Kenon (KEN) AI Stock Analysis

• Market Cap: $2.25B
• Dividend Yield: 11.14%
• Average Volume (3M): 11.18K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.92
• Revenue Growth: 5.51%
• EPS Growth: N/A
• Country: US
• Employees: 344
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.10
• Shares Outstanding: 52,150,240
• 10 Day Avg. Volume: 11,604
• 30 Day Avg. Volume: 11,180
• 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: 1.68
• Enterprise Value/Revenue: 5.02
• Enterprise Value/Gross Profit: 26.58
• Enterprise Value/Ebitda: 12.19
• 1Y Price Target: $49.00
• Price Target Upside: 13.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: $49.00 ▲(13.69% Upside)

Kenon's strong valuation, characterized by a low P/E ratio and high dividend yield, is a significant positive factor. However, financial performance concerns, particularly in profitability and cash flow consistency, weigh on the overall score. Technical indicators suggest mixed signals, with short-term weakness but longer-term support.

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates in four segments: OPC Israel, CPV Group, ZIM, and Quantum. The company engages in the generation and supply of electricity and energy; development, construction, and management of renewable energy and conventional natural gas-fired power plants; manufacture of automobiles; and provision of container liner shipping services. As of December 31, 2021, the company had an installed capacity of approximately 610 MW; and operated a fleet of 118 vessels. The company was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. is a subsidiary of Ansonia Holdings Singapore B.V.

How the Company Makes Money

Kenon generates revenue through multiple channels including its investments in energy projects, particularly in the renewable energy sector such as solar and wind. Key revenue streams come from power generation, where the company earns income by selling electricity produced from its projects. Additionally, Kenon benefits from management fees charged for overseeing its investments and partnerships in infrastructure projects. Strategic collaborations with other firms in the energy space also contribute to its earnings, driving growth through shared expertise and resources.

Kenon Financial Statement Overview

Summary

Kenon shows strong revenue growth and a solid equity position, but faces challenges with profitability and cash flow consistency. Volatility in Net Income and Free Cash Flow raises concerns about financial stability and liquidity.

Income Statement

Kenon has demonstrated strong revenue growth, with a notable increase in Total Revenue from 2019 to 2024. The Gross Profit Margin has remained healthy, ranging from approximately 14% to 19% over the years. However, the company shows volatility in Net Income, with significant fluctuations, including a negative Net Income in 2023. The EBIT and EBITDA margins have shown improvement, but the inconsistency in Net Income indicates potential profitability issues.

Balance Sheet

Kenon's Balance Sheet reflects a strong equity position with a steady increase in Stockholders' Equity over time. The Debt-to-Equity Ratio has been maintained at a reasonable level, reflecting moderate leverage. However, the Equity Ratio shows a slight decline, indicating an increase in liabilities relative to assets. The Return on Equity has fluctuated significantly due to variations in Net Income, pointing to potential risks in financial stability.

Cash Flow

The Operating Cash Flow has been robust, especially in recent years, supporting the company's operations. However, Free Cash Flow has been negative in several years, indicating high capital expenditures relative to cash generated from operations. The Free Cash Flow to Net Income Ratio highlights this challenge, pointing to potential liquidity concerns. The company has shown a mix of positive and negative Free Cash Flow growth rates, reflecting cash flow volatility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	751.30M	691.80M	574.00M	487.76M	386.00M
Gross Profit	143.79M	119.46M	100.00M	98.35M	71.00M
EBITDA	233.96M	169.80M	-620.12M	80.93M	69.41M
Net Income	597.67M	-235.98M	312.65M	930.27M	507.11M
Balance Sheet
Total Assets	4.21B	4.11B	3.77B	4.07B	2.48B
Cash, Cash Equivalents and Short-Term Investments	1.16B	912.63M	926.00M	474.77M	286.00M
Total Debt	1.28B	1.59B	1.20B	1.24B	937.00M
Total Liabilities	1.55B	2.04B	1.48B	1.79B	1.21B
Stockholders Equity	1.61B	1.20B	1.60B	1.79B	1.07B
Cash Flow
Free Cash Flow	-75.59M	-55.33M	501.00M	7.84M	18.00M
Operating Cash Flow	265.08M	276.79M	771.00M	240.53M	92.00M
Investing Cash Flow	135.85M	-432.24M	-203.00M	-205.45M	-222.00M
Financing Cash Flow	-84.08M	324.58M	-494.00M	146.58M	256.00M

Kenon Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEN, the sentiment is Neutral. The current price of 43.1 is below the 20-day moving average (MA) of 44.93, below the 50-day MA of 45.37, and above the 200-day MA of 34.15, indicating a neutral trend. The MACD of -0.37 indicates Positive momentum. The RSI at 42.95 is Neutral, neither overbought nor oversold. The STOCH value of 18.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KEN.

Kenon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VST	77 Outperform	71.59B	33.52	47.74%	0.42%	46.90%	388.66%
KEN	70 Outperform	$2.25B	4.57	-6.91%	11.14%	5.51%	―
TLN	64 Neutral	19.35B	120.93	15.01%	―	125.17%	-74.67%
PAM	63 Neutral	3.30B	6.72	18.81%	―	6.57%	38.25%
HE	58 Neutral	2.04B	-35.59	-7.52%	―	-11.75%	96.86%
NRG	58 Neutral	31.79B	69.55	22.81%	1.05%	2.09%	-74.13%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

Kenon Corporate Events

Kenon Holdings Reports Strong Q2 2025 Results and New Project Approval

Kenon Holdings Ltd. reported its Q2 2025 financial results, highlighting significant financial activities and operational updates. OPC, a subsidiary of Kenon, raised a total of $506 million through share offerings in June and August 2025. The company’s Adjusted EBITDA increased to $90 million in Q2 2025 from $66 million in Q2 2024, indicating improved financial performance. Additionally, the Israeli Government approved the construction of the Hadera 2 project, which is expected to have a capacity of 850MW, potentially enhancing OPC’s future operational capabilities.

Kenon’s OPC Energy Announces $266 Million Private Placement

On August 14, 2025, Kenon Holdings’ subsidiary, OPC Energy Ltd., announced a private placement of 18,750,000 ordinary shares to institutional investors in Israel, raising approximately $266 million. The proceeds are intended for OPC’s business growth and development. This move, subject to approval by the Tel Aviv Stock Exchange, will result in Kenon holding about 49.8% of OPC’s shares, reflecting a strategic effort to bolster OPC’s financial resources and market position.

Kenon Holdings Reports Strong Financial Growth for OPC Energy

On August 13, 2025, Kenon Holdings Ltd. announced that its subsidiary, OPC Energy Ltd., released its periodic report for the six-month and three-month periods ended June 30, 2025. The report, submitted to the Israeli Securities Authority and the Tel Aviv Stock Exchange, highlights significant financial growth, with a notable increase in EBITDA and net income compared to the previous year. This financial performance underscores OPC’s strengthened position in the energy market, particularly in Israel and the U.S., despite ongoing challenges such as regulatory risks and market volatility.

Kenon’s OPC Energy Secures Approval for Hadera 2 Power Plant Construction

On August 11, 2025, Kenon Holdings Ltd.’s subsidiary, OPC Energy, announced that the Israeli Government has approved the construction of a new natural gas-fired power plant, Hadera 2, near its existing facility in Hadera. This decision comes after a previous rejection in April 2024, which led OPC to file a petition with the Israeli High Court of Justice. The project is expected to have a capacity of approximately 850 MW and an estimated construction cost of NIS 4.5 billion to NIS 5 billion (around $1.3 billion to $1.5 billion). This development marks a significant step for OPC Energy in expanding its power generation capabilities, potentially strengthening its position in the energy market.

Kenon Holdings Re-elects Board and Approves Key Proposals at AGM

Kenon Holdings Ltd., a company that held its Annual General Meeting on July 11, 2025, is involved in various business operations. During the meeting, shareholders re-elected all incumbent directors and approved several proposals, including the re-appointment of the statutory auditor, authorization of ordinary share issuances, and renewal of the share purchase authorization. These decisions reflect Kenon’s commitment to maintaining its current leadership and strategic initiatives, potentially impacting its market operations and shareholder value positively.

Kenon Holdings Announces Annual General Meeting for July 2025

Kenon Holdings Ltd., a company incorporated in Singapore, announced that it will hold its Annual General Meeting of Shareholders on July 11, 2025. The company has mailed relevant documents, including a Proxy Statement and its 2024 Annual Report, to its shareholders. The meeting will address several proposals, including the re-election of directors and the authorization of share issuances. Shareholders are encouraged to participate either in person or by proxy to ensure a quorum is met.