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051600:KRXKEPCO Plant Service & Engineering Co.,Ltd. Analysis

Data as of 2026-03-07 - not real-time

₩55,200.00

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

KEPCO Plant Service & Engineering is trading in a bullish technical environment, with price comfortably above its short‑ and medium‑term moving averages and a clear upside target indicated by its discounted cash‑flow estimate. The stock benefits from a generous dividend yield that ranks among the highest in the industrials sector, and its low beta suggests limited price volatility relative to the market. However, the latest quarter showed a sharp drop in net income and a government proposal to directly employ hundreds of subcontractors, introducing earnings and regulatory headwinds.
Overall, the combination of solid cash generation, attractive dividend policy, and a valuation gap between market price and intrinsic value supports a positive outlook, provided that the company can navigate the short‑term earnings dip and regulatory developments without eroding its balance sheet.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 7/10

Key Factors

  • Bullish technical trend with price above key moving averages
  • Recent earnings decline creating near‑term uncertainty
  • High dividend yield offering immediate income

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Undervaluation relative to DCF fair value
  • Sustainable dividend payout supported by strong cash flow
  • Low beta and stable volume indicating modest price swings

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Long‑term contracts with parent KEPCO and expanding renewable‑energy services
  • Robust balance sheet with ample cash and low leverage
  • Consistent dividend policy reinforcing shareholder returns

Key Metrics & Analysis

Financial Health

Revenue Growth11.10%
Profit Margin8.95%
P/E Ratio14.1
ROE10.76%
ROA6.19%
Debt/Equity0.90
Op. Cash Flow₩193.0B
Free Cash Flow₩107.3B
Industry P/E29.4

Technical Analysis

TrendBullish
RSI44.1
Support₩50,100.00
Resistance₩66,000.00
MA 20₩58,720.00
MA 50₩55,714.00
MA 200₩52,120.75
MACDBearish
VolumeStable
Fear & Greed Index68.77

Valuation

Fair Value₩59,948.38
Target Price₩63,150.00
Upside/Downside14.40%
GradeUndervalued
TypeBlend
Dividend Yield4.71%

Risk Assessment

Beta0.37
Volatility60.44%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.