Keppel Corporation Limited (BN4) AI Stock Analysis

• Market Cap: S$12.96B
• Dividend Yield: 8.11%
• Average Volume (3M): 4.62M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.08
• Revenue Growth: -5.24%
• EPS Growth: -77.23%
• Country: SG
• Employees: 5,249
• Sector: Industrials
• Sector Strength: 84
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 1,820,557,700
• 10 Day Avg. Volume: 5,149,750
• 30 Day Avg. Volume: 4,618,475
• PEG Ratio: -1.25
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -19.26
• 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$8.64
• Price Target Upside: 16.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 72 Outperform
• Price Target: S$7.50 ▲(1.35%Upside)

The overall stock score is driven by positive technical analysis and fair valuation, despite mixed financial performance. The technical indicators suggest a strong upward trend, and the valuation metrics are favorable. However, financial performance is hampered by high leverage and weak cash flow management.

Positive Factors

Asset Monetisation

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

Data Centre Expansion

Keppel plans to grow its data centre capacity by 500MW to nearly 1.2GW, supported by funds from its upcoming Data Centre Fund III and other co-investments.

Earnings Growth

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

Negative Factors

Asset Management Challenges

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

Infrastructure Earnings Decline

Infrastructure earnings declined 15% to S$327mn due to lower contributions from KIT and associate Keppel MET.

Mobile Market 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 generates revenue through a diversified business model that spans four main segments: Offshore & Marine, Property, Infrastructure, and Asset Management. In the Offshore & Marine sector, Keppel designs, builds, and repairs ships and offshore structures, earning income from contracts for shipbuilding and repair services. The Property segment focuses on residential and commercial real estate development and investment, generating revenue from the sale and leasing of properties. The Infrastructure segment provides environmental engineering, power generation, and logistics services, earning through long-term contracts and utility sales. Finally, the Asset Management segment involves managing investment funds and real estate investment trusts (REITs), generating management fees and investment income. Strategic partnerships and joint ventures also play a critical role in enhancing Keppel's capabilities and market reach, contributing to its overall earnings.

Keppel Corporation Limited Financial Statement Overview

Summary

Keppel Corporation presents a mixed financial picture. Operational efficiency is evident in strong EBIT and EBITDA margins; however, revenue growth is stagnant, and the net profit margin has normalized after a spike. The balance sheet is robust but highly leveraged, and cash flow performance is weak with negative free cash flow.

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: 7.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 7.4 is above the 20-day moving average (MA) of 7.13, above the 50-day MA of 6.74, and above the 200-day MA of 6.53, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 69.03 is Neutral, neither overbought nor oversold. The STOCH value of 71.21 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
BN4	72 Outperform	S$12.96B	14.34	7.90%	8.11%	-5.24%	-77.23%
Sector *	71 Outperform	¥249.54B	12.85	8.49%	3.15%	6.30%	12.86%
JCYCF		$7.39B	8.57	11.58%	5.47%	―	―
SCRPF		$9.53B	13.96	20.60%	5.68%	―	―
SGGKF		$19.42B	36.10	27.51%	2.10%	―	―
SMBMF		$5.41B	51.30	2.48%	0.91%	―	―
YSHLF		$6.86B	7.33	28.14%	5.40%	―	―

Keppel Corporation Limited Corporate Events

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.

Keppel Corporation Reports Strong FY24 Results Amidst Transformation

Keppel Corporation Limited held its 57th Annual General Meeting, where CEO Loh Chin Hua highlighted the company’s transformation into a more streamlined and agile global asset manager. Despite a challenging environment, Keppel reported a net profit of $1.06 billion for FY24, marking a 5% increase from the previous year, showcasing its strengthened operational capabilities and strategic positioning.

Keppel Corporation Reports Strong Start to 2025 with Significant Earnings Growth

Keppel Corporation Limited reported a strong start to 2025, with a significant increase in earnings driven by recurring income and disciplined execution across its divisions. The company announced successful fundraising efforts for its flagship funds, raising $4.9 billion, and aims to achieve $100 billion in funds under management by 2026. Despite a challenging environment, Keppel is progressing in asset monetization and has seen a 25% year-on-year increase in net profit, excluding legacy offshore and marine assets. Including these assets, net profit more than doubled, highlighting the company’s strengthened foundation and resilience.

Keppel Corporation Achieves Over 25% Net Profit Growth in Q1 2025

Keppel Corporation Limited reported a significant increase in net profit for the first quarter of 2025, with a year-on-year growth of over 25% excluding legacy offshore and marine assets. This growth was driven by strong performance in its Infrastructure and Real Estate segments, as well as improved Asset Management results. The company also highlighted its success in asset monetization, reporting $347 million in divestments year-to-date and potential real estate divestments worth approximately $550 million in advanced negotiations. These developments underscore Keppel’s strategic focus on strengthening its financial position and enhancing shareholder value amidst challenging market conditions.

Keppel Corporation Ends Segregated Account Arrangement with Seatrium

Keppel Corporation Limited has announced the termination of its segregated account arrangement with Seatrium Limited, following the completion of their combination earlier this year. The company has resolved all contingent liabilities associated with the merger, and the termination is not expected to significantly impact Keppel’s financial metrics, such as net tangible assets or earnings per share.

Keppel Completes Voluntary Liquidation of Subsidiary

Keppel Corporation Limited has completed the member’s voluntary liquidation of its subsidiary, Keppel Capital One Pte. Ltd. This development marks the conclusion of the liquidation process announced in October 2024, potentially streamlining Keppel’s operations and allowing the company to focus on its core business areas.

Keppel Corporation Sets Dates for Q1 2025 Business Updates

Keppel Corporation Limited has announced the dates for its business updates for the first quarter of 2025, which will be released before the market opens. These updates, scheduled for mid to late April, will cover Keppel’s various listed Real Estate Investment Trusts (REITs) and the corporation itself, potentially impacting stakeholders by providing insights into the company’s financial performance and strategic direction.