--- title: "Electric Power Development Q3 2026 Net Income Volatility Tests High Quality Earnings Narrative" type: "News" locale: "en" url: "https://longbridge.com/en/news/274404881.md" description: "Electric Power Development (TSE:9513) reported mixed Q3 2026 results with revenue of ¥293.1 billion and basic EPS of ¥117.83, down from previous quarters. The trailing net margin decreased to 7.9% from 8% last year, raising concerns about profitability amidst declining growth expectations. Despite a trailing twelve month EPS of ¥534.27, analysts forecast an 11.3% decline in earnings over the next three years. The stock trades at a low P/E of 6x, with a dividend yield of 3.05%, but its DCF fair value of ¥1,728.73 is below the current market price of ¥3,284, indicating potential risks ahead." datetime: "2026-02-01T03:58:00.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/274404881.md) - [en](https://longbridge.com/en/news/274404881.md) - [zh-HK](https://longbridge.com/zh-HK/news/274404881.md) --- # Electric Power Development Q3 2026 Net Income Volatility Tests High Quality Earnings Narrative ## Electric Power Development (TSE:9513) Q3 2026 earnings snapshot Electric Power Development (TSE:9513) has put out a mixed Q3 2026 scorecard, with revenue of ¥293.1 billion and basic EPS of ¥117.83, set against a trailing twelve month EPS of ¥534.27 on revenue of ¥1.22 trillion. Over recent quarters the company has seen revenue move from ¥381.7 billion in Q2 2025 to ¥357.7 billion in Q4 2025, then to ¥250.3 billion in Q1 2026, ¥321.1 billion in Q2 2026 and ¥293.1 billion in the latest quarter, while quarterly EPS has ranged from ¥60.42 to ¥284.81 over the same stretch. With a trailing net margin of 7.9% sitting just under last year’s 8% and earnings now set against expectations for declining growth, investors are likely to focus on how resilient profitability looks beneath the headline numbers. See our full analysis for Electric Power Development. With the latest figures on the table, the next step is to weigh these results against the prevailing stories around Electric Power Development, to see which narratives line up with the data and which ones are questioned by the numbers. Curious how numbers become stories that shape markets? Explore Community Narratives TSE:9513 Earnings & Revenue History as at Jan 2026 ## Net income swings highlight uneven year - Across the last four quarters, net income excluding extra items moved between ¥10,978 million and ¥52,088 million, landing at ¥20,983 million in Q3 2026. This highlights how different each period has been, even with total revenue staying in a relatively tight range of about ¥250,295 million to ¥381,670 million. - Bears focus on the recent soft patch in profitability, and the data gives them some talking points: - The latest trailing twelve month net income of ¥96,907 million is below the ¥119,088 million level reported for the twelve months to Q1 2026, while the trailing net margin has eased from 8% last year to 7.9% now. - That compares with five year average EPS growth of about 19.6% a year, so critics argue recent weaker income is a step down from that longer run pattern. Stay curious about why earnings have become bumpier just as long term growth has been strong, and see how skeptics frame the risks in more detail. **🐻 Electric Power Development Bear Case** ## High quality EPS but forecasts turn softer - Trailing twelve month EPS sits at ¥534.27, and over the past five years EPS grew on average 19.6% a year, even though the most recent year showed negative EPS growth alongside analyst expectations for about an 11.3% a year decline in earnings and a modest 0.6% a year decline in revenue over the next three years. - Bulls point to the high quality of recent earnings, and the numbers both support and challenge that view: - On the supportive side, trailing net income of ¥96,907 million and a 7.9% margin indicate the business has been able to convert a ¥1.22b revenue base into consistent profit over the last twelve months. - On the challenging side, the negative earnings growth in the latest year and forecasts for lower earnings and revenue indicate that those high quality profits are not assumed to continue at the same level. ## Low P/E, dividend and DCF tension - At a share price of ¥3,284 the stock trades on a trailing P/E of about 6x, well below peer and industry levels around 14x to 15.8x, pays an estimated 3.05% dividend yield, yet its DCF fair value of about ¥1,728.73 sits below the current market price and below the ¥3,076.67 analyst price target. - What stands out for bullish investors is the mix of relatively low earnings multiple and income, but the figures also set clear boundaries: - The low P/E relative to the broader JP market P/E of about 14.7x and the 3.05% yield are often used to argue the share is attractively priced on current profits and income. - At the same time, the fact that the DCF fair value of ¥1,728.73 is well under the ¥3,284 share price, together with weak cash flow coverage of debt and forecast declines in earnings and revenue, serves as a reminder that simple multiples do not capture all the risks. If you want to see how these valuation tensions tie back to cash flows and future expectations, it is worth stepping through the full narrative and numbers side by side. **📊 Read the full Electric Power Development Consensus Narrative.** ## Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Electric Power Development's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. ## See What Else Is Out There Electric Power Development’s recent results mix a relatively low P/E and ongoing profits with softer forecasts, uneven earnings, and weaker cash flow support for its valuation. If that combination makes you cautious, use our pre screened these 869 undervalued stocks based on cash flows to quickly zero in on companies where current prices look better aligned with underlying cash flows and outlook. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### Related Stocks - [9513.JP](https://longbridge.com/en/quote/9513.JP.md) ## Related News & Research - [A Look At Japan Post Bank (TSE:7182) Valuation After Earnings Jump And New Medium Term Plan](https://longbridge.com/en/news/287030627.md) - [Assessing Japan Tobacco (TSE:2914) Valuation After Strong First Quarter Sales And Net Income Results](https://longbridge.com/en/news/287097751.md) - [Assessing Shizuoka Financial Group (TSE:5831) Valuation After FY 2026 Results And Board Leadership Review](https://longbridge.com/en/news/286786560.md) - [ZAWYA: DEWA says $2.3bn transmission network projects under development](https://longbridge.com/en/news/286665525.md) - [Tata Power's (NSE:TATAPOWER) Problems Go Beyond Weak Profit](https://longbridge.com/en/news/286980045.md)