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9508:TSEKyushu Electric Power Company,Incorporated Analysis

Data as of 2026-06-14 - not real-time

¥1,637.50

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

Kyushu Electric Power is trading at 1,637.5 JPY, comfortably below its 20‑day (1,651.45 JPY), 50‑day (1,733.97 JPY) and 200‑day (1,677.30 JPY) simple moving averages, indicating a short‑term bearish bias, while the RSI of 43 suggests the stock is not yet oversold. Technical momentum is mixed – the MACD line sits at –28.66 against a signal of –33.38, producing a modest bullish histogram (+4.71) and a "bullish" MACD signal, and the price rests above the identified support of 1,540.5 JPY but below resistance at 1,780.5 JPY. Volatility is elevated at 28.6 % over the past 30 days, yet beta is low at 0.43, reflecting the defensive nature of the utilities sector.
Fundamentally, the company appears deeply undervalued with a trailing P/E of 5.2 versus an industry average of 20.5, a price‑to‑book of 0.65 and a dividend yield of 3.05 % supported by a modest payout ratio of 16 %. Despite a 6.8 % revenue decline and a high debt‑to‑equity ratio of 265, the firm generates strong operating cash flow (438.7 bn JPY) and holds ample cash (368.3 bn JPY). Analyst consensus is a "Buy" with a mean target of 2,094 JPY, implying ~28 % upside, and the market sentiment index signals "Extreme Greed".

Market Outlook

Short Term

< 1 year
Positive
Model confidence: 7/10

Key Factors

  • Price near technical support at 1,540.5 JPY
  • Bullish MACD histogram indicating near‑term upside
  • Attractive dividend yield of 3.05 %

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Significant valuation discount (P/E 5.2 vs industry 20.5)
  • Strong operating cash flow and ample cash reserves
  • Analyst consensus target price offering ~28 % upside

Long Term

> 3 years
Neutral
Model confidence: 6/10

Key Factors

  • Stable regulatory environment for Japanese utilities
  • Sustainable dividend supported by low payout ratio
  • Elevated debt load that could constrain future growth

Key Metrics & Analysis

Financial Health

Revenue Growth-6.80%
Profit Margin6.88%
P/E Ratio5.2
ROE13.78%
ROA2.39%
Debt/Equity265.38
P/B Ratio0.6
Op. Cash Flow¥438.7B
Free Cash Flow¥124.8B
Industry P/E20.5

Technical Analysis

TrendNeutral
RSI43.1
Support¥1,540.50
Resistance¥1,780.50
MA 20¥1,651.45
MA 50¥1,733.97
MA 200¥1,677.30
MACDBullish
VolumeStable
Fear & Greed Index89.86

Valuation

Target Price¥2,094.00
Upside/Downside27.88%
GradeUndervalued
TypeValue
Dividend Yield3.05%

Risk Assessment

Beta0.43
Volatility28.56%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

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.