KOREA ELEC POWER CORP-SP ADR (KEP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEP - US5006311063 - ADR
21.39 USD
-0.28 (-1.29%)
21.7162 USD
+0.33 (+1.53%)
Taking everything into account, KEP scores 5 out of 10 in our fundamental rating. KEP was compared to 46 industry peers in the Electric Utilities industry. KEP has a medium profitability rating, but doesn't score so well on its financial health evaluation. KEP is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- KEP had positive earnings in the past year.
- KEP had a positive operating cash flow in the past year.
- In multiple years KEP reported negative net income over the last 5 years.
- KEP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- KEP has a better Return On Assets (3.25%) than 69.57% of its industry peers.
- With an excellent Return On Equity value of 17.69%, KEP belongs to the best of the industry, outperforming 89.13% of the companies in the same industry.
- KEP has a better Return On Invested Capital (4.86%) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 17.69% | ||
| ROIC | 4.86% |
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 8.47%, KEP is not doing good in the industry: 78.26% of the companies in the same industry are doing better.
- Looking at the Operating Margin, with a value of 14.35%, KEP is doing worse than 78.26% of the companies in the same industry.
- Looking at the Gross Margin, with a value of 17.60%, KEP is doing worse than 76.09% of the companies in the same industry.
- In the last couple of years the Gross Margin of KEP has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.35% | ||
| PM (TTM) | 8.47% | ||
| GM | 17.6% |
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 well above the Cost of Capital (WACC), so KEP is creating value.
- Compared to 1 year ago, KEP has about the same amount of shares outstanding.
- Compared to 5 years ago, KEP has about the same amount of shares outstanding.
- KEP has a better debt/assets ratio than last year.
2.2 Solvency
- KEP has an Altman-Z score of 0.67. This is a bad value and indicates that KEP is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.67, 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 30.05. This is a negative value and a sign of low solvency as KEP would need 30.05 years to pay back of all of its debts.
- KEP has a Debt to FCF ratio of 30.05. This is amongst the best in the industry. KEP outperforms 80.43% of its industry peers.
- A Debt/Equity ratio of 2.11 is on the high side and indicates that KEP has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.11, KEP is not doing good in the industry: 89.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.11 | ||
| Debt/FCF | 30.05 | ||
| Altman-Z | 0.67 |
ROIC/WACC2.05
WACC2.37%
2.3 Liquidity
- A Current Ratio of 0.48 indicates that KEP may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.48, KEP is doing worse than 93.48% of the companies in the same industry.
- A Quick Ratio of 0.33 indicates that KEP may have some problems paying its short term obligations.
- KEP's Quick ratio of 0.33 is on the low side compared to the rest of the industry. KEP is outperformed by 91.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 122.05% over the past year.
- The Revenue has been growing slightly by 5.27% in the past year.
- KEP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.56% yearly.
EPS 1Y (TTM)122.05%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%103.05%
Revenue 1Y (TTM)5.27%
Revenue growth 3Y15.46%
Revenue growth 5Y9.56%
Sales Q2Q%5.63%
3.2 Future
- The Earnings Per Share is expected to grow by 47.02% 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 3.04% on average per year.
EPS Next Y155.83%
EPS Next 2Y70.81%
EPS Next 3Y47.02%
EPS Next 5YN/A
Revenue Next Year4.29%
Revenue Next 2Y3.3%
Revenue Next 3Y3.04%
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
- The Price/Earnings ratio is 4.76, which indicates a rather cheap valuation of KEP.
- Based on the Price/Earnings ratio, KEP is valued cheaper than 91.30% of the companies in the same industry.
- KEP is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 3.85, the valuation of KEP can be described as very cheap.
- 93.48% of the companies in the same industry are more expensive than KEP, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of KEP to the average of the S&P500 Index (25.72), we can say KEP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.76 | ||
| Fwd PE | 3.85 |
4.2 Price Multiples
- 97.83% of the companies in the same industry are more expensive than KEP, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KEP indicates a rather cheap valuation: KEP is cheaper than 93.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 5.42 |
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.
- A more expensive valuation may be justified as KEP's earnings are expected to grow with 47.02% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y70.81%
EPS Next 3Y47.02%
5. Dividend
5.1 Amount
- KEP has a yearly dividend return of 0.32%, which is pretty low.
- With a Dividend Yield of 0.32, KEP pays less dividend than the industry average, which is at 2.90. 86.96% of the companies listed in the same industry pay a better dividend than KEP!
- Compared to an average S&P500 Dividend Yield of 1.82, KEP's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
- The dividend of KEP has a limited annual growth rate of 5.02%.
- KEP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)5.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 3.07% 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.
DP3.07%
EPS Next 2Y70.81%
EPS Next 3Y47.02%
KOREA ELEC POWER CORP-SP ADR / KEP FAQ
Can you provide the ChartMill fundamental rating for KOREA ELEC POWER CORP-SP ADR?
ChartMill assigns a fundamental rating of 5 / 10 to KEP.
What is the valuation status for KEP stock?
ChartMill assigns a valuation rating of 9 / 10 to KOREA ELEC POWER CORP-SP ADR (KEP). This can be considered as Undervalued.
Can you provide the profitability details for KOREA ELEC POWER CORP-SP ADR?
KOREA ELEC POWER CORP-SP ADR (KEP) has a profitability rating of 4 / 10.
What is the valuation of KOREA ELEC POWER CORP-SP ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for KOREA ELEC POWER CORP-SP ADR (KEP) is 4.76 and the Price/Book (PB) ratio is 0.84.
How financially healthy is KOREA ELEC POWER CORP-SP ADR?
The financial health rating of KOREA ELEC POWER CORP-SP ADR (KEP) is 3 / 10.