Kenon Holdings Ltd.
Kenon Holdings Ltd. Fundamental Analysis
Kenon Holdings Ltd. (KEN) shows strong financial fundamentals with a PE ratio of 9.96, profit margin of 59.34%, and ROE of 31.28%. The company generates $0.8B in annual revenue with moderate year-over-year growth of 8.60%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze KEN's fundamental strength across five key dimensions:
Efficiency Score
ExcellentKEN demonstrates superior asset utilization.
Valuation Score
ExcellentKEN trades at attractive valuation levels.
Growth Score
ModerateKEN shows steady but slowing expansion.
Financial Health Score
ExcellentKEN maintains a strong and stable balance sheet.
Profitability Score
ExcellentKEN achieves industry-leading margins.
Key Financial Metrics
Is KEN Expensive or Cheap?
P/E Ratio
KEN trades at 9.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KEN's PEG of -2.60 indicates potential undervaluation.
Price to Book
The market values Kenon Holdings Ltd. at 3.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 42.63 times EBITDA. This signals the market has high growth expectations.
How Well Does KEN Make Money?
Net Profit Margin
For every $100 in sales, Kenon Holdings Ltd. keeps $59.34 as profit after all expenses.
Operating Margin
Core operations generate 2.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.28 in profit for every $100 of shareholder equity.
ROA
Kenon Holdings Ltd. generates $10.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kenon Holdings Ltd. generates strong operating cash flow of $218.79M, reflecting robust business health.
Free Cash Flow
Kenon Holdings Ltd. generates strong free cash flow of $141.19M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.71 in free cash annually.
FCF Yield
KEN converts 3.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.60
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.10
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How KEN Stacks Against Its Sector Peers
| Metric | KEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.96 | 20.35 | Better (Cheaper) |
| ROE | 31.28% | 922.00% | Weak |
| Net Margin | 59.34% | 765.00% | Weak |
| Debt/Equity | 0.92 | 1.50 | Strong (Low Leverage) |
| Current Ratio | 4.66 | 1.44 | Strong Liquidity |
| ROA | 10.17% | -5800.00% (disorted) | Strong |
KEN outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Kenon Holdings Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
105.53%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
2849.24%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
217.17%
Industry Style: Defensive, Dividend, Income
High Growth