An EPS of 0.14 USD against an analyst estimate of 0.33 USD, a miss of -$0.19 or -57.6%, is what holders of Korea Electric Power Corporation (KEP) saw in the earnings report dated Nov. 12, 2026. In the most recent full quarter FMP has on file, the second quarter of fiscal 2026 ended June 30, 2026, revenue was flat against a year earlier while net income fell sharply. That matters because the utility carries a very large debt load and spent heavily on construction in that quarter.
Key facts
- Earnings report, Nov. 12, 2026: EPS of 0.14 USD versus an analyst estimate of 0.33 USD, a difference of -$0.19. FMP shows no revenue figure or revenue estimate for this report.
- Quarter ended June 30, 2026: revenue of KRW 21.92T, a change of -0.1% from the year-ago quarter. Net income was KRW 267.00B, a change of -76.5%.
- Share price: 11.39 USD on the latest quote (Nov. 11, 2026), a one-day change of 1.61%. The 52-week range is 10.26-23.41 USD, and market cap is $14.62B.
- Balance sheet as of June 30, 2026: cash and short-term investments of KRW 6.86T, total debt of KRW 135.02T, and shareholders' equity of KRW 50.15T. FMP's own net debt figure is KRW 132.43T.
- Next earnings date: Dec. 17, 2026, with an EPS estimate of 1.17 USD and a revenue estimate of $17.62B.
| Metric | Quarter ended June 30, 2026 | Year-ago quarter ended June 30, 2025 |
|---|---|---|
| Revenue | KRW 21.92T | KRW 21.95T |
| Operating income | KRW 1.19T | KRW 2.14T |
| Net income | KRW 267.00B | KRW 1.14T |
| Diluted EPS | 207.96 KRW | 885.56 KRW |
| Operating margin | 5.5% | 9.7% |
The statements are in Korean won, while the share price and the earnings-report EPS are in US dollars per US-listed share. The two should not be compared directly.
What happened
The headline number is the EPS miss. FMP lists reported EPS of 0.14 USD for the report dated Nov. 12, 2026, against an analyst estimate of 0.33 USD. Only a handful of analysts follow the stock, so a single estimate can move the comparison a lot.
The detailed financials FMP has are for the second quarter of fiscal 2026. Sales barely moved: revenue of KRW 21.92T compared with KRW 21.95T a year earlier. Profit moved a great deal. Operating income, which is profit from running the business before interest and taxes, was KRW 1.19T, down from KRW 2.14T. Net income was KRW 267.00B, down from KRW 1.14T. Diluted EPS was 207.96 KRW against 885.56 KRW a year earlier.
The gap between flat sales and lower profit shows up in margins. Gross margin, the share of revenue left after direct costs, was 8.6% in the quarter ended June 30, 2026. Operating margin was 5.5%. FMP's data does not say why costs rose relative to sales, and no management commentary was available to us for this piece, so we do not offer a cause.
The last several quarters
KEP's profits swing from quarter to quarter. Operating margin by quarter, oldest to newest:
- Quarter ended June 30, 2025: 9.7%
- Quarter ended Sept. 30, 2025: 20.6%
- Quarter ended Dec. 31, 2025: 8.7%
- Quarter ended March 31, 2026: 15.7%
- Quarter ended June 30, 2026: 5.5%
Free cash flow, which is cash from operations minus capital spending, was uneven too. It was KRW -577.78B in the quarter ended June 30, 2025, KRW 3.03T in the quarter ended Sept. 30, 2025, KRW -487.71B in the quarter ended Dec. 31, 2025, and KRW 3.21T in the quarter ended March 31, 2026. In the quarter ended June 30, 2026 it was KRW -4.32T. Operating cash flow was KRW 1.21T, while capital expenditure was KRW -5.53T. Dividends paid in that quarter were KRW -1.09T.
Why it matters for investors
Debt is the central issue. Total debt of KRW 135.02T compares with shareholders' equity of KRW 50.15T, and FMP's debt-to-equity ratio is 2.69. Its Altman Z score, a rough bankruptcy-risk gauge where lower is weaker, is 0.54, and its Piotroski score, a 0-9 financial health check, is 4. Cash and short-term investments of KRW 6.86T are small beside the debt.
The valuation looks low, but the quality of earnings is uneven. On a trailing 12-month basis, FMP shows a P/E of 2.48, price-to-sales of 0.20, EV/EBITDA of 6.64, price to free cash flow of 12.20, a dividend yield of 5.1% and a net margin of 8.0%. A low P/E means the share price is small relative to recent earnings. Given how much profit has swung, that figure can change quickly. FMP's discounted cash flow model returns a value of -208.39 USD per share as of Nov. 11, 2026. That is a model output, not a price forecast, and a negative value mainly reflects the heavy spending and thin cash generation in the inputs.
Peers trade at higher multiples. Companhia Energetica de Minas Gerais (CIG) has a P/E of 10.94 and a net margin of 10.5%. Endesa (ELEZY) has a P/E of 18.96 and a net margin of 10.9%. HK Electric Investments (HKCVF) has a P/E of 17.91 and a net margin of 27.0%. KEP's P/E of 2.48 and net margin of 8.0% sit below all three on those measures. Government-linked utilities and regulated tariffs differ by country, so the comparison is a rough guide.
Analysts are cautious. FMP shows five ratings, all Hold, giving a consensus of Hold. No price-target range is available in the data we used. For the period ending March 30, 2027, the consensus estimate is revenue of KRW 25.64T and EPS of 942.29 KRW. For the period ending June 30, 2027, the consensus estimate is revenue of KRW 23.49T and EPS of -468.86 KRW, a loss. Each of these rests on a single analyst, so treat them as thin.
Stock Expert AI's MoonshotScore V2 is 50.7, rated Fair. The pillars are measured against the sector. Growth scores 99 and valuation scores 99, the strongest areas. Quality scores 68, which is middling to good. Safety scores 21 and momentum scores 12, the weak areas. That fits the picture above: cheap on the numbers, with a heavy debt load and a share price well below its 52-week high of 23.41 USD.
What could go wrong
- Profit has been volatile, and the latest quarter had the lowest margins of the group. A repeat would keep pressure on earnings.
- Capital spending of KRW -5.53T in the quarter ended June 30, 2026 exceeded operating cash flow of KRW 1.21T, so free cash flow was negative. Funding that gap with more borrowing adds to an already large debt pile.
- The dividend yield of 5.1% depends on cash the business has not generated consistently in recent quarters.
- With one analyst behind each forward estimate, the consensus can shift sharply after any new report.
What to watch next
- Dec. 17, 2026: the next scheduled earnings date, with an EPS estimate of 1.17 USD and a revenue estimate of $17.62B.
- Whether operating margin recovers from 5.5% toward the levels of the two preceding quarters.
- Whether free cash flow turns positive again, as it did in the quarters ended Sept. 30, 2025 and March 31, 2026.
- Any change in total debt from KRW 135.02T and in net debt from KRW 132.43T.
- Whether the share price holds above the 52-week low of 10.26 USD after trading at 11.39 USD on the latest quote (Nov. 11, 2026).
Frequently asked questions
Q: Did Korea Electric Power (KEP) beat earnings estimates?
No. FMP lists EPS of 0.14 USD for the report dated Nov. 12, 2026, against an analyst estimate of 0.33 USD, a difference of -$0.19, or -57.6%. FMP shows no revenue figure or estimate for that report. In the quarter ended June 30, 2026, revenue was KRW 21.92T, nearly unchanged from a year earlier, at a change of -0.1%.
Q: How much debt does KEP have?
As of June 30, 2026, KEP had total debt of KRW 135.02T and cash and short-term investments of KRW 6.86T. FMP's own net debt figure is KRW 132.43T. Shareholders' equity was KRW 50.15T, and the debt-to-equity ratio is 2.69.
Q: Is KEP stock cheap?
On FMP's trailing numbers, it looks low: a P/E of 2.48 and price-to-sales of 0.20. Peers such as Endesa (ELEZY), with a P/E of 18.96, trade higher. Stock Expert AI's MoonshotScore V2 of 50.7 shows a valuation pillar of 99 but a safety pillar of 21 and a momentum pillar of 12. Low multiples can reflect real risks, including the debt load and uneven profit. This is not a recommendation to buy or sell.
This is educational content, not investment advice. Past performance does not guarantee future results.