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Kenon Holdings Ltd. (KEN)

Company Dividend Discount ModelIndustry: Independent Power ProducersSector: Utilities

Valuation Snapshot

Stable Growth$908.24 - $1,781.81$1,669.82
Multi-Stage$279.45 - $305.74$292.35
Blended Fair Value$981.09
Current Price$45.17
Upside2,071.99%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS25.21%0.00%3.772.8313.931.882.261.2214.370.000.000.00
YoY Growth--33.38%-79.71%639.38%-16.57%84.31%-91.48%0.00%0.00%0.00%0.00%
Dividend Yield--11.79%10.28%47.37%2.77%7.40%8.60%73.12%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)476.67
(-) Cash Dividends Paid (M)261.45
(=) Cash Retained (M)215.22
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)95.3359.5835.75
Cash Retained (M)215.22215.22215.22
(-) Cash Required (M)-95.33-59.58-35.75
(=) Excess Retained (M)119.89155.64179.47
(/) Shares Outstanding (M)53.2053.2053.20
(=) Excess Retained per Share2.252.933.37
LTM Dividend per Share4.914.914.91
(+) Excess Retained per Share2.252.933.37
(=) Adjusted Dividend7.177.848.29
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate5.50%6.50%7.50%
Fair Value$908.24$1,669.82$1,781.81
Upside / Downside1,910.71%3,596.74%3,844.68%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)476.67507.66540.65575.80613.22653.08672.68
Payout Ratio54.85%61.88%68.91%75.94%82.97%90.00%92.50%
Projected Dividends (M)261.45314.13372.56437.26508.79587.77622.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.33%6.33%6.33%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)292.65295.42298.20
Year 2 PV (M)323.35329.51335.72
Year 3 PV (M)353.55363.70374.04
Year 4 PV (M)383.25397.99413.15
Year 5 PV (M)412.47432.39453.08
PV of Terminal Value (M)13,102.3813,735.2314,392.30
Equity Value (M)14,867.6515,554.2416,266.49
Shares Outstanding (M)53.2053.2053.20
Fair Value$279.45$292.35$305.74
Upside / Downside518.66%547.23%576.87%

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