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".
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 yearPositive
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 yearsPositive
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 yearsNeutral
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
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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.