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Chugoku Electric Power Co
(9504)
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Rating:55Neutral
Price Target:
¥930.00
▲(0.55% Upside)
Action:Reiterated
Date:08/04/26
The score is held back primarily by high leverage and inconsistent free cash flow, alongside weakening recent operating performance (declining revenue and 2026 margin compression). These risks are partly offset by a relatively attractive valuation (low P/E and a moderate dividend) and mildly positive momentum signals, though the broader price trend remains mixed.
Positive Factors
Regulated business model
Chugoku Electric’s core regulated utility activities (generation, transmission, distribution and related services) create predictable demand and regulated network income. This structural model produces lower cyclicality, steady customer access in its region, and a durable foundation for long-term cash flows and service revenues.
Negative Factors
High leverage
Debt-to-equity of roughly 4–6x creates structural leverage that limits flexibility and raises refinancing and interest-rate sensitivity. High fixed obligations reduce capacity to absorb shocks, constrain discretionary investment, and increase default or covenant risk if earnings or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated business model
Chugoku Electric’s core regulated utility activities (generation, transmission, distribution and related services) create predictable demand and regulated network income. This structural model produces lower cyclicality, steady customer access in its region, and a durable foundation for long-term cash flows and service revenues.
Read all positive factors
Chugoku Electric Power Co (9504) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥355.58B
Dividend Yield2.74%
Average Volume (3M)1.97M
Price to Earnings (P/E)9.3
Beta (1Y)0.57
Revenue Growth-4.69%
EPS Growth-62.74%
CountryJP
Employees12,606
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)190.61
Shares Outstanding387,154,700
10 Day Avg. Volume1,738,140
30 Day Avg. Volume1,967,763
Financial Highlights & Ratios
PEG Ratio-0.17
Price to Book (P/B)0.46
Price to Sales (P/S)0.25
P/FCF Ratio-12.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥1,050.00Price Target Upside13.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)124.51
Revenue Forecast (FY)¥1.52T
Chugoku Electric Power Co Business Overview & Revenue Model
Company Description
The Chugoku Electric Power Co., Inc. engages in generation, transmission, and distribution of electric power in Japan. It generates power through hydroelectric, thermal, nuclear, renewable, and other energy sources. The company provides thermal po...
How the Company Makes Money
The company makes money primarily by selling electricity. Its revenue model is centered on: (1) Retail electricity sales to end users (households, businesses, and factories), where revenue is driven by billed usage (kWh) and customer tariffs/prici...
Chugoku Electric Power Co Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
38
Negative
Cash Flow
44
Neutral
| Breakdown | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.44T | 1.53T | 1.63T | 1.69T | 1.14T |
| Gross Profit | 90.22B | 129.15B | 206.78B | -68.89B | -60.74B |
| EBITDA | 255.69B | 257.38B | 310.39B | -78.23B | 33.06B |
| Net Income | 68.54B | 98.47B | 133.50B | -155.38B | -39.70B |
Balance Sheet | |||||
| Total Assets | 4.62T | 4.41T | 4.13T | 4.04T | 3.57T |
| Cash, Cash Equivalents and Short-Term Investments | 423.36B | 286.73B | 301.35B | 254.78B | 66.58B |
| Total Debt | 3.30T | 3.16T | 2.98T | 3.02T | 2.53T |
| Total Liabilities | 3.85T | 3.70T | 3.52T | 3.58T | 2.96T |
| Stockholders Equity | 777.24B | 707.53B | 604.87B | 447.49B | 605.78B |
Cash Flow | |||||
| Free Cash Flow | -29.86B | -192.33B | 65.43B | -265.80B | -185.62B |
| Operating Cash Flow | 237.29B | 186.02B | 271.39B | -62.70B | 310.00M |
| Investing Cash Flow | -236.25B | -358.84B | -192.78B | -225.02B | -206.39B |
| Financing Cash Flow | 135.39B | 161.18B | -26.37B | 464.96B | 212.58B |
Chugoku Electric Power Co Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥2.79T | 6.96 | 11.51% | 3.17% | -2.90% | -7.99% | |
72 Outperform | ¥664.99B | 7.98 | 7.93% | 3.50% | 2.21% | -47.89% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | ¥206.84B | 4.25 | 12.63% | 2.31% | -7.27% | -27.05% | |
60 Neutral | ¥223.38B | 7.98 | 9.95% | 3.18% | -3.77% | -56.08% | |
55 Neutral | ¥355.58B | 9.35 | 9.14% | 2.87% | -4.69% | -62.74% | |
51 Neutral | ¥880.08B | 2.24 | -14.76% | ― | -5.31% | ― |
* Utilities Sector Average
JP:9504
Chugoku Electric Power Co
987.00
99.95
11.27%
JP:9505
Hokuriku Electric Power Company
990.80
95.93
10.72%
JP:9503
Kansai Electric Power Company
2,610.00
614.61
30.80%
JP:9506
Tohoku Electric Power Company
1,330.50
206.55
18.38%
JP:9501
Tokyo Electric Power Company Holdings
549.30
-196.80
-26.38%
JP:9509
Hokkaido Electric Power Company,Incorporated
1,088.00
-47.87
-4.21%
Chugoku Electric Power Co Corporate Events
Chugoku Electric Confirms Quarterly Results as Audit Completed, Posts Loss Despite Higher Revenue
Aug 5, 2026
Chugoku Electric Power said the interim review of its quarterly consolidated financial statements for the three months ended June 30, 2026 has been completed by certified public accountants, with no changes to figures disclosed on July 31. The con...
Chugoku Electric Power Posts Quarterly Loss But Keeps Full-Year Outlook and Raises Dividend
Jul 31, 2026
Chugoku Electric Power reported consolidated operating revenues of ¥343.9 billion for the three months ended June 30, 2026, up 4.4% year on year, but swung to an operating loss of ¥5.4 billion and a net loss attributable to owners of ...
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.