Korea Electric Power Corporation Common Stock (KEP)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

KEP is the kind of regulated electric utility Graham might have liked in theory: it provides an essential service, earns a 16.59% return on equity, pays a 4.74% dividend, and trades at a P/E of 2.45 and P/B of 0.37 based on the 2026-10-13 close. Those are cigar-butt numbers. But Buffett would look at the balance sheet and flinch. Debt-to-equity is 2.63, ROCE is only 3.04%, and the Altman Z-Score of 0.07 signals financial fragility. The latest 2026-Q2 figures show $21.9T of revenue, $267.3B of net income, and a 1.22% margin — a very thin cushion for a capital-intensive utility. Revenue growth is just 0.72%, while profit growth is 7.07%, so improvement seems to come more from cost or non-operating items than from robust demand. The TTM FCF of $1.5T and FCF yield of 7,316.7% look nonsensical against a $20B market cap, as do the $2,805.03 Graham Number and 0.02 EV/EBITDA, so I would demand clean, currency-consistent statements before trusting the apparent margin of safety. Piotroski 6/9 and a FairStock Score of 70/100 are decent but not enough to offset the leverage. This is a cheap, essential, regulated monopoly-like business, but it is not a high-quality compounder; the price may be low for good reasons.

In plain English: Korea Electric Power Corporation makes and delivers electricity in South Korea and other places. It is a large, steady utility, but it carries a lot of debt and its latest quarter profit margin was very thin. At the recent price, the shares look cheap compared with reported profit and what the company is worth on paper, though the numbers are complicated and risky.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer