Kenon (KEN) AI Stock Analysis

• Market Cap: $2.43B
• Dividend Yield: 10.28%
• Average Volume (3M): 14.01K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.94
• Revenue Growth: 5.51%
• EPS Growth: N/A
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 63
• Industry: Independent Power Producers
• EPS (TTM): 0.10
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 10,269
• 30 Day Avg. Volume: 14,009
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 5.02
• Enterprise Value/Gross Profit: 26.58
• Enterprise Value/Ebitda: 12.19
• 1Y Price Target: $53.00
• Price Target Upside: 13.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: $53.00 ▲(13.51% Upside)

Kenon's overall score reflects strong valuation appeal and positive technical indicators, despite financial performance concerns. The low P/E ratio and high dividend yield are significant positive factors, while the overbought technical indicators suggest caution. The company's financial health is marked by revenue growth but hampered by inconsistent profitability and cash flow.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Kenon's expanding market presence and effective business model in the energy sector, enhancing long-term prospects.

Equity Position

A strong equity position provides financial stability and flexibility, supporting future investments and growth initiatives in the energy sector.

Operating Cash Flow

Robust operating cash flow ensures Kenon can sustain operations and invest in growth opportunities, critical for long-term success in infrastructure projects.

Negative Factors

Profitability Volatility

Inconsistent profitability can hinder strategic planning and investment capacity, posing risks to Kenon's long-term financial health and growth trajectory.

Free Cash Flow Challenges

Negative free cash flow limits Kenon's ability to fund new projects without external financing, impacting its financial flexibility and growth potential.

Net Income Fluctuations

Fluctuating net income reflects potential operational inefficiencies or market challenges, affecting investor confidence and strategic execution.

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 generates revenue through multiple channels including its investments in energy projects, particularly in the renewable energy sector such as solar and wind. Key revenue streams come from power generation, where the company earns income by selling electricity produced from its projects. Additionally, Kenon benefits from management fees charged for overseeing its investments and partnerships in infrastructure projects. Strategic collaborations with other firms in the energy space also contribute to its earnings, driving growth through shared expertise and resources.

Kenon Financial Statement Overview

Summary

Kenon shows strong revenue growth and a solid equity position, but faces challenges with profitability and cash flow consistency. Volatility in Net Income and Free Cash Flow raises concerns about financial stability and liquidity.

Income Statement

Kenon has demonstrated strong revenue growth, with a notable increase in Total Revenue from 2019 to 2024. The Gross Profit Margin has remained healthy, ranging from approximately 14% to 19% over the years. However, the company shows volatility in Net Income, with significant fluctuations, including a negative Net Income in 2023. The EBIT and EBITDA margins have shown improvement, but the inconsistency in Net Income indicates potential profitability issues.

Balance Sheet

Kenon's Balance Sheet reflects a strong equity position with a steady increase in Stockholders' Equity over time. The Debt-to-Equity Ratio has been maintained at a reasonable level, reflecting moderate leverage. However, the Equity Ratio shows a slight decline, indicating an increase in liabilities relative to assets. The Return on Equity has fluctuated significantly due to variations in Net Income, pointing to potential risks in financial stability.

Cash Flow

The Operating Cash Flow has been robust, especially in recent years, supporting the company's operations. However, Free Cash Flow has been negative in several years, indicating high capital expenditures relative to cash generated from operations. The Free Cash Flow to Net Income Ratio highlights this challenge, pointing to potential liquidity concerns. The company has shown a mix of positive and negative Free Cash Flow growth rates, reflecting cash flow volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	751.30M	691.80M	574.00M	487.76M	386.00M
Gross Profit	143.79M	119.46M	100.00M	98.35M	71.00M
EBITDA	233.96M	169.80M	-620.12M	80.93M	69.41M
Net Income	597.67M	-235.98M	312.65M	930.27M	507.11M
Balance Sheet
Total Assets	4.21B	4.11B	3.77B	4.07B	2.48B
Cash, Cash Equivalents and Short-Term Investments	1.16B	912.63M	926.00M	474.77M	286.00M
Total Debt	1.28B	1.59B	1.20B	1.24B	937.00M
Total Liabilities	1.55B	2.04B	1.48B	1.79B	1.21B
Stockholders Equity	1.61B	1.20B	1.60B	1.79B	1.07B
Cash Flow
Free Cash Flow	-75.59M	-55.33M	501.00M	7.84M	18.00M
Operating Cash Flow	265.08M	276.79M	771.00M	240.53M	92.00M
Investing Cash Flow	135.85M	-432.24M	-203.00M	-205.45M	-222.00M
Financing Cash Flow	-84.08M	324.58M	-494.00M	146.58M	256.00M

Kenon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 46.69 is above the 20-day moving average (MA) of 45.31, above the 50-day MA of 45.54, and above the 200-day MA of 33.70, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 58.58 is Neutral, neither overbought nor oversold. The STOCH value of 80.82 is Negative, 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	$71.05B	33.27	45.85%	0.42%	46.90%	388.66%
KEN	75 Outperform	$2.43B	4.97	-6.91%	10.28%	5.51%	―
Sector *	66 Neutral	$17.58B	18.09	5.60%	3.63%	6.62%	11.55%
TLN	64 Neutral	$18.32B	114.93	9.95%	―	125.17%	-74.67%
PAM	63 Neutral	$3.38B	6.96	14.22%	―	6.57%	38.25%
HE	58 Neutral	$2.09B	―	-1.53%	―	-11.75%	96.86%
NRG	58 Neutral	$31.89B	69.76	17.66%	1.05%	2.09%	-74.13%