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Keppel (KPELY) AI Stock Analysis

KPELY

Keppel

(Other OTC:KPELY)

Select Model
Rating:53Neutral
Price Target:$16.50▲(6.42% Upside)
Action:reiterated
Date:10/09/26

Keppel scores in the middle-lower range, driven primarily by middling financial performance: elevated leverage (D/E ~1.09x), volatile and declining headline earnings, and a history of weak free cash flow conversion despite recent improvement. Technicals add pressure, with the stock trading below all major moving averages and a negative MACD, though oversold RSI and Stochastic readings suggest selling may be extended. The earnings call is the strongest supporting factor, showing core-business momentum, rapid asset-management growth and a credible non-core monetization pathway, but large legacy losses and 6.7x group net debt/EBITDA continue to weigh on reported results. A rich 56.7x P/E is partially offset by an attractive 4.42% dividend yield.

Positive Factors
Asset-management scaleSurpassing the FUM target early demonstrates strong asset-raising capability and expands the base supporting recurring management fees. Greater scale can improve operating leverage, deepen investment platforms, and provide more opportunities to monetize assets while retaining fee income.
Negative Factors
Noncore losses and impairmentsLarge noncore losses and rig impairments continue to depress reported earnings despite stronger performance from the transformed businesses. Further legacy charges would reduce group profitability, consume management attention, and make consolidated results less representative of underlying operating momentum.

Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)

-10%0%10%20%30%40%KPELY+5.40%SPY+12.58%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$14.08B
Dividend Yield
4.59%
Average Volume (3M)
3,475
Price to Earnings (P/E)
54.1
Beta (1Y)
0.42
Revenue Growth
14.23%
EPS Growth
-42.88%
Country
US
Employees
4,964
Sector
Industrials
Sector Strength
63
Industry
Conglomerates

Keppel Business Overview & Revenue Model

Company Description

Keppel Corporation Limited, an investment holding company founded in Singapore in 1968, maintains a significant international presence, with operations spanning Singapore, China, Hong Kong, Brazil, and other global markets. Its diverse business inter...

How the Company Makes Money

Keppel makes money primarily through (1) recurring income from operating and owning infrastructure, real estate, and connectivity assets, and (2) fees earned by raising and managing third-party capital as an asset manager, supplemented by (3) develop...

Keppel Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q2-2026)|% Change Since:-14.25%|Next Earnings Date:Apr 20, 2022
Earnings Call SentimentPositive

The call presents a constructive transformation narrative: core (new Keppel) businesses are delivering stronger recurring income, significant FUM growth, substantial SSCI contributions and improved cash generation, while clear monetization plans and operational milestones (Sakra Cogen, Bifrost) support future earnings. These positives are partially offset by sizeable legacy noncore losses, rig impairments and higher consolidated leverage which depress headline profits and ROE. Management has a defined pathway to monetize noncore assets and is deploying scale in asset management, suggesting the near‑term negatives are largely legacy‑related and being actively managed.

Positive Updates

New Keppel Net Profit Growth (Excluding Noncore)
New Keppel net profit of SGD 530 million in 1H2026, up 25% year‑on‑year (from SGD 424 million), driven by sponsor stakes/co‑investments and higher recurring income.

Negative Updates

Group Net Profit Decline (Including Noncore)
Overall group net profit for 1H2026 was SGD 155 million, a 59% decrease from SGD 378 million in 1H2025, mainly due to large losses in the noncore portfolio for divestment.

Company Guidance

Management guided that the “new Keppel” is tracking well: H1 2026 new‑Keppel net profit was SGD 530m (up 25% YoY) versus group net profit of SGD 155m after a SGD 375m non‑core loss; recurring income rose 13% YoY to SGD 467m and SSCI profits jumped to ~SGD 175m (from SGD 18m). Cash metrics improved—group free cash flow swung to a SGD 570m inflow (new Keppel FCF +SGD 244m)—and balance‑sheet ratios showed group net debt/EBITDA of 6.7x while new Keppel’s was ~1.4–1.5x; annualised ROE for new Keppel ~15% (group ROE 3.6%). Asset‑management scale hit SGD 106bn FUM (surpassing the SGD 100bn 2026 target), YTD asset monetizations announced ~SGD 1.7bn (on track to SGD 2–3bn FY), realized non‑core monetizations ~SGD 560m at end‑June, expected cash from first six rig divestments ~SGD 611m (additional ~SGD 1.3bn from remaining four rigs in 2027–28), and gross non‑core asset value ~SGD 13.7bn. Other notable metrics: interim dividend SGD 0.15/share; Sakra Cogen 600MW (+45% capacity) contributed to Power EBITDA growth of 9% YoY; group cost savings >SGD 100m annual run‑rate and M1 cost‑save target SGD 70m run‑rate by 2028 (SGD 4m YTD, SGD 10m target by end‑2026).

Keppel Financial Statement Overview

Summary

Financials are mixed. The income statement (58) shows strong revenue growth of 92.6% and stable ~28% gross margins, but net income fell from $951.7M to $775.9M and earnings are volatile, with 2023's $4.08B profit distorted by one-time gains. The balance sheet (52) carries meaningful leverage, with $11.4B of debt against $10.5B of equity (D/E ~1.09x), although debt was reduced from $12.1B and the $27.1B asset base is solid. Cash flow (45) is the weakest area: operating cash flow rebounded to $1.08B and free cash flow turned positive at $576M, but prior years saw persistent negative free cash flow and poor earnings-to-cash conversion.

Income Statement

58Neutral

Balance Sheet

52Neutral

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.81B5.98B6.60B6.97B6.62B6.61B
Gross Profit940.44M1.75B1.86B1.96B1.45B1.53B
EBITDA528.57M1.98B1.73B1.76B619.34M651.70M
Net Income161.04M800.11M951.72M4.08B938.22M1.03B
Balance Sheet
Total Assets26.52B27.09B27.66B26.84B31.06B32.32B
Cash, Cash Equivalents and Short-Term Investments2.24B2.42B2.45B1.50B1.08B3.35B
Total Debt11.52B11.44B12.07B11.14B10.38B12.02B
Total Liabilities15.41B15.90B16.23B15.82B19.15B19.88B
Stockholders Equity10.81B10.86B11.16B10.31B11.58B12.06B
Cash Flow
Free Cash Flow-68.00M576.33M-411.07M-862.66M-436.62M-813.92M
Operating Cash Flow96.80M1.08B200.34M58.43M259.59M-275.56M
Investing Cash Flow473.29M-502.99M700.93M-942.71M-667.28M2.03B
Financing Cash Flow-673.24M-530.72M136.60M722.94M-1.52B-668.13M

Keppel Technical Analysis

Technical Analysis SentimentNegative
Last Price15.51

Price Trends

50DMA17.18Negative
100DMA17.22Negative
200DMA17.38Negative

Market Momentum

MACD-0.48Negative
RSI42.79Neutral
STOCH48.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KPELY, the sentiment is Negative. The current price of 15.51 is below the 20-day moving average (MA) of 15.88, below the 50-day MA of 17.18, and below the 200-day MA of 17.38, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 42.79 is Neutral, neither overbought nor oversold. The STOCH value of 48.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KPELY.

Keppel Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

KPELY against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HONHON73Outperform$69.29B10.1236.19%1.99%-17.35%23.22%
VMIVMI68Neutral$8.08B16.0330.42%0.70%4.55%131.74%
OTTROTTR66Neutral$3.79B19.6410.43%2.47%0.27%-31.92%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
FIPFIP53Neutral$338.00M-0.55-51.47%4.23%73.46%-259.87%
KPELYKPELY53Neutral$13.81B54.053.29%4.59%14.23%-42.88%
BBUCBBUC52Neutral$5.88B-4.35-18.05%0.83%97.51%34.53%

* Industrials Sector Average

Performance Comparison

-40%-20%0%20%40%KPELYHONOTTRVMIBBUCFIPDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
KPELY and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
KPELYKeppel Corporation Limited15.631.097.49%
HONHoneywell International223.7721.7910.79%
OTTROtter Tail91.5111.5814.48%
VMIValmont Industries426.6823.345.79%
BBUCBrookfield Business Corp. Class A30.06-4.93-14.08%
FIPFTAI Infrastructure Incorporation2.84-2.20-43.66%
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: Oct 09, 2026