Korea Electric Power Corporation Fundamental Analysis
Korea Electric Power Corporation (KEP) shows moderate financial fundamentals with a PE ratio of 3.98, profit margin of 8.59%, and ROE of 13.32%. The company generates $71613.1B in annual revenue with moderate year-over-year growth of 4.32%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KEP's fundamental strength across five key dimensions:
Efficiency Score
WeakKEP struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKEP trades at attractive valuation levels.
Growth Score
WeakKEP faces weak or negative growth trends.
Financial Health Score
WeakKEP carries high financial risk with limited liquidity.
Profitability Score
WeakKEP struggles to sustain strong margins.
Key Financial Metrics
Is KEP Expensive or Cheap?
P/E Ratio
KEP trades at 3.98 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KEP's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Korea Electric Power Corporation at 0.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.72 times EBITDA. This is generally considered low.
How Well Does KEP Make Money?
Net Profit Margin
For every $100 in sales, Korea Electric Power Corporation keeps $8.59 as profit after all expenses.
Operating Margin
Core operations generate 13.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.32 in profit for every $100 of shareholder equity.
ROA
Korea Electric Power Corporation generates $2.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Korea Electric Power Corporation generates strong operating cash flow of $21.25T, reflecting robust business health.
Free Cash Flow
Korea Electric Power Corporation produces free cash flow of $5.11T, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3983.22 in free cash annually.
FCF Yield
KEP converts 20.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.98
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How KEP Stacks Against Its Sector Peers
| Metric | KEP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.98 | 19.45 | Better (Cheaper) |
| ROE | 13.32% | 875.00% | Weak |
| Net Margin | 8.59% | 4119.00% | Weak |
| Debt/Equity | 2.62 | 19.93 | Strong (Low Leverage) |
| Current Ratio | 0.43 | 1.39 | Weak Liquidity |
| ROA | 2.45% | -4725.00% (disorted) | Weak |
KEP outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Korea Electric Power Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
64.06%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
323.01%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
55.90%
Industry Style: Defensive, Dividend, Income
High Growth