Kenon Holdings Ltd. Ordinary Shares (KEN)

FairStock Score: 27/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages, conservative balance sheets, and prices that offer a margin of safety. Kenon Holdings, at $63.41 as of 2026-10-13, gives me pause. The company operates power generation assets in Israel and the US, a capital-intensive business with regulated or contracted revenues. However, its returns on capital are weak: ROE of 6.78% and ROCE of just 1.03% suggest it is not earning its cost of capital. Debt is high with a debt-to-equity of 0.93. Free cash flow is negative $252.6M, meaning the business is consuming cash. In the quarter ended 2026-06-30 (fiscal Q2 2026), revenue was $379.0M and net income $44.0M, an 11.61% margin, but that does not offset the trailing cash burn. Valuation looks stretched: P/E 27.69, P/B 2.10, and the price is 61.43% above the Graham Number of $39.28. The Piotroski F-Score of 7/9 is a modest positive, but the Altman Z-Score of 1.24 flags financial distress risk. A 5.89% dividend yield may attract income seekers, but with negative free cash flow, the payout may not be sustainable. The 52-week range of $47.62 to $95.93 shows volatility. Without a clear moat or consistent cash generation, I would need a much lower price to be interested. In short, the risk-reward is not compelling at this price.

In plain English: Kenon Holdings builds and runs power plants in Israel and the United States. The business is profitable but has a lot of debt and is spending more cash than it brings in. The stock price looks expensive compared to its earnings and book value, and it trades well above a conservative value estimate.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer