages in significant partnerships with both domestic and international entities for infrastructure development and energy projects, which can contribute to its earnings through shared investments and cost savings.

Korea Electric Power Financial Statement Overview

Summary

Korea Electric Power shows a positive trend in revenue growth and improved profit margins, but high leverage and fluctuating operational margins present potential risks. Strong cash flow generation is a positive, but high debt levels could impact long-term financial stability.

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	7.52T	4.50T	4.83T
Total Debt	27.79T	24.36T	10.00T>	10.00T>	11.06T	65.85T
Total Liabilities	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
Stockholders Equity	42.52T	39.92T	35.85T	40.55T	63.77T	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: 14.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.8 is below the 20-day moving average (MA) of 15.82, above the 50-day MA of 14.37, and above the 200-day MA of 11.50, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 87.96 is Negative, 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%
CMS	72 Outperform	$22.66B	21.50	12.34%	2.92%	10.96%	-0.77%
FE	72 Outperform	$26.54B	19.96	10.54%	3.78%	7.64%	48.61%
KEP	71 Outperform	$20.75B	3.62	18.75%	0.28%	0.52%	111.63%
EBR	70 Outperform	―	―	-5.50%	5.72%	1.52%	-159.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
DTE	65 Neutral	$28.47B	20.54	11.64%	3.17%	19.42%	-9.68%

Korea Electric Power Corporate Events

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.

KEPCO Reports Strong Financial Performance for H1 2025

Korea Electric Power Corporation (KEPCO) announced its unaudited financial results for the first half of 2025, showing significant improvements compared to the previous year. The company reported an increase in operating revenues and net income, with operating revenues rising to 46,174 billion Korean Won and net income reaching 3,538 billion Korean Won for the first half of 2025. These results highlight KEPCO’s strengthened financial position and operational efficiency, potentially enhancing its standing in the energy sector and benefiting its stakeholders.