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Korea Electric Power Corp (KEP)
NYSE:KEP
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Korea Electric Power
(NYSE:KEP)
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Rating:68Neutral
Price Target:
$15.00
â–²(16.73% Upside)
Korea Electric Power's stock score reflects a strong valuation with a low P/E ratio and high dividend yield, making it attractive to value and income investors. The technical analysis supports a bullish trend, adding to the stock's appeal. Financial performance shows improvement, but historical volatility and financial risks require monitoring. The earnings call highlighted both growth and challenges, indicating a need for strategic adjustments.
Korea Electric Power (KEP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.84B
Dividend Yield0.37%
Average Volume (3M)429.26K
Price to Earnings (P/E)3.8
Beta (1Y)0.66
Revenue Growth0.44%
EPS Growth124.47%
CountryUS
Employees22,481
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)0.64
Shares Outstanding1,283,928,100
10 Day Avg. Volume550,691
30 Day Avg. Volume429,257
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.33
Price to Sales (P/S)0.14
P/FCF Ratio7.85
Enterprise Value/Market Cap6.80
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.00Price Target Upside16.73% Upside
Rating ConsensusHold
Number of Analyst Covering0
Korea Electric Power Business Overview & Revenue Model
Company DescriptionKorea Electric Power Corporation, an integrated electric utility company, generates, transmits, and distributes electricity in South Korea and internationally. The company operates through Transmission and Distribution, Nuclear Power Generation, Thermal Power Generation, and Others segments. It generates power from nuclear, coal, oil, liquefied natural gas, internal combustion, combined-cycle, integrated gasification combined cycle, hydro, wind, solar, fuel cell, biogas, and other sources. As of December 31, 2021, the company had a total of 763 generation units, including nuclear, thermal, hydroelectric, and internal combustion units with an installed generation capacity of 82,459 megawatts. Its transmission system consisted of 34,923 circuit kilometers of lines of 765 kilovolts and others, including high-voltage direct current lines, as well as 892 substations with an installed transformer capacity of 344,286 megavolt-amperes; and distribution system included 132,376 megavolt-amperes of transformer capacity and 9,940,440 units of support with a total line length of 532,348 circuit kilometers. The company provides electricity to residential, commercial, educational, industrial, agricultural, street lighting, and overnight power usage. It also offers utility plant maintenance, resources development, electric power information technology, facility maintenance and service, electric meter reading, security, information, and communication line leasing services, as well as sells nuclear fuel. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju-si, South Korea.
How the Company Makes MoneyKEP generates revenue primarily through the sale of electricity to residential, commercial, and industrial customers in South Korea. Its revenue model is largely based on regulated electricity tariffs set by the government, which allows the company to earn a stable income. Key revenue streams include sales from its various power generation facilities, where electricity is produced and sold at predetermined rates. Additionally, KEP benefits from government incentives for renewable energy projects, as well as participation in energy trading markets. The company also engages in significant partnerships with both domestic and international entities for infrastructure development and energy projects, which can contribute to its earnings through shared investments and cost savings.
Korea Electric Power Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative trends. Revenue and electricity sales saw modest growth, and there was a notable decrease in fuel costs and interest expenses. However, challenges include declining electricity sales volume, increased power purchase costs, and limited room for industrial tariff adjustments. The company is also considering tariff increases in other sectors to improve financial health.Q2-2025 Updates
Positive Updates
Revenue Growth
Revenue was KRW 46,174.1 trillion, up by 5.5% year-over-year.
Electricity Sales Revenue Increase
Electricity sales revenue accounted for KRW 4.157 trillion, up by 5.9%.
Reduced Fuel Costs
Fuel costs decreased to KRW 9.252 trillion, down by 14.6%.
Lower Interest Expenses
Interest expenses amounted to KRW 2,211.3 trillion, down by KRW 72.8 billion from the same period last year.
Nuclear Generation Increase
Nuclear generation mix went up due to the introduction of a new power plant and increased utilization rates.
Negative Updates
Electricity Sales Volume Decline
Electricity sales volume in the first half reached 28.4 terawatt hours, down 0.05% year-over-year due to reduced industrial sales and sluggish exports.
Decrease in Other Revenue
Other revenue, including publicly listed business income, posted KRW 2.016 trillion, down by 2.1%.
Increase in Power Purchase Cost
Power purchase costs increased to KRW 17,357.8 trillion, up by 1.1%.
Challenges with Industrial Tariffs
Limited room to engage in additional tariff adjustments for industrial power due to previous increases.
Potential Tariff Increases in Other Sectors
Considering raising tariffs in non-industrial sectors to ease financial burdens.
Company Guidance
During the KEPCO fiscal year 2025 second quarter earnings call, the company provided a comprehensive overview of its financial performance and projections. The consolidated operating profit for the first half of 2025 was reported at KRW 889.5 billion, with revenue reaching KRW 46,174.1 trillion, marking a 5.5% increase. Electricity sales revenue was KRW 4.157 trillion, up by 5.9%, while other revenue, including publicly listed business income, decreased by 2.1% to KRW 2.016 trillion. The cost of sales and SG&A expenses amounted to KRW 40,284.6 trillion, a 2.3% decrease. Fuel costs saw a significant reduction, down 14.6% to KRW 9.252 trillion, whereas power purchase costs rose slightly by 1.1% to KRW 17,357.8 trillion. Depreciation expenses increased by 4.4% to KRW 5.878 trillion. The company also forecasted a slight decline in electricity sales volume for the full year due to economic factors, with a first-half sales volume of 28.4 terawatt hours. Coal prices were around $103.1 per ton, LNG prices were approximately KRW 1.05 million per tonne, and the system marginal price was around KRW 118.9 per kilowatt hour. KEPCO anticipates changes in its generation mix, with nuclear expected to decline, while coal and LNG remain steady or decrease slightly. The call also touched upon KEPCO's potential entry into the U.S. nuclear market and its ongoing efforts to stabilize corporate power markets. The company emphasized the necessity of tariff adjustments, particularly in non-industrial sectors, to improve financial health. Additionally, KEPCO is considering the introduction of a regionally differentiated tariff system by 2026.Korea Electric Power Financial Statement Overview
Summary
Korea Electric Power shows notable improvement in financial performance, with positive trends in profitability, cash flow, and a stable balance sheet. The company has effectively turned around from significant losses in prior years, indicating strong operational recovery. However, past financial volatility and periods of high debt and negative equity suggest potential risks that warrant careful monitoring. The company appears to be on a positive trajectory but must maintain its focus on stability and sustainable growth.Income Statement
The company has demonstrated a strong recovery in its gross and net profit margins, with a significant turnaround from negative figures in previous years to a positive gross profit margin of 16.9% and a net profit margin of 5.6% in the TTM. Revenue growth has been consistent, with a 2.6% increase from the previous year. The EBITDA margin is robust at 19.4%, indicating efficient core operations. However, historical volatility and past negative profitability present concerns that need monitoring.65
Positive
Balance Sheet
The debt-to-equity ratio is 0.52, reflecting manageable leverage levels. The equity ratio is moderate at 16.8%, indicating a relatively stable capital structure. However, the return on equity (ROE) is low at 12.5%, suggesting room for improvement in generating shareholder value. Past fluctuations in equity and high debt levels in certain periods indicate potential financial risk.55
Neutral
Cash Flow
The company shows a positive free cash flow growth rate of 25%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 3.12, signifying strong cash flow relative to earnings, a positive sign of cash efficiency. Despite these improvements, historical cash flow volatility and previous periods of negative free cash flow suggest the need for cautious cash management moving forward.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.81T | 93.40T | 87.48T | 71.26T | 60.01T | 58.57T |
| Gross Profit | 35.82T | 11.23T | -2.22T | -29.65T | -2.98T | 6.76T |
| EBITDA | 22.76T | 21.71T | 9.93T | -20.81T | 6.79T | 16.26T |
| Net Income | 6.33T | 3.49T | -4.82T | -24.43T | -5.30T | 1.99T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 6.09T | 5.12T | 7.14T | 7.52T | 4.50T | 4.83T |
| Total Debt | 27.79T | 24.36T | 10.00T> | 10.00T> | 11.06T | 9.74T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 42.52T | 39.92T | 35.85T | 40.55T | 63.77T | 69.30T |
Cash Flow | ||||||
| Free Cash Flow | 3.33T | 1.66T | -12.40T | -35.90T | -8.31T | -193.19B |
| Operating Cash Flow | 19.19T | 15.88T | 1.52T | -23.48T | 4.47T | 13.21T |
| Investing Cash Flow | -19.89T | -14.09T | -13.07T | -14.95T | -12.35T | -14.83T |
| Financing Cash Flow | 33.22B | -3.85T | 12.66T | 39.00T | 8.44T | 1.88T |
Korea Electric Power Technical Analysis
Neutral
12.85
Price Trends
13.64
Negative
12.71
Positive
10.18
Positive
Market Momentum
-0.16
Positive
40.74
Neutral
35.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEP, the sentiment is Neutral. The current price of 12.85 is below the 20-day moving average (MA) of 13.37, below the 50-day MA of 13.64, and above the 200-day MA of 10.18, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 35.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.03B | 19.52 | 5.59% | 6.36% | 6.41% | 37.23% | |
71 Outperform | $17.25B | 20.83 | 11.64% | 2.98% | 4.62% | 32.23% | |
71 Outperform | $10.53B | 18.47 | 8.56% | 4.06% | 7.47% | -8.53% | |
69 Neutral | $9.21B | 19.00 | 10.57% | 3.69% | 16.01% | 19.05% | |
68 Neutral | $16.84B | 3.78 | 15.47% | 0.37% | 0.44% | 124.47% | |
66 Neutral | $17.54B | 20.92 | 8.44% | 3.50% | 3.28% | 13.56% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
* Utilities Sector Average
KEP
Korea Electric Power
12.85
5.28
69.75%
EBR.B
Centrais Elc Braz Pfb B Elbras
10.57
3.24
44.20%
CMS
CMS Energy
72.37
3.24
4.69%
DTE
DTE Energy
140.16
15.66
12.58%
FE
FirstEnergy
45.97
3.71
8.78%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
9.92
3.22
48.06%
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.