KOREA ELEC POWER CORP-SP ADR (KEP) Stock Fundamental Analysis
NYSE:KEP - New York Stock Exchange, Inc. - US5006311063 - ADR - Currency: USD
KEP gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 46 industry peers in the Electric Utilities industry. KEP may be in some trouble as it scores bad on both profitability and health. 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
KEP's Return On Assets of 2.10% is on the low side compared to the rest of the industry. KEP is outperformed by 67.39% of its industry peers.
Looking at the Return On Equity, with a value of 12.53%, KEP is in the better half of the industry, outperforming 76.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.81%, KEP is in line with its industry, outperforming 52.17% of the companies in the same industry.
| 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
With a Profit Margin value of 5.57%, KEP is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
Looking at the Operating Margin, with a value of 11.47%, KEP is doing worse than 67.39% of the companies in the same industry.
Looking at the Gross Margin, with a value of 14.75%, KEP is doing worse than 65.22% of the companies in the same industry.
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
KEP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
KEP has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.54, we must say that KEP is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.54, KEP is not doing good in the industry: 69.57% of the companies in the same industry are doing better.
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 belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
A Debt/Equity ratio of 2.42 is on the high side and indicates that KEP has dependencies on debt financing.
KEP has a worse Debt to Equity ratio (2.42) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 67.45 | ||
| Altman-Z | 0.54 |
ROIC/WACC1.11
WACC3.43%
2.3 Liquidity
A Current Ratio of 0.47 indicates that KEP may have some problems paying its short term obligations.
KEP has a worse Current ratio (0.47) than 71.74% 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 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
KEP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 172.41%, which is quite impressive.
KEP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.91%.
The Revenue has been growing by 9.56% on average over the past years. This is quite good.
EPS 1Y (TTM)172.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%314.68%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%4%
3.2 Future
KEP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 34.41% yearly.
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 5.33.
Based on the Price/Earnings ratio, KEP is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
KEP is valuated cheaply when we compare the Price/Earnings ratio to 26.70, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.34, the valuation of KEP can be described as very cheap.
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.
KEP is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.49, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 2.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KEP is valued cheaply inside the industry as 97.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KEP is valued cheaply inside the industry as 95.65% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.19 | ||
| EV/EBITDA | 5.48 |
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 34.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y51.1%
EPS Next 3Y34.41%
5. Dividend
5.1 Amount
KEP has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 3.45, KEP's dividend is way lower than its industry peers. On top of this 82.61% of the companies listed in the same industry pay a better dividend than KEP!
Compared to an average S&P500 Dividend Yield of 2.36, KEP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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.
The dividend of KEP is growing, but earnings are growing more, so the dividend growth is sustainable.
DP2.41%
EPS Next 2Y51.1%
EPS Next 3Y34.41%
10.4
+0.43 (+4.31%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners46.5%
Inst Owner Change0.32%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap13.35B
Analysts85.22
Price Target10.59 (1.83%)
Short Float %0.07%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)9.3%
PT rev (3m)7.25%
EPS NQ rev (1m)-10.2%
EPS NQ rev (3m)-13.42%
EPS NY rev (1m)0%
EPS NY rev (3m)4.69%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.33 | ||
| Fwd PE | 2.34 | ||
| P/S | 0.2 | ||
| P/FCF | 9.19 | ||
| P/OCF | 1.14 | ||
| P/B | 0.44 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)1.95
EY18.75%
EPS(NY)4.45
Fwd EY42.75%
FCF(TTM)1.13
FCFY10.88%
OCF(TTM)9.15
OCFY87.93%
SpS52.61
BVpS23.4
TBVpS22.76
PEG (NY)0.05
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 | 0.54 |
F-Score8
WACC3.43%
ROIC/WACC1.11
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)172.41%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%314.68%
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 Year205.19%
EBIT Next 3Y51.86%
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%