Keppel Corporation shareholders are in a world of pain. After Temasek Holdings decided to walk away from the deal to acquire a majority stake in the company in August 2020, Keppel shares lost 11% in a single day and closed at $4.80.
As the stock continues to slide from the 2018 high of $8.90 to today’s $4.18, it is time to revisit this company. Could it finally be a good time to invest in Keppel Corp?
To decide, I will have to walk through my investment checklist.
(A) Is the Company Profitable?
It is complicated, depending on how you want to look at it. For the 1st half of 2020, the company lost money. The company lost $537 million or $0.10 per share. If we take aside the one-off COVID19 related shocks and look at the longer term performance of the company, things don’t look so bad. In 2019, Keppel earned $707 million. That translates into a profit of $0.39 per share.