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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 31.2GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
157.7%
Sector: 9.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, Kenon Holdings Ltd. (KEN) receives a "Hold" rating with a composite score of 55.2/100, ranked #133 out of 4446 stocks. Key factor scores: Quality 31/100, Value 69/100, Momentum 83/100. This is quantitative analysis only — not investment advice.
Kenon Holdings Ltd. (KEN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Kenon Holdings Ltd. Do?
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. Kenon Holdings Ltd. (KEN) is classified as a mid-cap stock in the Utilities sector. The company is led by CEO Robert L. Rosen and employs approximately 230 people. With a market capitalization of $4.5B, KEN is one of the notable companies in the Utilities sector.
Kenon Holdings Ltd. (KEN) Stock Rating — Hold (April 2026)
As of April 2026, Kenon Holdings Ltd. receives a Hold rating with a composite score of 55.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.KEN ranks #133 out of 4,446 stocks in our coverage universe. Within the Utilities sector, Kenon Holdings Ltd. ranks #11 of 112 stocks, placing it in the top 10% of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
KEN Stock Price and 52-Week Range
Kenon Holdings Ltd. (KEN) currently trades at $88.60. The stock gained $2.30 (2.7%) in the most recent trading session. The 52-week high for KEN is $87.60, which means the stock is currently trading 1.1% from its annual peak. The 52-week low is $27.10, putting the stock 226.9% above its annual trough. Recent trading volume was 14K shares, suggesting relatively thin trading activity.
Is KEN Overvalued or Undervalued? — Valuation Analysis
Kenon Holdings Ltd. (KEN) carries a value factor score of 69/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 7.61x, compared to the Utilities sector average of 23.47x — a discount of 68%. The price-to-book ratio stands at 2.73x, versus the sector average of 1.98x. The price-to-sales ratio is 1.46x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, KEN trades at 6.19x EV/EBITDA, versus 4.75x for the sector. The EV/EBIT multiple is 58.18x.
Overall, KEN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Kenon Holdings Ltd. Profitability — ROE, Margins, and Quality Score
Kenon Holdings Ltd. (KEN) earns a quality factor score of 31/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 157.7%, compared to the Utilities sector average of 9.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 60.2% versus the sector average of 3.1%.
On a margin basis, Kenon Holdings Ltd. reports gross margins of 30.5%, compared to 53.1% for the sector. The operating margin is 6.4% (sector: 21.5%). Net profit margin stands at 84.4%, versus 12.8% for the average Utilities stock. Revenue growth is running at 8.6% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
KEN Debt, Balance Sheet, and Financial Health
Kenon Holdings Ltd. has a debt-to-equity ratio of 79.0%, compared to the Utilities sector average of 164.5%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. Total debt on the balance sheet is $1.28B. Cash and equivalents stand at $1.02B.
KEN has a beta of 0.61, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for Kenon Holdings Ltd. is 67/100, reflecting average volatility within the normal range for its sector.
Kenon Holdings Ltd. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Kenon Holdings Ltd. reported revenue of $751M and earnings per share (EPS) of $11.34. Net income for the quarter was $634M. Gross margin was 30.5%. Operating income came in at $48M.
In FY 2024, Kenon Holdings Ltd. reported revenue of $751M and earnings per share (EPS) of $11.34. Net income for the quarter was $634M. Gross margin was 30.5%. Revenue grew 8.6% year-over-year compared to FY 2023. Operating income came in at $48M.
In FY 2023, Kenon Holdings Ltd. reported revenue of $692M and earnings per share (EPS) of $-4.42. Net income for the quarter was $-211M. Gross margin was 28.5%. Revenue grew -22.2% year-over-year compared to FY 2022. Operating income came in at $35M.
In FY 2022, Kenon Holdings Ltd. reported revenue of $890M. Net income for the quarter was $-265M. Gross margin was 27.3%. Revenue grew 82.4% year-over-year compared to FY 2021. Operating income came in at $-259M.
Over the past 8 quarters, Kenon Holdings Ltd. has demonstrated a growth trajectory, with revenue expanding from $364M to $751M. Investors analyzing KEN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
KEN Dividend Yield and Income Analysis
Kenon Holdings Ltd. (KEN) does not currently pay a dividend. This is common among smaller companies in the Utilities industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Utilities dividend stocks may want to explore other Utilities stocks or use the stock screener to filter by dividend yield.
KEN Momentum and Technical Analysis Profile
Kenon Holdings Ltd. (KEN) has a momentum factor score of 83/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 43/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 39/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
KEN vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing KEN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full KEN vs S&P 500 (SPY) comparison to assess how Kenon Holdings Ltd. stacks up against the broader market across all factor dimensions.
KEN Next Earnings Date
No upcoming earnings date has been announced for Kenon Holdings Ltd. (KEN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy KEN? — Investment Thesis Summary
Kenon Holdings Ltd. presents a balanced picture with arguments on both sides. The quality score of 31/100 flags below-average profitability. The value score of 69/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 83/100, suggesting the trend favors buyers. Low volatility (stability score 67/100) reduces downside risk.
In summary, Kenon Holdings Ltd. (KEN) earns a Hold rating with a composite score of 55.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on KEN stock.
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Institutional Research Dossier
Kenon Holdings Ltd. (KEN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Kenon Holdings Ltd. receives a Hold rating, primarily driven by a mixed financial performance and a complex business structure that introduces significant uncertainty. While the company exhibits attractive valuation metrics and strong momentum, concerns regarding profitability, capital allocation, and stability temper enthusiasm. The company's diverse holdings, spanning power generation, shipping, and automotive, create both opportunities and challenges, making a neutral stance the most appropriate at this time.
The key takeaway is that Kenon's intrinsic value is heavily dependent on the performance of its individual subsidiaries and its ability to effectively manage its capital allocation strategy. Investors should closely monitor the performance of OPC Israel, CPV Group, ZIM, and Quantum, as well as the company's debt levels and cash flow generation, to determine whether a more bullish or bearish stance is warranted. The current valuation appears attractive on the surface, but the underlying risks and uncertainties necessitate caution.
Business Strategy & Overview
Kenon Holdings operates as a holding company with investments in diverse sectors, including power generation (OPC Israel and CPV Group), container liner shipping (ZIM), and automotive manufacturing (Quantum). This diversified approach aims to mitigate risk by spreading investments across different industries and geographies. However, it also introduces complexity in managing and optimizing the portfolio.
OPC Israel is a key asset, focusing on the generation and supply of electricity in Israel. The company develops, constructs, and manages both renewable energy and conventional natural gas-fired power plants. This segment benefits from the growing demand for electricity in Israel and the country's transition towards cleaner energy sources. CPV Group, on the other hand, focuses on power generation in the United States, adding geographical diversification to Kenon's power generation portfolio.
ZIM, the container liner shipping business, represents a more cyclical and volatile investment. The shipping industry is subject to global trade flows, supply and demand dynamics, and geopolitical events. While ZIM can generate significant profits during periods of high demand and favorable freight rates, it can also suffer substantial losses during downturns. Kenon's investment in ZIM provides exposure to the global trade and logistics sector, but also introduces significant risk.
Quantum, the automotive manufacturing business, represents a higher-risk, higher-reward investment. The automotive industry is highly competitive and capital-intensive, requiring significant investments in research and development, manufacturing facilities, and marketing. Quantum's success depends on its ability to develop innovative and competitive products, establish a strong brand, and effectively manage its operations. The company's strategy involves navigating the complexities of the global automotive market, which is undergoing rapid technological advancements and shifting consumer preferences.
Kenon's overall strategy involves actively managing its portfolio of investments, seeking to optimize capital allocation and generate long-term value for shareholders. This includes identifying and investing in promising growth opportunities, improving the operational efficiency of its existing businesses, and potentially divesting assets when appropriate. The company's success depends on its ability to effectively execute this strategy and navigate the challenges of managing a diverse portfolio of businesses in different industries and geographies.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
8.6%
Sector: 20.1%
-57% VS SCTR
Economic Moat Analysis
Kenon Holdings, as a holding company, does not possess a single, overarching economic moat. Instead, the moats of its individual subsidiaries determine its overall competitive advantage. OPC Israel, for example, may benefit from regulatory barriers to entry and long-term contracts, providing a narrow moat. The power generation industry often requires significant capital investment and regulatory approvals, which can deter new entrants. Furthermore, established relationships with government agencies and long-term power purchase agreements can provide a degree of revenue stability and predictability.
CPV Group's moat is less clear, as the US power generation market is more competitive. While CPV may have some advantages due to its scale and operational expertise, it faces competition from other large power generators and independent power producers. The company's ability to secure long-term contracts and maintain efficient operations will be crucial to its success.
ZIM, the container liner shipping business, operates in a highly competitive industry with limited barriers to entry. The shipping industry is characterized by overcapacity, price volatility, and intense competition. While ZIM may have some advantages due to its global network and operational efficiency, it lacks a significant economic moat. The company's performance is heavily dependent on global trade flows and freight rates, which are subject to macroeconomic factors and geopolitical events.
Quantum, the automotive manufacturing business, faces significant challenges in establishing a competitive advantage. The automotive industry is dominated by established players with strong brands, extensive distribution networks, and significant economies of scale. Quantum's success depends on its ability to develop innovative and differentiated products, establish a strong brand, and effectively compete with larger and more established players. This will require significant investment in research and development, manufacturing facilities, and marketing.
Overall, Kenon's economic moat is weak, as its individual subsidiaries operate in industries with varying degrees of competitive advantage. While OPC Israel may have a narrow moat, ZIM and Quantum face significant competitive challenges. The company's ability to generate sustainable profits and create long-term value for shareholders depends on its ability to effectively manage its portfolio of investments and improve the competitive positioning of its individual businesses.
Financial Health & Profitability
Kenon Holdings' financial health presents a mixed picture. The company's revenue has fluctuated significantly over the past several years, with a recent increase to $751.30 million in FY2024 from $691.80 million in FY2023. However, this growth rate of 8.6% lags the sector average of 20.1%. Net income has also been volatile, with a substantial profit of $634.09 million in FY2024 contrasting sharply with losses in FY2023 and FY2022. This volatility raises concerns about the sustainability of the company's earnings.
The company's gross margin of 30.5% is significantly lower than the sector average of 53.3%, indicating potential inefficiencies in its cost structure. Similarly, the operating margin of 6.4% is well below the sector average of 21.7%. However, the net margin of 84.4% is exceptionally high compared to the sector average of 12.8%, likely due to one-time gains or accounting adjustments. This discrepancy warrants further investigation to determine the true profitability of the company's core operations.
Free cash flow (FCF) has also been highly variable, ranging from a positive $687.16 million in FY2024 to negative values in previous years. This volatility in FCF raises concerns about the company's ability to consistently generate cash and fund its investments. The company's balance sheet shows a significant amount of cash ($1.02 billion) and debt ($1.28 billion), resulting in a debt-to-equity ratio of 79.00, which is lower than the sector average of 165.00. While the lower D/E ratio is positive, the high level of debt still poses a risk, especially given the volatility in the company's earnings and cash flow.
The historical financial data reveals a pattern of inconsistent performance, with periods of high profitability followed by periods of losses. This volatility is likely due to the cyclical nature of the industries in which Kenon operates and the company's exposure to macroeconomic factors. The company's ability to improve its operational efficiency, reduce its cost structure, and generate consistent cash flow will be crucial to its long-term financial health.
Valuation Assessment
Kenon Holdings' valuation presents a seemingly attractive picture based on certain metrics. The company's P/E ratio of 7.4x is significantly lower than the sector average of 22.7x, suggesting that the stock may be undervalued relative to its earnings. However, the EV/EBITDA ratio of 6.2x is higher than the sector average of 4.8x, indicating that the company may be overvalued relative to its operating cash flow. This discrepancy highlights the importance of considering multiple valuation metrics and understanding the underlying drivers of the company's earnings and cash flow.
The company's high ROE of 157.7% is significantly higher than the sector average of 10.0%, suggesting that the company is generating high returns on its equity. However, this high ROE may be due to the company's high leverage or one-time gains, rather than sustainable operational performance. Therefore, it is important to analyze the company's ROE in conjunction with its debt levels and earnings quality.
The company's free cash flow yield, calculated as FCF/Market Cap, is approximately 15.7%, which is relatively high and suggests that the stock may be undervalued based on its cash flow generation. However, the volatility in the company's FCF raises concerns about the sustainability of this high yield. Investors should carefully consider the company's future growth prospects and the risks associated with its business model before making an investment decision.
Overall, Kenon Holdings' valuation appears attractive based on certain metrics, such as P/E ratio and FCF yield. However, the company's high EV/EBITDA ratio, volatile earnings and cash flow, and complex business structure warrant caution. The stock may be undervalued relative to its current earnings, but the underlying risks and uncertainties necessitate a more conservative valuation approach. A discounted cash flow analysis, incorporating realistic growth assumptions and risk adjustments, would be necessary to determine the true intrinsic value of the company.
Risk & Uncertainty
Kenon Holdings faces several significant risks and uncertainties that could negatively impact its business and financial performance. One of the primary risks is the cyclical nature of the industries in which it operates, particularly the shipping industry (ZIM). Fluctuations in global trade flows, freight rates, and fuel prices can significantly impact ZIM's profitability and cash flow. A prolonged downturn in the shipping industry could lead to substantial losses for Kenon.
Another significant risk is the company's exposure to regulatory and political risks, particularly in Israel (OPC Israel). Changes in government regulations, environmental policies, or political instability could negatively impact OPC Israel's operations and profitability. Furthermore, the company's investments in emerging markets expose it to currency risk and geopolitical risks.
The company's high debt levels also pose a risk, especially given the volatility in its earnings and cash flow. A significant increase in interest rates or a decline in the company's earnings could make it difficult to service its debt obligations. Furthermore, the company's complex business structure and diverse portfolio of investments introduce management complexity and potential conflicts of interest.
The success of Quantum, the automotive manufacturing business, is highly uncertain. The automotive industry is highly competitive and capital-intensive, and Quantum faces significant challenges in establishing a competitive advantage. A failure to develop innovative and competitive products, establish a strong brand, or effectively manage its operations could lead to substantial losses for Kenon.
Bulls Say / Bears Say
The Bull Case
BULL VIEWKenon's depressed valuation, particularly its low P/E ratio, offers significant upside potential as the market fails to fully recognize the value of its underlying assets.
BULL VIEWThe company's strategic investments in growing sectors like renewable energy (OPC Israel) and its exposure to the global shipping market (ZIM) position it for long-term growth and profitability.
The Bear Case
BEAR VIEWKenon's complex corporate structure and lack of a clear strategic focus create significant uncertainty and make it difficult to assess the true value of the company.
BEAR VIEWThe cyclical nature of its key businesses, particularly shipping, exposes the company to significant downside risk and makes its earnings highly volatile and unpredictable.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score KEN and 4,400+ other equities.
Kenon Holdings Ltd. exhibits a 19% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
60.2%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
30.5%
Sector: 53.1%
Operating Margin
Core business profitability
6.4%
Sector: 21.5%
Net Margin
Bottom-line profitability
84.4%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
