KENON HOLDINGS LTD (KEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KEN - SG9999012629 - Common Stock
72 USD
-3.65 (-4.82%)
Overall KEN gets a fundamental rating of 5 out of 10. We evaluated KEN against 20 industry peers in the Independent Power and Renewable Electricity Producers industry. KEN has an excellent financial health rating, but there are some minor concerns on its profitability. KEN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year KEN was profitable.
- KEN had a positive operating cash flow in the past year.
- KEN had positive earnings in 4 of the past 5 years.
- KEN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KEN has a better Return On Assets (10.17%) than 100.00% of its industry peers.
- With an excellent Return On Equity value of 31.84%, KEN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- KEN's Return On Invested Capital of 0.51% is on the low side compared to the rest of the industry. KEN is outperformed by 75.00% of its industry peers.
- KEN had an Average Return On Invested Capital over the past 3 years of 0.50%. This is below the industry average of 4.09%.
- The 3 year average ROIC (0.50%) for KEN is below the current ROIC(0.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.17% | ||
| ROE | 31.84% | ||
| ROIC | 0.51% |
ROA(3y)5.58%
ROA(5y)12.04%
ROE(3y)12.37%
ROE(5y)27.3%
ROIC(3y)0.5%
ROIC(5y)0.58%
1.3 Margins
- KEN's Profit Margin of 59.34% is amongst the best of the industry. KEN outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of KEN has declined.
- With a Operating Margin value of 4.42%, KEN is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- KEN's Operating Margin has declined in the last couple of years.
- The Gross Margin of KEN (18.15%) is worse than 70.00% of its industry peers.
- In the last couple of years the Gross Margin of KEN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.42% | ||
| PM (TTM) | 59.34% | ||
| GM | 18.15% |
OM growth 3Y9.8%
OM growth 5Y-15.86%
PM growth 3Y-25.28%
PM growth 5YN/A
GM growth 3Y-6.34%
GM growth 5Y-6.78%
2. Health
2.1 Basic Checks
- KEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, KEN has less shares outstanding
- The number of shares outstanding for KEN has been reduced compared to 5 years ago.
- KEN has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.61, we must say that KEN is in the distress zone and has some risk of bankruptcy.
- With a decent Altman-Z score value of 1.61, KEN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
- The Debt to FCF ratio of KEN is 9.07, which is on the high side as it means it would take KEN, 9.07 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 9.07, KEN belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.84 indicates that KEN is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.84, KEN is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 9.07 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.07
WACC7.22%
2.3 Liquidity
- A Current Ratio of 4.66 indicates that KEN has no problem at all paying its short term obligations.
- KEN has a better Current ratio (4.66) than 100.00% of its industry peers.
- A Quick Ratio of 4.66 indicates that KEN has no problem at all paying its short term obligations.
- KEN has a better Quick ratio (4.66) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.66 | ||
| Quick Ratio | 4.66 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 180.11% over the past year.
- KEN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -13.11% yearly.
- The Revenue has grown by 8.15% in the past year. This is quite good.
- KEN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.00% yearly.
EPS 1Y (TTM)180.11%
EPS 3Y-13.11%
EPS 5YN/A
EPS Q2Q%-44.44%
Revenue 1Y (TTM)8.15%
Revenue growth 3Y15.48%
Revenue growth 5Y15%
Sales Q2Q%11.81%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.97, the valuation of KEN can be described as very cheap.
- 90.00% of the companies in the same industry are more expensive than KEN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of KEN to the average of the S&P500 Index (28.60), we can say KEN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KEN indicates a slightly more expensive valuation: KEN is more expensive than 70.00% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, KEN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.94 | ||
| EV/EBITDA | 33.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- KEN has a Yearly Dividend Yield of 6.79%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.36, KEN pays a better dividend. On top of this KEN pays more dividend than 100.00% of the companies listed in the same industry.
- KEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.79% |
5.2 History
- On average, the dividend of KEN grows each year by 25.85%, which is quite nice.
- KEN has been paying a dividend for over 5 years, so it has already some track record.
- KEN has decreased its dividend recently.
Dividend Growth(5Y)25.85%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- KEN pays out 54.66% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP54.66%
EPS Next 2YN/A
EPS Next 3YN/A
KENON HOLDINGS LTD / KEN FAQ
What is the ChartMill fundamental rating of KENON HOLDINGS LTD (KEN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KEN.
Can you provide the valuation status for KENON HOLDINGS LTD?
ChartMill assigns a valuation rating of 4 / 10 to KENON HOLDINGS LTD (KEN). This can be considered as Fairly Valued.
What is the profitability of KEN stock?
KENON HOLDINGS LTD (KEN) has a profitability rating of 5 / 10.
What is the financial health of KENON HOLDINGS LTD (KEN) stock?
The financial health rating of KENON HOLDINGS LTD (KEN) is 7 / 10.