Korea Electric Power (KEP)
NYSE:KEP
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Korea Electric Power
(NYSE:KEP)
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Rating:66Neutral
Price Target:
$17.50
â–Ľ(-4.16% Downside)
Action:DowngradedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Korea Electric Power (KEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.68B
Dividend Yield0.29%
Average Volume (3M)726.86K
Price to Earnings (P/E)3.6
Beta (1Y)0.81
Revenue Growth0.52%
EPS Growth111.63%
CountryUS
Employees22,481
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.70
Shares Outstanding1,283,928,100
10 Day Avg. Volume643,135
30 Day Avg. Volume726,860
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.64
Price to Sales (P/S)0.31
P/FCF Ratio6.02
Enterprise Value/Market Cap8.51K
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit9.35
Enterprise Value/Ebitda5.45
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.62
Revenue Forecast (FY)$68.13B
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, T...
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:May 08, 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
68
Positive
Balance Sheet
52
Neutral
Cash Flow
57
Neutral
| 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
Negative
18.26
Price Trends
19.35
Negative
18.16
Negative
15.83
Negative
Market Momentum
-1.15
Positive
25.83
Positive
9.80
Positive
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 above the 20-day moving average (MA) of 16.41, below the 50-day MA of 19.35, and above the 200-day MA of 15.83, indicating a bearish trend. The MACD of -1.15 indicates Positive momentum. The RSI at 25.83 is Positive, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $18.68B | 3.57 | 19.07% | 0.29% | 0.52% | 111.63% | |
66 Neutral | $23.35B | 19.63 | 12.33% | 3.10% | 10.96% | -0.77% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $28.91B | 25.33 | 8.04% | 3.94% | 7.64% | 48.61% | |
61 Neutral | $30.02B | 18.26 | 12.16% | 3.45% | 19.42% | -9.68% |
* Utilities Sector Average
KEP
Korea Electric Power
14.87
7.46
100.67%
CMS
CMS Energy
76.21
3.30
4.53%
DTE
DTE Energy
144.47
10.68
7.98%
FE
FirstEnergy
50.03
11.19
28.82%
Korea Electric Power Corporate Events
Korea Electric Power Sets March 25 AGM, Details 2025 Financial Position
Mar 10, 2026
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 vot...
Korea Electric Power posts sharp 2025 profit rebound on higher revenues
Feb 26, 2026
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 ...
Korea Electric Power Board Proposes KRW 988.6 Billion Dividend for 2025
Feb 26, 2026
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 ge...
KEPCO Sets March 25, 2026 Date for Annual Shareholders’ Meeting and Key Governance Votes
Feb 26, 2026
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 stat...
Korea Electric Power Sets March Record Date for Extraordinary Shareholder Meeting
Feb 26, 2026
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 ...
Korea Electric Power to Release 2025 Preliminary Earnings on February 26, 2026
Feb 23, 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...
KEPCO Posts Strong Profit Rebound for Nine Months to September 2025
Dec 18, 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 ...
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.
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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.