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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.

Market Outlook

Short Term

< 1 year
Positive
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 years
Positive
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 years
Positive
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

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.