A forward price-to-earnings ratio of 3.5x and a recent earnings beat of 16.2% reflect genuine underlying value, but the stock has nearly reached its analyst target — leaving only 0.2% of headroom — and high leverage at a debt-to-equity ratio of 2.6 reduces financial cushion if the earnings recovery stalls.
Thesis pillars
- Deep Value Near Analyst Target→Stable
- Earnings Beat Streak Delivery↓Deteriorating
- High Leverage Limits Flexibility→Stable
- +1 more pillar — see the Why tab for full reasoning
Korea Electric Power Corporatio (KEP) Stock Analysis
Recovery setup
Utilities · Utilities - Regulated Electric
Sell if holding. Engine safety override at $12.06: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 11.67; Below-average business quality; Below long-term trend.
Korea Electric Power Corporation, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through five segments: Electricity Sales, Nuclear Power Generation, Thermal Power... Read more
Sell if holding. Engine safety override at $12.06: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 11.67; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 54. Score 4.9/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 68d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: speculative.
Recent developments
updated 2026-09-04Recent Developments — Korea Electric Power Corporatio
Latest news
- NEWS Korea Electric Power Q2 Earnings Call Highlights - Yahoo Finance — Yahoo Finance neutral
- NEWS Korea Electric Power (NYSE:KEP) Releases Quarterly Earnings Results, Misses Estimates By $0.40 EPS - MarketBeat — MarketBeat negative
- NEWS Korea Electric Power Q2 2026 Earnings Report - MarketBeat — MarketBeat neutral
- NEWS Korea Electric Power Q2 2026 Earnings Call Transcript - MarketBeat — MarketBeat neutral
- NEWS Arrowstreet Capital Limited Partnership Sells 1,266,767 Shares of Korea Electric Power Corporation $KEP - MarketBeat — MarketBeat neutral
Generated 2026-09-04T13:32:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
3 floor-breakers·1 ceiling hit
Revenue shrinking — -0.1% YoY. Growth thesis broken unless recovery story develops.static
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $12.06: Quality below floor (2.5 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: Elevated put/call ratio: 11.67; Below-average business quality; Below long-term trend. Chart setup: Death cross but MACD improving, RSI 54. Prior stop was $11.40. Score 4.9/10, moderate confidence.
Take-profit target: $12.75 (+6.2% upside). Prior stop was $11.40. Stop-loss: $11.40.
Quality below floor (2.5 < 4.0); Value-trap signals (2/5): High leverage (D/E 1.6), Negative free cash flow.
Korea Electric Power Corporatio trades at a P/E of 2.6 (forward 4.3). TrendMatrix value score: 9.8/10. Verdict: Sell.
28 analysts cover KEP with a consensus score of 3.8/5. Average price target: $15.
What does Korea Electric Power Corporatio do?Korea Electric Power Corporation, together with its subsidiaries, engages in the generation, transmission, and...
Korea Electric Power Corporation, together with its subsidiaries, engages in the generation, transmission, and distribution of electricity in South Korea and internationally. The company operates through five segments: Electricity Sales, Nuclear Power Generation, Thermal Power Generation, Power Support, and Other. It builds and operates overhead and underground transmission power grids; offers digital substations, grid stabilization equipment, and predictive diagnostic system; high voltage direct current transmission; distribution network construction, distributed energy, and smart distribution network; power outage prevention, insulated sticks, and scheduled power shutdowns; and smart metering service. The company also engages in electricity sale and demand management; electric vehicle charging; microgrid; urban energy planning platform; solar power generation projects; and clean hydrogen businesses, as well as research and development. In addition, it is involved in thermal, nuclear, wind, solar, and hydro power generation; power grid consulting/EPC projects; HVDC submarine transmission; power plant engineering and maintenance; nuclear fuel design and manufacturing; power IT services; investment activities; coal ash industrial materials resource manufacturing; facility management and service; wood pellet utilization; and securitization. The company was formerly known as Korea Electric Company and changed its name to Korea Electric Power Corporation in January 1982. Korea Electric Power Corporation was founded in 1961 and is headquartered in Naju-si, South Korea.