KOREA ELEC POWER CORP-SP ADR (KEP) Stock Fundamental Analysis
USA - NYSE:KEP - US5006311063 - ADR
12.99 USD
+0.05 (+0.39%)
12.99 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to KEP. KEP was compared to 47 industry peers in the Electric Utilities industry. KEP has a bad profitability rating. Also its financial health evaluation is rather negative. KEP scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year KEP was profitable.
KEP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: KEP reported negative net income in multiple years.
KEP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KEP (2.53%) is worse than 61.70% of its industry peers.
With an excellent Return On Equity value of 14.89%, KEP belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
KEP has a Return On Invested Capital of 4.04%. This is comparable to the rest of the industry: KEP outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 14.89% | ||
| ROIC | 4.04% |
ROA(3y)-3.67%
ROA(5y)-2.51%
ROE(3y)-21.68%
ROE(5y)-14.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.61%, KEP is doing worse than 80.85% of the companies in the same industry.
KEP's Operating Margin of 12.21% is on the low side compared to the rest of the industry. KEP is outperformed by 80.85% of its industry peers.
KEP has a Gross Margin of 15.48%. This is in the lower half of the industry: KEP underperforms 78.72% of its industry peers.
KEP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.21% | ||
| PM (TTM) | 6.61% | ||
| GM | 15.48% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y39.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KEP is still creating some value.
Compared to 1 year ago, KEP has about the same amount of shares outstanding.
KEP has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for KEP has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that KEP is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.57, KEP is doing worse than 80.85% of the companies in the same industry.
The Debt to FCF ratio of KEP is 41.12, which is on the high side as it means it would take KEP, 41.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 41.12, KEP is doing good in the industry, outperforming 72.34% of the companies in the same industry.
KEP has a Debt/Equity ratio of 2.45. This is a high value indicating a heavy dependency on external financing.
KEP's Debt to Equity ratio of 2.45 is on the low side compared to the rest of the industry. KEP is outperformed by 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 41.12 | ||
| Altman-Z | 0.57 |
ROIC/WACC1.71
WACC2.37%
2.3 Liquidity
A Current Ratio of 0.46 indicates that KEP may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.46, KEP is doing worse than 95.74% of the companies in the same industry.
KEP has a Quick Ratio of 0.46. This is a bad value and indicates that KEP is not financially healthy enough and could expect problems in meeting its short term obligations.
KEP has a worse Quick ratio (0.31) than 93.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 138.53% over the past year.
Looking at the last year, KEP shows a small growth in Revenue. The Revenue has grown by 5.55% in the last year.
Measured over the past years, KEP shows a quite strong growth in Revenue. The Revenue has been growing by 9.56% on average per year.
EPS 1Y (TTM)138.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1653.47%
Revenue 1Y (TTM)5.55%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%7.21%
3.2 Future
Based on estimates for the next years, KEP will show a very strong growth in Earnings Per Share. The EPS will grow by 40.85% on average per year.
Based on estimates for the next years, KEP will show a small growth in Revenue. The Revenue will grow by 2.45% on average per year.
EPS Next Y126.06%
EPS Next 2Y62.19%
EPS Next 3Y40.85%
EPS Next 5YN/A
Revenue Next Year3.82%
Revenue Next 2Y2.85%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 3.71 indicates a rather cheap valuation of KEP.
95.74% of the companies in the same industry are more expensive than KEP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.54. KEP is valued rather cheaply when compared to this.
KEP is valuated cheaply with a Price/Forward Earnings ratio of 2.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEP indicates a rather cheap valuation: KEP is cheaper than 97.87% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KEP to the average of the S&P500 Index (23.05), we can say KEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.71 | ||
| Fwd PE | 2.56 |
4.2 Price Multiples
KEP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KEP is cheaper than 95.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEP indicates a rather cheap valuation: KEP is cheaper than 93.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.16 | ||
| EV/EBITDA | 5.34 |
4.3 Compensation for Growth
KEP's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KEP's earnings are expected to grow with 40.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y62.19%
EPS Next 3Y40.85%
5. Dividend
5.1 Amount
KEP has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 3.80, KEP's dividend is way lower than its industry peers. On top of this 85.11% of the companies listed in the same industry pay a better dividend than KEP!
With a Dividend Yield of 0.59, KEP pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of KEP has a limited annual growth rate of 5.02%.
KEP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
4.03% of the earnings are spent on dividend by KEP. This is a low number and sustainable payout ratio.
KEP's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP4.03%
EPS Next 2Y62.19%
EPS Next 3Y40.85%
12.99
+0.05 (+0.39%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners49.05%
Inst Owner Change15.62%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap16.68B
Analysts80
Price Target16.38 (26.1%)
Short Float %0.18%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.07
Dividend Growth(5Y)5.02%
DP4.03%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.16%
Min EPS beat(2)-24.08%
Max EPS beat(2)48.39%
EPS beat(4)2
Avg EPS beat(4)8.32%
Min EPS beat(4)-24.08%
Max EPS beat(4)48.39%
EPS beat(8)3
Avg EPS beat(8)62.06%
EPS beat(12)5
Avg EPS beat(12)40.12%
EPS beat(16)5
Avg EPS beat(16)-39.99%
Revenue beat(2)1
Avg Revenue beat(2)-1.25%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)0.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)0.81%
Revenue beat(8)3
Avg Revenue beat(8)-0.76%
Revenue beat(12)6
Avg Revenue beat(12)-0.08%
Revenue beat(16)9
Avg Revenue beat(16)11.16%
PT rev (1m)2.37%
PT rev (3m)35.48%
EPS NQ rev (1m)-5.03%
EPS NQ rev (3m)18.18%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)12.35%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)-1.34%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.71 | ||
| Fwd PE | 2.56 | ||
| P/S | 0.25 | ||
| P/FCF | 7.16 | ||
| P/OCF | 1.23 | ||
| P/B | 0.55 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 5.34 |
EPS(TTM)3.5
EY26.94%
EPS(NY)5.07
Fwd EY39.06%
FCF(TTM)1.82
FCFY13.97%
OCF(TTM)10.6
OCFY81.61%
SpS52.93
BVpS23.49
TBVpS22.84
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.53% | ||
| ROE | 14.89% | ||
| ROCE | 6.25% | ||
| ROIC | 4.04% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.19% | ||
| OM | 12.21% | ||
| PM (TTM) | 6.61% | ||
| GM | 15.48% | ||
| FCFM | 3.43% |
ROA(3y)-3.67%
ROA(5y)-2.51%
ROE(3y)-21.68%
ROE(5y)-14.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y39.06%
F-Score7
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 41.12 | ||
| Debt/EBITDA | 4.06 | ||
| Cap/Depr | 113.86% | ||
| Cap/Sales | 16.6% | ||
| Interest Coverage | 2.51 | ||
| Cash Conversion | 74.75% | ||
| Profit Quality | 51.9% | ||
| Current Ratio | 0.46 | ||
| Quick Ratio | 0.31 | ||
| Altman-Z | 0.57 |
F-Score7
WACC2.37%
ROIC/WACC1.71
Cap/Depr(3y)103.08%
Cap/Depr(5y)106.47%
Cap/Sales(3y)16.2%
Cap/Sales(5y)18.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)138.53%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1653.47%
EPS Next Y126.06%
EPS Next 2Y62.19%
EPS Next 3Y40.85%
EPS Next 5YN/A
Revenue 1Y (TTM)5.55%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%7.21%
Revenue Next Year3.82%
Revenue Next 2Y2.85%
Revenue Next 3Y2.45%
Revenue Next 5YN/A
EBIT growth 1Y81.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year223.3%
EBIT Next 3Y52.88%
EBIT Next 5YN/A
FCF growth 1Y110.18%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y203.68%
OCF growth 3Y52.54%
OCF growth 5Y14.19%