Keppel Infrastructure (A7RU) AI Stock Analysis

• Market Cap: S$3.13B
• Dividend Yield: 8.08%
• Average Volume (3M): 6.70M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.46
• Revenue Growth: 17.99%
• EPS Growth: 216.95%
• Country: SG
• Employees: 16
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 6,084,988,000
• 10 Day Avg. Volume: 6,255,541
• 30 Day Avg. Volume: 6,701,723
• PEG Ratio: 1.10
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.50
• P/FCF Ratio: 5.06
• 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: 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: 66 Neutral
• Price Target: S$0.50 ▲(4.17% Upside)

Keppel Infrastructure's overall stock score is driven by strong financial performance and positive technical indicators. The company's high dividend yield adds value, but the high P/E ratio suggests potential overvaluation. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth, even if modest, indicates a stable demand for core services, supporting long-term business sustainability.

Profitability

Improved profitability margins reflect effective cost management and pricing strategies, enhancing long-term financial health.

Operational Efficiency

High gross profit margins indicate strong cost control and operational efficiency, crucial for sustaining competitive advantage.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting long-term stability and growth.

Declining Cash Flow

Negative cash flow growth indicates challenges in cash generation, which could constrain investment and operational capabilities.

Debt Management

Dependency on conditional loan facilities can increase financial vulnerability, affecting long-term strategic flexibility and stability.

Keppel Infrastructure Business Overview & Revenue Model

Company Description

Keppel Infrastructure, a subsidiary of Keppel Corporation, is a leading provider of integrated energy and environmental solutions based in Singapore. The company operates across several sectors, including power generation, water treatment, waste management, and renewable energy. Its core products and services include the generation of electricity from various sources, the provision of water and waste management services, and the development of sustainable infrastructure projects.

How the Company Makes Money

Keppel Infrastructure generates revenue through multiple streams, primarily by providing essential utilities and services such as electricity generation, water supply, and waste management. The company operates power plants and water treatment facilities, earning income from the sale of electricity and treated water to both commercial and residential customers. Additionally, Keppel Infrastructure engages in public-private partnerships and collaborates with local and international entities to develop infrastructure projects, which can contribute to its earnings through long-term contracts and service agreements. The company's focus on sustainability and innovation in renewable energy solutions also positions it to benefit from government incentives and increasing demand for green energy initiatives.

Keppel Infrastructure Financial Statement Overview

Summary

Keppel Infrastructure shows strong profitability with improving margins and steady revenue growth. However, high leverage and declining free cash flow growth pose potential risks. The company is financially stable but needs to focus on improving cash flow and managing debt levels.

Income Statement

Keppel Infrastructure shows a solid gross profit margin of 54.83% in TTM, indicating strong cost management and pricing power. The net profit margin improved to 7.64% from 2.69% in the previous year, reflecting enhanced profitability. Revenue growth is modest at 2.31% TTM, suggesting steady but slow expansion. EBIT and EBITDA margins are healthy, though slightly lower than the previous year, indicating stable operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 2.00, suggesting significant leverage, which could pose financial risk. However, the return on equity has improved to 10.91% TTM, indicating effective use of equity to generate profits. The equity ratio stands at 27.03%, reflecting a moderate level of equity financing relative to total assets.

Cash Flow

Free cash flow growth is negative at -27.28% TTM, indicating challenges in generating cash. The operating cash flow to net income ratio is 0.39, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is 0.54, indicating that a significant portion of net income is converted into free cash flow, though this has decreased from previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.38B	2.21B	2.04B	2.01B	1.58B	1.50B
Gross Profit	1.30B	1.15B	787.05M	698.71M	587.30M	614.00M
EBITDA	483.55M	503.71M	454.19M	355.58M	287.26M	313.10M
Net Income	181.53M	59.59M	140.06M	28.02M	-170.15M	-52.16M
Balance Sheet
Total Assets	6.04B	6.19B	5.62B	5.96B	4.50B	4.93B
Cash, Cash Equivalents and Short-Term Investments	513.72M	457.32M	479.23M	526.89M	809.75M	555.94M
Total Debt	3.27B	3.37B	3.63B	3.24B	2.07B	2.51B
Total Liabilities	4.14B	4.21B	3.83B	4.06B	2.76B	3.44B
Stockholders Equity	1.63B	1.68B	1.49B	1.56B	1.71B	1.44B
Cash Flow
Free Cash Flow	129.78M	217.29M	238.17M	200.18M	210.67M	316.54M
Operating Cash Flow	240.19M	306.23M	292.96M	244.60M	249.31M	345.53M
Investing Cash Flow	-7.64M	-543.38M	-45.31M	-1.58B	-276.01M	-36.12M
Financing Cash Flow	-213.57M	201.71M	-296.15M	1.06B	283.71M	-206.31M

Keppel Infrastructure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:A7RU, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.48, and above the 200-day MA of 0.43, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.78 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:A7RU.

Keppel Infrastructure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A7RU	66 Neutral	S$3.13B	27.54	13.41%	8.08%	17.99%	216.95%
P52	62 Neutral	S$839.72M	19.54	17.05%	2.87%	3.76%	9.64%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Keppel Infrastructure Corporate Events

Keppel Infrastructure Trust Plans Major Investment in Subsea Cable Provider

Keppel Infrastructure Trust held an Extraordinary General Meeting to discuss a significant investment in Global Marine Group, a leading subsea cable solutions provider. This strategic move is expected to enhance KIT’s portfolio and strengthen its position in the infrastructure sector, potentially impacting stakeholders by expanding its service offerings and market reach.

The most recent analyst rating on (SG:A7RU) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on Keppel Infrastructure stock, see the SG:A7RU Stock Forecast page.

Keppel Infrastructure Trust Invests in Global Marine Group

Keppel Infrastructure Trust (KIT) has announced an investment in Global Marine Group (GMG), determined through a comprehensive valuation process including discounted cash flow analysis and comparisons with similar companies. The investment, which will be funded through internal funds and debt, reflects GMG’s growth potential and strategic fit with KIT’s portfolio, as well as favorable valuation metrics compared to industry averages.

The most recent analyst rating on (SG:A7RU) stock is a Buy with a S$0.50 price target. To see the full list of analyst forecasts on Keppel Infrastructure stock, see the SG:A7RU Stock Forecast page.