KOREA ELEC POWER CORP-SP ADR (KEP) Stock Fundamental Analysis
NYSE:KEP - New York Stock Exchange, Inc. - US5006311063 - ADR - Currency: USD
Overall KEP gets a fundamental rating of 4 out of 10. We evaluated KEP against 47 industry peers in the Electric Utilities industry. Both the profitability and financial health of KEP have multiple concerns. KEP may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year KEP was profitable.
In the past year KEP had a positive cash flow from operations.
In multiple years KEP reported negative net income over the last 5 years.
Of the past 5 years KEP 4 years had a positive operating cash flow.
1.2 Ratios
KEP has a worse Return On Assets (2.10%) than 80.85% of its industry peers.
KEP has a better Return On Equity (12.53%) than 72.34% of its industry peers.
KEP's Return On Invested Capital of 3.81% is on the low side compared to the rest of the industry. KEP is outperformed by 65.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 12.53% | ||
| ROIC | 3.81% |
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
The Profit Margin of KEP (5.57%) is worse than 85.11% of its industry peers.
KEP's Operating Margin of 11.47% is on the low side compared to the rest of the industry. KEP is outperformed by 82.98% of its industry peers.
KEP has a worse Gross Margin (14.75%) than 78.72% of its industry peers.
KEP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.47% | ||
| PM (TTM) | 5.57% | ||
| GM | 14.75% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KEP is creating some value.
KEP has about the same amout of shares outstanding than it did 1 year ago.
KEP has about the same amout of shares outstanding than it did 5 years ago.
KEP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that KEP is in the distress zone and has some risk of bankruptcy.
KEP has a Altman-Z score of 0.55. This is amonst the worse of the industry: KEP underperforms 80.85% of its industry peers.
KEP has a debt to FCF ratio of 67.45. This is a negative value and a sign of low solvency as KEP would need 67.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 67.45, KEP is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
KEP has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.42, KEP is doing worse than 93.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 67.45 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.61
WACC2.37%
2.3 Liquidity
A Current Ratio of 0.47 indicates that KEP may have some problems paying its short term obligations.
KEP's Current ratio of 0.47 is on the low side compared to the rest of the industry. KEP is outperformed by 87.23% of its industry peers.
KEP has a Quick Ratio of 0.47. This is a bad value and indicates that KEP is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.32, KEP is doing worse than 87.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 666.23% over the past year.
Looking at the last year, KEP shows a small growth in Revenue. The Revenue has grown by 4.91% 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)666.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%314.51%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%4%
3.2 Future
The Earnings Per Share is expected to grow by 34.41% on average over the next years. This is a very strong growth
Based on estimates for the next years, KEP will show a small growth in Revenue. The Revenue will grow by 2.67% on average per year.
EPS Next Y101.2%
EPS Next 2Y51.1%
EPS Next 3Y34.41%
EPS Next 5YN/A
Revenue Next Year4.58%
Revenue Next 2Y3.39%
Revenue Next 3Y2.67%
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
KEP is valuated cheaply with a Price/Earnings ratio of 4.42.
KEP's Price/Earnings ratio is rather cheap when compared to the industry. KEP is cheaper than 91.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.50, KEP is valued rather cheaply.
The Price/Forward Earnings ratio is 2.92, which indicates a rather cheap valuation of KEP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KEP indicates a rather cheap valuation: KEP is cheaper than 100.00% 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 (36.44), we can say KEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.42 | ||
| Fwd PE | 2.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KEP indicates a rather cheap valuation: KEP is cheaper than 93.62% of the companies listed in the same industry.
85.11% of the companies in the same industry are more expensive than KEP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.49 | ||
| EV/EBITDA | 5.7 |
4.3 Compensation for Growth
The 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 34.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y51.1%
EPS Next 3Y34.41%
5. Dividend
5.1 Amount
KEP has a yearly dividend return of 0.58%, which is pretty low.
With a Dividend Yield of 0.58, KEP pays less dividend than the industry average, which is at 3.54. 85.11% of the companies listed in the same industry pay a better dividend than KEP!
Compared to an average S&P500 Dividend Yield of 2.34, KEP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
2.41% 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.
DP2.41%
EPS Next 2Y51.1%
EPS Next 3Y34.41%
13.05
-0.28 (-2.1%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners47.36%
Inst Owner Change0%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap16.76B
Analysts83.64
Price Target13.22 (1.3%)
Short Float %0.14%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend0.07
Dividend Growth(5Y)5.02%
DP2.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.95%
Min EPS beat(2)-4.5%
Max EPS beat(2)48.39%
EPS beat(4)2
Avg EPS beat(4)-3.81%
Min EPS beat(4)-72.62%
Max EPS beat(4)48.39%
EPS beat(8)4
Avg EPS beat(8)66.81%
EPS beat(12)5
Avg EPS beat(12)41.1%
EPS beat(16)5
Avg EPS beat(16)-38.8%
Revenue beat(2)0
Avg Revenue beat(2)-2.11%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)-1.59%
Revenue beat(4)1
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-3.28%
Max Revenue beat(4)0.81%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)6
Avg Revenue beat(12)0.2%
Revenue beat(16)9
Avg Revenue beat(16)11.2%
PT rev (1m)15.04%
PT rev (3m)36.4%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)106.19%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.42 | ||
| Fwd PE | 2.92 | ||
| P/S | 0.25 | ||
| P/FCF | 11.49 | ||
| P/OCF | 1.42 | ||
| P/B | 0.56 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 5.7 |
EPS(TTM)2.95
EY22.61%
EPS(NY)4.47
Fwd EY34.22%
FCF(TTM)1.14
FCFY8.71%
OCF(TTM)9.19
OCFY70.4%
SpS52.85
BVpS23.51
TBVpS22.86
PEG (NY)0.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 12.53% | ||
| ROCE | 5.8% | ||
| ROIC | 3.81% | ||
| ROICexc | 3.94% | ||
| ROICexgc | 3.96% | ||
| OM | 11.47% | ||
| PM (TTM) | 5.57% | ||
| GM | 14.75% | ||
| FCFM | 2.15% |
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-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 67.45 | ||
| Debt/EBITDA | 4.1 | ||
| Cap/Depr | 102.8% | ||
| Cap/Sales | 15.23% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 66.13% | ||
| Profit Quality | 38.56% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | 0.55 |
F-Score8
WACC2.37%
ROIC/WACC1.61
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)666.23%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%314.51%
EPS Next Y101.2%
EPS Next 2Y51.1%
EPS Next 3Y34.41%
EPS Next 5YN/A
Revenue 1Y (TTM)4.91%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%4%
Revenue Next Year4.58%
Revenue Next 2Y3.39%
Revenue Next 3Y2.67%
Revenue Next 5YN/A
EBIT growth 1Y268.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year213.46%
EBIT Next 3Y51.89%
EBIT Next 5YN/A
FCF growth 1Y105.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y170.07%
OCF growth 3Y52.54%
OCF growth 5Y14.19%