Kenon (KEN) AI Stock Analysis

• Market Cap: $2.97B
• Dividend Yield: 8.36%
• Average Volume (3M): 9.37K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.74
• Revenue Growth: 5.51%
• EPS Growth: N/A
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.10
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 10,842
• 30 Day Avg. Volume: 9,367
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 2.39
• P/FCF Ratio: -23.71
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 4.86
• Enterprise Value/Gross Profit: 28.38
• Enterprise Value/Ebitda: 21.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $54.00 ▲(7.96% Upside)

Kenon's strong valuation and technical momentum are the primary drivers of its high score. The stock is attractively priced with a low P/E ratio and high dividend yield, appealing to value investors. While financial performance shows strong profitability, the increasing leverage and cash flow challenges are risks to monitor.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Kenon's expanding market presence and successful execution of its business strategy, particularly in renewable energy.

Strategic Acquisitions

Acquiring full ownership of CPV Shore enhances Kenon's control over strategic assets, potentially improving operational efficiency and financial performance.

Project Expansion

The Basin Ranch Project expansion strengthens Kenon's infrastructure in the U.S., supporting long-term growth in energy production and market competitiveness.

Negative Factors

Increasing Leverage

Higher leverage can increase financial risk, potentially impacting Kenon's ability to invest in new projects and manage economic downturns effectively.

Cash Flow Challenges

Negative free cash flow growth suggests liquidity issues, which could limit Kenon's capacity to fund operations and invest in future growth opportunities.

Operational Margin Volatility

Volatile EBIT margins indicate potential operational inefficiencies, which could affect Kenon's profitability and competitive position in the energy sector.

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings (KEN) is a global investment company that focuses primarily on energy and infrastructure sectors. The company invests in various projects and companies that provide innovative solutions in energy generation and transportation, with a significant emphasis on clean energy technologies. Its core services include the development of energy projects, management of investments in renewable energy, and strategic partnerships aimed at enhancing sustainable practices across industries.

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 demonstrates strong profitability with a high net profit margin of 63.80% and robust revenue growth. However, increasing leverage and challenges in free cash flow generation pose potential risks.

Income Statement

Kenon shows strong revenue growth with a TTM increase of 1.97%. The net profit margin is exceptionally high at 63.80% in the TTM, indicating strong profitability. However, the gross profit margin has decreased slightly over time, and EBIT margins have shown volatility, suggesting some operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.02 in the TTM, indicating higher leverage, which could pose a risk. However, the return on equity remains robust at 34.33%, showcasing effective use of equity. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Kenon's cash flow situation is mixed. The operating cash flow to net income ratio is healthy at 0.95, but free cash flow has shown negative growth, and the free cash flow to net income ratio is low at 6.72%. This suggests potential liquidity issues and challenges in generating free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	775.30M	751.30M	691.80M	574.00M	487.76M	386.00M
Gross Profit	132.79M	143.79M	119.46M	100.00M	98.35M	71.00M
EBITDA	172.42M	233.96M	224.40M	-620.12M	80.93M	69.41M
Net Income	494.67M	597.67M	-235.98M	312.65M	930.27M	507.11M
Balance Sheet
Total Assets	4.34B	4.21B	4.11B	3.77B	4.07B	2.48B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.16B	912.63M	926.00M	474.77M	286.00M
Total Debt	1.42B	1.28B	1.59B	1.20B	1.24B	937.00M
Total Liabilities	1.74B	1.55B	2.04B	1.48B	1.79B	1.21B
Stockholders Equity	1.39B	1.61B	1.20B	1.60B	1.79B	1.07B
Cash Flow
Free Cash Flow	17.41M	-75.59M	-55.33M	501.00M	7.84M	18.00M
Operating Cash Flow	259.08M	265.08M	276.79M	771.00M	240.53M	92.00M
Investing Cash Flow	7.85M	135.85M	-432.24M	-203.00M	-205.45M	-222.00M
Financing Cash Flow	50.91M	-84.08M	324.58M	-494.00M	146.58M	256.00M

Kenon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.02
• 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 50.02 is below the 20-day moving average (MA) of 54.94, above the 50-day MA of 49.85, and above the 200-day MA of 39.64, indicating a bullish trend. The MACD of 2.00 indicates Positive momentum. The RSI at 64.89 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 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
KEN	75 Outperform	$2.97B	6.08	-6.91%	8.36%	5.51%	―
PAM	74 Outperform	$5.00B	10.24	10.44%	―	6.37%	7.35%
NWN	73 Outperform	$2.03B	19.44	7.20%	4.02%	11.27%	20.04%
AVA	68 Neutral	$3.34B	17.43	7.31%	4.75%	2.14%	-6.51%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$2.72B	26.24	7.64%	―	42.09%	219.69%
HE	52 Neutral	$2.02B	15.45	7.14%	―	-16.62%	―

Kenon Corporate Events

Kenon’s OPC Energy to Acquire Remaining Stake in CPV Shore

On October 29, 2025, Kenon Holdings Ltd.’s subsidiary OPC Energy Ltd. announced an agreement to acquire the remaining 11% stake in CPV Shore Holdings, LLC, a 725 MW power plant in New Jersey. This acquisition will lead to the consolidation of the project in OPC’s financial statements, potentially impacting its financial reporting. The transaction is subject to regulatory approval and is expected to be completed in the coming months.

Kenon Subsidiary OPC Energy Advances Basin Ranch Project with Financial Closing and Ownership Consolidation

On October 29, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy Ltd., announced the financial closing and commencement of construction for the Basin Ranch Project, a 1.35 GW gas-fired power plant in Texas. OPC also revealed an agreement to acquire the remaining 30% interest in the project from GE Vernova, consolidating its ownership. The financial arrangements include a $1.1 billion subsidized loan and a $1.4 billion EPC and equipment agreement. The acquisition is expected to close by February 28, 2026, subject to conditions, and will lead to the consolidation of the project in OPC’s financial statements, impacting its financial and operational positioning.

Kenon’s OPC Energy Secures $1.1 Billion Loan for Basin Ranch Project

On October 28, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy Ltd., announced the execution of a credit agreement for the Basin Ranch Project in Texas. The agreement involves a $1.1 billion loan from the Texas Energy Fund to finance part of the natural gas project’s costs, which has a planned capacity of 1.35 GW. The loan, secured by pledges on the project, carries a 3% interest rate and matures in 2045. This development is significant for Kenon as it strengthens its position in the energy sector and supports the expansion of its energy infrastructure in the U.S., potentially impacting stakeholders by enhancing project financing and execution capabilities.

Kenon’s OPC Secures $300M Financing for Texas Gas Project

On October 23, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy Ltd., announced a $300 million financing agreement with Bank Leumi le-Israel Ltd for the Basin Ranch natural gas project in Texas. This project, with a capacity of 1.35 GW, is 70% owned by CPV Group LP, a subsidiary of OPC, and 30% by GE Vernova. The financing arrangement includes a loan with a SOFR-based interest rate and specific covenants, and is contingent upon the closing of a TEF Loan Agreement. The successful financing is expected to bolster OPC’s position in the energy sector, although it is subject to various conditions and risks.

Kenon Holdings Reports Strong Q2 2025 Results and New Project Approval

Kenon Holdings Ltd. reported its Q2 2025 financial results, highlighting significant financial activities and operational updates. OPC, a subsidiary of Kenon, raised a total of $506 million through share offerings in June and August 2025. The company’s Adjusted EBITDA increased to $90 million in Q2 2025 from $66 million in Q2 2024, indicating improved financial performance. Additionally, the Israeli Government approved the construction of the Hadera 2 project, which is expected to have a capacity of 850MW, potentially enhancing OPC’s future operational capabilities.

Kenon’s OPC Energy Announces $266 Million Private Placement

On August 14, 2025, Kenon Holdings’ subsidiary, OPC Energy Ltd., announced a private placement of 18,750,000 ordinary shares to institutional investors in Israel, raising approximately $266 million. The proceeds are intended for OPC’s business growth and development. This move, subject to approval by the Tel Aviv Stock Exchange, will result in Kenon holding about 49.8% of OPC’s shares, reflecting a strategic effort to bolster OPC’s financial resources and market position.

Kenon Holdings Reports Strong Financial Growth for OPC Energy

On August 13, 2025, Kenon Holdings Ltd. announced that its subsidiary, OPC Energy Ltd., released its periodic report for the six-month and three-month periods ended June 30, 2025. The report, submitted to the Israeli Securities Authority and the Tel Aviv Stock Exchange, highlights significant financial growth, with a notable increase in EBITDA and net income compared to the previous year. This financial performance underscores OPC’s strengthened position in the energy market, particularly in Israel and the U.S., despite ongoing challenges such as regulatory risks and market volatility.

Kenon’s OPC Energy Secures Approval for Hadera 2 Power Plant Construction

On August 11, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy, announced that the Israeli Government has approved the construction of a new natural gas-fired power plant, Hadera 2, near its existing facility in Hadera. This decision comes after a previous rejection in April 2024, which led OPC to file a petition with the Israeli High Court of Justice. The project is expected to have a capacity of approximately 850 MW and an estimated construction cost of NIS 4.5 billion to NIS 5 billion (around $1.3 billion to $1.5 billion). This development marks a significant step for OPC Energy in expanding its power generation capabilities, potentially strengthening its position in the energy market.