Keppel Corporation Limited (SG:BN4)
SGX:BN4
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Keppel Corporation Limited
(SGX:BN4)
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Rating:57Neutral
Price Target:
S$13.50
▲(13.45% Upside)
Action:DowngradedDate:02/06/26
The score is held back primarily by inconsistent cash-flow conversion and meaningful leverage despite solid profitability. Technicals are supportive with a strong uptrend, but overbought signals raise near-term risk. Valuation is somewhat demanding (P/E ~25), while earnings-call messaging is constructive on strategic execution and targets but tempered by legacy losses and monetization timing uncertainty.
Positive Factors
FUM growth and scale
Accelerating funds‑under‑management builds durable, recurring fee income and aligns Keppel to an asset‑light, capital‑efficient model. Growing FUM supports predictable management fees, scalable profit margins and long‑term earnings visibility even if project cycles vary.
Negative Factors
Inconsistent cash generation
Persistent variability in cash conversion undermines financial flexibility and raises reliance on asset sales to fund dividends and capex. Limited free cash flow relative to earnings makes capital recycling and steady shareholder returns contingent on successful, timely monetizations.
Read all positive and negative factors
Positive Factors
Negative Factors
FUM growth and scale
Accelerating funds‑under‑management builds durable, recurring fee income and aligns Keppel to an asset‑light, capital‑efficient model. Growing FUM supports predictable management fees, scalable profit margins and long‑term earnings visibility even if project cycles vary.
Read all positive factors
Keppel Corporation Limited (BN4) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$20.85B
Dividend Yield3.29%
Average Volume (3M)3.51M
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-0.62%
EPS Growth34.52%
CountrySG
Employees5,249
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.35
Shares Outstanding1,820,557,700
10 Day Avg. Volume3,765,590
30 Day Avg. Volume3,505,210
Financial Highlights & Ratios
PEG Ratio-1.38
Price to Book (P/B)1.79
Price to Sales (P/S)3.14
P/FCF Ratio32.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$13.31Price Target Upside11.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.55
Revenue Forecast (FY)S$6.46B
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 ...
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 ea...
Keppel Corporation Limited 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 emphasized strong operational and strategic progress for the "New Keppel" — marked by robust New Keppel net profit (+39% to $1.1bn), FUM expansion to $95bn, record Infrastructure recurring earnings, and active asset monetization and shareholder returns (total dividends up 38%, TSR 58.5%). At the same time, the consolidated group was weighed down by discontinued operations (notably the M1 telco remeasurement loss), legacy O&M losses, fair value pressures in some noncore and China assets, and an acknowledged lumpy monetization runway for a $13.5bn noncore portfolio. Overall, management presented confidence in continuing growth of the asset-management-and-operator model, while acknowledging pockets of legacy drag and timing uncertainty in monetization.Positive Updates
New Keppel Net Profit Growth
Net profit of the New Keppel rose 39% year-on-year to $1.1 billion (FY2025), with improvements across all three operating segments and a stronger ROE for the New Keppel of 18.7% (up from 14.9% a year earlier).
Negative Updates
Overall Net Profit Decline (Including Noncore/Discontinued)
Overall reported net profit for FY2025 was $789 million, down 16% from $940 million in FY2024, largely driven by discontinued operations and a $222 million accounting loss arising from the proposed sale of M1's telco business.
Read all updates
Q4-2025 Updates
Positive
Negative
New Keppel Net Profit Growth
Net profit of the New Keppel rose 39% year-on-year to $1.1 billion (FY2025), with improvements across all three operating segments and a stronger ROE for the New Keppel of 18.7% (up from 14.9% a year earlier).
Read all positive updates
Company Guidance
Management reiterated measurable near‑term targets and capital‑management policy: grow funds under management to $100bn by end‑2026 (FUM rose from $88bn to $95bn in 2025, with $10.1bn new FUM and ~20% 5‑yr CAGR), hit $120m annual run‑rate cost savings by end‑2026 (already $98m achieved), and substantially monetize a $13.5bn non‑core portfolio by 2030 (announced monetizations ~$2.9bn in 2025, $1.6bn completed in 2025; total monetization since Oct‑2020 ≈$14.5bn); capital returns will be ordinary dividends tied to New Keppel performance (FY25 ordinary cash dividend $0.34/share, final $0.19) plus special dividends of 10–15% of the gross value of completed monetizations (FY25 special ≈$0.13/share — $0.02 cash + 1 K‑REIT unit/9 shares ≈$0.11, ~15% of the $1.6bn completed), while the $500m buyback program (>$116m spent, >13m shares repurchased) remains available. They emphasized continuing to grow recurring, asset‑light earnings (New Keppel net profit $1.1bn, +39% YoY; New Keppel ROE 18.7%; New Keppel net‑debt/EBITDA 2.0x) but did not give explicit FY‑2026 net‑profit guidance.Keppel Corporation Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
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 | 945.91M | 1.86B | 1.96B | 1.45B | 1.53B |
| EBITDA | 597.39M | 1.45B | 1.73B | 1.44B | 912.83M | 1.61B |
| Net Income | 383.39M | 788.51M | 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 | 11.95B | 12.07B | 11.14B | 10.38B | 12.16B |
| Total Liabilities | 16.75B | 16.30B | 16.23B | 15.82B | 19.15B | 19.88B |
| Stockholders Equity | 10.62B | 10.46B | 11.16B | 10.71B | 11.58B | 12.06B |
Cash Flow | ||||||
| Free Cash Flow | -9.92M | 585.69M | -411.07M | -862.66M | -436.62M | -813.92M |
| Operating Cash Flow | 219.38M | 1.10B | 200.34M | 58.43M | 259.59M | -275.56M |
| Investing Cash Flow | -484.40M | -511.16M | 700.93M | -942.71M | -667.28M | 2.03B |
| Financing Cash Flow | -147.05M | -539.35M | 136.60M | 722.94M | -1.52B | -668.13M |
Keppel Corporation Limited Technical Analysis
Neutral
11.90
Price Trends
11.97
Negative
11.10
Positive
9.78
Positive
Market Momentum
0.03
Positive
44.10
Neutral
37.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:BN4, the sentiment is Neutral. The current price of 11.9 is below the 20-day moving average (MA) of 12.27, below the 50-day MA of 11.97, and above the 200-day MA of 9.78, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 44.10 is Neutral, neither overbought nor oversold. The STOCH value of 37.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:BN4.
Keppel Corporation Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | S$15.21B | 8.73 | 28.61% | 3.46% | 0.42% | 40.48% | |
72 Outperform | S$13.80B | 10.26 | 10.35% | 4.33% | 3.45% | -22.03% | |
65 Neutral | S$11.57B | 10.88 | 18.30% | 4.33% | -6.69% | 6.76% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | S$7.96B | 22.60 | 4.03% | 0.70% | 25.68% | ― | |
59 Neutral | S$34.22B | 56.74 | 28.83% | 2.01% | 8.49% | 19.65% | |
57 Neutral | S$20.85B | ― | 8.75% | 3.29% | -0.62% | 34.52% |
* Industrials Sector Average
SG:BN4
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11.90
5.37
82.24%
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Keppel Corporation Limited Corporate Events
Keppel Subsidiary Wins Jakarta Land Ownership Court Battle
Feb 23, 2026
Keppel Ltd. has announced a legal victory in Indonesia, where the South Jakarta District Court declared inadmissible a civil lawsuit brought by individual claimant Tumpal Hutabarat against its wholly owned subsidiary PT. Kepland Investama over the...
Keppel Completes Voluntary Liquidation of Third Dragon Holdings Subsidiary
Feb 19, 2026
Keppel Ltd. has completed the member’s voluntary liquidation of its wholly-owned subsidiary, Third Dragon Holdings Pte Ltd., following an earlier announcement of the planned wind-up in May 2025. The completion marks a further step in Keppel&...
Keppel Announces Board Chairman Transition to Piyush Gupta in April 2026
Feb 5, 2026
Keppel Ltd. announced a forthcoming leadership change at the board level, with long-serving chairman Danny Teoh set to retire after the company’s Annual General Meeting on 17 April 2026, and current board member Piyush Gupta to assume the ro...
Keppel Proposes Special Dividend Tied to Asset Monetisation, Including Keppel REIT Units
Feb 5, 2026
Keppel Ltd. has proposed a special dividend comprising 2 cents per share in cash and a distribution of 1 Keppel REIT unit for every 9 Keppel shares held as at a record date to be announced, with fractional entitlements to KREIT units disregarded. ...
Keppel Names Piyush Gupta as Next Chairman as Danny Teoh Retires in 2026
Feb 5, 2026
Keppel Ltd. announced that long-serving Chairman Danny Teoh will retire immediately after the company’s Annual General Meeting on 17 April 2026, after more than 15 years on the Board and five years as Chairman, during which Keppel completed ...
Keppel Places Wholly-Owned Subsidiary Flemmington Investments Into Voluntary Liquidation
Jan 27, 2026
Keppel Ltd. has placed its wholly-owned subsidiary, Flemmington Investments Pte. Ltd., under members’ voluntary liquidation as part of its corporate structuring activities. The company stated that the winding-up of this non-core subsidiary i...
Keppel Boosts Asia-Pacific AI Data Centre Powerbank to Over 1GW with Major Melbourne Site
Jan 15, 2026
Keppel has expanded its Asia-Pacific data centre powerbank pipeline from more than 300MW to over 1GW of gross power capacity, strengthening its ability to scale its data centre portfolio quickly and competitively in key growth markets. The latest ...
Keppel Completes Voluntary Liquidation of Dormant Innovation Subsidiary
Jan 12, 2026
Keppel Ltd. has completed the members’ voluntary liquidation of its dormant subsidiary, Keppel Technology and Innovation Pte. Ltd., following an earlier announcement in January 2025. The move streamlines Keppel’s corporate structure by...
Keppel Places Wholly Owned Subsidiary Double Peak Holdings into Voluntary Liquidation
Jan 7, 2026
Keppel Ltd. has placed its wholly owned subsidiary, Double Peak Holdings Limited, under members’ voluntary liquidation. The company stated that the winding-up of this non-core entity is not expected to have any material impact on Keppel̵...
Keppel Completes Voluntary Liquidation of Dormant Shanghai Subsidiary
Dec 29, 2025
Keppel Ltd. has completed the member’s voluntary liquidation of its dormant wholly-owned subsidiary, Techbod Info Tech (Shanghai) Co. Ltd., bringing the winding-up process of this non-operational unit to a close. The move streamlines Keppel&...
Keppel Refines Lease Extension Structure After Full Exit From Genting Lane Data Centres
Dec 26, 2025
Keppel Ltd. has adjusted the land lease extension arrangements for two data centre buildings, KDC SGP 7 and KDC SGP 8, located at 82 Genting Lane in Singapore, following the completion of a staged divestment process. The company has fully exited i...
Keppel Corporation Streamlines Operations with Subsidiary Liquidation
Dec 11, 2025
Keppel Corporation Limited has announced the voluntary liquidation of its dormant wholly-owned subsidiaries, Keppel Fels Power Pte Ltd, KRE Anchorage Pte. Ltd., and KRE Australia Pte. Ltd. This strategic move is not anticipated to have any signifi...
Keppel Corporation Initiates Voluntary Liquidation of Subsidiaries
Dec 10, 2025
Keppel Corporation Limited has announced the voluntary liquidation of its wholly-owned subsidiaries, Keppel Enterprise FinHub Pte. Ltd., Keppel Enterprise Services Pte. Ltd., and Keppel People Services Pte. Ltd. This decision is not expected to si...
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.