Keppel (KPELY) AI Stock Analysis

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Keppel

(OTC:KPELY)

Rating:73Outperform

Price Target:

$15.50

▲(16.02% Upside)

Keppel's overall stock score is driven by strong technical indicators and a positive earnings call outlook, highlighting robust net profit growth and strategic asset monetization. While financial performance shows operational stability, liquidity challenges and revenue volatility pose risks. The valuation remains fair, with an attractive dividend yield supporting the score.

Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$11.69B

Dividend Yield3.92%

Average Volume (3M)4.06K

Price to Earnings (P/E)16.3

Beta (1Y)0.46

Revenue Growth1.15%

EPS Growth36.91%

CountryUS

Employees5,249

SectorIndustrials

Sector Strength73

IndustryConglomerates

Share Statistics

EPS (TTM)0.37

Shares Outstanding910,278,900

10 Day Avg. Volume1,814

30 Day Avg. Volume4,057

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.62

Enterprise Value/Revenue2.93

Enterprise Value/Gross Profit10.20

Enterprise Value/Ebitda19.66

Forecast

1Y Price Target

$15.50

Price Target Upside16.02% 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: |

Next Earnings Date:Jan 22, 2026

Earnings Call Sentiment Positive

The earnings call reflected a positive outlook with strong growth in funds under management and net profit, successful asset monetization, and promising developments in infrastructure and digital projects. However, challenges remain in the non-core portfolio, connectivity segment, and senior living business.

Q2-2025 Updates

Positive Updates

Record-Breaking Funds Under Management

Keppel Ltd is recognized as a trusted investment partner with $91 billion in funds under management as of June 2025.

Strong Net Profit Growth

The New Keppel's net profit surged by about 25% year-on-year to $431 million.

Asset Monetization Success

Keppel announced $7.8 billion in asset monetization to date since October 2020, contributing to capital-efficient growth.

Infrastructure Division Growth

Net profit from the Infrastructure division rose 8% year-on-year to $333 million, with an EBITDA growth of 7%.

Strategic Partnerships and Global Recognition

Keppel sealed a strategic partnership with AIIB to mobilize up to USD 1.5 billion and was ranked the fourth largest infrastructure manager in Asia Pacific.

Innovative Digital Infrastructure Projects

Significant progress in developing the Bifrost Cable System and the floating data center project, targeting completion by 2028.

Negative Updates

Non-Core Portfolio Losses

The non-core portfolio incurred a net loss of $53 million in first half 2025, compared to a net loss of $41 million in first half 2024.

Connectivity Segment Decline

Net profit from the Connectivity segment was 19% lower year-on-year, at $57 million compared to $70 million in first half 2024.

Challenges in Senior Living Business

The senior living business continued to incur losses due to ongoing incubation and acquisition of Watermark in the U.S.

Competitive Pressure in Telco Market

M1, part of Keppel's Connectivity segment, is facing a severely competitive telco market in Singapore, affecting its consumer business.

Company Guidance

During the call, Keppel Ltd provided detailed guidance on its financial performance and strategic direction for the first half of 2025. The company reported a robust net profit of $431 million for the New Keppel, marking a 25% increase year-on-year, and achieved a 15.4% annualized ROE, up from 13.2% in the previous year. Keppel's funds under management (FUM) reached $91 billion by the end of June 2025, with $7.8 billion in asset monetization announced since October 2020. The non-core portfolio, carrying a value of $14.4 billion, incurred a net loss of $53 million, but the all-in net profit increased by 24% to $378 million. The Infrastructure segment reported a net profit of $333 million, up 8% year-on-year, while the Connectivity segment faced a 19% decrease in net profit to $57 million. Keppel also announced an interim cash dividend of $0.15 per share and launched a $500 million Share Buyback Programme. The company continues to focus on its asset-light strategy and aims to significantly monetize its non-core assets by 2030, while also driving growth in digital and sustainable urban infrastructure sectors.

Keppel Financial Statement Overview

Summary

Keppel demonstrates a stable operational foundation with consistent profit margins and operational efficiency. However, volatility in net income and revenue growth, along with cash flow challenges, particularly in maintaining positive free cash flow, suggest potential liquidity constraints.

Income Statement

Positive

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

Positive

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

Neutral

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

Neutral

Last Price13.36

Price Trends

50DMA

12.81

Positive

100DMA

11.55

Positive

200DMA

10.51

Positive

Market Momentum

MACD

0.24

Positive

RSI

51.64

Neutral

STOCH

73.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPELY, the sentiment is Neutral. The current price of 13.36 is below the 20-day moving average (MA) of 13.40, above the 50-day MA of 12.81, and above the 200-day MA of 10.51, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 73.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KPELY.

Keppel Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	78 Outperform	$7.46B	35.18	14.51%	0.68%	-0.15%	24.55%
HON	74 Outperform	$136.03B	24.36	34.60%	2.11%	7.16%	0.21%
KPELY	73 Outperform	$11.69B	16.26	8.67%	3.92%	1.15%	36.91%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
MMM	58 Neutral	$82.72B	21.60	96.00%	1.86%	-19.56%	325.26%

* Industrials Sector Average

Performance Comparison

KPELY

Keppel

13.36

4.39

48.94%

MMM

155.30

29.35

23.30%

HON

Honeywell International

214.25

17.18

8.72%

VMI

Valmont

377.91

113.17

42.75%

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.Date of analysis: Aug 27, 2025