Kenon (KEN) AI Stock Analysis

• Market Cap: $2.32B
• Dividend Yield: 10.78%
• Average Volume (3M): 21.05K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.94
• Revenue Growth: 5.77%
• EPS Growth: N/A
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 74
• Industry: Independent Power Producers
• EPS (TTM): N/A
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 19,574
• 30 Day Avg. Volume: 21,052
• PEG Ratio: 6.59
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.86
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 18.39
• Enterprise Value/Ebitda: 2.38
• 1Y Price Target: $42.00
• Price Target Upside: -6.23% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: $47.00 ▲(4.93%Upside)

Kenon's strong technical momentum and attractive valuation are the primary drivers of its overall score. Despite financial performance concerns regarding profitability and cash flow stability, the stock's low P/E ratio and high dividend yield make it appealing. Investors should be cautious of the overbought technical indicators, which could lead to short-term volatility.

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings Ltd. (KEN) is a holding company that operates primarily in the energy and transportation sectors. It manages a portfolio of businesses with a focus on sustainable and innovative solutions. The company's core investments include interests in power generation, particularly through its subsidiary IC Power, as well as investments in the shipping industry through its subsidiary ZIM Integrated Shipping Services, a global container shipping company.

How the Company Makes Money

Kenon Holdings Ltd. generates revenue primarily through its equity investments in its subsidiaries, which operate in the power generation and shipping industries. The company earns money by receiving dividends and profits from these subsidiaries. IC Power, as part of Kenon's portfolio, earns revenue by generating and selling electricity in various markets. ZIM Integrated Shipping Services contributes to Kenon's revenue through its operations in the global shipping industry by providing container shipping services, which include freight transportation, logistics services, and related activities. Kenon's earnings are significantly influenced by the operational performance and market conditions affecting its subsidiaries, as well as any strategic partnerships or expansions undertaken by these entities.

Kenon Financial Statement Overview

Summary

Kenon demonstrates strong revenue growth and a solid equity base, but faces challenges in profitability and cash flow consistency. While the company has maintained healthy margins and leverage ratios, fluctuations in Net Income and Free Cash Flow indicate potential risks in financial stability and liquidity. Continued focus on stabilizing earnings and managing capital expenditures will be crucial for long-term financial health.

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: 44.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 44.79 is above the 20-day moving average (MA) of 41.35, above the 50-day MA of 36.85, and above the 200-day MA of 29.13, indicating a bullish trend. The MACD of 2.59 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 70.11 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	79 Outperform	$2.32B	3.90	1.56%	10.78%	5.77%	―
VST	73 Outperform	$66.11B	30.56	46.29%	0.47%	49.22%	313.49%
NRG	71 Outperform	$29.53B	23.79	44.91%	1.20%	2.57%	-10.19%
PAM	63 Neutral	$4.01B	7.65	16.31%	―	8.89%	24.01%
TLN	63 Neutral	$12.83B	27.95	29.32%	―	68.95%	-34.72%
Sector *	57 Neutral	AU$879.55M	4.29	-2.37%	5.50%	21.41%	-109.15%
HE	44 Neutral	$1.80B	―	-67.93%	―	-7.58%	-819.97%