Korea Electric Power (KEP) AI Stock Analysis

• Market Cap: $26.06B
• Dividend Yield: 0.29%
• Average Volume (3M): 605.65K
• Price to Earnings (P/E): 4.1
• 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): 0.76
• Shares Outstanding: 1,283,928,100
• 10 Day Avg. Volume: 516,156
• 30 Day Avg. Volume: 605,652
• 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: 6.48K
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 10.25
• Enterprise Value/Ebitda: 5.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 6
• Revenue Forecast (FY): $69.07B

• Rating: 72 Outperform
• Price Target: $23.50 ▲(28.70% Upside)
• Action: Upgraded Date: 01/13/26
• Date: Action: Upgraded 01/13/26

The score is driven primarily by very attractive valuation (low P/E and very high dividend yield). Financial performance is improving with better margins and strong free cash flow growth, but elevated leverage and margin volatility temper the rating. Technicals are modestly supportive with price above key moving averages and neutral momentum.

Positive Factors

Regulated market position

As South Korea's largest electric utility with government-regulated pricing, KEP benefits from predictable, contract-like revenue streams. That structural stability supports long-term planning, steady cash generation, and investment in capital-intensive grid and generation projects over multiple years.

Improved profitability and margins

Material margin improvement (TTM gross 35.45%, net 6.61%) reflects better cost control and stronger generation mix, improving earnings resilience. Sustained higher margins increase internal funding capacity and buffer the business against commodity and operational shocks over the medium term.

Strong free cash flow growth

A 60.58% TTM increase in free cash flow indicates stronger cash generation from operations. Durable FCF growth supports reinvestment in generation and grid assets, shareholder distributions, and provides optionality to reduce leverage or fund new renewable projects over the coming quarters.

Negative Factors

High financial leverage

A debt-to-equity ratio of 3.18 signals elevated leverage for a regulated utility, constraining financial flexibility. High indebtedness raises refinancing and interest-rate sensitivity, limits room for aggressive capex or acquisitions, and increases vulnerability to prolonged margin pressure.

Margin and earnings volatility

KEP's historical volatility in EBIT/EBITDA margins—driven by swings in generation mix and thermal margins—reduces earnings predictability. For a capital-intensive utility, volatile operating margins complicate multi-year planning, credit metrics and the ability to sustainably fund dividends or investment programs.

Low FCF conversion relative to net income

A free cash flow to net income ratio of 0.18 suggests much of reported earnings does not convert to distributable cash. Structurally low FCF conversion can limit debt paydown, capex funding, and reliable payout levels unless cash conversion improves or leverage is reduced.

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

Profitability and margins improved meaningfully (TTM gross margin 35.45%, net margin 6.61%) and free cash flow growth is strong, but high leverage (debt-to-equity 3.18) and historical EBIT/EBITDA margin volatility raise financial risk.

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	96.95T	93.40T	87.48T	70.55T	60.01T	57.93T
Gross Profit	16.49T	11.23T	-2.22T	-30.36T	-3.63T	6.12T
EBITDA	29.67T	21.71T	9.93T	-18.56T	6.79T	16.54T
Net Income	8.30T	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	7.47T	5.12T	7.14T	7.23T	4.38T	4.80T
Total Debt	10.00T>	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	46.55T	39.92T	35.85T	40.55T	63.78T	69.30T
Cash Flow
Free Cash Flow	4.48T	1.66T	-12.40T	-35.90T	-8.31T	-193.19B
Operating Cash Flow	20.39T	15.88T	1.52T	-23.48T	4.47T	13.21T
Investing Cash Flow	-18.67T	-14.09T	-13.07T	-14.95T	-12.35T	-14.83T
Financing Cash Flow	-3.22T	-3.85T	12.66T	39.00T	8.44T	1.88T

Korea Electric Power Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.26
• 50DMA: Negative
• 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 Negative. The current price of 18.26 is below the 20-day moving average (MA) of 21.37, below the 50-day MA of 19.67, and above the 200-day MA of 15.25, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 40.97 is Neutral, neither overbought nor oversold. The STOCH value of 52.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KEP.

Korea Electric Power Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEP	72 Outperform	$26.06B	4.13	―	0.29%	0.52%	111.63%
CMS	66 Neutral	$23.92B	22.15	12.33%	3.10%	10.96%	-0.77%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
FE	64 Neutral	$29.57B	28.99	8.17%	3.94%	7.64%	48.61%
DTE	62 Neutral	$30.80B	21.03	12.16%	3.45%	19.42%	-9.68%

Korea Electric Power Corporate Events

KEPCO Posts Strong Profit Rebound for Nine Months to September 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 5.945 trillion won in operating profit a year earlier, reflecting significantly improved profitability in its core electricity sales and nuclear generation segments despite weaker thermal generation margins. The filing also highlighted a series of boardroom changes in 2025, including the appointment of new standing and non-standing directors and resignations of others, while confirming no change in major shareholders over the past five years and disclosing that KEPCO paid a 2024 dividend of 213 won per share, signaling continued shareholder returns amid recovering earnings and a strengthened operating position in Korea’s power sector.

The most recent analyst rating on (KEP) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

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.

The most recent analyst rating on (KEP) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

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.

The most recent analyst rating on (KEP) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.

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.

The most recent analyst rating on (KEP) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Korea Electric Power stock, see the KEP Stock Forecast page.