Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South Korean utility Korea Electric Power
With that in mind, let's take a closer look at Korea Electric's business and see what CAPS investors are saying about the stock right now.
Korea Electric facts
|Headquarters (Founded)||Seoul, South Korea (1961)|
|Market Cap||$16.7 billion|
|Trailing-12-Month Revenue||$31.2 billion|
|Management||CEO Ssang-Soo Kim
CFO Chan-Ki Jung
|Return on Equity (Average, Past 3 Years)||(2.7%)|
|Cash/Debt||$1.57 billion / $30.07 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94% of the 215 members who have rated Korea Electric believe the stock will outperform the S&P 500 going forward. These bulls include WPThatcher and All-Star wheckster, who is ranked in the top 5% of our community.
Just last week, WPThatcher tapped Korea Electric as a particularly powerful bargain: "The biggest power player in S. Korea sells for only 0.43 of book value. Why? Most likely ignorance. I can't say for sure, but I love to buy good, cheap companies."
Increasing tensions between North and South Korea have weighed on Korea Electric's shares over the past couple of months, but many Fools think the valuation is becoming too cheap to ignore. Currently, Korea Electric trades at about half of its book value, representing a huge discount to competitor Huaneng Power (1.1), as well as U.S. counterparts like American Electric Power
CAPS All-Star wheckster expands on the electric opportunity:
[Korea Electric] is an undervalued company. It's in a relatively safe market, in a growing economy, and in a monopolistic position. ... [A]bsurd price decline due to the North Korea and South Korea tensions make this baby a favorite of mine because it was beaten down even more irrationally ... Some say the North Korean leader is irrational, but so are the people who sold this stock.
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