Korea Electric Power (KEP) AI Stock Analysis

• Market Cap: $19.64B
• Dividend Yield: 0.31%
• Average Volume (3M): 420.33K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.69
• Revenue Growth: 0.44%
• EPS Growth: 124.47%
• Country: US
• Employees: 22,481
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.63
• Shares Outstanding: 1,283,928,100
• 10 Day Avg. Volume: 418,470
• 30 Day Avg. Volume: 420,335
• 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: 5.83
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $14.50 ▼(-5.54% Downside)

Korea Electric Power's stock score is driven by strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation. Financial performance shows positive trends in revenue and profitability, but high leverage poses risks. Technical analysis indicates a neutral trend, while the earnings call presents a mixed outlook with both growth and challenges.

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 notable improvement in financial performance, with positive trends in profitability, cash flow, and a stable balance sheet. The company has effectively turned around from significant losses in prior years, indicating strong operational recovery. However, past financial volatility and periods of high debt and negative equity suggest potential risks that warrant careful monitoring. The company appears to be on a positive trajectory but must maintain its focus on stability and sustainable growth.

Income Statement

The company has demonstrated a strong recovery in its gross and net profit margins, with a significant turnaround from negative figures in previous years to a positive gross profit margin of 16.9% and a net profit margin of 5.6% in the TTM. Revenue growth has been consistent, with a 2.6% increase from the previous year. The EBITDA margin is robust at 19.4%, indicating efficient core operations. However, historical volatility and past negative profitability present concerns that need monitoring.

Balance Sheet

The debt-to-equity ratio is 0.52, reflecting manageable leverage levels. The equity ratio is moderate at 16.8%, indicating a relatively stable capital structure. However, the return on equity (ROE) is low at 12.5%, suggesting room for improvement in generating shareholder value. Past fluctuations in equity and high debt levels in certain periods indicate potential financial risk.

Cash Flow

The company shows a positive free cash flow growth rate of 25%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 3.12, signifying strong cash flow relative to earnings, a positive sign of cash efficiency. Despite these improvements, historical cash flow volatility and previous periods of negative free cash flow suggest the need for cautious cash management moving forward.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.81T	93.40T	87.48T	71.26T	60.01T	58.57T
Gross Profit	35.82T	11.23T	-2.22T	-29.65T	-2.98T	6.76T
EBITDA	22.76T	21.71T	9.93T	-20.81T	6.79T	16.26T
Net Income	6.33T	3.49T	-4.82T	-24.43T	-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	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	63.77T	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: 15.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 15.35 is above the 20-day moving average (MA) of 13.48, above the 50-day MA of 13.54, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 73.80 is Negative, neither overbought nor oversold. The STOCH value of 94.81 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	75 Outperform	$23.36B	20.05	6.01%	6.34%	6.41%	37.23%
FE	75 Outperform	$27.31B	20.20	―	3.74%	6.44%	49.07%
EBR	73 Outperform	$23.36B	18.93	6.01%	6.22%	6.41%	37.23%
DTE	70 Neutral	$29.62B	20.36	12.61%	3.06%	14.35%	3.62%
CMS	69 Neutral	$22.50B	22.00	12.48%	2.85%	8.25%	4.37%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
KEP	62 Neutral	$19.64B	4.22	15.47%	0.31%	0.44%	124.47%

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.