Keppel (KPELY) AI Stock Analysis

• Market Cap: $15.27B
• Dividend Yield: 3.27%
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.35
• 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: 1.96
• Enterprise Value/Revenue: 9.81
• Enterprise Value/Gross Profit: 31.46
• Enterprise Value/Ebitda: 50.20
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $19.50 ▲(18.90% 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

Scale of Funds Under Management

A $91bn FUM base creates durable, fee-based revenue and scale advantages in infrastructure investing. It supports recurring management income, improves deal flow and negotiating power, and underpins an asset-light shift that can stabilize earnings and capital efficiency long term.

Proven Asset Monetization

A multi-billion asset monetization track record evidences capital recycling capability and execution on an asset-light strategy. This converts illiquid assets into investable capital, reduces balance sheet strain, and funds growth initiatives without relying solely on new equity or recurring debt.

Infrastructure Division Strength

Consistent profit and EBITDA growth in Infrastructure reflects exposure to secular demand for digital and sustainable urban projects. Stable margins and portfolio diversification (data centers, power, cables) support lasting cash generation and reduce dependence on cyclical offshore activities.

Negative Factors

Weak Free Cash Flow

Persistent negative free cash flow undermines self-funding of capex, dividends and investments. Over time it forces reliance on asset sales, monetization or external financing, increasing execution risk and potentially constraining strategic initiatives or dividend sustainability.

Elevated Leverage/Debt Profile

Debt-to-equity near 1.0 implies meaningful leverage that narrows financial flexibility. In downturns or higher rate environments interest costs and refinancing needs can strain cash flow, limit M&A optionality, and require prioritizing deleveraging over growth investments.

Non-Core Losses and Connectivity Weakness

Ongoing losses in non-core assets and a structurally challenged connectivity segment indicate execution and competitive issues. These drain capital and management focus, risk diluting returns from core businesses, and may require prolonged restructuring or further monetization to restore profitability.

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: 16.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 16.4 is below the 20-day moving average (MA) of 16.82, above the 50-day MA of 16.12, and above the 200-day MA of 13.38, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 68.11 is Neutral, neither overbought nor oversold. The STOCH value of 82.67 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
KPELY	72 Outperform	$15.27B	20.76	8.67%	3.27%	1.15%	36.91%
HON	71 Outperform	$137.54B	27.11	30.28%	2.24%	7.48%	9.55%
VMI	71 Outperform	$8.77B	38.29	14.90%	0.63%	1.23%	-22.77%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MMM	53 Neutral	$82.84B	25.99	75.68%	1.82%	-13.09%	-20.63%