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Korea Electric Power Corp (KEP)
NYSE:KEP
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Korea Electric Power
(NYSE:KEP)
Rating:72Outperform
Price Target:
$14.00
â–²(3.93%Upside)
Korea Electric Power (KEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.32B
Dividend Yield0.36%
Average Volume (3M)706.93K
Price to Earnings (P/E)4.6
Beta (1Y)0.68
Revenue Growth0.21%
EPS Growth628.34%
CountryUS
Employees22,481
SectorUtilities
Sector Strength67
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.33
Shares Outstanding1,283,928,100
10 Day Avg. Volume1,156,677
30 Day Avg. Volume706,926
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.17
Price to Sales (P/S)0.00
P/FCF Ratio-0.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Korea Electric Power Business Overview & Revenue Model
Company DescriptionKorea Electric Power Corporation (KEPCO), listed as KEP, is South Korea's largest electric utility company. It operates primarily in the generation, transmission, and distribution of electricity, serving as a central player in the nation's energy sector. KEPCO is involved in various sectors including nuclear, hydroelectric, and renewable energy, and its core products and services revolve around providing stable and efficient energy solutions both domestically and internationally.
How the Company Makes MoneyKEPCO generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers across South Korea. The company's revenue streams include regulated electricity tariffs set by the government, ensuring a consistent income from energy distribution. Additionally, KEPCO has diversified into international projects and investments in energy infrastructure, which contribute to its earnings. The company's involvement in renewable energy projects and partnerships with global energy firms also play a significant role in enhancing its revenue. Government policies and energy regulations are significant factors that influence KEPCO's financial performance, as they dictate pricing and operational frameworks for energy companies in South Korea.
Korea Electric Power Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 41.49%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative factors. While there were increases in revenue, operating profit, and a reduction in costs, challenges remain with declining electricity sales volumes, a decrease in other revenue, and issues related to coal and LNG generation. Transmission capacity limitations also pose challenges.Q1-2025 Updates
Positive Updates
Increase in Revenue
Revenue for Q1 2025 was KRW24.2 trillion, a 4% increase year-over-year. Electricity sales revenue was KRW23.2 trillion, up by 4.7%.
Reduction in Costs
Cost of sales and SG&A expenses totaled KRW20.47 trillion, down by 6.9%. Fuel cost decreased by 18.7% to KRW5 trillion.
Operating and Net Profit Increase
Consolidated operating profit for Q1 2025 was KRW3.75 trillion. Net profit was KRW2.36 trillion.
Decrease in Interest Expense
Interest expense amounted to KRW1.1 trillion, which is down by KRW34.6 billion from the same period last year.
Nuclear Generation Increase
The generation mix for nuclear increased due to the introduction of a new plant and higher utilization.
Negative Updates
Decline in Electricity Sales Volume
Electricity sales volume in Q1 reached 141 terawatt hours, showing a 0.5% decline due to decreased industrial sales from sluggish export.
Decrease in Other Revenue
Other revenue, including overseas business income, recorded KRW1.1 trillion, down by 10.2%.
Challenges with Coal and LNG Generation
Coal generation mix declined due to lower utilization, and LNG generation also declined slightly from decreased capacity and higher baseload generation.
Transmission Capacity Limitations
Due to limitations in transmission capacity, not all electricity generated, especially from coal, could be transmitted.
Company Guidance
In the KEPCO Fiscal Year 2025 Q1 earnings call, the company reported a consolidated operating profit of KRW 3.75 trillion, with revenue reaching KRW 24.2 trillion, a 4% increase year-over-year. Electricity sales revenue contributed KRW 23.2 trillion, marking a 4.7% rise, while other revenue fell by 10.2% to KRW 1.1 trillion. The cost of sales and SG&A expenses decreased by 6.9% to KRW 20.47 trillion, with fuel costs down 18.7% to KRW 5 trillion, and power purchase costs reducing by 4.8% to KRW 8.75 trillion. Depreciation expenses rose by 5.1% to KRW 2.95 trillion. Interest expenses decreased by KRW 34.6 billion year-over-year to KRW 1.1 trillion, resulting in a net profit of KRW 2.36 trillion for the period. Electricity sales volume dropped by 0.5% to 141 terawatt hours due to sluggish industrial sales, with projections indicating a slight decline for the full year. The average determinist coal price was $105.3 per ton, while LNG was approximately KRW 1.06 million per ton. KEPCO's generation mix saw an increase in nuclear utilization and a decrease in coal and LNG, with nuclear expected to remain in the mid-80% utilization range for the year. Consolidated borrowing stood at KRW 133.2 trillion, with plans for further debt management and adjustments to be discussed with stakeholders.Korea Electric Power Financial Statement Overview
Summary
Korea Electric Power has shown improvements in profitability and cash generation in 2024, with a positive net profit margin and better operational efficiency. However, high leverage remains a significant risk factor, indicating a need for careful management of debt levels.Income Statement
Korea Electric Power's revenue has shown a significant recovery trajectory with a 6.8% growth from 2023 to 2024, rebounding from previous declines. The company has managed to improve its gross profit from a negative position in 2023 to a positive level in 2024, indicating better operational efficiency. The net profit margin improved significantly, moving from a negative margin in 2023 to a 3.74% in 2024. However, historical volatility in profits suggests potential risks in sustaining current margins.72
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 3.41 in 2024, which is a concern for financial stability. Despite this, there has been a steady increase in stockholders' equity, indicating a strengthening equity base. The equity ratio stands at 16.17% in 2024, reflecting a moderate capital structure but with potential risks due to high debt levels.65
Positive
Cash Flow
Cash flow from operations has improved significantly, with positive free cash flow in 2024 compared to negative values in prior years, showing better cash management. The operating cash flow to net income ratio indicates strong cash generation relative to net income. However, the company's free cash flow growth rate remains a concern, as historical fluctuations highlight potential volatility in cash generation capabilities.60
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.40T | 87.48T | 71.26T | 60.57T | 58.57T |
| Gross Profit | 11.23T | -2.22T | -29.65T | -2.98T | 6.76T |
| EBITDA | 21.71T | 9.93T | -19.87T | 6.23T | 16.26T |
| Net Income | 3.49T | -4.82T | -24.43T | -5.23T | 1.99T |
Balance Sheet | |||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 5.24T | 7.31T | 7.52T | 4.50T | 4.83T |
| Total Debt | 24.36T | 10.00T> | 4.16T | 66.57T | 4.62T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 39.92T | 35.85T | 40.55T | 63.77T | 69.30T |
Cash Flow | |||||
| Free Cash Flow | 1.66T | -12.40T | -35.90T | -8.31T | -193.19B |
| Operating Cash Flow | 15.88T | 1.52T | -23.48T | 4.47T | 13.21T |
| Investing Cash Flow | -14.09T | -13.07T | -14.95T | -12.35T | -14.83T |
| Financing Cash Flow | -3.85T | 12.66T | 39.00T | 8.44T | 1.88T |
Korea Electric Power Technical Analysis
Positive
13.47
Price Trends
10.81
Positive
9.27
Positive
8.46
Positive
Market Momentum
0.91
Negative
63.93
Neutral
59.54
Neutral
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 13.47 is above the 20-day moving average (MA) of 11.98, above the 50-day MA of 10.81, and above the 200-day MA of 8.46, indicating a bullish trend. The MACD of 0.91 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.81B | 21.23 | 10.71% | 3.30% | 2.46% | 5.66% | |
76 Outperform | $15.81B | 21.23 | 10.71% | 3.30% | 2.46% | 5.66% | |
72 Outperform | $17.32B | 4.59 | 13.42% | 0.36% | 0.21% | 628.34% | |
69 Neutral | $17.61B | 10.71 | 8.58% | 0.93% | 0.18% | 99.46% | |
69 Neutral | $17.61B | 10.71 | 8.58% | 0.93% | 0.18% | 99.46% | |
63 Neutral | HK$30.58B | 8.23 | 5.37% | 5.32% | -3.09% | 4.51% | |
63 Neutral | $8.96B | 18.45 | 10.72% | 3.79% | 15.56% | 21.90% | |
63 Neutral | $8.96B | 18.45 | 10.72% | 3.79% | 15.56% | 21.90% | |
60 Neutral | $16.15B | 18.49 | 8.95% | 3.80% | 5.53% | 23.00% | |
60 Neutral | $16.15B | 18.49 | 8.95% | 3.80% | 5.53% | 23.00% | |
56 Neutral | $10.80B | 17.96 | 9.08% | 3.96% | 10.69% | 12.37% | |
56 Neutral | $10.80B | 17.96 | 9.08% | 3.96% | 10.69% | 12.37% |
* Utilities Sector Average
Performance Comparison
KEP
Korea Electric Power
13.47
6.21
85.54%
LNT
Alliant Energy
61.95
12.26
24.67%
LNT
Alliant Energy
61.95
12.26
24.67%
EBR.B
Centrais Elc Braz Pfb B Elbras
8.14
0.90
12.43%
EBR.B
Centrais Elc Braz Pfb B Elbras
8.14
0.90
12.43%
OGE
OGE Energy
43.99
10.24
30.34%
OGE
OGE Energy
43.99
10.24
30.34%
PNW
Pinnacle West Capital
90.10
16.74
22.82%
PNW
Pinnacle West Capital
90.10
16.74
22.82%
EVRG
Evergy
69.30
18.56
36.58%
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.