Keppel Corporation (KPELY)
OTHER OTC:KPELY
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Keppel
(OTC:KPELY)
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Rating:66Neutral
Price Target:
$22.00
â–²(34.15% Upside)
Action:DowngradedDate:02/06/26
The score is driven by strong technical momentum and a constructive earnings-call outlook with clear strategic targets and improving recurring earnings, partially offset by weaker underlying financial quality (historically poor cash conversion and meaningful leverage) and a relatively high P/E despite only a moderate dividend yield.
Positive Factors
Recurring earnings growth
A 21% YoY rise in recurring income to $941M signals a shift toward more predictable fee and operations revenue. Durable growth in recurring streams supports cash flow stability, underpins dividends and buybacks, and reduces reliance on lumpy project profits over the medium term.
Negative Factors
High leverage
Debt near parity with equity means leverage is meaningful for a conglomerate, increasing sensitivity to profit and cash-flow swings. Sustained high leverage can constrain reinvestment, amplify macro shocks, and limit flexibility to execute large monetizations or opportunistic M&A over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring earnings growth
A 21% YoY rise in recurring income to $941M signals a shift toward more predictable fee and operations revenue. Durable growth in recurring streams supports cash flow stability, underpins dividends and buybacks, and reduces reliance on lumpy project profits over the medium term.
Read all positive factors
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.65B
Dividend Yield3.27%
Average Volume (3M)1.88K
Price to Earnings (P/E)23.6
Beta (1Y)0.33
Revenue Growth1.15%
EPS Growth36.91%
CountryUS
Employees5,249
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.55
Shares Outstanding910,278,900
10 Day Avg. Volume1,289
30 Day Avg. Volume1,876
Financial Highlights & Ratios
PEG Ratio-1.53
Price to Book (P/B)1.74
Price to Sales (P/S)3.16
P/FCF Ratio32.75
Enterprise Value/Market Cap1.91
Enterprise Value/Revenue10.38
Enterprise Value/Gross Profit33.30
Enterprise Value/Ebitda53.14
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$5.07B
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 ...
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...
Keppel Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and strategic picture for the New Keppel: strong New Keppel net profit growth (+39% to $1.1bn), meaningful FUM growth ($95bn, on track for $100bn), record Infrastructure recurring earnings, expanded data center power bank (>1 GW) and active asset monetization with shareholder returns materially increased (total dividend $0.47/share and 58.5% TSR). However, material near‑term headwinds remain from legacy and noncore items that depressed reported overall profit (overall net profit down 16% to $789m), losses related to legacy O&M and the M1 remeasurement, and the large $13.5bn noncore portfolio that must be monetized over time. On balance the fundamentals, recurring earnings growth, strong asset management momentum and capital returns outweigh the lowlights, though execution and timing of monetizations and resolution of legacy items are key risks to watch.Positive Updates
New Keppel Net Profit Growth
New Keppel net profit rose 39% year‑on‑year to $1.1 billion (ex‑noncore/discontinued), reflecting broad‑based improvements across Infrastructure, Real Estate and Connectivity.
Negative Updates
Overall Net Profit Decline due to Noncore/Discontinued Items
Reported overall net profit for FY2025 was $789 million, down 16% YoY from $940 million, primarily driven by a $222 million accounting loss and a $227 million discontinued operations net loss related to the proposed sale and remeasurement of M1's telco business.
Read all updates
Q4-2025 Updates
Positive
Negative
New Keppel Net Profit Growth
New Keppel net profit rose 39% year‑on‑year to $1.1 billion (ex‑noncore/discontinued), reflecting broad‑based improvements across Infrastructure, Real Estate and Connectivity.
Read all positive updates
Company Guidance
Management reiterated clear targets and near‑term milestones: grow FUM from $95bn (end‑2025) to $100bn by end‑2026, achieve $120m p.a. run‑rate cost savings by end‑2026 (already $98m achieved), and substantially monetize a $13.5bn non‑core portfolio by 2030 (announced ~$2.9bn and completed ~$1.6bn in 2025; ~$14.5bn announced since Oct‑2020); capital actions include a $500m buyback program (>$116m/13m shares repurchased) and a dividend policy of ordinary payouts tied to New Keppel (FY25 ordinary cash dividend $0.34/sh, final $0.19/sh) plus special dividends of 10–15% of gross monetisation value (FY25 special ≈$0.13/sh, ~15% of $1.6bn). Operational guidance: Sakra Cogen to commence H1‑2026; Infrastructure has ~67% of power capacity contracted ≥3 years with $7.1bn of long‑term supply contracts (10–15 year tenor), record Infrastructure recurring earnings $703m (integrated power EBITDA $661m; decarbonization EBITDA $130m, +32% YoY), and management expects spark spreads to stabilise; Connectivity/data‑center goals include expanding powerbank from ~300MW to >1GW (including a 720MW Melbourne site) that could support ~ $10bn DC FUM, while Bifrost is expected to generate ~ $200m O&M fees per fiber pair over 25 years.Keppel Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
57
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.06B | 5.98B | 6.60B | 6.97B | 6.62B | 6.61B |
| Gross Profit | 953.32M | 1.75B | 1.86B | 1.96B | 1.45B | 1.53B |
| EBITDA | 597.39M | 1.98B | 1.73B | 1.76B | 541.07M | 525.77M |
| Net Income | 383.39M | 800.11M | 951.72M | 4.08B | 938.22M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 27.72B | 27.09B | 27.66B | 26.84B | 31.06B | 32.32B |
| Cash, Cash Equivalents and Short-Term Investments | 1.94B | 2.42B | 2.45B | 1.50B | 1.08B | 3.35B |
| Total Debt | 11.69B | 11.44B | 12.07B | 11.14B | 10.38B | 12.02B |
| Total Liabilities | 16.75B | 15.90B | 16.23B | 15.82B | 19.15B | 19.88B |
| Stockholders Equity | 10.62B | 10.86B | 11.16B | 10.31B | 11.58B | 12.06B |
Cash Flow | ||||||
| Free Cash Flow | -9.92M | 576.33M | -411.07M | -862.66M | -436.62M | -813.92M |
| Operating Cash Flow | 219.38M | 1.08B | 200.34M | 58.43M | 259.59M | -275.56M |
| Investing Cash Flow | -484.40M | -502.99M | 700.93M | -942.71M | -667.28M | 2.03B |
| Financing Cash Flow | -147.05M | -530.72M | 136.60M | 722.94M | -1.52B | -668.13M |
Keppel Technical Analysis
Positive
16.40
Price Trends
18.65
Positive
17.15
Positive
15.03
Positive
Market Momentum
0.16
Positive
51.72
Neutral
81.20
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 19.66, below the 50-day MA of 18.65, and above the 200-day MA of 15.03, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 81.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KPELY.
Keppel Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.79B | 23.29 | 20.28% | 0.63% | 1.23% | -22.77% | |
69 Neutral | $141.76B | 24.26 | 31.25% | 2.24% | 7.48% | 9.55% | |
66 Neutral | $16.65B | 23.59 | 3.58% | 3.27% | 1.15% | 36.91% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
55 Neutral | $77.19B | 26.32 | 71.89% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
KPELY
Keppel
19.45
9.87
103.09%
MMM
3M
146.56
-4.16
-2.76%
HON
Honeywell International
223.01
27.35
13.98%
VMI
Valmont
398.55
101.44
34.14%
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.