Keppel Corporation Limited (BN4) AI Stock Analysis

• Market Cap: S$15.33B
• Dividend Yield: 3.89%
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.99
• Revenue Growth: -0.62%
• EPS Growth: 34.52%
• Country: SG
• Employees: 5,249
• Sector: Industrials
• Sector Strength: 79
• Industry: Conglomerates
• EPS (TTM): 0.24
• Shares Outstanding: 1,820,557,700
• 10 Day Avg. Volume: 4,803,360
• 30 Day Avg. Volume: 5,510,577
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: S$9.34
• Price Target Upside: 6.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: S$9.50 ▲(8.57% Upside)

Keppel Corporation's overall stock score reflects its robust operational efficiency and strategic transformation efforts, particularly in the Infrastructure segment. While there are concerns about revenue growth, leverage, and cash flow, the company's reasonable valuation and solid earnings call performance contribute positively to its score. The technical analysis indicates strong momentum but also suggests caution due to overbought conditions.

Positive Factors

Asset Monetisation

Keppel announced a positive 1Q25 business update with net profit up 25% yoy and nearly S$350m in asset monetisation ytd.

Business Strength

Most divisions are expected to experience growth as new projects are commissioned, highlighting Keppel's operational strength.

Earnings Growth

Earnings growth is driven by infrastructure and real estate, with a 25% increase in net profit year-on-year.

Negative Factors

Disposal Loss

Keppel will recognise a loss of S$222mn from the disposal.

Downside Risks

Slower-than-expected AUM growth, revaluation loss, and impairment of non-core assets pose downside risks.

Mobile Competition

Mobile subscribers for M1 continue to decline due to intense price competition and customer churn.

Keppel Corporation Limited 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 Limited generates revenue through its four main business segments: Offshore & Marine, Property, Infrastructure, and Asset Management. The Offshore & Marine segment provides offshore rig design, construction, repair, and conversion services. The Property segment is involved in property development and investment, offering residential, commercial, and integrated developments. The Infrastructure segment provides environmental engineering, energy, and utilities services, while the Asset Management segment involves managing private funds and REITs, generating fee income. The company also leverages strategic partnerships and collaborations to enhance its service offerings and expand its market reach, thereby contributing to its revenue streams.

Keppel Corporation Limited Financial Statement Overview

Summary

Keppel Corporation's financial performance shows strong operational efficiency with solid EBIT and EBITDA margins. However, the stagnant revenue growth, high leverage on the balance sheet, and weak cash flow management, indicated by negative free cash flow and low operating cash flow relative to net income, suggest areas for improvement.

Income Statement

Keppel Corporation's income statement reveals a mixed performance. The company experienced a slight decline in total revenue from 2023 to 2024, with total revenue decreasing from $6.97 billion to $6.60 billion. The gross profit margin improved to 28.24% in 2024, indicating efficient cost management. However, the net profit margin for 2024 is lower at 14.41% compared to the prior year's significantly high margin due to one-time gains in 2023. Despite this, EBIT and EBITDA margins of 18.41% and 26.15%, respectively, demonstrate strong operational efficiency.

Balance Sheet

The balance sheet shows a stable equity base with stockholders' equity increasing to $11.16 billion in 2024. The debt-to-equity ratio remains high at 1.08, suggesting significant leverage, which could pose a risk if earnings do not grow. The equity ratio of 40.34% indicates a reasonable proportion of equity financing. Overall, the balance sheet reflects a solid but leveraged financial structure.

Cash Flow

Cash flow statements highlight a challenging year with a negative free cash flow of $411 million in 2024, although this is an improvement from the previous year. The operating cash flow to net income ratio is low at 0.21, indicating that operating activities are not generating sufficient cash relative to net income. Cash flow management remains an area requiring attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.10B	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	1.44B	912.83M	1.61B	613.13M
Net Income	972.71M	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	10.71B	11.58B	12.06B	10.73B
Cash Flow
Free Cash Flow	-547.29M	-411.07M	-862.66M	-436.62M	-813.92M	-282.00M
Operating Cash Flow	617.33M	200.34M	58.43M	259.59M	-275.56M	202.45M
Investing Cash Flow	-309.72M	700.93M	-942.71M	-667.28M	2.03B	-274.10M
Financing Cash Flow	-92.01M	136.60M	722.94M	-1.52B	-668.13M	712.66M

Keppel Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BN4, the sentiment is Positive. The current price of 8.75 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 7.99, and above the 200-day MA of 6.86, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 70.37 is Negative, neither overbought nor oversold. The STOCH value of 90.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:BN4.

Keppel Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BN4	69 Neutral	S$15.33B	15.61	8.75%	3.89%	-0.62%	34.52%
Sector *	64 Neutral	$10.74B	15.86	8.15%	2.00%	2.70%	-15.17%
JCYCF	―	$8.71B	10.19	10.35%	5.21%	―	―
SCRPF	―	$8.42B	11.61	19.65%	1.40%	―	―
SGGKF	―	$18.65B	32.19	28.83%	2.17%	―	―
SMBMF	―	$6.22B	29.66	4.07%	0.67%	―	―
YSHLF	―	$8.96B	8.41	30.76%	3.75%	―	―

Keppel Corporation Limited Corporate Events

Keppel Corporation Focuses on High ROE and Strategic Asset Monetization

Keppel Corporation’s recent financial results highlight its strategy of maintaining a high return on equity (ROE) by leveraging an asset-light model and monetizing non-core assets. The company aims to reduce debt and return capital to shareholders, enhancing its financial position. With a net asset value (NAV) of $4.7 billion in its non-core segment, Keppel plans to unlock value by reducing debt and realizing cash and receivables. Additionally, Keppel is considering a $500 million share buyback, despite its stock trading above NAV, as part of its capital management strategy.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$9.25 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.

Keppel Completes Liquidation of Dormant Subsidiary

Keppel Corporation Limited announced the completion of the member’s voluntary liquidation of its dormant subsidiary, Avenue Park Development Pte. Ltd. This move is part of the company’s ongoing efforts to streamline its operations and focus on its core business areas, potentially enhancing operational efficiency and shareholder value.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$8.28 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.

Keppel Completes Liquidation of Dormant Subsidiary

Keppel Corporation Limited has completed the member’s voluntary liquidation of its dormant subsidiary, Straits Properties Limited. This move is part of the company’s ongoing efforts to streamline its operations and focus on its core business areas, potentially enhancing its operational efficiency and market positioning.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$8.89 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.

Keppel Corporation Strikes Off Dormant Subsidiary KDC AIM

Keppel Corporation Limited has announced the striking-off of its indirect wholly-owned subsidiary, KDC AIM Pte. Ltd., from the Register of Companies in Singapore. The subsidiary had not conducted any business since its incorporation, and its removal is not expected to affect Keppel’s net tangible assets or earnings per share for the current financial year.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$8.89 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.

Keppel Ltd. Strengthens Board with New Appointment

Keppel Corporation Limited has announced the appointment of Mr. Piyush Gupta as an independent director and Deputy Chairman of the Board, effective 1 July 2025. Mr. Gupta will also join the Nominating Committee, Remuneration Committee, and Board Sustainability & Safety Committee. This strategic appointment is expected to enhance the company’s governance structure and strengthen its leadership team, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (SG:BN4) stock is a Buy with a S$8.89 price target. To see the full list of analyst forecasts on Keppel Corporation Limited stock, see the SG:BN4 Stock Forecast page.