Keppel (KPELY) AI Stock Analysis

• Market Cap: $10.59B
• Dividend Yield: 4.8%
• Average Volume (3M): 8.74K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.50
• Revenue Growth: -4.78%
• EPS Growth: -77.14%
• Country: US
• Employees: 5,249
• Sector: Industrials
• Sector Strength: 91
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 910,278,900
• 10 Day Avg. Volume: 7,838
• 30 Day Avg. Volume: 8,741
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $13.00
• Price Target Upside: 6.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $13.50 ▲(10.66%Upside)

Keppel's overall stock score is driven by solid technical analysis signals and an attractive dividend yield, indicating strong market momentum and valuation appeal. However, financial performance reflects some risks with net income volatility and cash flow challenges, which slightly dampen the overall score.

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 Corporation generates revenue through multiple streams across its diverse business sectors. In the offshore and marine sector, Keppel earns money by designing, building, and repairing offshore rigs and vessels, catering primarily to the oil and gas industry. The property sector contributes to revenue through the development, sale, and management of residential, commercial, and mixed-use properties, as well as through property investment and fund management. The infrastructure segment provides income through services in energy, including renewable energy solutions, and environmental engineering, particularly in waste-to-energy projects. Additionally, Keppel's asset management arm generates earnings by managing a variety of investment funds and real estate investment trusts (REITs), leveraging its expertise in property and infrastructure to deliver value to investors. Significant partnerships and joint ventures, as well as strategic investments, further bolster Keppel's revenue streams, enabling it to expand its market reach and operational capabilities.

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.

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	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
EBITDA	964.47M	1.73B	1.76B	1.48B	1.88B	450.91M
Net Income	744.42M	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	1.54B	2.45B	1.50B	1.08B	3.35B	2.28B
Total Debt	11.91B	12.07B	11.14B	10.38B	12.02B	12.60B
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

• Technical Analysis Sentiment: Positive
• Last Price: 12.20
• 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 12.2 is above the 20-day moving average (MA) of 11.80, above the 50-day MA of 11.04, and above the 200-day MA of 9.97, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 96.06 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	80 Outperform	$151.63B	27.10	33.56%	1.92%	6.30%	0.81%
Sector *	79 Outperform	S$284.18M	5.55	8.10%	3.70%	15.22%	9.69%
VMI	79 Outperform	$6.73B	19.50	22.84%	0.81%	-0.57%	116.12%
GFF	74 Outperform	$3.68B	16.20	110.90%	0.92%	-3.38%	26.22%
KPELY	71 Outperform	$10.59B	15.79	7.95%	4.80%	-4.78%	-77.14%
MDU	70 Neutral	$3.38B	12.94	9.63%	3.14%	-25.50%	-45.13%
CODI	50 Neutral	$483.77M	―	-4.98%	15.55%	6.77%	9.95%