About Kenon Holdings Ltd.
Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates in four segments: OPC Israel, CPV Group, ZIM, and Quantum. The company engages in the generation and supply of electricity and energy; development, construction, and management of renewable energy and conventional natural gas-fired power plants; manufacture of automobiles; and provision of container liner shipping services. As of December 31, 2021, the company had an installed capacity of approximately 610 MW; and operated a fleet of 118 vessels.
The company was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. is a subsidiary of Ansonia Holdings Singapore B.V.
KEN operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Utilities | approximately 230 employees | led by CEO Robert L. Rosen.
The $1.5B question: What happens when a company this good becomes this expensive?
In the constellation of American capitalism, certain companies shine brighter than others — not because they are inherently more valuable, but because they have positioned themselves at the nexus of forces that shape the economy. Kenon Holdings Ltd. is one such company.
At $1.5B in market capitalization, Kenon Holdings Ltd. (KEN) currently ranks #33 in our quantitative model, with a composite score of 79.3/100. That places it firmly in "Strong Buy" territory — our highest conviction rating.
But here's the thing about stocks priced for perfection: They leave no room for error.
The Numbers That Matter
Let's start with what's undeniably true. Our 6-factor model gives KEN the following scores:
| Factor | Score | Weight | Assessment |
|---|---|---|---|
| Quality | 81/100 | 30% | Exceptional |
| Value | 90/100 | 15% | Attractive |
| Momentum | 93/100 | 25% | Accelerating |
| Investment | 60/100 | 10% | Growing |
| Stability | 21/100 | 10% | Volatile |
| Short Interest | 21/100 | 10% | High shorts |
The quality score of 81/100 is the headline here. It reflects profitability metrics that would make most CFOs weep with envy:
- ROE: 26.8%
- Net Margin: 84.4%
- Gross Margin: 30.5%
These aren't just good numbers. They're the kind of numbers that make KEN a "must-own" stock for institutional portfolios.
The Bull Case
"If you could design a business in a laboratory, it would look something like KEN."
The bull case writes itself:
- Quality is persistent. Academic research shows high-quality stocks outperform by 4-6% annually over long periods. KEN is quality defined.
- Momentum is real. With a momentum score of 93/100, the stock has been recognized by the market — and momentum tends to persist.
- The moat is deep. Companies with these margins don't lose them easily. The competitive position is entrenched.
The Bear Case
But here's what keeps value investors up at night:
- Valuation compression risk. At current levels, the stock is priced for continued perfection. Any stumble — a missed quarter, a competitive threat, a macro slowdown — could compress the multiple from 2.6x to the low 20s. That's a 20-30% decline without anything fundamentally "wrong."
- The crowded trade problem. When everyone owns a stock, who's left to buy? Momentum works until it doesn't.
- Mean reversion. Trees don't grow to the sky. At some point, growth decelerates.
The Valuation Framework
| Scenario | Assumption | Fair Value | Upside/Downside |
|---|---|---|---|
| Bear | Multiple compression to 20x | -20% | Downside |
| Base | Current trajectory continues | +10-15% | Modest upside |
| Bull | Momentum accelerates | +30-40% | Significant upside |
The risk-reward is ... fine. Not exceptional. Not terrible. Just fine.
The Bottom Line
Kenon Holdings Ltd. is exactly what it appears to be: a high-quality business with strong momentum trading at a premium price. Whether that's attractive depends entirely on what kind of investor you are.
For long-term, buy-and-hold investors, KEN is a core holding. For value investors or short-term traders, look elsewhere.
The company is priced for perfection — and in markets, as in life, perfection is a fragile thing.
⭐⭐⭐⭐⭐ Rating: 5-Star Strong Buy
Score: 79.3/100 | Rank: #33 of 3,571 stocks
Sector: Utilities
This analysis reflects the views of Blank Capital Research as of February 16, 2026. It is not investment advice. Past performance does not guarantee future results.