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Keppel Corporation (KPELY)
OTHER OTC:KPELY
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Keppel
(OTC:KPELY)
Rating:74Outperform
Price Target:
$14.50
▲(9.52% Upside)
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.55B
Dividend Yield3.96%
Average Volume (3M)3.84K
Price to Earnings (P/E)15.7
Beta (1Y)0.49
Revenue Growth1.15%
EPS Growth36.91%
CountryUS
Employees5,249
SectorIndustrials
Sector Strength83
IndustryConglomerates
Share Statistics
EPS (TTM)0.37
Shares Outstanding910,278,900
10 Day Avg. Volume4,374
30 Day Avg. Volume3,837
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue2.93
Enterprise Value/Gross Profit10.20
Enterprise Value/Ebitda19.66
Forecast
1Y Price Target
$14.50Price Target Upside9.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Keppel Business Overview & Revenue Model
Company DescriptionKeppel Corporation Limited (KPELY) is a Singapore-based multinational company with a diversified portfolio spanning various sectors including offshore and marine, property, infrastructure, and investments. The company is known for its innovative solutions in the energy and environmental sectors, as well as its development of residential and commercial properties. Keppel's core services include rig building, ship repair, and marine engineering, alongside the development and management of sustainable urban solutions.
How the Company Makes MoneyKeppel makes money through several key revenue streams. The offshore and marine segment generates income primarily from the construction and repair of rigs and vessels, as well as providing engineering solutions for the oil and gas industry. The property division contributes through the sale and rental of residential and commercial properties, both locally and internationally. Infrastructure projects, such as power and environmental services, also provide revenue through long-term contracts and partnerships. Additionally, Keppel engages in strategic investments which yield returns through dividends and capital appreciation. The company benefits from strategic alliances and partnerships in various sectors, enhancing its market reach and operational capabilities.
Keppel Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 6.60%|
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
Keppel Ltd's earnings call for the first half of 2025 demonstrated strong financial performance with significant growth in net profit and asset monetisation. Notable achievements include a strategic partnership with AIIB and substantial cost savings. However, challenges remain with losses in the non-core portfolio and a competitive telco market affecting the Connectivity segment.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Keppel's net profit surged by 25% year-on-year to $431 million for the New Keppel, driven by robust infrastructure earnings and improved contributions from real estate. Additionally, all-in net profit for the first half of 2025 rose 24% year-on-year to $378 million.
Asset Monetisation Progress
Keppel announced $915 million in divestments year-to-date, bringing total asset monetisation to $7.8 billion since October 2020. This includes $477 million from real estate assets and investments in India and Vietnam.
Infrastructure Division Growth
The Infrastructure division's net profit rose 8% year-on-year to $333 million, and EBITDA grew 7% to $405 million despite softer spark spreads.
Significant Cost Savings
Project Lean achieved $88 million in recurring annual run-rate cost savings, advancing towards the target of $120 million per annum by end 2026.
Strategic Partnerships and Rankings
Keppel was ranked as the fourth largest infrastructure manager in Asia Pacific and 23rd globally by assets under management, and formed a strategic partnership with AIIB to mobilize up to USD 1.5 billion for projects.
Asset Management Fee Growth
In the first 6 months of 2025, Keppel recorded $195 million in asset management fees and raised about $1.9 billion in equity.
Negative Updates
Non-Core Portfolio Losses
The non-core portfolio incurred a net loss of $53 million in the first half of 2025, compared to a net loss of $41 million in the first half of 2024.
Connectivity Segment Profit Decline
Net profit from the Connectivity segment was $57 million, a 19% decrease from $70 million in the first half of 2024.
Challenges in Telco Market
The telco market in Singapore remains highly competitive, with declines in consumer numbers and pressure on ARPU levels.
Company Guidance
In the call, Keppel Ltd provided extensive guidance on its financial performance and strategic outlook for the first half of 2025. Key metrics included a 25% year-on-year increase in net profit to $431 million for the New Keppel, alongside a 24% rise in overall net profit to $378 million. The company's funds under management (FUM) reached $91 billion by the end of June 2025, with a $7.8 billion asset monetization announced to date. Keppel's recurring income grew by 7% to $444 million, while the non-core portfolio incurred a net loss of $53 million. The group achieved an annualized ROE of 15.4%, up from 13.2% in the previous year, with a net debt to EBITDA ratio of 2.4x. Keppel also reported $88 million in recurring annual run-rate cost savings, progressing towards a target of $120 million by 2026. The board declared an interim cash dividend of $0.15 per share and announced a $500 million share buyback program. Additionally, the company is negotiating over $500 million worth of real estate and connectivity asset monetization transactions to be finalized before year-end.Keppel Financial Statement Overview
Summary
Keppel shows a stable operational foundation with consistent profit margins and efficient operations. However, volatility in net income and inconsistent revenue growth pose risks, alongside cash flow challenges, particularly negative free cash flow, indicating 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.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.60B | 6.97B | 6.62B | 8.62B | 6.57B |
| Gross Profit | 1.86B | 1.96B | 1.45B | 2.02B | 1.98B |
| EBITDA | 1.73B | 1.76B | 1.48B | 1.88B | 450.91M |
| Net Income | 951.72M | 4.08B | 938.22M | 1.03B | -508.09M |
Balance Sheet | |||||
| Total Assets | 27.66B | 26.84B | 31.06B | 32.32B | 32.11B |
| Cash, Cash Equivalents and Short-Term Investments | 2.45B | 1.50B | 1.08B | 3.35B | 2.28B |
| Total Debt | 12.07B | 11.14B | 10.38B | 12.02B | 12.60B |
| Total Liabilities | 16.23B | 15.82B | 19.15B | 19.88B | 20.95B |
| Stockholders Equity | 11.16B | 10.31B | 11.58B | 12.06B | 10.73B |
Cash Flow | |||||
| Free Cash Flow | -411.07M | -862.66M | -436.62M | -813.92M | -282.00M |
| Operating Cash Flow | 200.34M | 58.43M | 259.59M | -275.56M | 202.45M |
| Investing Cash Flow | 700.93M | -942.71M | -667.28M | 2.03B | -274.10M |
| Financing Cash Flow | 136.60M | 722.94M | -1.52B | -668.13M | 712.66M |
Keppel Technical Analysis
Positive
13.24
Price Trends
12.10
Positive
10.90
Positive
10.18
Positive
Market Momentum
0.33
Positive
56.44
Neutral
31.60
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 13.24 is above the 20-day moving average (MA) of 12.98, above the 50-day MA of 12.10, and above the 200-day MA of 10.18, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 56.44 is Neutral, neither overbought nor oversold. The STOCH value of 31.60 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $7.43B | 35.03 | 14.51% | 0.68% | -0.15% | 24.55% | |
74 Outperform | $11.55B | 15.65 | 8.67% | 3.96% | 1.15% | 36.91% | |
68 Neutral | $138.53B | 24.81 | 34.60% | 2.07% | 7.16% | 0.21% | |
64 Neutral | $3.45B | 55.22 | 48.69% | 0.93% | -3.37% | -61.83% | |
63 Neutral | $10.80B | 16.80 | 6.58% | 2.06% | 2.47% | -15.79% | |
58 Neutral | $560.51M | ― | -4.98% | 13.42% | 6.77% | 9.95% | |
54 Neutral | $3.40B | 15.81 | 7.98% | 2.78% | -40.60% | -47.10% |
* Industrials Sector Average
Performance Comparison
KPELY
Keppel
13.24
4.57
52.71%
CODI
Compass Diversified Holdings
7.45
-12.93
-63.44%
GFF
Griffon
74.01
11.23
17.89%
HON
Honeywell International
218.20
22.72
11.62%
MDU
Mdu Resources Group
16.63
3.33
25.04%
VMI
Valmont
376.34
97.16
34.80%
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.