Keppel (KPELY) AI Stock Analysis

• Market Cap: $13.80B
• Dividend Yield: 3.33%
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.38
• Revenue Growth: 1.15%
• EPS Growth: 36.91%
• Country: US
• Employees: 5,249
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.37
• Shares Outstanding: 910,278,900
• 10 Day Avg. Volume: 1,289
• 30 Day Avg. Volume: 1,876
• PEG Ratio: -0.16
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 1.81
• P/FCF Ratio: -28.99
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 6.20
• Enterprise Value/Gross Profit: 19.89
• Enterprise Value/Ebitda: 31.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.75
• Revenue Forecast (FY): $5.23B

• Rating: 72 Outperform
• Price Target: $17.00 ▲(8.21% Upside)

Keppel's strong technical indicators and positive earnings call sentiment are significant strengths, supporting a solid stock score. Financial performance shows stability but with some risks, while valuation is attractive. Challenges in cash flow and certain business segments are notable but not overriding.

Positive Factors

Strong Net Profit Growth

A 25% increase in net profit indicates robust financial health and operational efficiency, enhancing Keppel's ability to invest in growth and innovation.

Asset Monetization Success

Successful asset monetization supports capital-efficient growth, allowing Keppel to reinvest in strategic areas and reduce financial leverage.

Infrastructure Division Growth

Growth in the Infrastructure division underscores Keppel's strength in sustainable urban solutions, a key area for future expansion.

Negative Factors

Non-Core Portfolio Losses

Losses in the non-core portfolio highlight challenges in asset management, potentially diverting resources from core growth initiatives.

Connectivity Segment Decline

Decline in the Connectivity segment reflects competitive pressures, impacting Keppel's ability to maintain profitability in this area.

Challenges in Senior Living Business

Ongoing losses in the senior living business suggest difficulties in achieving profitability, which may strain resources and strategic focus.

Keppel Business Overview & Revenue Model

Company Description

Keppel Corporation Limited, an investment holding company, engages in the offshore and marine, property, infrastructure, and investment businesses in Singapore, China, Hong Kong, Brazil, and internationally. It constructs, fabricates, and repairs offshore production facilities and drilling rigs, power barges, specialized vessels, and other offshore production facilities; engineers, constructs, and fabricates platforms for the oil and gas sector; undertakes shipyard works and other general business activities; and procures equipment and materials for the construction of offshore production facilities. The company is also involved in the provision of offshore and marine-related, as well as self-elevating platforms owning and leasing services; sourcing, fabricating, and supply of steel components; ship repairing, shipbuilding, and conversion activities; ship owning business; chartering of ships, barges, and boats with the crew; property investment, management, and development activities; fund management business; golf club operations; hotel ownership and operation; development of residential properties; procurement of equipment and materials for the construction of offshore production facilities; development of district heating and cooling systems; power generation and supply, and general wholesale trade businesses; purchase and sale of gaseous fuels; distribution of IT products and retail sale of telecommunication products; and provision of fixed and other telecommunications services. In addition, it offers heavy-lift equipment and related services; project management and procurement, towage, financial, real estate investment trust management, and logistics and warehousing; and environmental infrastructure and solid waste treatment services, as well as develops renewable energy projects. The company was incorporated in 1968 and is based in Singapore.

How the Company Makes Money

Keppel generates revenue primarily through its Offshore & Marine segment, which includes the construction and repair of offshore rigs, specialized vessels, and the provision of related services. Additionally, the Infrastructure segment contributes through the development and management of power plants, data centers, and environmental solutions. The Property segment earns revenue from residential and commercial property development and investment, while the Investments segment includes income from strategic partnerships and investments in various sectors. Key revenue streams are bolstered by long-term contracts with clients, strategic collaborations with other firms in the industry, and a focus on sustainability and innovation, which positions Keppel to capitalize on emerging opportunities in the market.

Keppel Financial Statement Overview

Summary

Keppel shows stable profit margins and operational efficiency, but faces volatility in net income and revenue growth. The balance sheet is balanced but has leverage risks, and cash flow challenges indicate potential liquidity constraints.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	6.60B	6.97B	6.62B	6.61B	6.57B
Gross Profit	953.32M	1.86B	1.96B	1.45B	1.53B	1.98B
EBITDA	597.39M	1.73B	1.76B	541.07M	525.77M	450.91M
Net Income	383.39M	951.72M	4.08B	938.22M	1.03B	-508.09M
Balance Sheet
Total Assets	27.72B	27.66B	26.84B	31.06B	32.32B	32.11B
Cash, Cash Equivalents and Short-Term Investments	1.94B	2.45B	1.50B	1.08B	3.35B	2.28B
Total Debt	11.69B	12.07B	11.14B	10.38B	12.02B	12.60B
Total Liabilities	16.75B	16.23B	15.82B	19.15B	19.88B	20.95B
Stockholders Equity	10.62B	11.16B	10.31B	11.58B	12.06B	10.73B
Cash Flow
Free Cash Flow	-9.92M	-411.07M	-862.66M	-436.62M	-813.92M	-282.00M
Operating Cash Flow	219.38M	200.34M	58.43M	259.59M	-275.56M	202.45M
Investing Cash Flow	-484.40M	700.93M	-942.71M	-667.28M	2.03B	-274.10M
Financing Cash Flow	-147.05M	136.60M	722.94M	-1.52B	-668.13M	712.66M

Keppel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 15.71 is above the 20-day moving average (MA) of 15.60, above the 50-day MA of 14.91, and above the 200-day MA of 12.15, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 88.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KPELY.

Keppel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	79 Outperform	$121.47B	20.16	35.85%	2.29%	7.48%	9.55%
KPELY	72 Outperform	$13.80B	17.97	8.67%	3.33%	1.15%	36.91%
VMI	71 Outperform	$8.17B	35.70	14.90%	0.64%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	59 Neutral	$88.97B	26.76	73.38%	1.74%	-13.09%	-20.63%

Keppel Corporate Events

Keppel Corp’s Strong H1 2025 Earnings and Strategic Moves

Keppel Corporation Limited’s recent earnings call for the first half of 2025 painted a picture of robust financial health, marked by impressive growth in net profit and strategic asset monetization. The company celebrated notable achievements, such as a strategic partnership with the Asian Infrastructure Investment Bank (AIIB) and significant cost savings. However, challenges persist, particularly in the non-core portfolio and the competitive telco market impacting the Connectivity segment.

Keppel Corporation Reports Strong Profit Growth in 1H 2025

Keppel Corporation Limited is a global asset manager and operator based in Singapore, specializing in infrastructure, real estate, and connectivity solutions with a strong focus on sustainability. In its latest earnings report for the first half of 2025, Keppel Corporation announced a 25% year-on-year increase in net profit, reaching $431 million, driven by robust infrastructure earnings and improved real estate contributions. The company’s recurring income also rose by 7% to $444 million, and its annualized return on equity improved to 15.4% from 13.2% in the previous year. Keppel’s strategic focus on asset monetization and divestment of non-core assets has resulted in $915 million in asset sales so far in 2025, with an additional $500 million in potential divestments under negotiation. The company has also declared an interim cash dividend of 15.0 cents per share and announced a $500 million share buyback program. Looking ahead, Keppel’s management remains optimistic about achieving its Vision 2030 goals, emphasizing growth in fast-growing sectors and continued asset monetization to unlock capital for future growth and shareholder rewards.