KOREA ELEC POWER CORP-SP ADR (KEP) Stock Fundamental Analysis
NYSE:KEP - New York Stock Exchange, Inc. - US5006311063 - ADR - Currency: USD
Taking everything into account, KEP scores 4 out of 10 in our fundamental rating. 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
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.
Of the past 5 years KEP 4 years had a positive operating cash flow.
1.2 Ratios
KEP has a Return On Assets of 2.10%. This is amonst the worse of the industry: KEP underperforms 80.85% of its industry peers.
The Return On Equity of KEP (12.53%) is better than 72.34% of its industry peers.
The Return On Invested Capital of KEP (3.81%) is worse than 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
KEP has a worse Profit Margin (5.57%) than 85.11% of its industry peers.
The Operating Margin of KEP (11.47%) is worse than 82.98% of its industry peers.
With a Gross Margin value of 14.75%, KEP is not doing good in the industry: 78.72% of the companies in the same industry are doing better.
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.
The number of shares outstanding for KEP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KEP has about the same amount of shares outstanding.
Compared to 1 year ago, KEP has an improved debt to assets ratio.
2.2 Solvency
KEP has an Altman-Z score of 0.55. This is a bad value and indicates that KEP is not financially healthy and even 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.
The Debt to FCF ratio of KEP is 67.45, which is on the high side as it means it would take KEP, 67.45 years of fcf income to pay off 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.
With a Debt to Equity ratio value of 2.42, KEP is not doing good in the industry: 93.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 67.45 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.61
WACC2.37%
2.3 Liquidity
KEP has a Current 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.
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.
The Quick ratio of KEP (0.32) is worse than 87.23% of its industry peers.
| 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
KEP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.67% yearly.
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
Based on the Price/Earnings ratio of 4.44, the valuation of KEP can be described as very cheap.
91.49% of the companies in the same industry are more expensive than KEP, based on the Price/Earnings ratio.
KEP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.45.
KEP is valuated cheaply with a Price/Forward Earnings ratio of 2.93.
KEP's Price/Forward Earnings ratio is rather cheap when compared to the industry. KEP is cheaper than 100.00% of the companies in the same industry.
KEP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 2.93 |
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 95.74% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KEP is valued cheaper than 85.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.53 | ||
| EV/EBITDA | 5.71 |
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
With a yearly dividend of 0.52%, KEP is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, 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 0.52, KEP pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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%
13.37
+0.14 (+1.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners47.36%
Inst Owner Change0.32%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap17.17B
Analysts84.35
Price Target12.09 (-9.57%)
Short Float %0.17%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)14.1%
PT rev (3m)19.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)253.34%
EPS NY rev (1m)0%
EPS NY rev (3m)0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.44 | ||
| Fwd PE | 2.93 | ||
| P/S | 0.25 | ||
| P/FCF | 11.53 | ||
| P/OCF | 1.43 | ||
| P/B | 0.56 | ||
| P/tB | 0.57 | ||
| EV/EBITDA | 5.71 |
EPS(TTM)3.01
EY22.51%
EPS(NY)4.56
Fwd EY34.09%
FCF(TTM)1.16
FCFY8.67%
OCF(TTM)9.38
OCFY70.13%
SpS53.94
BVpS23.99
TBVpS23.33
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%