(KEN) Kenon Holdings - Ratings and Ratios

Kenon Holdings Ltd. is a Singapore-based company that owns, develops, and operates power generation facilities in Israel and the United States, focusing on electricity and energy supply, as well as the development and management of power plants using natural gas, solar, and wind energy. As a subsidiary of Ansonia Holdings Singapore B.V., Kenon operates in the Independent Power Producers & Energy Traders sector.

Analyzing the companys recent performance, we observe that its stock price has been trending upwards, currently sitting at $34.66. The short-term moving averages (SMA20: $35.04, SMA50: $31.92) indicate a potential resistance level around $35, while the long-term SMA200 at $27.16 suggests a strong support base. The Average True Range (ATR) of 0.81, equivalent to 2.32%, signifies moderate volatility.

From a fundamental perspective, Kenon Holdings boasts a market capitalization of $1.92 billion and a Return on Equity (RoE) of 74.54%, indicating strong profitability. However, the high Price-to-Earnings (P/E) ratio of 96.89 raises concerns about potential overvaluation. The absence of a forward P/E ratio makes it challenging to gauge future earnings expectations.

Based on the technical and fundamental data, our forecast suggests that Kenon Holdings stock may experience a short-term correction due to the resistance level around $35. Nevertheless, the companys strong profitability and growth prospects in the renewable energy sector could drive the stock price upwards in the long term. We anticipate that Kenon Holdings will continue to benefit from the increasing demand for clean energy, potentially pushing the stock price towards $40 in the next 6-12 months, contingent upon the companys ability to maintain its high RoE and navigate the challenges associated with its high valuation.