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Keppel (KPELY) AI Stock Analysis
Keppel
(Other OTC:KPELY)
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.
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
- 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
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.
Q2-2026 Updates
Positive Updates
Negative Updates
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
58NeutralBalance Sheet
52NeutralCash Flow
45Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.81B | 5.98B | 6.60B | 6.97B | 6.62B | 6.61B |
| Gross Profit | 940.44M | 1.75B | 1.86B | 1.96B | 1.45B | 1.53B |
| EBITDA | 528.57M | 1.98B | 1.73B | 1.76B | 619.34M | 651.70M |
| Net Income | 161.04M | 800.11M | 951.72M | 4.08B | 938.22M | 1.03B |
Balance Sheet | ||||||
| Total Assets | 26.52B | 27.09B | 27.66B | 26.84B | 31.06B | 32.32B |
| Cash, Cash Equivalents and Short-Term Investments | 2.24B | 2.42B | 2.45B | 1.50B | 1.08B | 3.35B |
| Total Debt | 11.52B | 11.44B | 12.07B | 11.14B | 10.38B | 12.02B |
| Total Liabilities | 15.41B | 15.90B | 16.23B | 15.82B | 19.15B | 19.88B |
| Stockholders Equity | 10.81B | 10.86B | 11.16B | 10.31B | 11.58B | 12.06B |
Cash Flow | ||||||
| Free Cash Flow | -68.00M | 576.33M | -411.07M | -862.66M | -436.62M | -813.92M |
| Operating Cash Flow | 96.80M | 1.08B | 200.34M | 58.43M | 259.59M | -275.56M |
| Investing Cash Flow | 473.29M | -502.99M | 700.93M | -942.71M | -667.28M | 2.03B |
| Financing Cash Flow | -673.24M | -530.72M | 136.60M | 722.94M | -1.52B | -668.13M |
Keppel Technical Analysis
Price Trends
Market Momentum
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
HON73Outperform
VMI68Neutral
OTTR66Neutral
FIP53Neutral
KPELY53Neutral
BBUC52Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 73Outperform | $69.29B | 10.12 | 36.19% | 1.99% | -17.35% | 23.22% | |
| 68Neutral | $8.08B | 16.03 | 30.42% | 0.70% | 4.55% | 131.74% | |
| 66Neutral | $3.79B | 19.64 | 10.43% | 2.47% | 0.27% | -31.92% | |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| 53Neutral | $338.00M | -0.55 | -51.47% | 4.23% | 73.46% | -259.87% | |
| 53Neutral | $13.81B | 54.05 | 3.29% | 4.59% | 14.23% | -42.88% | |
| 52Neutral | $5.88B | -4.35 | -18.05% | 0.83% | 97.51% | 34.53% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| KPELY | Keppel Corporation Limited | 15.63 | 1.09 | 7.49% | |
| HON | Honeywell International | 223.77 | 21.79 | 10.79% | |
| OTTR | Otter Tail | 91.51 | 11.58 | 14.48% | |
| VMI | Valmont Industries | 426.68 | 23.34 | 5.79% | |
| BBUC | Brookfield Business Corp. Class A | 30.06 | -4.93 | -14.08% | |
| FIP | FTAI Infrastructure Incorporation | 2.84 | -2.20 | -43.66% |
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