Keppel is now in the spotlight despite of the lacklustle Q3 2019 results.
The profit margin has fallen despite the increase of revenue. Cash flow is negative and the liabilities has stabilized. The million dollar question is how to unlock the value of the stock.
Comparing further based on the high stock price of 6.74 vs average of 6 :-
Debt has increased, yet dividend has been projected to be slightly higher. PE ratio has increased from 15 to 16. It makes it look more expensive.
From a financial perspective, I see that there is not much changes. EBITA has improved and revenue per employee has increased that reflects productivity and efficiency in the workforce.
Based on these numbers, it is hard to understand the premium that Temasek is paying for Keppel at 7.35.
Maybe the divestment of assets with Keppel shall unlock the value. Rumors is about the O&M.
I will probably that a closer look at the Q3 2019 presentation slides to figure out the gem in the stock.
Please see my disclaimer in my blog..
The profit margin has fallen despite the increase of revenue. Cash flow is negative and the liabilities has stabilized. The million dollar question is how to unlock the value of the stock.
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| Keppel Financial Results |
Comparing further based on the high stock price of 6.74 vs average of 6 :-
Debt has increased, yet dividend has been projected to be slightly higher. PE ratio has increased from 15 to 16. It makes it look more expensive.
 |
| Keppel Valuation Q2 to Q3 2019 |
From a financial perspective, I see that there is not much changes. EBITA has improved and revenue per employee has increased that reflects productivity and efficiency in the workforce.
 | |
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Maybe the divestment of assets with Keppel shall unlock the value. Rumors is about the O&M.
I will probably that a closer look at the Q3 2019 presentation slides to figure out the gem in the stock.
Please see my disclaimer in my blog..
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