9506:TSETohoku Electric Power Company, Incorporated Analysis
Data as of 2026-08-02 - not real-time
¥1,180.50
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Tohoku Electric Power (9506.T) trades at a deep discount to peers – its trailing PE of under 7 versus an industry average above 20 suggests significant undervaluation, while a dividend yield above 3% with a modest payout ratio points to attractive income. Technical signals are supportive: the 20‑day SMA sits just above the 50‑day SMA, MACD is bullish, and volume is rising, though RSI is approaching overbought territory.
Fundamentally, the company shows strong top‑line momentum with revenue growth of roughly 47% year‑on‑year, but margins remain thin and debt levels are high, which tempers the upside. The balance sheet is cash‑rich, and the forward PE under 5 reinforces the upside case, making the stock a compelling buy for income‑focused and value‑oriented investors.
Fundamentally, the company shows strong top‑line momentum with revenue growth of roughly 47% year‑on‑year, but margins remain thin and debt levels are high, which tempers the upside. The balance sheet is cash‑rich, and the forward PE under 5 reinforces the upside case, making the stock a compelling buy for income‑focused and value‑oriented investors.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 7/10
Key Factors
- Bullish MACD crossover with expanding volume
- Undervalued valuation relative to industry peers
- Attractive dividend yield and low payout ratio
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Sustained revenue growth and improving cash position
- Forward PE indicating further upside potential
- Stable utility sector demand in Japan
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Long‑term dividend sustainability and low share price relative to book
- Diversified generation mix including renewable assets
- Low beta and defensive utility exposure
Key Metrics & Analysis
Financial Health
Revenue Growth46.70%
Profit Margin3.18%
P/E Ratio6.9
ROE7.69%
ROA1.78%
Debt/Equity308.16
P/B Ratio0.5
Industry P/E20.5
Technical Analysis
TrendNeutral
RSI69.5
Support¥1,060.50
Resistance¥1,210.00
MA 20¥1,128.83
MA 50¥1,066.57
MA 200¥1,118.33
MACDBullish
VolumeIncreasing
Fear & Greed Index92.88
Valuation
Target Price¥1,298.00
Upside/Downside9.95%
GradeUndervalued
TypeBlend
Dividend Yield3.39%
Risk Assessment
Beta0.38
Volatility18.41%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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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.