Kenon (KEN) AI Stock Analysis

• Market Cap: $1.77B
• Dividend Yield: 11.2%
• Average Volume (3M): 17.04K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.60
• Revenue Growth: 8.60%
• EPS Growth: N/A
• Country: US
• Employees: 325
• Sector: Utilities
• Sector Strength: 88
• Industry: Independent Power Producers
• EPS (TTM): 11.34
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 29,311
• 30 Day Avg. Volume: 17,043
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.45
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kenon's overall stock score reflects strong valuation metrics and positive technical indicators, supported by robust revenue growth and a solid equity base. However, challenges in profitability and cash flow consistency pose risks to financial stability. The stock’s low P/E ratio and high dividend yield highlight its attractiveness, but attention to earnings stabilization and liquidity management is essential for sustaining performance.

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates in four segments: OPC Israel, CPV Group, ZIM, and Quantum. The company engages in the generation and supply of electricity and energy; development, construction, and management of renewable energy and conventional natural gas-fired power plants; manufacture of automobiles; and provision of container liner shipping services. As of December 31, 2021, the company had an installed capacity of approximately 610 MW; and operated a fleet of 118 vessels. The company was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. is a subsidiary of Ansonia Holdings Singapore B.V.

How the Company Makes Money

Kenon makes money through its investments in the energy and automotive sectors. A significant portion of its revenue comes from OPC Energy, which generates income by producing and selling electricity through its power plants. This includes long-term power purchase agreements that provide stable and predictable cash flows. Additionally, Kenon derives revenue from its stake in Qoros Automotive, which sells vehicles and automotive-related products. The performance of these businesses, along with strategic partnerships and market conditions, significantly influences Kenon's earnings.

Kenon Financial Statement Overview

Summary

Kenon shows strong growth in revenue and profitability metrics, with a solid return on equity. However, there are concerns regarding leverage and cash flow management, posing potential risks to financial health if not addressed.

Income Statement

Kenon shows strong revenue growth with a 7.37% increase in TTM revenue compared to the previous year. The company has a robust gross profit margin of 18.11% and a net profit margin of 22.89% in the TTM, indicating solid profitability. The EBIT margin has improved to 8.58%, but the EBITDA margin is exceptionally high at 48.55%, showing effective cost management. However, the previous year showed a negative net income, indicating some volatility in profitability.

Balance Sheet

The debt-to-equity ratio stands at 1.32, suggesting a moderate level of leverage. Return on equity is strong at 14.60%, highlighting effective use of equity to generate profits. The equity ratio is 28.32%, indicating a stable capital structure, though there's room for improvement in reducing liabilities. The increase in total debt over the years is a potential risk factor.

Cash Flow

Operating cash flow to net income ratio is 1.21, showing sufficient cash generation relative to earnings. However, free cash flow is negative in the TTM, indicating challenges in cash availability after investments. The volatility in free cash flow growth rates in recent years suggests potential instability in cash flow management.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
742.80M	691.80M	574.00M	487.76M	386.00M	373.47M
	Gross Profit
134.54M	119.46M	100.00M	98.35M	71.00M	86.30M
	EBIT
63.74M	42.56M	1.17B	1.19B	198.00M	42.57M
	EBITDA
360.68M	169.80M	-620.12M	80.93M	69.41M	74.66M
	Net Income Common Stockholders
170.02M	-235.98M	312.65M	930.27M	507.11M	-22.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
700.78M	912.63M	926.00M	474.77M	286.00M	147.15M
	Total Assets
5.98B	4.11B	3.77B	4.07B	2.48B	1.51B
	Total Debt
3.98B	1.59B	1.20B	1.24B	937.00M	628.25M
	Net Debt
3.31B	894.70M	664.00M	769.51M	651.00M	481.10M
	Total Liabilities
5.03B	2.04B	1.48B	1.79B	1.21B	796.59M
	Stockholders Equity
713.65M	1.20B	1.60B	1.79B	1.07B	623.35M
Cash Flow		Free Cash Flow
-245.50M	-55.33M	501.00M	7.84M	18.00M	50.99M
	Operating Cash Flow
205.62M	276.79M	771.00M	240.53M	92.00M	85.39M
	Investing Cash Flow
-255.15M	-432.24M	-203.00M	-205.45M	-222.00M	-4.98M
	Financing Cash Flow
8.84M	301.84M	-494.00M	146.58M	256.00M	-73.65M

Kenon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEN, the sentiment is Positive. The current price of 33.33 is above the 20-day moving average (MA) of 32.46, above the 50-day MA of 32.20, and above the 200-day MA of 28.71, indicating a bullish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 47.92 is Neutral, neither overbought nor oversold. The STOCH value of 37.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KEN.

Kenon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VST	77 Outperform	$40.15B	16.87	48.89%	0.86%	24.68%	103.48%
KEN	74 Outperform	$1.77B	2.99	1.16%	11.20%	8.60%	―
TLN	72 Outperform	$1.80B	11.70	51.92%	―	65.16%	73.21%
Sector *	65 Neutral	$11.78B	15.57	6.20%	4.58%	5.53%	-8.93%
NRG	63 Neutral	$19.84B	19.51	41.79%	1.71%	-1.72%	―
PAM	63 Neutral	$4.45B	5.43	22.11%	―	6.39%	120.40%
HE	54 Neutral	$1.69B	―	-68.17%	―	-4.21%	-760.85%