Kenon Holdings Ltd. Fundamental Analysis (NYSE: KEN)
Kenon Holdings Ltd. (NYSE: KEN) shows moderate financial fundamentals with a PE ratio of 29.22, profit margin of 10.12%, and ROE of 7.83%. The company generates $1.2B in annual revenue with strong year-over-year growth of 16.06%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KEN's fundamental strength across five key dimensions:
Efficiency Score
WeakKEN struggles to generate sufficient returns from assets.
Valuation Score
ModerateKEN shows balanced valuation metrics.
Growth Score
ModerateKEN shows steady but slowing expansion.
Financial Health Score
ModerateKEN shows balanced financial health with some risks.
Profitability Score
WeakKEN struggles to sustain strong margins.
Key Financial Metrics
Is KEN Expensive or Cheap?
P/E Ratio
KEN trades at 29.22 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KEN's PEG of -0.38 indicates potential undervaluation.
Price to Book
The market values Kenon Holdings Ltd. at 2.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.14 times EBITDA. This is generally considered low.
How Well Does KEN Make Money?
Net Profit Margin
For every $100 in sales, Kenon Holdings Ltd. keeps $10.12 as profit after all expenses.
Operating Margin
Core operations generate 9.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.83 in profit for every $100 of shareholder equity.
ROA
Kenon Holdings Ltd. generates $1.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Kenon Holdings Ltd. produces operating cash flow of $237.79M, showing steady but balanced cash generation.
Free Cash Flow
Kenon Holdings Ltd. generates weak or negative free cash flow of $-258.61M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.96 in free cash annually.
FCF Yield
KEN converts -7.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.38
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How KEN Stacks Against Its Sector Peers
| Metric | KEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.22 | 19.54 | Worse (Expensive) |
| ROE | 7.83% | 981.00% | Weak |
| Net Margin | 10.12% | -576.00% (disorted) | Strong |
| Debt/Equity | 2.02 | 1.74 | Neutral |
| Current Ratio | 3.22 | 1.71 | Strong Liquidity |
| ROA | 1.66% | 4551306.00% | Weak |
KEN outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
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
133.08%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
-86.50%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
218.68%
Industry Style: Defensive, Dividend, Income
High Growth