KENKenon Holdings Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (5.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KEN?
Kenon Holdings Ltd. earns 2.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 6.3 points below what the capital costs: growth destroys value
- Operating margin
- 7.1%
Operating margin · Utilities - Independent Power Producers median 5.9% · fiscal year to FY2025
- Cash conversion
- 5.42×
Cash conversion · 9.87× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.1%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.9% |
| FY2021 | 4.6% |
| FY2022 | 0.49% |
| FY2023 | 6.2% |
| FY2024 | 6.3% |
| FY2025 | 7.1% |
Details›
- Gross marginfiscal year to FY2025
- 17%
- Operating marginfiscal year to FY2025
- 7.1%
- Net marginfiscal year to FY2025
- 7.6%
- Free cash flow margin
- 19%
- R&D as % of revenue
- 0.46%
- Revenue, trailing twelve months
- $872M
- Free cash flow, trailing twelve months
- $167M
- Net income, trailing twelve months
- $66M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 2.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.