Kenon (KEN) AI Stock Analysis

• Market Cap: $1.81B
• Dividend Yield: 13.85%
• Average Volume (3M): 17.20K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 0.90
• Revenue Growth: 5.77%
• EPS Growth: N/A
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 77
• Industry: Independent Power Producers
• EPS (TTM): N/A
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 17,864
• 30 Day Avg. Volume: 17,202
• PEG Ratio: -0.09
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.55
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 17.22
• Enterprise Value/Ebitda: 2.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: $42.00 ▲(16.60%Upside)

Kenon's overall stock score is driven by its strong technical indicators and attractive valuation, despite challenges in financial stability and cash flow consistency. The bullish market momentum and undervaluation offer potential growth and income opportunities, while investors should be cautious of potential pullbacks due to overbought conditions.

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 revenue growth and a solid equity base, yet faces challenges in profitability and cash flow consistency. Healthy margins and leverage ratios are offset by fluctuations in Net Income and Free Cash Flow, indicating potential financial stability and liquidity risks.

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
	EBIT
47.51M	42.56M	1.17B	1.19B	198.00M
	EBITDA
233.96M	169.80M	-620.12M	80.93M	69.41M
	Net Income Common Stockholders
597.67M	-235.98M	312.65M	930.27M	507.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	912.63M	926.00M	474.77M	286.00M
	Total Assets
4.21B	4.11B	3.77B	4.07B	2.48B
	Total Debt
1.28B	1.59B	1.20B	1.24B	937.00M
	Net Debt
264.29M	894.70M	664.00M	769.51M	651.00M
	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: 36.02
• 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 36.02 is above the 20-day moving average (MA) of 35.17, above the 50-day MA of 32.08, and above the 200-day MA of 27.23, indicating a bullish trend. The MACD of 1.06 indicates Positive momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 23.09 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	$60.13B	27.79	46.29%	0.51%	49.22%	313.49%
KEN	76 Outperform	$1.81B	3.04	1.56%	13.85%	5.77%	―
NRG	71 Outperform	$29.73B	23.94	44.91%	1.16%	2.57%	-10.19%
Sector *	64 Neutral	$8.57B	10.35	4.24%	4.64%	4.07%	-13.04%
PAM	64 Neutral	$4.11B	7.79	16.31%	―	8.89%	24.01%
TLN	63 Neutral	$1.80B	29.28	29.32%	―	68.95%	-34.72%
HE	52 Neutral	$1.79B	―	-67.93%	―	-7.58%	-819.97%