Hokkaido Electric Power Company (TSE:9509) released updated full-year earnings guidance and raised its second quarter-end dividend. These moves highlight growing management confidence in the company’s performance and future outlook.
See our latest analysis for Hokkaido Electric Power Company.
Shares of Hokkaido Electric Power Company have shown impressive momentum year-to-date, with a 28.2% gain in the share price and a 23.8% total shareholder return over the past year. News of upgraded earnings guidance and a higher dividend appears to have caught investors’ attention. At the same time, recent volatility suggests markets are actively weighing the company’s growth prospects and renewed sense of stability.
If this uptick in confidence has you curious about other opportunities, now is a great moment to broaden your search and discover fast growing stocks with high insider ownership
With the stock trading below analyst targets and management increasing guidance and dividends, is Hokkaido Electric Power still flying under the radar, or is the recent optimism already reflected in the price?
Price-to-Earnings of 3.8x: Is it justified?
At a price-to-earnings (P/E) ratio of just 3.8x, Hokkaido Electric Power Company’s shares are trading well below the Japanese market average. This is notable despite the stock’s recent rally and improved outlook. This low multiple stands out, especially when measured against the broader market and comparable industry peers.
The P/E ratio reflects how much investors are willing to pay for each unit of reported earnings. It is an important indicator of valuation and market expectations for established utilities firms. A lower ratio like this could suggest the market is cautious about future growth or that earnings are potentially understated.
Compared to the Asian Electric Utilities industry average P/E of 16.7x, Hokkaido Electric Power Company appears significantly undervalued. The estimated fair price-to-earnings ratio for the stock is 9.2x, which indicates the market could move toward a considerably higher level if perceptions change.
Explore the SWS fair ratio for Hokkaido Electric Power Company
Result: Price-to-Earnings of 3.8x (UNDERVALUED)
However, soft annual revenue growth and recent price volatility suggest caution may be warranted if market sentiment or earnings expectations shift unexpectedly.
Find out about the key risks to this Hokkaido Electric Power Company narrative.
Another View: Discounted Cash Flow Estimate
Looking at our SWS DCF model, things appear a bit different. The stock is actually trading above the estimated fair value of ¥879.46, which suggests that by this method, shares may be overvalued right now. This stands in contrast to the low price-to-earnings ratio. Could the market be missing something? Alternatively, is there hidden risk built into the numbers?
Look into how the SWS DCF model arrives at its fair value.
9509 Discounted Cash Flow as at Nov 2025
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hokkaido Electric Power Company for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
Build Your Own Hokkaido Electric Power Company Narrative
If you’d rather dive into the data and reach your own conclusions, you can quickly craft a personalized story for Hokkaido Electric Power Company. Do it your way
A great starting point for your Hokkaido Electric Power Company research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we’re here to simplify it.
Discover if Hokkaido Electric Power Company might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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