Keppel Corporation Limited (BN4) AI Stock Analysis

• Market Cap: S$16.40B
• Dividend Yield: 3.34%
• Average Volume (3M): 3.51M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.91
• 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: 3,765,590
• 30 Day Avg. Volume: 3,505,210
• PEG Ratio: -0.17
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.89
• P/FCF Ratio: -30.31
• 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$10.62
• Price Target Upside: 4.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: S$11.00 ▲(7.95% Upside)

Keppel Corporation's overall stock score of 71 reflects a strong earnings call performance and positive technical indicators, despite mixed financial results. The company's strategic initiatives and asset monetization efforts are promising, but challenges in revenue growth and cash flow generation remain areas to watch.

Positive Factors

Asset Monetization

Keppel's asset monetization strategy enhances financial flexibility and supports debt reduction, positioning the company for sustainable growth and shareholder returns.

Infrastructure Segment Growth

Growth in the Infrastructure segment reflects strong operational performance and resilience, contributing to Keppel's diversified revenue streams and long-term stability.

High Return on Equity

A high ROE indicates efficient use of equity capital, enhancing shareholder value and supporting Keppel's strategic focus on profitability and capital efficiency.

Negative Factors

Negative Revenue Growth

Declining revenue growth poses challenges to maintaining sales momentum and could impact long-term profitability and market competitiveness.

Cash Flow Challenges

Limited cash generation ability can strain liquidity and hinder Keppel's capacity to invest in growth opportunities or manage debt effectively.

Losses in Non-Core Portfolio

Continued losses in the non-core portfolio highlight risks in asset management and could detract from overall financial performance and strategic focus.

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 generates revenue through various key segments. The Offshore & Marine division contributes significantly by providing services for the oil and gas industry, including the construction of rigs and vessels. The Property segment earns income through residential and commercial real estate development and sales, as well as property management services. Infrastructure operations, such as power and environmental services, also provide steady revenue streams. Additionally, Keppel's Investments division engages in strategic partnerships and joint ventures, allowing the company to tap into new markets and technologies, further enhancing its earnings potential. The company's diverse revenue model, combined with its strategic initiatives in sustainability and innovation, positions it well for ongoing profitability.

Keppel Corporation Limited Financial Statement Overview

Summary

Keppel Corporation shows a mixed financial performance. Strong operational margins and a stable balance sheet are offset by challenges in revenue growth and cash flow generation. The decline in net profit margin and negative revenue growth rate are concerning, but cost management and a balanced capital structure provide a foundation for potential recovery.

Income Statement

Keppel Corporation's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of around 28% in 2024, indicating efficient cost management. However, the net profit margin has significantly decreased from 58.5% in 2023 to 14.4% in 2024, primarily due to a substantial drop in net income. Revenue growth has been negative, with an 18.5% decline in 2024, reflecting challenges in maintaining sales momentum. Despite these challenges, EBIT and EBITDA margins remain robust, suggesting operational efficiency.

Balance Sheet

The balance sheet of Keppel Corporation reflects a stable financial position with a debt-to-equity ratio of 1.08 in 2024, indicating a balanced approach to leveraging. The return on equity has decreased to 8.5% from 38% in 2023, highlighting a decline in profitability. The equity ratio remains strong, suggesting a solid capital structure. Overall, the company maintains a stable balance sheet with manageable debt levels.

Cash Flow

Keppel Corporation's cash flow statement reveals challenges in cash generation. The operating cash flow to net income ratio is low at 4.2%, indicating limited cash conversion efficiency. Free cash flow remains negative, with a significant decline in free cash flow growth. The free cash flow to net income ratio is also negative, suggesting difficulties in generating cash from operations. These factors highlight potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.06B	6.60B	6.97B	6.62B	6.61B	6.57B
Gross Profit	953.32M	1.86B	1.96B	1.45B	1.53B	1.98B
EBITDA	597.39M	1.73B	1.44B	912.83M	1.61B	613.13M
Net Income	383.39M	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	1.94B	2.45B	1.50B	1.08B	3.35B	2.28B
Total Debt	11.69B	12.07B	11.14B	10.38B	12.02B	13.04B
Total Liabilities	16.75B	16.23B	15.82B	19.15B	19.88B	20.95B
Stockholders Equity	10.62B	11.16B	10.71B	11.58B	12.06B	10.73B
Cash Flow
Free Cash Flow	-9.92M	-411.07M	-862.66M	-436.62M	-813.92M	-282.00M
Operating Cash Flow	219.38M	200.34M	58.43M	259.59M	-275.56M	202.45M
Investing Cash Flow	-484.40M	700.93M	-942.71M	-667.28M	2.03B	-274.10M
Financing Cash Flow	-147.05M	136.60M	722.94M	-1.52B	-668.13M	712.66M

Keppel Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.19
• 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:BN4, the sentiment is Positive. The current price of 10.19 is above the 20-day moving average (MA) of 9.49, above the 50-day MA of 9.01, and above the 200-day MA of 7.44, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 83.60 is Negative, neither overbought nor oversold. The STOCH value of 92.15 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
BS6	―	$13.71B	9.62	30.76%	3.41%	0.42%	40.48%
BN4	―	S$16.40B	16.70	8.75%	3.34%	-0.62%	34.52%
C07	―	S$12.84B	11.63	10.35%	4.44%	3.45%	-22.03%
U96	―	$11.62B	11.45	19.65%	1.38%	-6.69%	6.76%
S63	―	$26.46B	34.43	28.83%	1.41%	8.49%	19.65%
5E2	―	$7.03B	26.34	4.07%	0.69%	25.68%	―
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Keppel Corporation Limited Corporate Events

Keppel Corporation Liquidates Dormant Subsidiary

Keppel Corporation Limited has announced the members’ voluntary liquidation of its dormant wholly-owned subsidiary, Techbod Info Tech (Shanghai) Co. Ltd. This move is not expected to have any material impact on the company’s net tangible assets or earnings per share for the financial year ending December 31, 2025.

Keppel’s M1 Faces Legal Challenge Amid Sale Agreement

Keppel Corporation’s indirect subsidiary, M1 Limited, is involved in legal proceedings initiated by Liberty Wireless Pte. Ltd. in the High Court of Singapore. The dispute centers around a 2019 contract related to mobile virtual network arrangements, with Liberty Wireless alleging M1’s refusal to negotiate contract amendments following regulatory changes. Despite these proceedings, Keppel has announced a sale agreement for M1’s entire share capital to Simba Telecom, with expectations that the legal issues will not delay the transaction’s completion.

Keppel Corporation Schedules Q3 2025 Business Updates

Keppel Corporation Limited has announced the dates for its upcoming business updates for the third quarter and the first nine months of 2025. The updates will be released before the market opens on various dates in October for its different listed REITs and the corporation itself. This schedule is significant for stakeholders as it provides insights into the company’s performance and strategic direction, potentially impacting investment decisions and market perception.

Keppel Corporation Announces Liquidation of Subsidiary

Keppel Corporation Limited has announced the voluntary liquidation of its wholly-owned subsidiary, Atlantic Marina Services (Asia-Pacific) Pte Ltd. This move is not anticipated to significantly affect the company’s net tangible assets or earnings per share for the financial year ending December 31, 2025.

Keppel Initiates Arbitration Against Seatrium Over Indemnity Claim

Keppel Corporation Limited has initiated arbitration proceedings against Seatrium Limited following the latter’s leniency agreements with Brazilian authorities concerning the Operation Car Wash investigations. Seatrium is required to pay a settlement of approximately S$168.4 million, with Keppel’s indemnity claim amounting to S$68.4 million. The arbitration seeks to resolve the indemnity claim under the terms of their Combination Framework Agreement, potentially impacting Keppel’s financial recovery from the Operation Car Wash fallout.

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.