Kenon (KEN) AI Stock Analysis

Kenon

(NYSE:KEN)

Select Model

Rating:52Neutral

Price Target:$70.00▲(6.35% Upside)

Action:reiterated

Date:09/10/26

Kenon faces significant fundamental risks, primarily escalating debt leverage, volatile profitability, and deeply negative free cash flow. While the company demonstrates consistent revenue growth and rewards investors with a strong 5.56% dividend yield, a lofty P/E valuation and long-term technical downtrends suggest limited upside in the near term.

Positive Factors

Strong OPC operating growthRapid growth in OPC revenue and EBITDA across Israel and the U.S. indicates improving scale, customer demand, and contribution from expanded generation assets. If sustained, this broader operating base can strengthen Kenon’s recurring earnings capacity and support future investment.

Negative Factors

Elevated leverageThe sharp increase in leverage reduces financial flexibility and makes Kenon and its operating investments more sensitive to weaker power-market performance, refinancing conditions, or asset underperformance. Higher debt also raises the importance of maintaining reliable cash distributions.

Kenon (KEN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $3.34B
Dividend Yield: 5.91%
Average Volume (3M): 16.95K
Price to Earnings (P/E): 28.9
Beta (1Y): 0.64
Revenue Growth: 53.35%
EPS Growth: -75.44%
Country: US
Employees: 348
Sector: Utilities
Sector Strength: 66
Industry: Independent Power Producers

Kenon Business Overview & Revenue Model

Company Description

Kenon Holdings Ltd. is a global enterprise that, through its various subsidiaries, owns, develops, and manages power generation facilities across Israel, the United States, and other international markets. The company's operations are divided into fo...

How the Company Makes Money

Kenon makes money mainly through returns generated by its equity stakes in portfolio companies rather than through operating revenue from selling goods or services itself. Key sources of economic return typically include: (1) Dividends and distributi...

Kenon Financial Statement Overview

Summary

Solid top-line revenue growth is heavily overshadowed by surging debt levels, a high debt-to-equity ratio of 2.02, and deeply negative free cash flow, highlighting significant liquidity and leverage risks.

Income Statement

72Positive

Balance Sheet

45Neutral

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Mar 2025	Dec 2023	Dec 2022	Mar 2022
Income Statement
Total Revenue	1.19B	871.93M	751.30M	691.80M	573.96M	487.76M
Gross Profit	220.82M	146.82M	143.79M	119.46M	99.84M	98.35M
EBITDA	382.95M	318.95M	272.42M	224.40M	192.68M	989.21M
Net Income	120.27M	66.27M	597.67M	-235.98M	312.65M	930.27M
Balance Sheet
Total Assets	7.25B	5.38B	4.21B	4.11B	3.77B	4.07B
Cash, Cash Equivalents and Short-Term Investments	1.77B	1.59B	1.16B	912.63M	926.00M	474.77M
Total Debt	3.15B	1.78B	1.28B	1.59B	1.20B	1.24B
Total Liabilities	3.85B	2.20B	1.55B	2.04B	1.48B	1.79B
Stockholders Equity	1.56B	1.59B	1.61B	1.20B	1.60B	1.79B
Cash Flow
Free Cash Flow	-258.61M	167.39M	-75.59M	-55.33M	501.00M	7.84M
Operating Cash Flow	237.79M	283.79M	265.08M	276.79M	771.00M	240.53M
Investing Cash Flow	-865.95M	-361.95M	135.85M	-432.24M	-203.00M	-205.45M
Financing Cash Flow	1.34B	505.76M	-84.08M	324.58M	-494.00M	146.58M

Kenon Technical Analysis

Technical Analysis SentimentNeutral

Last Price65.82

Price Trends

50DMA64.54Positive

100DMA65.84Negative

200DMA72.93Negative

Market Momentum

MACD0.63Negative

RSI51.60Neutral

STOCH43.21Neutral

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 65.82 is above the 20-day moving average (MA) of 63.67, above the 50-day MA of 64.54, and below the 200-day MA of 72.93, indicating a neutral trend. The MACD of 0.63 indicates Negative momentum. The RSI at 51.60 is Neutral, neither overbought nor oversold. The STOCH value of 43.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KEN.

Kenon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

KEN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VST	71Outperform	$46.44B	22.43	41.48%	0.68%	9.45%	-6.51%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	63Neutral	$10.58B	5.67	37.94%	4.72%	8.22%	88.79%
TLN	63Neutral	$16.23B	-82.42	-14.09%	―	27.47%	-208.54%
CEPU	59Neutral	$1.70B	5.35	18.17%	10.39%	50.81%	107.08%
NRG	53Neutral	$20.19B	24.90	25.38%	2.01%	12.70%	54.89%
KEN	52Neutral	$3.34B	28.93	7.83%	5.91%	53.35%	-75.44%

* Utilities Sector Average

Performance Comparison

KEN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KEN	Kenon Holdings Ltd.	65.10	15.09	30.19%
NRG	NRG Energy Inc	94.62	-70.92	-42.84%
AES	AES Corporation	14.90	2.09	16.29%
VST	Vistra Corp.	134.61	-50.06	-27.11%
CEPU	Central Puerto	10.35	-4.32	-29.43%
TLN	Talen Energy Corp	332.99	-62.26	-15.75%

Kenon Corporate Events

Kenon Subsidiary Secures $430 Million Financing for CPV Renewables

Sep 10, 2026

On September 10, 2026, Kenon’s energy subsidiary OPC Energy announced that CPV Renewables, majority owned through CPV Group, entered into a new $430 million financing agreement with Bank Leumi. The package comprises a $250 million term loan mat...

Kenon Posts Strong Q2 2026 Results as OPC Expansion and Peru Award Boost Finances

Sep 8, 2026

In the second quarter of 2026, Kenon reported a sharp improvement in operating performance at subsidiary OPC, as net profit rose to $15 million from $1 million a year earlier and Adjusted EBITDA climbed to $131 million from $90 million, supported by...

Kenon Receives $93 Million as Peru Pays Final ICSID Arbitration Award

Aug 19, 2026

On August 19, 2026, Kenon announced it has received approximately $93 million following the Republic of Peru’s payment of an arbitration award issued by an ICSID tribunal in October 2023. The total payment by Peru amounted to about $203 million...

Kenon’s OPC Energy Unveils NIS 600 Million Bond Offering on TASE

Aug 14, 2026

On August 14, 2026, Kenon’s subsidiary OPC Energy Ltd. announced a plan to issue NIS 600 million (about $202 million) in Series E bonds, with listing on the Tel Aviv Stock Exchange. The issuance structure includes a preliminary offering to qual...

Kenon’s OPC Energy Posts Strong H1 2026 EBITDA After U.S. Portfolio Reclassification

Aug 12, 2026

On August 12, 2026, Kenon disclosed that its subsidiary OPC Energy filed its Hebrew-language periodic report for the six- and three-month periods ended June 30, 2026 with the Israeli Securities Authority and the Tel Aviv Stock Exchange. Kenon furnish...

Kenon Prevails in Peru ICSID Annulment Bid as Arbitration Award Swells to $200 Million

Jun 29, 2026

On June 29, 2026, Kenon Holdings announced that an ad hoc committee of the International Centre for Settlement of Investment Disputes ruled entirely in its favor in Peru’s bid to partially annul an October 2023 arbitration award. The committee...

Kenon’s OPC Energy Wins Tariff Approval for 850 MW Hadera Power Plant Expansion

Jun 22, 2026

On June 19, 2026, Kenon’s subsidiary OPC Energy announced it has received tariff approval from the Israeli Electricity Authority for its Hadera expansion project, an approximately 850 MW combined-cycle natural gas power plant to be built adjace...

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.

Date of analysis: Sep 10, 2026

Kenon AI Stock Analysis