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Keppel
(OTC:KPELY)
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Rating:53Neutral
Price Target:
$16.50
▼(-6.67% Downside)
Action:Reiterated
Date:10/09/26
The score is driven primarily by mixed financial quality: improving revenue momentum and better recent cash flow are outweighed by historically weak cash conversion, earnings volatility, and meaningful leverage. Technicals further pressure the rating as the stock is below major moving averages with bearish momentum despite oversold readings. Valuation is a headwind due to a high P/E, partially offset by the dividend yield, while the latest earnings call adds support from strong recurring-income/FUM progress and cash-flow improvements despite ongoing noncore losses and elevated consolidated leverage.
Positive Factors
Asset-management scale
Surpassing 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 impairments
Large 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Asset-management scale
Surpassing 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.
Read all positive factors
Keppel (KPELY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.09B
Dividend Yield4.42%
Average Volume (3M)2.20K
Price to Earnings (P/E)56.7
Beta (1Y)0.41
Revenue Growth14.23%
EPS Growth-42.88%
CountryUS
Employees4,964
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)0.17
Shares Outstanding910,278,900
10 Day Avg. Volume1,371
30 Day Avg. Volume2,199
Financial Highlights & Ratios
PEG Ratio-1.72
Price to Book (P/B)1.74
Price to Sales (P/S)3.16
P/FCF Ratio32.75
Enterprise Value/Market Cap1.57
Enterprise Value/Revenue6.23
Enterprise Value/Gross Profit25.24
Enterprise Value/Ebitda44.91
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.73
Revenue Forecast (FY)$5.62B
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 in...
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) deve...
Keppel Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
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.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive 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
Income Statement
68
Positive
Balance Sheet
57
Neutral
Cash Flow
41
Neutral
| 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
Negative
17.68
Price Trends
17.76
Negative
17.29
Negative
17.38
Negative
Market Momentum
-0.24
Positive
34.61
Neutral
16.99
Positive
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 17.68 is above the 20-day moving average (MA) of 17.63, below the 50-day MA of 17.76, and above the 200-day MA of 17.38, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KPELY.
Keppel Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.97B | 18.50 | 29.84% | 0.64% | 3.80% | 138.85% | |
69 Neutral | $65.96B | 8.02 | 45.58% | 2.15% | -2.41% | 53.63% | |
66 Neutral | $3.70B | 18.95 | 10.43% | 2.56% | 0.27% | -31.92% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
53 Neutral | $15.09B | 56.70 | 3.29% | 4.42% | 14.23% | -42.88% | |
52 Neutral | $335.64M | -0.51 | -51.47% | 4.51% | 73.46% | -259.87% | |
47 Neutral | $5.35B | -3.80 | -18.05% | 0.95% | 97.51% | 34.53% |
* Industrials Sector Average
KPELY
Keppel
16.26
2.76
20.46%
HON
Honeywell International
206.60
11.99
6.16%
OTTR
Otter Tail
88.33
15.17
20.74%
VMI
Valmont
468.70
81.26
20.97%
BBUC
Brookfield Business Corp. Class A
26.24
-7.25
-21.65%
FIP
FTAI Infrastructure Incorporation
2.66
-2.26
-45.88%
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.