Kenon (KEN) AI Stock Analysis

• Market Cap: $3.20B
• Dividend Yield: 7.81%
• Average Volume (3M): 10.21K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.77
• Revenue Growth: 8.15%
• EPS Growth: 180.89%
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.48
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 9,558
• 30 Day Avg. Volume: 10,210
• 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: 0.85
• Enterprise Value/Revenue: 3.41
• Enterprise Value/Gross Profit: 18.76
• Enterprise Value/Ebitda: 16.84
• 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: 73 Outperform
• Price Target: $68.00 ▲(15.57% Upside)

Kenon's strong valuation and technical indicators drive a positive outlook, supported by solid financial performance. The low P/E ratio and high dividend yield make the stock attractive, while the upward price trend indicates strong market momentum. However, increased leverage and potential overbought conditions warrant cautious optimism.

Positive Factors

Cash Generation Ability

Enhanced cash generation supports Kenon's ability to reinvest in growth opportunities and maintain financial flexibility, crucial for long-term sustainability.

Strategic Expansion

The Basin Ranch Project expansion strengthens Kenon's market position in the U.S. energy sector, enhancing its growth prospects and competitive edge.

Revenue Growth

Consistent revenue growth indicates a stable demand for Kenon's offerings, supporting long-term business viability and market expansion.

Negative Factors

Rising Debt Levels

Increasing debt levels could strain Kenon's cash flow and limit its financial flexibility, posing risks to its long-term financial health.

Decreasing Gross Profit Margin

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting Kenon's profitability and operational efficiency.

Potential Reinvestment Needs

Low free cash flow to net income ratio suggests potential reinvestment needs, which could limit available cash for other strategic initiatives.

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings (KEN) is a diversified investment company focused on various sectors, including energy, technology, and logistics. The company is primarily engaged in developing and managing innovative projects, with a particular emphasis on clean energy solutions. Kenon is known for its strategic investments in high-growth industries, leveraging advanced technologies to drive operational efficiency and sustainability.

How the Company Makes Money

Kenon generates revenue through multiple key streams, including its investments in clean energy projects, which produce energy sold to utility companies and other consumers. The company also earns income from its stakes in technology firms that develop software and hardware solutions for various industries. Additionally, Kenon has significant partnerships with leading companies in the energy sector, allowing for shared resources and joint ventures that further enhance its revenue capabilities. By focusing on sectors poised for growth and sustainability, Kenon positions itself to capitalize on emerging market trends and demands.

Kenon Financial Statement Overview

Summary

Kenon demonstrates solid financial performance with strong profitability and improving cash flow metrics. While leverage has increased, the company maintains a stable equity position. Continued focus on revenue growth and operational efficiency will be crucial to sustain financial health.

Income Statement

Kenon shows a moderate revenue growth rate of 3.61% TTM, with a strong net profit margin of 63.80%. However, the gross profit margin has slightly decreased compared to the previous year. The EBIT and EBITDA margins indicate stable operational efficiency, though EBIT margin has declined from the previous year.

Balance Sheet

The debt-to-equity ratio of 1.02 TTM suggests a balanced leverage position, though it has increased from the previous year, indicating rising debt levels. Return on equity remains strong at 34.33%, reflecting effective use of equity capital. The equity ratio is stable, showing a solid asset base.

Cash Flow

Free cash flow has significantly improved with a growth rate of 763.75% TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is close to 1, suggesting efficient cash conversion. However, the free cash flow to net income ratio is relatively low, indicating potential reinvestment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	803.30M	751.30M	691.80M	574.00M	487.76M	386.00M
Gross Profit	145.79M	143.79M	119.46M	100.00M	98.35M	71.00M
EBITDA	162.42M	233.96M	224.40M	-620.12M	80.93M	69.41M
Net Income	476.67M	597.67M	-235.98M	312.65M	930.27M	507.11M
Balance Sheet
Total Assets	4.69B	4.21B	4.11B	3.77B	4.07B	2.48B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.16B	912.63M	926.00M	474.77M	286.00M
Total Debt	1.38B	1.28B	1.59B	1.20B	1.24B	937.00M
Total Liabilities	1.75B	1.55B	2.04B	1.48B	1.79B	1.21B
Stockholders Equity	1.50B	1.61B	1.20B	1.60B	1.79B	1.07B
Cash Flow
Free Cash Flow	150.41M	-75.59M	-55.33M	501.00M	7.84M	18.00M
Operating Cash Flow	233.08M	265.08M	276.79M	771.00M	240.53M	92.00M
Investing Cash Flow	110.85M	135.85M	-432.24M	-203.00M	-205.45M	-222.00M
Financing Cash Flow	170.91M	-84.08M	324.58M	-494.00M	146.58M	256.00M

Kenon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.84
• 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 58.84 is below the 20-day moving average (MA) of 59.94, above the 50-day MA of 55.04, and above the 200-day MA of 42.13, indicating a bullish trend. The MACD of 1.91 indicates Positive momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 48.08 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
AVA	77 Outperform	$3.13B	16.35	7.31%	5.09%	2.14%	-6.51%
PAM	74 Outperform	$5.14B	13.69	10.44%	―	6.37%	7.35%
NWN	73 Outperform	$1.95B	18.66	7.20%	4.14%	11.27%	20.04%
KEN	73 Outperform	$3.20B	6.78	-7.86%	7.81%	8.15%	180.89%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
RNW	61 Neutral	$1.89B	19.10	7.64%	―	42.09%	219.69%
HE	52 Neutral	$2.04B	15.77	7.14%	―	-16.62%	―

Kenon Corporate Events

Kenon Holdings Reports Strong Q3 2025 Results and Strategic Developments

Kenon Holdings Ltd. reported its financial results for the third quarter of 2025, highlighting significant developments and financial achievements. In November 2025, Kenon sold a portion of its OPC shares, generating $100 million, while OPC itself issued new shares and bonds, raising substantial capital. Additionally, OPC announced the commencement of construction on the Basin Ranch Project in Texas, a major gas-fired power plant, and completed acquisitions to consolidate its interests in key projects. Financially, OPC demonstrated robust growth with a net profit of $69 million for Q3 2025, a significant increase from the previous year, driven by higher revenues and improved profitability.

Kenon Subsidiary OPC Energy Announces $140 Million Bond Offering

On November 26, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy Ltd., announced a bond offering of approximately NIS 460 million ($140 million) in Series D Bonds to be listed on the Tel Aviv Stock Exchange. The offering includes a preliminary phase for institutional investors and a retail offering in Israel, with institutional orders reaching approximately NIS 850 million ($260 million). The proceeds are intended primarily for refinancing existing debt and other business purposes, subject to necessary approvals and updated ratings.

Kenon Holdings Announces OPC Energy Share Placement and Sale

On November 20, 2025, Kenon Holdings Ltd. announced that its subsidiary, OPC Energy Ltd., will conduct a private placement of 5,529,322 ordinary shares to institutional investors in Israel, aiming to raise approximately $100 million. Additionally, Kenon plans to sell a small portion of its OPC shares, amounting to 5,422,648 shares, to institutional investors, also for approximately $100 million. These transactions are expected to adjust Kenon’s ownership in OPC to about 47%. The private placement is contingent upon approval from the Tel Aviv Stock Exchange, and the sale is anticipated to be completed on the same day.

Kenon Holdings Reports Strong Financial Growth Amidst Strategic Expansion

On November 19, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy Ltd., released its periodic report for the nine-month and three-month periods ending September 30, 2025. The report highlighted significant financial growth, with a notable increase in EBITDA and net income compared to the previous year. This financial performance underscores OPC’s strategic positioning in the energy sector, particularly in the U.S. and Israel, and reflects the company’s ongoing development projects and market expansion efforts. The report also discussed various risks and uncertainties that could impact future operations, including regulatory changes and geopolitical factors.

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.