Hokuriku Electric Power Company (9505) AI Stock Analysis

• Market Cap: ¥179.12B
• Dividend Yield: 2.31%
• Average Volume (3M): 862.84K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.68
• Revenue Growth: 1.75%
• EPS Growth: 38.58%
• Country: JP
• Employees: 8,541
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 96.46
• Shares Outstanding: 210,333,700
• 10 Day Avg. Volume: 956,120
• 30 Day Avg. Volume: 862,836
• PEG Ratio: 0.18
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.20
• P/FCF Ratio: 2.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥908.00 ▲(1.45% Upside)

Hokuriku Electric Power Company's stock score is primarily driven by its strong valuation, with a low P/E ratio indicating potential undervaluation. Financial performance shows improvement, but high leverage remains a concern. Technical indicators suggest mixed signals, with short-term bearish trends but potential for long-term growth. The absence of recent earnings call data and corporate events limits additional insights.

Hokuriku Electric Power Company Business Overview & Revenue Model

Company Description

Hokuriku Electric Power Company (9505) is a major utility provider in Japan, primarily engaged in the generation, transmission, and distribution of electricity. The company serves the Hokuriku region, which includes the prefectures of Ishikawa, Toyama, and Fukui. Its core services encompass the operation of thermal, hydroelectric, and renewable energy power plants, alongside the provision of energy-related services such as energy efficiency consulting and infrastructure development. Hokuriku Electric Power is committed to enhancing energy sustainability and promoting the effective use of renewable resources.

How the Company Makes Money

Hokuriku Electric Power Company generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers within its service area. The company's revenue model is built on a regulated tariff system, where prices are set by the government to ensure fair access to energy while covering operational costs. Key revenue streams include electricity sales, grid services, and ancillary services such as energy management solutions. The company also benefits from partnerships with local governments and businesses to promote energy-efficient practices and invest in renewable energy projects, which can provide additional revenue opportunities. Factors contributing to its earnings include the demand for electricity, regulatory changes, and advancements in energy technology.

Hokuriku Electric Power Company Financial Statement Overview

Summary

The company's financial performance indicates recovery but is still hindered by high leverage. While revenue and profit margins are improving, the debt-to-equity ratio remains a concern. The cash flow situation is stable, with positive free cash flow despite operating cash flow decline. Overall, financial health is improving with challenges in debt management.

Income Statement

The company experienced a modest revenue growth of 6.19% from 2024 to 2025, indicating a positive trend. However, the gross profit margin decreased as gross profit declined significantly compared to the previous year. Despite this, the net profit margin improved to 7.59% in 2025 from 7.03% in 2024, indicating better cost management. EBIT and EBITDA margins also showed recovery from previous losses, reflecting improved operational performance. Overall, profitability metrics are improving but still face challenges from past volatility.

Balance Sheet

The company's debt-to-equity ratio of 3.02 indicates a high level of leverage, typical for the utilities industry, which could pose financial risk. The equity ratio improved to 20.47% from 16.59% in 2024, suggesting a strengthening equity position. The return on equity increased to 17.11%, reflecting enhanced profitability. However, high debt levels continue to be a concern, requiring careful management to ensure stability.

Cash Flow

The operating cash flow decreased from 2024 to 2025, but the company managed to generate positive free cash flow despite this decline, showing effective capital expenditure control. The free cash flow to net income ratio of 1.01 indicates a solid cash generation capability relative to net income. However, overall cash flow management needs improvement to ensure sustained liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	856.72B	858.27B	808.24B	817.60B	613.76B	639.45B
Gross Profit	101.31B	101.03B	114.91B	-73.79B	-16.39B	17.83B
EBITDA	169.23B	167.39B	135.79B	-22.99B	64.97B	77.96B
Net Income	66.72B	65.15B	56.81B	-88.45B	-6.76B	6.83B
Balance Sheet
Total Assets	1.84T	1.86T	1.86T	1.81T	1.66T	1.60T
Cash, Cash Equivalents and Short-Term Investments	208.31B	239.37B	225.04B	165.46B	105.60B	132.31B
Total Debt	1.16T	1.15T	1.19T	1.28T	1.04T	973.25B
Total Liabilities	1.42T	1.46T	1.53T	1.55T	1.31T	1.24T
Stockholders Equity	403.58B	380.73B	307.89B	233.49B	324.86B	338.62B
Cash Flow
Free Cash Flow	0.00	65.65B	152.85B	-179.47B	-52.42B	-30.30B
Operating Cash Flow	0.00	152.29B	223.33B	-97.05B	30.95B	56.64B
Investing Cash Flow	0.00	-234.06B	-69.47B	-88.84B	-111.04B	-84.91B
Financing Cash Flow	0.00	-48.87B	-93.73B	245.75B	52.78B	-3.30B

Hokuriku Electric Power Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 895.00
• 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 JP:9505, the sentiment is Neutral. The current price of 895 is above the 20-day moving average (MA) of 883.24, above the 50-day MA of 886.64, and above the 200-day MA of 795.02, indicating a neutral trend. The MACD of -3.85 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 20.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:9505.

Hokuriku Electric Power Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9509	―	€232.73B	3.65	14.57%	1.86%	-1.60%	-10.41%
Sector *	―	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
9511	―	¥54.91B	9.15	4.73%	2.47%	-1.96%	33.14%
9506	―	$526.04B	3.29	16.13%	3.34%	-8.73%	-6.98%
9501	―	$1.27T	5.86	-22.13%	―	-2.28%	-794.92%
9505	―	¥179.12B	2.59	17.95%	2.31%	1.75%	38.58%
9504	―	$312.71B	3.06	15.45%	3.15%	-1.02%	79.80%

Hokuriku Electric Power Company Corporate Events

Hokuriku Electric Power Restructures Subsidiary Holdings

Hokuriku Electric Power Company announced changes in its subsidiary structure, with HOKURIKU ELECTRICAL CONSTRUCTION CO., LTD. becoming an equity-method affiliate due to a stock benefit trust scheme involving 350,000 treasury shares. This shift impacts the company’s voting rights and results in Hokko Shoji Co., Ltd. and NIKKEN Corporation no longer being consolidated subsidiaries or equity-method affiliates, potentially affecting the company’s operational dynamics and market positioning.

The most recent analyst rating on (JP:9505) stock is a Hold with a Yen772.00 price target. To see the full list of analyst forecasts on Hokuriku Electric Power Company stock, see the JP:9505 Stock Forecast page.

Hokuriku Electric Power Reports Q1 2025 Financial Results

Hokuriku Electric Power Company reported its consolidated financial results for the three months ending June 30, 2025, showing a slight decrease in operating revenues by 0.8% compared to the previous year. Despite this, the company saw an increase in operating profit by 0.8% and a notable rise in profit attributable to owners of the parent by 5.9%. The company’s financial position remains stable with a slight increase in net assets and equity-to-asset ratio. The forecast for the fiscal year ending March 31, 2026, indicates a significant decline in operating revenues and profits, reflecting challenging market conditions.