Kenon Holdings Ltd. (KEN)
Valuation Overview•Is Kenon Holdings Ltd. Overvalued or Undervalued?
The market is pricing the stock in line with historical averages, assuming steady-state growth.
Fragile underlying quality score of 34/100; weak margins or elevated debt leverage warrant caution.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street sentiment is generally neutral. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
KEN struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company demonstrates solid revenue growth (15.0% 3Y CAGR) however, earnings have severely contracted over the same period. Operating efficiency remains adequate with margins around 5.7%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $317.0M | +16.1% | +15.0% | +17.7% | +10.3% | |
| EBITDA | $30.0M | — | +27.1% | — | — | |
| Net Income | $26.0M | -88.9% | -40.4% | — | -1.0% | |
| EPS (Diluted) | $0.49 | -88.8% | -39.7% | -33.0% | -0.7% | |
| Free Cash Flow | -$144.0M | -3.4% | — | +9.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 16.6% | 17.7% | 18.2% | 18.6% |
| Operating Margin | 5.7% | 6.5% | 5.0% | 11.6% |
| Net Margin | 8.1% | 17.7% | 59.6% | 48.3% |
| FCF Margin | -20.7% | -9.0% | 12.4% | 25.3% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | — | $0.49 | — | ||
| Q1'26 | — | $0.47 | — | ||
| Q4'25 | — | $0.45 | — | ||
| Q3'25 | — | $0.10 | — | ||
| Q2'25 | — | $0.22 | — | ||
| Q2'25 | — | $0.11 | — | ||
| Q4'24 | — | $0.81 | — | ||
| Q3'24 | — | $0.02 | — |
Total return is +95.7% (1Y), outperforming the benchmark by +70.7%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +7.3% | -2.1% | — |
| 1Y | +95.7% | +70.7% | +10.4% |
| 3YCAGR | +46.7% | +25.9% | +48.5% |
| 5YCAGR | +23.0% | +9.7% | +83.5% |
| 10YCAGR | +27.7% | +14.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Kenon Holdings Ltd. (KEN) valuation, health, and returns.
Kenon Holdings Ltd. is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. trading near fair value (DCF: $0.00)
Kenon Holdings Ltd. has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $66.63. A convergence of these signals offers higher conviction.
Kenon Holdings Ltd. displays weak financial health with a composite quality score of 34/100, supported by a Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 1.5%.
Kenon Holdings Ltd. pays a 7.8% dividend yield, covered by a 404% payout ratio with 2 years of growth, supplemented by a 0.3% buyback yield.
Kenon Holdings Ltd.'s current growth trajectory is Stable. The company achieved +16.1% 1Y revenue growth and -88.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +15.0%.
Wall Street consensus is Hold based on 1 analysts. The consensus price target represents a N/A change from current levels.
Investment risks for Kenon Holdings Ltd. include: -30.5% 1-year max drawdown, stretched payout ratio. Volatility risk is characterized by a beta of 1.11x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.