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Keppel Corporation (KPELY)
OTHER OTC:KPELY
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Keppel
(OTC:KPELY)
Rating:73Outperform
Price Target:
$13.00
▲(18.07%Upside)
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.09B
Dividend Yield5.31%
Average Volume (3M)7.47K
Price to Earnings (P/E)14.3
Beta (1Y)0.48
Revenue Growth-4.78%
EPS Growth-77.14%
CountryUS
Employees5,249
SectorIndustrials
Sector Strength84
IndustryConglomerates
Share Statistics
EPS (TTM)N/A
Shares Outstanding910,278,900
10 Day Avg. Volume2,710
30 Day Avg. Volume7,470
Financial Highlights & Ratios
PEG Ratio-1.92
Price to Book (P/B)1.11
Price to Sales (P/S)0.00
P/FCF Ratio-29.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Keppel Business Overview & Revenue Model
Company DescriptionKeppel Corporation Limited, headquartered in Singapore, is a diversified global company operating in key sectors including offshore and marine, property, infrastructure, and asset management. The company designs and builds high-performance offshore rigs, builds and services sophisticated vessels, develops and manages residential and commercial properties, and provides solutions for sustainable urbanization. Its operations span across more than 20 countries, making it a significant player in the global market.
How the Company Makes MoneyKeppel Corporation makes money through a diverse range of business activities across its core sectors. In the offshore and marine sector, it generates revenue by designing, constructing, and repairing offshore rigs and vessels for the oil and gas industry. The property segment contributes through the development and management of residential, commercial, and mixed-use properties, primarily in Asia. The infrastructure division earns by providing environmental engineering solutions, energy, and logistics services. Additionally, the asset management arm generates income through investment management and fund administration services. Keppel leverages strategic partnerships and joint ventures to enhance its capabilities and expand market reach, further contributing to its earnings.
Keppel Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q4-2024)
| % Change Since: 14.81%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
Keppel's earnings call depicted a strong financial performance with significant growth in several segments, including Connectivity and Infrastructure. The company achieved substantial asset monetization and improved ROE. However, challenges remain with legacy O&M assets incurring losses and reduced earnings in the Real Estate segment. On balance, the highlights significantly outweigh the lowlights.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Keppel's net profit from continuing operations reached $1.06 billion in FY '24, a 5% increase from $1.02 billion in FY '23. Connectivity segment recorded a 45% earnings growth year-on-year. Asset management fees grew by 54% to $436 million, and funds under management rose from $55 billion to $88 billion.
Significant Asset Monetization
Keppel announced close to $7 billion in assets monetized since October 2020, with approximately $1.5 billion in 2024. Including the divestment of Keppel O&M, the total asset monetization to date is around $11.7 billion.
Improved Return on Equity
ROE from continuing operations improved to 10.1% in FY '24 from 7.9% in FY '22.
Infrastructure Segment Growth
Infrastructure earnings surged 4.9x from $137 million in FY '21 to $673 million in FY '24 due to strong recurring income.
Data Center and Connectivity Expansion
Connectivity earnings rose 2.5x from $74 million in FY '18 to $184 million in FY '24. Data center portfolio power capacity expanded 2.7x from 240 MW in 2018 to 650 MW in 2024.
Negative Updates
Legacy O&M Assets Loss
Legacy O&M assets and discontinued operations registered a net loss of $124 million in FY '24.
Real Estate Segment Challenges
Development and EPC earnings declined year-on-year, primarily due to decreased profits from property trading projects in China and Singapore.
Lower Fair Value Gains in Infrastructure
Infrastructure segment recorded lower fair value gains from sponsor stakes in private funds compared to the previous year.
Lower Divestment Gains
Divestment gains declined year-on-year due to fewer assets monetized in FY '24 as market conditions were not conducive.
Company Guidance
During the fiscal year 2024, Keppel achieved a net profit of $1.06 billion from continuing operations, indicating a 5% increase compared to the previous year, excluding impacts from legacy offshore and marine assets. Including these effects, the net profit was $940 million. The company reported a 45% year-on-year growth in earnings for its Connectivity segment and a 54% rise in asset management fees to $436 million. Keppel's funds under management surged to $88 billion, significantly up from $55 billion, driven by both organic and inorganic growth. The company also recorded a free cash inflow of $901 million, a substantial turnaround from a $384 million outflow the previous year. Return on equity improved to 10.1%, aligning with the company's asset-light strategy. Keppel continued its asset monetization journey, announcing close to $7 billion in assets monetized since October 2020, with $1.5 billion occurring in 2024, and setting an interim target of $10 to $12 billion by the end of 2026. Additionally, the company is focused on derisking its legacy offshore and marine assets, which included a carrying value of approximately $3.6 billion at the end of 2024. Keppel's restructuring efforts led to $70 million in recurring annual run rate cost savings, two years ahead of schedule, with further cost optimizations anticipated to yield an additional $50 million per annum by end 2026. The Board of Directors proposed a final cash dividend of $0.19 per share for FY '24, contributing to a total cash dividend of $0.34 per share for the year. Keppel's total shareholder return over the past three years was 34.8%, significantly higher than STI's 11.9%.Keppel Financial Statement Overview
Summary
Keppel shows robust operational efficiency with stable profit margins. However, volatility in net income and revenue growth, together with negative free cash flow, poses liquidity risks.Income Statement
Keppel shows a mixed performance with a consistent gross profit margin around 28% to 30% over the years. However, the net profit margin experienced significant volatility, peaking in 2023 due to a one-time income boost, but generally stable otherwise. Revenue growth was inconsistent, with a decline in 2021 and a slight recovery in 2023. EBIT and EBITDA margins remained relatively stable, indicating operational efficiency.72
Positive
Balance Sheet
Keppel maintains a moderate debt-to-equity ratio, fluctuating around 1.0, indicating balanced financial leverage. The company’s ROE is strong, particularly in 2023, due to high net income, but less impressive in other years. Equity ratio remains stable, showcasing a solid equity base relative to total assets, though slightly decreasing over time.65
Positive
Cash Flow
Cash flow performance presents concerns with negative free cash flow across most years, signaling potential liquidity issues. Operating cash flow to net income ratio demonstrates inconsistency, with negative ratios in some years, highlighting cash flow challenges. However, there is a positive trend in free cash flow to net income ratio, indicating some improvement in cash conversion.58
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.47B | 6.60B | 6.97B | 6.62B | 8.62B | 6.57B | Gross Profit |
| 1.86B | 1.86B | 1.96B | 1.45B | 2.02B | 1.98B | EBIT |
| 742.93M | 1.22B | 1.08B | 1.19B | 1.48B | 659.32M | EBITDA |
| 964.47M | 1.73B | 1.76B | 1.48B | 1.88B | 450.91M | Net Income Common Stockholders |
| 744.42M | 951.72M | 4.08B | 938.22M | 1.03B | -508.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.54B | 2.45B | 1.50B | 1.08B | 3.35B | 2.28B | Total Assets |
| 27.72B | 27.66B | 26.84B | 31.06B | 32.32B | 32.11B | Total Debt |
| 11.91B | 12.07B | 11.14B | 10.38B | 12.02B | 12.60B | Net Debt |
| 10.47B | 9.77B | 10.27B | 9.35B | 8.69B | 10.46B | Total Liabilities |
| 16.54B | 16.23B | 15.82B | 19.15B | 19.88B | 20.95B | Stockholders Equity |
| 10.89B | 11.16B | 10.31B | 11.58B | 12.06B | 10.73B |
| Cash Flow | Free Cash Flow | ||||
| -609.06M | -411.07M | -862.66M | -436.62M | -813.92M | -282.00M | Operating Cash Flow |
| 276.45M | 200.34M | 58.43M | 259.59M | -275.56M | 202.45M | Investing Cash Flow |
| -144.88M | 700.93M | -942.71M | -667.28M | 2.03B | -274.10M | Financing Cash Flow |
| 74.19M | 136.60M | 722.94M | -1.52B | -668.13M | 712.66M |
Keppel Technical Analysis
Positive
11.01
Price Trends
10.28
Positive
9.99
Positive
9.79
Positive
Market Momentum
0.28
Positive
51.70
Neutral
39.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPELY, the sentiment is Positive. The current price of 11.01 is above the 20-day moving average (MA) of 10.94, above the 50-day MA of 10.28, and above the 200-day MA of 9.79, indicating a bullish trend. The MACD of 0.28 indicates Positive momentum. The RSI at 51.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KPELY.
Keppel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $6.40B | 18.54 | 22.84% | 0.85% | -0.57% | 116.12% | |
80 Outperform | $142.55B | 25.48 | 33.56% | 2.04% | 6.30% | 0.81% | |
73 Outperform | $10.09B | 14.26 | 7.95% | 5.31% | -4.78% | -77.14% | |
68 Neutral | $3.27B | 12.49 | 9.63% | 3.25% | -25.50% | -45.13% | |
66 Neutral | $3.23B | 14.19 | 110.90% | 1.05% | -3.38% | 26.22% | |
66 Neutral | $4.44B | 12.06 | 5.34% | 6.22% | 4.17% | -11.81% | |
48 Neutral | $480.01M | ― | -4.98% | 15.67% | 6.77% | 9.95% |
* Industrials Sector Average
Performance Comparison
KPELY
Keppel
11.01
1.90
20.86%
CODI
Compass Diversified Holdings
6.38
-14.61
-69.60%
GFF
Griffon
68.59
3.04
4.64%
HON
Honeywell International
221.80
10.36
4.90%
MDU
Mdu Resources Group
15.99
2.17
15.70%
VMI
Valmont
318.63
48.05
17.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.