Is KEN's EPS growth sustainable?

**Kenon Holdings Ltd.'s (KEN) EPS growth appears to be sustainable** based on the following points: 1. **Consistent Financial Growth**: Kenon has demonstrated robust financial growth, achieving an 8.5% year-over-year revenue increase, reaching $751 million in fiscal year 2024. This growth underscores the company's strategic prowess and operational efficiency. 2. **Strong Profitability**: OPC, a key subsidiary of Kenon, has shown a significant leap in net profit, reaching $53 million in 2024, up from $47 million in 2023. Adjusted EBITDA for OPC also rose impressively, indicating enhanced profitability and efficient resource utilization. 3. **Strategic Focus**: Kenon's strategic focus on energy transition and renewable energies has resulted in significant growth, particularly in its renewable energy segment, which saw a 261% increase in EBITDA. This strategic direction is likely to contribute positively to future EPS growth. 4. **Dividend Sustainability**: Despite the high dividend yield, Kenon's dividend payout ratio provides insights into the portion of earnings distributed to shareholders. A lower ratio suggests that the company retains earnings, which can be reinvested for further growth. The company's recent dividend of $3.8 per share, payable in April 2025, with an ex-dividend date in April 2025, indicates a sustainable dividend policy. 5. **Investor Confidence**: Recent acquisitions by significant investors, such as Harel Insurance Investments & Financial Services Ltd. and Yelin Lapidot Holdings Management Ltd., reflect confidence in Kenon's potential for growth and value creation. This confidence can attract more investors and contribute to the company's continued growth. In conclusion, the combination of Kenon's financial growth, strategic initiatives, dividend sustainability, and investor confidence suggests that the company's EPS growth is likely to be sustainable.