Keppel Corporation Limited (BN4) AI Stock Analysis

• Market Cap: S$15.36B
• Dividend Yield: 3.88%
• Average Volume (3M): 4.00M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.96
• Revenue Growth: -0.62%
• EPS Growth: 34.52%
• Country: SG
• Employees: 5,249
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.24
• Shares Outstanding: 1,820,557,700
• 10 Day Avg. Volume: 3,173,420
• 30 Day Avg. Volume: 4,002,156
• 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$9.69
• Price Target Upside: 10.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: S$9.50 ▲(8.32% 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

Strategic Partnerships

Strategic partnerships like the one with AIIB enhance Keppel's market reach and project capabilities, bolstering its competitive edge in the Asia Pacific region.

Asset Monetization Strategy

Keppel's asset monetization strategy is enhancing liquidity and reducing debt, positioning the company for sustainable growth and improved financial health.

Infrastructure Segment Growth

The growth in the Infrastructure segment demonstrates Keppel's ability to capitalize on sustainable development trends, supporting long-term profitability.

Negative Factors

Weak Cash Flow Management

Weak cash flow management indicates potential difficulties in funding operations and investments, which could hinder long-term strategic initiatives.

High Leverage

High leverage can limit financial flexibility and increase risk, especially if earnings growth does not keep pace with debt obligations.

Stagnant Revenue Growth

The decline in revenue suggests challenges in market expansion or product demand, potentially impacting long-term growth prospects.

Keppel Corporation Limited Business Overview & Revenue Model

Company Description

Keppel Corporation Limited (BN4) is a Singapore-based multinational company that operates across diverse sectors including offshore & marine, property, infrastructure, and asset management. The company is known for its integrated approach to providing solutions that span the entire value chain in energy, urban living, and sustainable development, with a focus on creating sustainable urban environments.

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: 8.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 8.77 is above the 20-day moving average (MA) of 8.62, above the 50-day MA of 8.36, and above the 200-day MA of 7.04, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 65.40 is Neutral, neither overbought nor oversold. The STOCH value of 79.44 is Neutral, 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
S63	83 Outperform	26.46B	34.43	0.00%	1.41%	8.49%	19.65%
BS6	74 Outperform	13.04B	9.15	25.24%	3.64%	0.42%	40.48%
C07	74 Outperform	11.26B	10.19	11.41%	5.05%	3.45%	-22.03%
5E2	72 Outperform	8.12B	30.43	2.47%	0.63%	25.68%	0.00%
BN4	69 Neutral	S$15.36B	15.65	8.75%	3.88%	-0.62%	34.52%
U96	61 Neutral	10.82B	10.66	18.86%	1.48%	-6.69%	6.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.