Tohoku Electric Power Company, Incorporated — Cyborg Score 7/10

Solid
Electric Utilities & Power Generation

Strategic Profile

The company operates as an energy service in Japan and internationally through two segments: Power generation and sales business, and Power transmission and distribution business. On a P/E of 3.2x, Tohoku Electric Power Company screens as inexpensive relative to both the broader Japan market and regional electric utility peers.

Cyborg Score Rationale

Earnings have been skyrocketing, up 20% per annum for the past five years, while the company maintains a conservative dividend payout structure. However, the company reported year-on-year declines in nine month sales and profits, suggesting near-term headwinds despite longer-term growth trajectory.

Top Insights

  • P/E of 3.2x sits below the Japan market average of 14.7x, below the peer average of 4.1x and below the Asian electric utilities industry average of 16.1x
  • In the last 10 years, Tohoku Electric Power Company has lifted its dividend by approximately 15% a year on average
  • Tohoku Electric Power Company's dividend is covered by both profits and cash flow, indicating the dividend is sustainable
  • Market capitalization of ¥566.61 billion as of early March 2026

Named Competitors

  • Tokyo Electric Power — Largest Japanese utility operating in eastern Japan
  • Kansai Electric Power — Major regional utility serving western Japan
  • Chubu Electric Power — Regional utility serving central Japan

Recent Developments

  • (March 2026) Dividend payment of ¥20.00 per share with ex-dividend date approaching
  • (September 2025) Dividend coverage remains strong at low payout ratio of 11% of profit after tax
  • (Late 2025) Recent earnings reported at ¥99.80 per share for last quarter, exceeding estimates by 6.4%

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