Breaking Down Chubu Electric Power Company, Incorporated Financial Health: Key Insights for Investors

If you're weighing an investment in Chubu Electric Power (9502.T), the numbers demand a close look: operating revenue for FY2025 hit ¥3.67 trillion (TTM ¥3.65T), while market cap sits at ¥1.76 trillion with a share price of ¥2,330 (12 Dec 2025); profitability shows a net income of ¥221.49 billion, a 5.5% net margin and ROE of 7.86% alongside EPS (TTM) of ¥293.23 and an EBITDA margin of 12.6%; balance sheet and leverage reveal total assets of ¥7.41 trillion, total liabilities ¥4.26 trillion, total debt ¥3.20 trillion and a debt-to-equity ratio of 1.10, equity ratio 39.1% and interest coverage of 9.15; liquidity and cash flow present contrasts-current ratio 1.13 and quick ratio 0.63, operating cash flow (TTM) ¥301.35 billion but free cash flow only ¥28.80 billion (a 69.82% decline year-over-year), producing a P/FCF of 19.94 and EV/EBITDA of 9.61 while valuation metrics show P/S 0.48 and P/B 0.60-facts you'll want to parse alongside risks like liquidity strain, debt levels and exposure to energy-price and regulatory shifts before moving deeper into growth drivers such as renewable investments, Miraiz and Power Grid profit contributions, and strategic partnerships.

Chubu Electric Power Company, Incorporated (9502.T) - Revenue Analysis

• Operating revenue (FY ended Mar 31, 2025): ¥3.67 trillion (↑ 1.63% YoY)
• Operating revenue (Q2 FY2026): ¥947.52 billion (↑ 0.2% YoY)
• Trailing twelve months (TTM) revenue: ¥3.65 trillion (↑ 3.26% TTM growth)
• Revenue per employee: ~¥161.77 million (22,566 employees)
• Price-to-sales (P/S) ratio: 0.48
• Market capitalization: ¥1.76 trillion; Share price: ¥2,330 (as of Dec 12, 2025)

• Revenue mix drivers: regulated electricity sales, wholesale supply, energy services and new business segments (renewables, EV-related services, B2B energy solutions).
• Quarterly momentum: Q2 FY2026 shows stable topline with modest YoY growth, suggesting demand stability amid price and regulatory dynamics.
• Per-employee productivity is elevated relative to domestic utilities peers, supporting operational leverage if fixed costs are managed.

Chubu Electric Power Company, Incorporated (9502.T) - Profitability Metrics

Key profitability metrics for Chubu Electric Power Company, Incorporated (9502.T) highlight steady core earnings and reasonable returns to shareholders for fiscal year 2025 and the trailing twelve months.

• Net profit margin (FY2025): 5.5% - indicates moderate profitability after all expenses and taxes.
• Operating profit margin (FY2025): 6.6% - shows efficient core operations and cost control.
• EBITDA margin (FY2025): 12.6% - reflects healthy operational cash-generation relative to revenue.
• Net income (FY2025): ¥221.49 billion - bottom-line earnings for the fiscal year.
• Earnings per share (TTM): ¥293.23 - per-share profitability over the trailing twelve months.
• Return on equity (ROE): 7.86% - return delivered to shareholders on equity capital.

For broader context on the company's strategy, ownership and historical performance, see: Chubu Electric Power Company, Incorporated: History, Ownership, Mission, How It Works & Makes Money

Chubu Electric Power Company, Incorporated (9502.T) - Debt vs. Equity Structure

• Debt-to‑equity ratio: 1.10 - a balanced leveraging stance that indicates total debt is roughly on par with equity.
• Equity ratio: 39.1% - a strong proportion of assets financed by equity rather than liabilities.
• Interest coverage ratio: 9.15 - indicates comfortable ability to meet interest expenses from operating earnings.
• Total debt: ¥3.20 trillion; Total liabilities: ¥4.26 trillion - showing the portion of liabilities composed of interest‑bearing debt.
• Total assets (Sep 30, 2025): ¥7.41 trillion, up from ¥7.12 trillion (Mar 31, 2025), supporting the rise in net assets.
• Net assets: ¥2.98 trillion (Sep 30, 2025), up from ¥2.86 trillion (Mar 31, 2025).

Investors evaluating financial risk versus growth should weigh the company's moderate leverage (debt-to-equity 1.10) against a near‑40% equity ratio and an interest coverage ratio above 9, which together suggest comfortable debt servicing and retained financial flexibility. For strategic context and corporate priorities that may affect capital allocation decisions, see Mission Statement, Vision, & Core Values (2026) of Chubu Electric Power Company, Incorporated.

Chubu Electric Power Company, Incorporated (9502.T) - Liquidity and Solvency

Key liquidity and solvency indicators for Chubu Electric Power show adequate short-term coverage but tighter immediate liquidity once inventories are excluded, while cash generation is strong at the operating level but constrained when it comes to free cash flow.

• Current ratio: 1.13 - adequate short-term liquidity to cover current liabilities.
• Quick ratio: 0.63 - suggests potential difficulty meeting immediate obligations without relying on inventory conversion.
• Operating cash flow (TTM): ¥301.35 billion - robust cash generation from operations.
• Free cash flow (TTM): ¥28.80 billion - a material decline versus the prior year, indicating reduced discretionary cash after capex and working capital needs.
• Operating cash flow to net income: 1.49 - operating cash exceeds net income, reflecting strong cash conversion from reported earnings.
• Free cash flow to net income: 0.14 - limited free cash relative to net income, signaling constraints on dividend growth, debt repayment, or share buybacks without relying on other financing.

• Investors should watch working capital trends and capex plans closely - small shifts materially affect free cash flow given the low FCF/net income ratio.
• Leverage and interest coverage (not shown here) should be reviewed in tandem with these liquidity metrics to assess solvency risk over the medium term.
• For broader context on the company's strategy, ownership and how it generates revenue, see: Chubu Electric Power Company, Incorporated: History, Ownership, Mission, How It Works & Makes Money

Chubu Electric Power Company, Incorporated (9502.T) - Valuation Analysis

• Balance-sheet perspective: P/B 0.60 and P/TBV 0.61 imply the market assigns a discount to Chubu Electric's asset base - possibly reflecting regulatory, environmental, or demand risks.
• Cash-flow perspective: P/FCF of 19.94 signals investors pay nearly 20x current free cash flows, suggesting expectations of steady cash generation but limited rapid growth.
• Earnings leverage: EV/EBITDA of 9.61 is consistent with a moderately valued utility; it indicates earnings-based valuation is less stretched than free-cash-flow-based valuation (EV/FCF 52.55).
• Revenue valuation: EV/Sales at 1.29 underscores that sales are being monetized at a modest multiple consistent with capital-intensive, regulated businesses.

• Regulatory changes and allowed return on equity in Chubu's service territories.
• Capital expenditure profile (nuclear, thermal retirement, grid upgrades) and the resulting impact on FCF and EV/FCF.
• Power demand trends, wholesale prices, and fuel-cost pass-through mechanisms affecting EBITDA and margins.
• Asset impairments or revaluations that would change book and tangible book values and thus P/B and P/TBV.

• Value investors may view P/B and P/TBV below 1.0 as a signal to investigate asset quality, contingent liabilities, and regulatory outlook.
• Investors focused on income and cash returns should stress-test FCF forecasts because EV/FCF of 52.55 implies high sensitivity to small changes in free cash flow.
• Relative valuation: compare EV/EBITDA ~9.6 and EV/Sales 1.29 to domestic and international utility peers to assess relative risk premium or discount.
• Monitor directional moves in these ratios alongside operational KPIs (capacity factors, outage rates, fuel costs) and corporate actions (M&A, asset sales).

Chubu Electric Power Company, Incorporated (9502.T) - Risk Factors

• Sharp decline in cash generation: free cash flow fell 69.82% year-over-year, constraining discretionary spending and capital allocation.
• Low short-term liquidity: quick ratio of 0.63, indicating potential difficulty meeting immediate obligations without selling inventory or raising short-term funds.
• Leverage concerns: debt-to-equity ratio of 1.10, reflecting a relatively high reliance on debt financing and greater sensitivity to interest-rate movements.
• Weak conversion of earnings to cash: free cash flow to net income ratio of 0.14, showing net income is not translating into strong cash availability.
• Interest exposure: interest coverage ratio of 9.15 provides cushion today but could be eroded by rising rates or margin compression.
• Market and regulatory risks: material exposure to energy price volatility and regulatory/policy changes in Japan's energy sector that can affect revenue, margins, and required capital investments.

• Operational and capital risks: protracted outages, slower-than-planned renewables rollout, or higher-than-expected maintenance/retirement costs can exacerbate cash and leverage pressures.
• Refinancing risk: with meaningful debt on the balance sheet, tighter credit markets or higher sovereign/corporate yields would raise borrowing costs and compress margins.
• Policy risk: changes to tariffs, feed-in tariffs, carbon pricing, or nuclear policy in Japan can materially shift the company's revenue mix and required investments.

Chubu Electric Power Company, Incorporated (9502.T) - Growth Opportunities

• Revenue forecast for FY2025: ¥3.55 trillion (+3.2% YoY)
• Targeted profit uplift: Miraiz segment +¥15.0 billion; Power Grid segment +¥15.0 billion
• Capital allocation directed to offshore wind and other renewable projects to diversify generation mix
• Expansion into ancillary businesses - real estate and IT services - to create non-generation revenue streams
• Strategic procurement and operational synergies via partnerships (e.g., JERA) to lower fuel cost volatility
• Infrastructure development (grid reinforcement, smart meters, energy storage) to support long-term demand and reliability

• Offshore wind pipelines are being developed to add long-term, low-carbon capacity and stabilize generation mix.
• Grid modernization spending is prioritized to integrate variable renewables and enable distributed energy resources.
• Real estate and IT services expansions aim to monetize existing asset base and cross-sell energy solutions.
• Partnerships like JERA provide scale in fuel procurement and potential O&M synergies that reduce unit costs.