OTCPK:OKEP.F

Stock Analysis Report

Okinawa Electric Power Company

Executive Summary

The Okinawa Electric Power Company, Incorporated engages in the generation, transmission, and distribution of electricity in Okinawa Prefecture, Japan.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.

Share Price & News

How has Okinawa Electric Power Company's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OKEP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

OKEP.F

16.2%

US Electric Utilities

7.2%

US Market


1 Year Return

-16.7%

OKEP.F

1.1%

US Electric Utilities

-10.4%

US Market

Return vs Industry: OKEP.F underperformed the US Electric Utilities industry which returned 24.9% over the past year.

Return vs Market: OKEP.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

OKEP.FIndustryMarket
7 Day0%16.2%7.2%
30 Day0%-7.6%-12.6%
90 Day0%-10.1%-19.4%
1 Year-16.7%-16.7%4.4%1.1%-8.5%-10.4%
3 Yearn/a24.7%12.7%15.8%8.3%
5 Yearn/a55.7%29.9%35.8%21.0%

Price Volatility Vs. Market

How volatile is Okinawa Electric Power Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Okinawa Electric Power Company undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OKEP.F ($16.75) is trading below our estimate of fair value ($35.6)

Significantly Below Fair Value: OKEP.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OKEP.F is good value based on its PE Ratio (16.5x) compared to the Electric Utilities industry average (25x).

PE vs Market: OKEP.F is good value based on its PE Ratio (16.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: OKEP.F is poor value based on its PEG Ratio (16.2x)


Price to Book Ratio

PB vs Industry: OKEP.F is good value based on its PB Ratio (0.7x) compared to the US Electric Utilities industry average (2.3x).


Next Steps

Future Growth

How is Okinawa Electric Power Company forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OKEP.F's forecast earnings growth (1% per year) is below the savings rate (1.7%).

Earnings vs Market: OKEP.F's earnings (1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: OKEP.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: OKEP.F's revenue (0.02% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: OKEP.F's revenue (0.02% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OKEP.F's Return on Equity is forecast to be low in 3 years time (4.3%).


Next Steps

Past Performance

How has Okinawa Electric Power Company performed over the past 5 years?

1.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OKEP.F has high quality earnings.

Growing Profit Margin: OKEP.F's current net profit margins (3%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: OKEP.F's earnings have grown by 1.3% per year over the past 5 years.

Accelerating Growth: OKEP.F's earnings growth over the past year (224%) exceeds its 5-year average (1.3% per year).

Earnings vs Industry: OKEP.F earnings growth over the past year (224%) exceeded the Electric Utilities industry 2%.


Return on Equity

High ROE: OKEP.F's Return on Equity (4.1%) is considered low.


Next Steps

Financial Health

How is Okinawa Electric Power Company's financial position?


Financial Position Analysis

Short Term Liabilities: OKEP.F's short term assets (¥60.5B) do not cover its short term liabilities (¥66.5B).

Long Term Liabilities: OKEP.F's short term assets (¥60.5B) do not cover its long term liabilities (¥185.7B).


Debt to Equity History and Analysis

Debt Level: OKEP.F's debt to equity ratio (114.5%) is considered high.

Reducing Debt: OKEP.F's debt to equity ratio has reduced from 136.4% to 114.5% over the past 5 years.

Debt Coverage: OKEP.F's debt is not well covered by operating cash flow (14.9%).

Interest Coverage: OKEP.F's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

Inventory Level: OKEP.F has a high level of physical assets or inventory.

Debt Coverage by Assets: OKEP.F's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Okinawa Electric Power Company's current dividend yield, its reliability and sustainability?

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OKEP.F's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: OKEP.F's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: OKEP.F's dividends per share have been stable in the past 10 years.

Growing Dividend: OKEP.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.5%), OKEP.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Hiroyuki Motonaga (56yo)

1

Tenure

Mr. Hiroyuki Motonaga serves as President and Chief Executive Officer at The Okinawa Electric Power Company, Incorporated since 2019. He served as an Executive Vice President and Director at The Okinawa El ...


Leadership Team

NamePositionTenureCompensationOwnership
Hiroyuki Motonaga
President & CEO1yrno data0.049% ¥460.2k
Hideki Onkawa
MD, Manager of Accounting Department & Directorno datano data0.046% ¥431.5k
Kiyohito Shimabukuro
Executive VP & Directorno datano data0.029% ¥271.0k
Hitoshi Nakasone
Managing Director1yrno data0.025% ¥241.2k
Manabu Miyazato
Managing Director1yrno datano data
Hayato Narisoko
Managing Director1yrno data0.048% ¥458.7k

1.0yrs

Average Tenure

57yo

Average Age

Experienced Management: OKEP.F's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hideki Onkawa
MD, Manager of Accounting Department & Directorno datano data0.046% ¥431.5k
Kiyohito Shimabukuro
Executive VP & Directorno datano data0.029% ¥271.0k
Hideo Yuasa
Outside Directorno datano data0.0050% ¥47.5k
Mitsuru Omine
Chairman of the Board1yrno data0.066% ¥623.9k
Akira Okada
Outside Directorno datano data0.0050% ¥47.0k
Tetsu Yokoda
Directorno datano data0.0051% ¥48.4k
Hiroyasu Kugai
Directorno datano data0.023% ¥220.5k
Atsushi Kamima
Director1yrno datano data
Nakamura Chokusho
Director1yrno datano data
Yosuke Tatsuki
External Directorno datano datano data

1.0yrs

Average Tenure

64yo

Average Age

Experienced Board: OKEP.F's board of directors are not considered experienced ( 1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Okinawa Electric Power Company, Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Okinawa Electric Power Company, Incorporated
  • Ticker: OKEP.F
  • Exchange: OTCPK
  • Founded: 1972
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: JP¥103.966b
  • Listing Market Cap: JP¥946.183m
  • Shares outstanding: 51.83m
  • Website: https://www.okiden.co.jp

Number of Employees


Location

  • The Okinawa Electric Power Company, Incorporated
  • 5-2-1, Makiminato
  • Urasoe
  • Okinawa
  • 901-2602
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
9511TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1992
OKEP.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992

Biography

The Okinawa Electric Power Company, Incorporated engages in the generation, transmission, and distribution of electricity in Okinawa Prefecture, Japan. The company generates electricity from thermal sources. It supplies electricity to approximately 700,000 corporate and individual customers in the service territory of 2,264 square kilometers. The company is involved in the construction and operation of electrical machinery and facilities. The Okinawa Electric Power Company, Incorporated was founded in 1972 and is headquartered in Urasoe, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/14 01:40
End of Day Share Price2019/10/16 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.