KEPCO KPS is a power-plant maintenance (O&M) company that inspects, repairs, and replaces parts so that generating units keep running without interruption. As a KEPCO affiliate, it is the only integrated maintenance provider in Korea that services nuclear and pumped-storage (about 38%), thermal (about 36%), and transmission facilities, so the number of generating units it overhauls in a given year drives its results. In April 2026 it published a corporate value-up plan committing to keep its payout ratio at 50% or higher (last year's dividend was ₩1,651 per share, a payout ratio of about 60%), and in May its preliminary Q1 results confirmed a sharp earnings rebound while it also won a maintenance contract for Cernavoda Unit 1 in Romania. What stands out lately is that this is effectively a domestic monopoly in power-plant maintenance, a net-cash 3.7% dividend name whose earnings are rebounding off a trough as the number of nuclear overhaul units rises in 2026; the cautions are that long-term revenue growth is modest at around 3% a year and results swing widely depending on how overhaul units are scheduled across seasons.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 22.4% higher than a year earlier.
- ROE is 9.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Korea Electric Power Corporation 51% (corporate)
Controlling bloc incl. related parties 51%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KEPCO KPS is a power-plant maintenance (O&M) company that inspects, repairs, and replaces parts so that generating units keep running smoothly.
- As an affiliate whose largest shareholder is KEPCO, it is Korea's only integrated maintenance provider covering nuclear and pumped-storage, thermal, and transmission/substation facilities.
- Thermal maintenance accounts for about 36% of revenue and nuclear and pumped-storage maintenance for about 38%, so these two pillars make up more than half, with transmission and substation work (including HVDC), other domestic work, and overseas maintenance added on top.
- It earns money through scheduled preventive maintenance (periodic overhauls) performed on each plant on a fixed cycle and through ongoing routine-maintenance contracts, so the number of generating units it maintains in a year drives its results.
- The latest close is ₩44,750 and the market cap is ₩2.0 trillion.
- The price sits below its 20-day line (₩47,808) and below its 60-day line (₩53,384).
- Trading beneath both its short- and medium-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 41.5, a neutral level.
- The one-month change is -4.5%, the three-month change is -19.8%, and the position versus the 52-week high is -33.7%.
- Relative strength versus the KOSPI is 18 (on a 1-99 scale that weights the past year's return against the index with more emphasis on recent performance; higher means stronger than the market).
- That places it in roughly the top 83% of all stocks by strength.
- Over the past three months it has lagged the index by 37.5%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On a trailing basis, the P/E ratio (how many times one year's net profit the share price represents) is 16.21x, which looks somewhat high.
- But this divides a trough-level profit in which 2025 operating profit fell 33%, so it appears more expensive than it really is.
- The P/B (how many times net assets the share price represents) is 1.50x.
- The balance sheet is very solid: an interest-coverage ratio of 46.9x means debt is essentially no burden, and the company is in a net-cash position (about ₩145.6 billion) with more cash than debt.
- The debt ratio (debt versus equity) reads 127%, but most of that is operating liabilities, so on a net-debt basis it is actually negative.
- EV/EBIT (enterprise value divided by operating profit, a debt-inclusive counterpart to the P/E) is 13.5x and EV/EBITDA is 9.2x.
- The FCF yield (the ratio of cash actually earned to market cap) is a steady 3.5%, and ROE (how much it earns in a year on its equity) is 9.2%.
- Long-term revenue is modest.
- Over the past five years revenue grew from ₩1.38 trillion to ₩1.58 trillion, only about 3% a year, reflecting the character of a mature business where maintenance volume does not rise much.
- 2025 was a weak year: a gap in overhaul-unit scheduling cut operating profit 33% and net profit 28% versus the prior year.
- That trough is precisely the starting point of the rebound now on view.
- Q1 2026 revenue was ₩352.4 billion, up 22% year on year, and operating profit surged 375% from ₩7.8 billion to ₩37.0 billion.
- The reason is clear: the number of nuclear units undergoing scheduled preventive maintenance rose sharply from 5 in Q1 last year to 13 this year.
- For full-year 2026 as well, the number of nuclear maintenance completions is 7 units higher than the prior year, so nuclear is driving growth.
- In other words, last year's seemingly high P/E was due to trough earnings, and on a this-year basis, with profit returning to a normal track, the picture is far lighter.
- The most consequential event is the corporate value-up plan disclosed in April 2026.
- The company said it would establish its identity as a high-dividend name maintaining a payout ratio of 50% or higher and would put IR communication on a regular footing.
- In practice, last year's year-end dividend of ₩1,651 per share and a payout ratio of about 60% back up this policy.
- In April it also disclosed a single supply contract (a maintenance order).
- In May it made a fair disclosure of preliminary Q1 2026 results, confirming a sharp earnings rebound.
- On the business side, overseas nuclear maintenance is the next growth pillar: it won the reactor pressure-tube replacement and facility-improvement work for Cernavoda Unit 1 in Romania, from which preparatory revenue will arise going forward, and it is expanding into overseas markets including the UAE, South Africa, and Uruguay.
- This is a name with clear strengths.
- It has a stable business base as effectively the monopoly provider of domestic power-plant maintenance.
- It maintains a solid financial structure with net cash and no interest burden.
- It is a 3.7% dividend name whose payout ratio of 50% or higher the company has formalized.
- 2026 is a phase in which earnings are firmly rebounding off a trough as the number of nuclear overhaul units rises.
- There are cautions too.
- Long-term revenue growth is modest at around 3% a year, so this is not a structural high-growth stock.
- Results vary widely by quarter and season depending on how overhaul units are scheduled.
- Overseas nuclear maintenance has large growth potential, but it will take time before it contributes meaningfully to revenue.
- In short, this is a recovery-and-dividend name whose valuation, which looked expensive because of last year's trough earnings, grows lighter as profit normalizes this year.
🔎 Valuation vs peers Fairly valued
Compared with KEPCO-affiliated power and nuclear-related service companies closest in business character, viewing maintenance, engineering, and utilities together to match the substance of power-plant maintenance (O&M).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KEPCO E&C | 42.94x | 5.86x | 13.66% |
| Korea Electric Power | 2.64x | 0.47x | 17.74% |
| Korea Gas Corporation | 22.41x | 0.28x | 1.23% |
On last year's confirmed net profit, the P/E of 16.4x looks somewhat high, but this divides a trough profit in which 2025 operating profit fell 33%, so it appears more expensive than it really is. On a 2026 basis, with profit returning to a normal track, the valuation grows considerably lighter (our own estimated forward P/E is about 12.9x). Given that KEPCO E&C, a KEPCO-affiliated nuclear-related service company, trades much higher at a P/E of 48.5x and P/B of 6.6x, KEPCO KPS's multiple, backed by its core maintenance business, net cash, and high dividend, carries relatively less burden. That said, modest long-term growth and wide quarter-to-quarter swings are factors that limit any premium, so rather than calling it undervalued we see it as fairly valued within a recovery phase.
Price history Close · MA20 · MA60
The latest close is ₩44,750 and the market capitalization is ₩2.0 trillion. The price sits below its 20-day moving average (₩47,808) and below its 60-day moving average (₩53,384). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.5, a neutral level. The one-month change is -4.5%, the three-month change is -19.8%, and the position relative to the 52-week high is -33.7%. Relative strength versus the KOSPI is 18 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 17% of all stocks. Over the past three months it lagged the index by 37.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -37.54% / 6M -44.79% / 12M -66.21%
Key metrics vs sector median
Valuation
The P/E of 16.21x is above the sector median (7.73x). The P/B of 1.50x is above the sector median (0.79x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.267x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 9.2%, in line with the sector average (9.0%). The operating margin is 8.9%. The debt ratio is 126.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.0B | $1.0B | $1.0B | +1.25% ↓ slower |
| Operating profit | $132.1M | $138.9M | $92.9M | -33.13% ↓ slower |
| Net profit | $107.8M | $114.3M | $82.3M | -27.96% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $915.0M | $947.2M | $1.0B | $1.0B | $1.0B |
| Operating profit | $82.2M | $86.5M | $132.1M | $138.9M | $92.9M |
| Net profit | $65.4M | $66.4M | $107.8M | $114.3M | $82.3M |
| Revenue CAGR | 4-yr avg 3.37% | ||||
Revenue rose 1.2% year over year (2023 ₩1.5 trillion → 2024 ₩1.6 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 33.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.4%. The two-year revenue CAGR is 1.4%. In the most recent quarter (Q1 2026), revenue was 22.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.7%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-20FilingCorporate value-up plan disclosure. Presented a shareholder-return policy to establish its identity as a high-dividend name maintaining a payout ratio of 50% or higher and to put IR communication on a regular footing.The company itself sets a medium-term dividend floor. Combined with its net-cash structure, this raises confidence in dividend stability. Source
- 2026-05-11EarningsFair disclosure of preliminary Q1 2026 consolidated results. Revenue of ₩352.4 billion (up 22.4% year on year) and operating profit of ₩37.0 billion (up 374.6%), a sharp earnings rebound.Confirms in official figures the earnings normalization from a higher number of scheduled nuclear preventive-maintenance units. Supports the recovery trajectory off the 2025 trough. Source
- 2026-04-17UpdateDisclosure of a single supply contract (a maintenance order). A contract that continues the order flow of its core power-plant maintenance business.A short-to-medium-term revenue base from the standpoint of securing maintenance volume. Consistent with the trend of rising overhaul-unit counts. Source
- 2026-03-31DividendThe annual general meeting finalized the 2025 year-end dividend. A cash dividend of ₩1,651 per common share (payout ratio of about 60%).Confirms actual execution of the high-dividend policy. The basis for a dividend yield in the high 3% range. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue and operating profit | revenue ₩352.4 billion(+22.4%), operating profit ₩37.0 billion(+374.6%) | revenue ₩352.4 billion, operating profit ₩37.0 billion | Confirmed | link |
| Dividend per share (DPS) | ₩1,651 | 1 ₩1,651 | Confirmed | link |
| Estimated 2026 net profit (our own estimate) | approx. ₩158.0 billion | — | Unverified | link |
Recent filings
- 2026-06-02Disclosure
- 2026-05-29Corporate governance report
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-05-06EarningsEarnings disclosure
- 2026-04-20Dividend disclosure (amended)
- 2026-04-17Single supply/sales contract (amended)
- 2026-03-31Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.