The power company with 90% of Koreas power market.

They came to my attention when I was using the finviz stock screener and playing with companies with low p/b, high returns on equity, and high future earnings growth. When you see the candidates, you’re bound to get either companies with inconsistent earnings, companies that have gone through a serious ringer, companies that are not understood or some mixture of all of these.

KEP sells at a p/e of 2.71. P/b is a laughable .49. Price is 21.32.

Their 2006 earnings per share were 1.83, with earnings being shown in only 2 quarters. (Maybe that’s some S.Korean thing)?

They’ve had some very spotty years since then. Some years wholly unprofitable. And 2015 seems like it was an albatross for them. Something like a 271% increase in earnings from the prior year, and a 51% decrease expected going into 2016.

Highly inconsistent earnings, but they are priced so dang low that their p\e next year would only be 5.

It looks like they are 97% government\other owned. They haven’t paid a dividend since 2013.

Going back a long way, it looks like this company has had several peaks and troughs.

I just don’t think they are a serious candidate based on their earnings. They are a damn government run utility, and there is no reason to think their value will be acknowledged. Earnings are too inconsistent. This company might be a nice thing for the people of South Korea, but it is not being run for the 3%.

UPON REVIEW, they are selling at 20.82. Analysts are very bullish.  There is no short interest.  No dividend.  p/e is 2.61.  EPS is 7.97.  .04 short interest.  This year earnings will tank, moving forward, they will grow.  They have 81% debt to equity.  Return on equity is high this year.  Historically it is very spotty, we’re talking about as low as -7 and as high as 50-60.  Let’s call it a spotty 7.  Book per share is at 42.81.  WOW.  Let’s say they mustered a 7% return on equity, and lets say that p/e is at 5 in 10 years.  That’s 84.21 in book and EPS of 5.89.  With a p/e of 5, that gives us a price of 29.45.   That’s a 3.53 return on equity.  They’d have to come down a lot to buy.  I’ll revise my price point to 7-8.