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Korea Electric Power
(NYSE:KEP)
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Rating:62Neutral
Price Target:
$11.00
â–Ľ(-6.78% Downside)
Action:Reiterated
Date:09/06/26
The score is anchored by improved profitability but constrained by elevated leverage and weak/free-cash-flow conversion (largest drag). Valuation is a major positive due to the very low P/E and solid dividend yield. Technicals are neutral-to-weak with limited momentum, and the earnings call adds modest caution given cost pressures and tariff/regulatory uncertainty.
Positive Factors
Profitability recovery
The shift from losses in 2021–2023 to positive earnings and solid TTM operating margins shows meaningful earnings recovery. If profitability is maintained, it can strengthen internal funding, support investment needs, and improve resilience across the next several quarters.
Negative Factors
Elevated leverage
High leverage leaves KEPCO more sensitive to interest rates, refinancing conditions, and operating disruptions. It can also restrict financial flexibility because substantial cash resources may be needed for debt service and infrastructure investment, increasing the consequences of weaker earnings or delayed tariff support.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery
The shift from losses in 2021–2023 to positive earnings and solid TTM operating margins shows meaningful earnings recovery. If profitability is maintained, it can strengthen internal funding, support investment needs, and improve resilience across the next several quarters.
Read all positive factors
Korea Electric Power (KEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.58B
Dividend Yield4.98%
Average Volume (3M)815.47K
Price to Earnings (P/E)2.3
Beta (1Y)0.94
Revenue Growth-1.36%
EPS Growth22.18%
CountryUS
Employees22,875
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)6148.34
Shares Outstanding1,283,928,100
10 Day Avg. Volume880,908
30 Day Avg. Volume815,472
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.64
Price to Sales (P/S)0.32
P/FCF Ratio6.02
Enterprise Value/Market Cap7.35
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.36
Revenue Forecast (FY)$71.31B
Korea Electric Power Business Overview & Revenue Model
Company Description
Korea Electric Power Corporation (KEPCO) functions as a comprehensive electric utility, responsible for the generation, transmission, and distribution of electricity within South Korea and in various international markets. Its operations are organ...
How the Company Makes Money
KEPCO primarily makes money by selling electricity to customers in South Korea. Its core revenue stream is retail electricity sales, where revenue is generally a function of (1) electricity volumes delivered (kWh) and (2) regulated/approved tariff...
Korea Electric Power Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 16, 2026
Earnings Call Sentiment Negative
The call presents a mixed picture: KEPCO delivered positive consolidated operating income and net income with modest revenue growth and strong other/overseas revenue, and management has concrete operational and funding plans (nuclear unit additions, profit-focused approach to meeting bond cap). However, significant near-term headwinds exist — notably an 8.8% rise in fuel costs, higher operating expenses, declining 1H nuclear output, rising SMP in recent months, large consolidated borrowings, and uncertainty around tariff reform and funding for major grid/mega projects. On balance the risks and cost pressures outweigh the positive results and initiatives communicated in the call.Positive Updates
Positive consolidated profitability
2026 1H consolidated operating income of KRW 4,912.7 billion and net income of KRW 2,796.5 billion, indicating continued profitability on a consolidated IFRS basis.
Negative Updates
Rising fuel costs
Fuel costs increased 8.8% year-over-year to KRW 10,142.9 billion in 1H 2026, driven by higher international coal and LNG prices (Australian coal ~ $128.2/ton; JKM LNG ~ KRW 939,000/ton).
Read all updates
Q2-2026 Updates
Positive
Negative
Positive consolidated profitability
2026 1H consolidated operating income of KRW 4,912.7 billion and net income of KRW 2,796.5 billion, indicating continued profitability on a consolidated IFRS basis.
Read all positive updates
Company Guidance
KEPCO said it expects full‑year 2026 power sales volume to be slightly higher than 2026 1H (266.7 TWh, -0.6% Y‑o‑Y in 1H) and reiterated a modest shift in the generation mix (nuclear to increase slightly, coal to decrease slightly, LNG broadly maintained) with 2026 capacity‑factor guidance of low‑ to mid‑80% for nuclear, low‑ to mid‑50% for coal and low‑ to mid‑20% for LNG; near‑term actions include adding Saeul Unit 3 to the grid and tighter scheduling of preventive maintenance to support nuclear output. Management flagged continued tariff discussions with government (regional differentiated tariff public hearing in H2, potential finalization and introduction by year‑end) as helpful to restore operating losses and meet financing targets, and said it will strive to meet the regulator’s bond issuance cap target (corporate bond issuance to capital+reserves below 2x) by end‑2027 largely through higher operating profits rather than simply cutting issuance. They also noted funding and CapEx for mid‑ to long‑term national “mega” projects will be phased over time and coordinated with stakeholders; key 1H metrics referenced on the call included consolidated operating income KRW 4,912.7 billion, net income KRW 2,796.5 billion, revenue KRW 46,317.3 billion (+0.3%), fuel costs KRW 10,142.9 billion (+8.8%), purchase power costs KRW 17,206.9 billion (-0.9%), RPS cost consolidated KRW 2,533 billion (stand‑alone KRW 2,938.9 billion), consolidated borrowings KRW 133.3 trillion (stand‑alone KRW 84.8 trillion), bituminous coal ~USD 128.2/ton, JKM LNG ~KRW 939,000/ton, and SMP trends (1H ~KRW 112.3/kWh; July/Aug showing upticks to ~133 and ~151 vs prior year 121/117).Korea Electric Power Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 96.71T | 96.57T | 93.40T | 87.48T | 70.55T | 60.01T |
| Gross Profit | 14.85T | 15.86T | 11.23T | -2.22T | -30.36T | -3.63T |
| EBITDA | 27.91T | 29.72T | 23.92T | 9.93T | -18.56T | 6.79T |
| Net Income | 7.84T | 8.54T | 3.49T | -4.82T | -24.47T | -5.30T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 6.86T | 6.40T | 5.12T | 7.14T | 7.23T | 4.38T |
| Total Debt | 10.00T> | 10.00T> | 24.36T | 23.65T | 10.00T> | 11.06T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 50.15T | 48.17T | 39.92T | 35.85T | 40.55T | 63.78T |
Cash Flow | ||||||
| Free Cash Flow | 1.43T | 5.14T | 1.57T | -12.40T | -35.90T | -8.31T |
| Operating Cash Flow | 18.08T | 21.16T | 15.88T | 1.52T | -23.48T | 4.47T |
| Investing Cash Flow | -15.81T | -18.70T | -14.09T | -13.07T | -14.95T | -12.35T |
| Financing Cash Flow | -1.72T | -2.67T | -3.85T | 12.66T | 39.00T | 8.44T |
Korea Electric Power Technical Analysis
Negative
11.80
Price Trends
11.26
Negative
11.72
Negative
14.36
Negative
Market Momentum
-0.20
Positive
37.62
Neutral
36.20
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 11.8 is above the 20-day moving average (MA) of 10.84, above the 50-day MA of 11.26, and below the 200-day MA of 14.36, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 37.62 is Neutral, neither overbought nor oversold. The STOCH value of 36.20 is Neutral, 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 | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $70.35B | 22.20 | 10.01% | 2.94% | 8.63% | -14.89% | |
63 Neutral | $97.03B | 18.69 | 9.88% | 3.44% | 6.33% | 8.98% | |
62 Neutral | $13.58B | 2.31 | 16.03% | 4.98% | -1.36% | 22.18% | |
62 Neutral | $106.49B | 22.20 | 12.61% | 3.24% | 6.40% | 6.90% | |
60 Neutral | $19.50B | 21.05 | 9.06% | 3.29% | 3.60% | 10.06% | |
59 Neutral | $51.36B | 27.15 | 10.41% | 2.38% | 10.19% | -2.59% |
* Utilities Sector Average
KEP
Korea Electric Power
10.49
-4.58
-30.39%
AEP
American Electric Power
129.22
16.33
14.47%
DUK
Duke Energy
124.44
1.27
1.03%
ETR
Entergy
107.50
12.51
13.17%
SO
Southern Co
92.57
0.22
0.24%
EVRG
Evergy
84.61
8.94
11.81%
Korea Electric Power Corporate Events
KEPCO Quarterly Report Highlights Leadership Changes and Softer H1 2026 Earnings
Sep 15, 2026
Korea Electric Power Corporation (KEPCO) is South Korea’s dominant electric utility, responsible for the development of power resources and the generation, transmission, and distribution of electricity. Through major subsidiaries it oversees...
Korea Electric Power Clarifies Government Plan to Merge Generation Subsidiaries
Sep 3, 2026
Korea Electric Power Corporation is South Korea’s state-controlled electric utility, responsible for power generation, transmission, and distribution across the country. The company operates multiple generation subsidiaries and plays a centr...
KEPCO Sets September Record Date for Voting at Extraordinary Shareholders’ Meeting
Aug 27, 2026
Korea Electric Power Corporation (KEPCO), South Korea’s main electric utility, oversees national power generation, transmission, and distribution, supplying energy to households, businesses, and industry. The company’s governance decis...
KEPCO First-Half 2026 Earnings Show Profitability Strain Amid Flat Revenues
Aug 12, 2026
KEPCO reported unaudited consolidated and separate financial results for the first half of fiscal 2026, covering the periods ended June 30, 2026, with data released on August 12, 2026. The company cautioned that the figures are preliminary and not...
Korea Electric Power to Release Preliminary First-Half 2026 Earnings on August 12
Aug 7, 2026
Korea Electric Power Corporation, South Korea’s dominant power utility responsible for nationwide electricity supply and grid operations, sits at the core of the country’s energy market. Its financial results serve as a key barometer f...
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.