--- title: "Hokuriku Electric Power (TSE:9505) Valuation After Profit Guidance Cut And Mikuni Unit 1 Abolition" type: "News" locale: "en" url: "https://longbridge.com/en/news/280879748.md" description: "Hokuriku Electric Power (TSE:9505) has cut its profit outlook for the fiscal year ending March 31, 2026, following the decision to abolish the Mikuni Unit 1 and recognize impairment losses. Despite a strong share price performance, the company’s P/E ratio of 3.2x suggests it may be undervalued compared to peers. However, forecasts indicate a decline in earnings, leading to mixed signals about its valuation. A DCF analysis suggests a fair value of ¥729.57 per share, indicating potential overvaluation at the current price of ¥1,107." datetime: "2026-03-28T13:51:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/280879748.md) - [en](https://longbridge.com/en/news/280879748.md) - [zh-HK](https://longbridge.com/zh-HK/news/280879748.md) --- # Hokuriku Electric Power (TSE:9505) Valuation After Profit Guidance Cut And Mikuni Unit 1 Abolition Hokuriku Electric Power (TSE:9505) cut its profit outlook for the year ending March 31, 2026, after deciding to abolish the Fukui Thermal Power Station Mikuni Unit 1 and recognize related impairment losses. See our latest analysis for Hokuriku Electric Power. The board’s decision on Mikuni Unit 1 and the resulting downgrade to profit guidance comes against a backdrop of a 13.31% 90 day share price return and a 94.79% 3 year total shareholder return. This suggests recent momentum has built on already strong long term gains. If this shift in Hokuriku Electric Power has you thinking about where demand for electricity infrastructure could go next, it may be worth scanning 26 power grid technology and infrastructure stocks Yet, with profit guidance cut following a one-off impairment and the share price already up strongly over 3 years, the key question is whether Hokuriku Electric Power still trades at a discount or if the market is already pricing in future growth. ## Preferred P/E of 3.2x: Is it justified? At a last close of ¥1,107, Hokuriku Electric Power is on a P/E of 3.2x, which screens as good value against both the broader JP market and its Asian electric utilities peers. The P/E multiple compares the current share price with earnings per share, so it effectively shows what investors are paying today for each unit of current earnings. For a regulated utility with a long operating history and high quality earnings, this is a straightforward way to see how the market is pricing its profit stream. On one hand, the company is flagged as trading at good value versus peers and the industry, and its 3.2x P/E sits below the peer average of 4.3x and well below the Asian Electric Utilities average of 17.6x. On the other hand, forecasts point to earnings declining by an average of 16.7% per year over the next 3 years and a return on equity of 7.3% in 3 years time, which may help explain why the market is not assigning a higher multiple despite strong 5 year earnings growth of 48.7% per year. Compared with an estimated fair P/E of 6.6x, the current 3.2x level is materially lower. This implies the market could move closer to that fair ratio if sentiment or earnings expectations change, although there is no certainty that it will. Explore the SWS fair ratio for Hokuriku Electric Power **Result: Preferred multiple of Price-to-Earnings of 3.2x (UNDERVALUED)** However, annual revenue and net income decreased by 0.4% and 16.7%, respectively, and the share price is slightly above the ¥1,093 target, which could challenge the undervaluation story. Find out about the key risks to this Hokuriku Electric Power narrative. ## Another View: DCF Points The Other Way While the 3.2x P/E hints at attractive pricing, the SWS DCF model points to a fair value of ¥729.57 per share, which is well below the current ¥1,107 level. On this view, the stock screens as overvalued. The key question is which signal should be treated as more important. Look into how the SWS DCF model arrives at its fair value. 9505 Discounted Cash Flow as at Mar 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hokuriku Electric Power for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 19 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps With signals pointing in different directions, this is the moment to look under the hood yourself and decide how the story really stacks up. To weigh both the concerns and the potential rewards side by side, start with these 3 key rewards and 3 important warning signs. ## Looking for more investment ideas? If this situation has sharpened your focus, do not stop here. Widen your watchlist with fresh ideas that match the kind of portfolio you want to build. - Target potential value opportunities by scanning companies that combine quality fundamentals with attractive pricing through the 19 high quality undervalued stocks. - Strengthen your income stream by reviewing companies with resilient payouts using the 20 dividend fortresses. - Prioritise resilience and capital protection by reviewing companies highlighted in the 48 resilient stocks with low risk scores. _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._ ### Valuation is complex, but we're here to simplify it. Discover if Hokuriku Electric Power might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.** Access Free Analysis ### Related Stocks - [9505.JP](https://longbridge.com/en/quote/9505.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) - [Tata Power's (NSE:TATAPOWER) Problems Go Beyond Weak Profit](https://longbridge.com/en/news/286980045.md) - [Revenue Beat: Furuya Metal Co., Ltd. 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