Kenon Holdings Intrinsic Value Calculation – Altshuler Shaham Ltd reduces stake in Kenon Holdings by 21.9% in Q2
September 28, 2024
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Kenon Holdings ($NYSE:KEN) Ltd. is a global holding company that operates primarily in the energy and infrastructure sectors. Its main business segments include power generation, including electricity production from conventional and renewable sources, and development of energy projects in various countries. Recently, there has been a significant change in the ownership structure of Kenon Holdings, as one of its major shareholders, Altshuler Shaham Ltd, has reduced its stake in the company by 21.9% during the second quarter. Altshuler Shaham Ltd is an Israeli investment management firm that specializes in managing pension funds, mutual funds, and other investment portfolios. This move by Altshuler Shaham Ltd comes as a surprise to many in the investment community, as the company had been one of the largest shareholders of Kenon Holdings since its inception. The decrease in stake can be attributed to various factors, including a change in the investment strategy of Altshuler Shaham Ltd or its need for liquidity.
This could have also played a role in Altshuler Shaham Ltd’s decision to reduce its stake. While the decrease in stake may be seen as a negative for Kenon Holdings, it is important to note that the company is still backed by other major shareholders, including IC Power Ltd. and Qoros Automotive Co., a Chinese manufacturer of luxury vehicles. Kenon Holdings also remains committed to its long-term growth strategy and continues to focus on expanding its presence in the energy and infrastructure sectors. While the reasons behind this decision are not yet clear, it is a reminder that investments are subject to change and investors should always be mindful of any shifts in ownership. With other major shareholders still invested in Kenon Holdings, the company’s growth prospects remain intact, and it will be interesting to see how this change in ownership plays out in the long run.
Analysis – Kenon Holdings Intrinsic Value Calculation
After conducting a thorough analysis of KENON HOLDINGS‘ financials, I have determined that the stock is currently undervalued. Our proprietary Valuation Line has calculated an intrinsic value of $45.7 for KENON HOLDINGS share, which is significantly higher than its current trading price of $26.72. This means that the stock is undervalued by 41.5%. Our valuation takes into account various financial factors such as revenue, earnings, cash flow, and debt. We have also considered the company’s growth potential, market trends, and industry comparisons. Based on all these factors, we are confident in our valuation of KENON HOLDINGS. This undervaluation presents a great opportunity for investors to purchase KENON HOLDINGS stock at a discounted price. As the market catches up to our valuation, there is potential for significant returns on investment. However, it is important for investors to conduct their own research and consider their risk tolerance before making any investment decisions. Overall, our analysis shows that KENON HOLDINGS is a strong company with solid financials and a promising future. As GoodWhale, I am confident in the value and potential of this stock and recommend it as a good investment opportunity. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kenon Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 685.96 | -1.09k | -80.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kenon Holdings. More…
| Operations | Investing | Financing |
| 313.38 | -384.44 | 162.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kenon Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.92k | 1.85k | 22.27 |
Key Ratios Snapshot
Some of the financial key ratios for Kenon Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.7% | -22.5% | -141.7% |
| FCF Margin | ROE | ROA |
| 9.1% | -46.4% | -15.5% |
Peers
Kenon Holdings Ltd faces a highly competitive market, with several competitors such as B.Grimm Power PCL, Electricity Generating PCL, and Ze Pak SA vying for market share. Despite the fiercely competitive landscape, Kenon Holdings Ltd continues to excel by providing innovative products and services to its customers.
– B.Grimm Power PCL ($SET:BGRIM)
B.Grimm Power PCL is a leading energy and infrastructure development company based in Thailand and has operations across Asia. The company has a strong presence in the energy sector, with a focus on renewable and conventional energy production, and infrastructure projects. Its current market capitalization stands at 104.28B and has a Return on Equity (ROE) of 5.85%. This indicates that the company enjoys a healthy financial standing and is able to generate returns for its shareholders. B.Grimm Power PCL is also aiming to expand its power generation capacity and increase its presence in the renewable energy sector.
– Electricity Generating PCL ($SET:EGCO)
Electricity Generating PCL is a Thailand based electric power generating company that has been in business since 1992. It is one of the largest electric power generating companies in Southeast Asia and is listed on the Stock Exchange of Thailand. As of 2023, the company has a market capitalization of 82.13 billion baht, making it one of the largest companies on the exchange. Additionally, Electricity Generating PCL has a Return on Equity (ROE) of 3.31%, which is considered to be above average. This shows that the company is able to generate a healthy return on its equity and shareholders have benefited from this in the form of steady dividend payments.
– Ze Pak SA ($LTS:0QBJ)
Pak SA is a South-African based company that specializes in consumer packaged goods. It is one of the leading companies in the country, and its market cap has grown significantly over the years. As of 2023, the market cap of Pak SA stands at 216.33M, indicating a strong presence in the market. Its Return on Equity (ROE) stands at -13.64%, which implies that the company is not generating an adequate return from its invested capital. Nevertheless, Pak SA has been able to maintain a positive reputation in the consumer packaged goods sector.
Summary
Investment firm Altshuler Shaham Ltd has reduced their stake in Kenon Holdings Ltd. by almost 22% in the second quarter. This indicates that they are not as confident in the company’s performance as before.
However, despite this decrease in ownership, the stock price for Kenon Holdings Ltd. went up on the same day. This may suggest that other investors are more optimistic about the company’s potential for growth. As an investor, it is important to consider multiple factors when analyzing a company, including changes in ownership and market trends. It will be important to continue monitoring the performance of Kenon Holdings Ltd. and its position in the market.
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