Kansas City Life Insurance Company (KCLI) AI Stock Analysis

• Market Cap: $320.89M
• Dividend Yield: 1.75%
• Average Volume (3M): 886.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -3.32%
• EPS Growth: -162.81%
• Country: US
• Employees: 443
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 0.33
• Shares Outstanding: 9,683,000
• 10 Day Avg. Volume: 369
• 30 Day Avg. Volume: 886
• PEG Ratio: 0.66
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -5.95
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: -6.45
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $32.00 ▼(-3.76% Downside)

The score is held back primarily by weak cash generation and volatile profitability (including a return to losses in 2024), partially offset by a conservatively positioned balance sheet with no reported debt. Technical indicators are broadly neutral, and valuation is difficult to assess given negative earnings despite a modest dividend yield.

Positive Factors

Debt-Free Balance Sheet

Having no debt enhances financial stability and flexibility, allowing KCLI to navigate economic fluctuations without the burden of interest payments, which is a strong long-term advantage.

Solid Equity Structure

A strong equity base provides a cushion against financial downturns and supports future growth initiatives, indicating robust financial health and resilience.

Gross Profit Margin

Maintaining a high gross profit margin reflects efficient cost management and pricing strategy, which is crucial for sustaining profitability in the competitive insurance sector.

Negative Factors

Negative Revenue Growth

Declining revenue growth indicates challenges in market expansion and customer acquisition, potentially impacting long-term profitability and market position.

Operating Cash Flow Challenges

Persistent negative operating cash flow suggests inefficiencies in core operations, which could strain liquidity and limit the company's ability to invest in growth opportunities.

Net Loss and Profitability Issues

Inconsistent profitability and recent net losses highlight operational challenges, undermining investor confidence and the company's ability to generate shareholder value.

Kansas City Life Insurance Company Business Overview & Revenue Model

Company Description

Kansas City Life Insurance Company provides insurance products and services in 49 states and the District of Columbia. It offers a portfolio of individual insurance, annuity, and group life and health insurance; and traditional life insurance, immediate annuities with life contingencies, supplementary contracts with life contingencies, and accident and health insurance. Kansas City Life Insurance Company was incorporated in 1985 and is based in Kansas City, Missouri.

How the Company Makes Money

Kansas City Life Insurance Company generates revenue primarily through the sale of life insurance policies and annuity products. The company earns premiums from policyholders, which serve as the primary source of income. Additionally, KCLI invests the premiums collected in various financial instruments, such as bonds, equities, and real estate, to generate investment income. This investment income complements the premium revenue and helps the company meet its future policyholder obligations. The company may also earn fees from managing group insurance plans and other financial products. Significant partnerships with financial advisors and insurance brokers can enhance distribution channels, contributing to the company's revenue growth.

Kansas City Life Insurance Company Financial Statement Overview

Summary

Financials are mixed: the balance sheet is a clear strength with no reported debt and meaningful equity, but performance quality is weakened by volatile profitability (2024 returning to a net loss with margin compression) and persistently negative operating/free cash flow, indicating limited self-funding capacity.

Income Statement

Revenue has been broadly flat to down over time (2024 declined vs. 2023; 2022 also contracted), and profitability has been volatile. After a strong 2023 (positive net margin ~9.8%), results deteriorated in 2024 with a small net loss and negative EBIT/EBITDA margins, indicating weaker underwriting/investment results or higher costs. Gross profit margin also compressed meaningfully from 2023 to 2024, highlighting pressure on core economics.

Balance Sheet

The balance sheet shows no reported debt across the period, which materially reduces financial risk and provides flexibility. Equity is substantial relative to the business size, though it has trended down from 2020–2021 highs, and returns on equity have swung from solid in 2023 (~9.0%) to slightly negative in 2024, reflecting earnings instability. Overall leverage looks conservative, but profitability-driven capital rebuilding is a key watch item.

Cash Flow

Cash generation is a consistent weakness: operating cash flow and free cash flow are negative in most years shown (including 2021–2024), with 2024 notably negative. While free cash flow to net income appears mechanically around ~1x in several years, the more important takeaway is persistent cash burn and limited self-funding capacity, which increases reliance on portfolio actions or balance-sheet resources during weaker earnings periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.13M	490.74M	494.97M	475.95M	494.65M	509.28M
Gross Profit	125.23M	126.33M	120.51M	103.98M	100.83M	107.38M
EBITDA	-48.55M	-2.80M	74.56M	-14.16M	20.89M	24.45M
Net Income	-37.45M	-4.96M	54.92M	-16.22M	10.70M	15.17M
Balance Sheet
Total Assets	4.99B	5.02B	4.64B	4.97B	5.43B	5.46B
Cash, Cash Equivalents and Short-Term Investments	249.70M	274.35M	9.70M	2.27B	3.17B	3.25B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.41B	4.44B	4.44B	4.08B	4.20B	4.55B
Stockholders Equity	582.60M	581.45M	609.36M	491.69M	830.43M	908.74M
Cash Flow
Free Cash Flow	-108.25M	-59.67M	-51.45M	-54.87M	-46.95M	4.08M
Operating Cash Flow	-107.17M	-58.37M	-50.54M	-54.33M	-46.32M	5.89M
Investing Cash Flow	13.12M	-13.01M	-2.60M	-89.17M	-7.86M	-34.02M
Financing Cash Flow	94.62M	69.78M	55.07M	145.85M	52.40M	21.10M

Kansas City Life Insurance Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KCLI, the sentiment is Positive. The current price of 33.25 is above the 20-day moving average (MA) of 33.07, above the 50-day MA of 32.49, and above the 200-day MA of 31.44, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 54.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KCLI.

Kansas City Life Insurance Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BHF	74 Outperform	$3.64B	4.34	16.27%	―	27.71%	―
AAME	68 Neutral	$51.60M	11.22	4.75%	0.74%	11.99%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GNW	63 Neutral	$3.55B	16.81	2.86%	―	1.41%	150.35%
CIA	59 Neutral	$296.75M	27.62	5.02%	―	-0.55%	-51.14%
KCLI	49 Neutral	$320.89M	-9.01	-5.65%	1.75%	-3.32%	-162.81%