Hokkaido Electric Power Company,Incorporated (9509) AI Stock Analysis

• Market Cap: €233.86B
• Dividend Yield: 1.76%
• Average Volume (3M): 8.02M
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.89
• Revenue Growth: -2.86%
• EPS Growth: 3.20%
• Country: JP
• Employees: 9,206
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 148.17
• Shares Outstanding: 215,291,900
• 10 Day Avg. Volume: 4,372,830
• 30 Day Avg. Volume: 8,016,290
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €929.58
• Price Target Upside: -18.39% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: ¥930.00 ▼(-18.35% Downside)

Hokkaido Electric Power Company is positioned as a potentially attractive investment due to its undervaluation and strong technical indicators. However, financial performance concerns, particularly high leverage and inconsistent revenues, weigh down the overall score. Investors should consider these risks against the stock's appealing valuation and technical strength.

Hokkaido Electric Power Company,Incorporated Business Overview & Revenue Model

Company Description

Hokkaido Electric Power Company, Incorporated generates, transmits, and distributes electricity in Japan. The company undertakes electrical and telecommunication, civil engineering and construction, piping, air-conditioning and water supply/drainage facility, and disaster prevention equipment works; manufactures and sells electricity meters; and inspects and installs electric meters. It also engages in the management of buildings; environmental conservation business; sale of fuel, equipment, and materials; public bathhouse, cleaning/security service, and utility pole advertising businesses; provision of consulting services in the areas of construction, civil engineering, electricity, environment, energy, and repair of housing appliances; construction, maintenance, operation, and repair of power generation facilities and various plants; sale of electric power generated by thermal, hydroelectric, photovoltaic, and wind power; unloading, storage, and delivery of imported coal; and marine transport agency and customs clearance activities. In addition, the company provides Ethernet communications network and Internet connection services; installation, maintenance, supervision, and consulting of information communication networks; Internet data center and other information processing related services; and sells network-related machinery and equipment, information processing equipment, and software. Further, it is involved in the consultation, development, operation, and management of education-related information processing systems; leasing of LNG receiving facilities; and sale of corporate merchandise, gift products, sundries, food, etc. Additionally, the company engages in design, printing, and bookbinding operations; the production of closed captions; and the provision of document management, confidential-document destruction, and recycling services. The company was founded in 1951 and is headquartered in Sapporo, Japan.

How the Company Makes Money

Hokkaido Electric Power Company generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers in the Hokkaido region. The company operates a diverse portfolio of power generation facilities, including thermal, hydroelectric, and renewable energy plants, which allows it to produce and supply electricity. Revenue is derived from electricity tariffs, which are regulated by the government, ensuring stable income streams. The company may also engage in energy-related services, such as consulting and infrastructure solutions, which provide additional revenue channels. Strategic partnerships and government regulations play a significant role in the company's operations and financial performance, impacting pricing and expansion opportunities.

Hokkaido Electric Power Company,Incorporated Financial Statement Overview

Summary

The company displays mixed financial health with inconsistent revenue and profit growth, high leverage posing risks, and stable but negative free cash flow. Improvements in cost management and debt reduction are needed.

Income Statement

The company has shown mixed performance in the income statement. While Total Revenue increased from 2022 to 2024, it experienced a decline in 2025. Gross Profit Margin fluctuated significantly, indicating potential volatility in cost management. Despite a strong Net Profit Margin in 2025, Revenue Growth Rate and EBIT Margin have been inconsistent, posing challenges for sustained growth.

Balance Sheet

Hokkaido Electric Power Company exhibits a high Debt-to-Equity Ratio, reflecting significant leverage that could pose financial risks. However, Return on Equity improved over time, demonstrating efficient use of equity to generate profits. The Equity Ratio is moderate, indicating a balanced approach to funding assets with equity.

Cash Flow

The cash flow statement highlights the company's struggles with Free Cash Flow, which has been negative in recent years due to high capital expenditures. The Operating Cash Flow to Net Income Ratio is relatively stable, suggesting consistent cash generation relative to net income. Despite these challenges, the company maintained positive Operating Cash Flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	902.05B	902.05B	953.78B	888.87B	663.41B	740.79B
Gross Profit	75.84B	75.84B	187.70B	-22.53B	24.97B	53.77B
EBITDA	167.52B	149.08B	174.61B	67.94B	103.77B	135.53B
Net Income	64.22B	64.22B	66.20B	-22.19B	6.86B	36.16B
Balance Sheet
Total Assets	2.24T	2.24T	2.14T	2.09T	1.99T	2.00T
Cash, Cash Equivalents and Short-Term Investments	156.32B	156.32B	110.71B	89.87B	88.89B	83.77B
Total Debt	1.26T	1.26T	1.41T	1.48T	1.39T	1.40T
Total Liabilities	1.84T	1.84T	1.81T	1.84T	1.71T	1.71T
Stockholders Equity	391.93B	391.93B	319.38B	244.81B	272.65B	277.10B
Cash Flow
Free Cash Flow	0.00	-42.54B	62.19B	-105.33B	24.55B	51.54B
Operating Cash Flow	0.00	125.59B	176.13B	-574.00M	102.34B	136.55B
Investing Cash Flow	0.00	-90.70B	-80.84B	-85.25B	-77.72B	-85.61B
Financing Cash Flow	0.00	10.73B	-74.65B	86.80B	-19.49B	-24.66B

Hokkaido Electric Power Company,Incorporated Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1139.00
• 50DMA: Positive
• 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:9509, the sentiment is Positive. The current price of 1139 is below the 20-day moving average (MA) of 1161.40, above the 50-day MA of 1062.04, and above the 200-day MA of 824.96, indicating a neutral trend. The MACD of 13.07 indicates Positive momentum. The RSI at 51.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9509.

Hokkaido Electric Power Company,Incorporated Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9513	73 Outperform	¥519.58B	4.36	6.92%	3.52%	5.85%	39.06%
9501	72 Outperform	¥1.09T	-1.40	4.29%	―	-0.78%	-467.97%
9509	70 Outperform	€233.86B	3.67	17.25%	1.76%	-2.86%	3.20%
9503	68 Neutral	¥2.36T	5.41	13.71%	2.72%	4.75%	-0.16%
9506	63 Neutral	¥562.03B	3.52	18.56%	3.11%	-8.33%	-22.92%
9504	60 Neutral	¥315.34B	3.09	13.92%	3.08%	-1.90%	8.34%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Hokkaido Electric Power Company,Incorporated Corporate Events

Hokkaido Electric Power Reports Interim Financial Review Completion

Hokkaido Electric Power Company announced the completion of the interim review of its consolidated financial results for the three months ended June 30, 2025, with no changes to the previously disclosed figures. The company reported stable operating revenue with a slight decrease, while operating and ordinary income showed significant year-on-year growth, indicating improved operational efficiency.

Hokkaido Electric Power Reports Q1 2025 Financial Results and Dividend Increase

Hokkaido Electric Power Company reported its consolidated financial results for the three months ended June 30, 2025, showing stable operating revenue but a significant increase in operating and ordinary income compared to the previous year. Despite a slight decline in profit attributable to owners of the parent, the company improved its equity-to-asset ratio, indicating a stronger financial position. The company also announced an increase in its forecasted annual dividends, reflecting confidence in its financial outlook.

Hokkaido Electric Power Faces Compliance Challenge

Hokkaido Electric Power Network Company, a subsidiary of Hokkaido Electric Power Co., Ltd., received a recommendation for business improvement from the Electricity and Gas Market Surveillance Commission. This recommendation followed the discovery that employees used non-public information in power generation operations, potentially undermining fair competition in the electricity market. The company acknowledges the breach of trust with stakeholders and commits to implementing a new compliance monitoring system to prevent future occurrences.

Hokkaido Electric Power Faces Compliance Challenge

Hokkaido Electric Power Company has received a recommendation for business improvement from the Electricity and Gas Market Surveillance Commission due to the misuse of non-public information in its operations. The company acknowledges the breach of fair competition principles and is committed to implementing a new compliance monitoring system to prevent future occurrences.

Hokkaido Electric Power Network Enhances Compliance Measures Following Investigation

Hokkaido Electric Power Network Company, a subsidiary of Hokkaido Electric Power Co., Ltd., submitted a report to the Electricity and Gas Market Surveillance Commission following an investigation into the handling of non-public information by an employee. The company is taking measures to strengthen compliance and prevent future occurrences, emphasizing the seriousness of adhering to regulations under the Electricity Business Act.

Hokkaido Electric Power Strengthens Compliance Measures After Information Handling Investigation

Hokkaido Electric Power Company has submitted a report to the Electricity and Gas Market Surveillance Commission following an investigation into the handling of non-public information by an employee. The company is taking measures to strengthen compliance and prevent recurrence under its new management system.