| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3281.94 | 236 |
| Intrinsic value (DCF) | 874.78 | -10 |
| Graham-Dodd Method | 3159.81 | 223 |
| Graham Formula | 4386.78 | 349 |
Hokuriku Electric Power Company (9505.T) is a leading Japanese utility company specializing in integrated power generation, transmission, and distribution across the Hokuriku region. Headquartered in Toyama, Japan, the company operates a diversified energy portfolio, including hydroelectric, thermal, photovoltaic, and nuclear power generation. Beyond electricity supply, Hokuriku Electric Power engages in LNG sales, infrastructure maintenance, energy solutions, and environmental projects. The company also has diversified business segments, including software development, data center operations, real estate leasing, and social welfare services. Established in 1951, Hokuriku Electric Power plays a critical role in Japan's energy sector, balancing traditional and renewable energy sources while expanding into digital and environmental services. With a market capitalization of approximately ¥145.7 billion, the company remains a key player in Japan's transition toward sustainable energy solutions.
Hokuriku Electric Power presents a stable investment opportunity within Japan's utility sector, supported by its diversified energy generation mix and steady cash flows. The company reported ¥858.3 billion in revenue and ¥65.1 billion in net income for the fiscal year ending March 2025, with a diluted EPS of ¥311.98. Its low beta (0.075) suggests resilience against market volatility, making it attractive for conservative investors. However, high total debt (¥1.15 trillion) and significant capital expenditures (¥-86.6 billion) could pressure financial flexibility. The dividend yield remains modest (¥20 per share), reflecting a cautious approach to shareholder returns. Investors should weigh the company's stable operations against Japan's regulatory risks and the long-term shift toward renewable energy adoption.
Hokuriku Electric Power operates in a highly regulated and competitive Japanese utility market, where regional monopolies dominate. Its competitive advantage lies in its integrated power infrastructure, diversified energy mix, and ancillary businesses (e.g., data centers, environmental projects). Unlike pure-play renewable utilities, Hokuriku maintains a balanced portfolio, including nuclear and thermal power, ensuring stable baseload supply. However, its reliance on nuclear energy exposes it to regulatory and public scrutiny, while competitors with stronger renewable footprints may benefit from Japan's decarbonization policies. The company's regional focus limits national scale compared to giants like TEPCO, but its ancillary services (e.g., software, real estate) provide supplementary revenue streams. Long-term competitiveness hinges on modernizing aging infrastructure and expanding renewable capacity to align with Japan's 2050 carbon neutrality goals.