Kansas City Life Insurance Company (KCLI) AI Stock Analysis

• Market Cap: $309.86M
• 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): 0.10
• Shares Outstanding: 9,683,000
• 10 Day Avg. Volume: 369
• 30 Day Avg. Volume: 886
• PEG Ratio: -0.05
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.64
• P/FCF Ratio: -2.38
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 0.62
• Enterprise Value/Ebitda: -10.76
• 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: 47 Neutral
• Price Target: $32.00 ▼(-3.76% Downside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is held down primarily by worsening earnings in 2024–2025 and consistently negative cash flow, which weaken overall financial performance. Technical indicators are broadly neutral with only mild negative momentum, and valuation support is limited because the negative P/E reflects losses despite a modest dividend yield.

Positive Factors

Conservative Balance Sheet

No reported debt materially reduces financial risk and gives the company durable capacity to absorb underwriting volatility or investment stress. Over months, low leverage supports regulatory capital, preserves strategic optionality for reinsurance or opportunistic asset purchases, and limits insolvency risk.

Stable Revenue Base

A steady top line from in-force premiums and recurring products creates predictability in pricing, reserve planning and investment cash flows. That stability allows management to focus on margin restoration and expense control, reducing long-term business volatility versus cyclical revenue models.

Diversified Earnings Model

Dual earnings drivers—underwriting and investment spread—provide structural diversification. Premium inflows fund fixed-income portfolios that can generate durable spread income, while disciplined underwriting can improve margins independent of market swings, supporting multi-month resilience.

Negative Factors

Persistent Negative Cash Flow

Sustained operating and free cash outflows weaken financial flexibility and force reliance on investment realizations or capital actions. Over a multi-month horizon this limits ability to support new sales, pay claims from operating receipts, invest in technology/distribution, or withstand prolonged adverse mortality or market shocks.

Worsening Profitability

A swing to sustained losses and negative margins erodes capital and reduces internal funds for growth or dividends. If underwriting or reserve assumptions remain weak, management must pursue pricing, expense reduction, or capital measures, all structural actions that can constrain long-term earnings recovery.

Declining Return on Equity

A shift to negative ROE indicates the company is not earning its cost of capital on equity, signaling impaired capital efficiency. Over months this can pressure retained earnings, limit capacity to fund liabilities internally, and increase probability of capital management actions like cuts to dividends or external raises.

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

KCLI primarily makes money through (1) insurance underwriting income and (2) investment income on invested assets supporting policy liabilities and capital. Underwriting-related revenue comes from policyholder premiums collected on in-force policies; from these premiums, the company pays policy benefits and claims, increases reserves for future obligations, and incurs operating expenses (commissions, underwriting, policy administration). Profit (or loss) from underwriting depends on pricing adequacy, mortality and morbidity experience relative to assumptions, policy persistency/lapse behavior, expense control, and the level and timing of claims. Investment income is generated by investing premium inflows and existing reserves—typically in a portfolio of fixed-income securities and other permitted assets—earning interest, dividends, and realized gains/losses; the spread between earned investment returns and amounts credited/guaranteed to policyholders (where applicable), plus the return on the company’s own capital, is a major earnings driver for life insurers. Additional earnings may come from policy charges and fees embedded in certain products (if applicable), as well as reinsurance arrangements that can transfer portions of risk in exchange for premiums/ceded charges; specific partnership counterparties are null.

Kansas City Life Insurance Company Financial Statement Overview

Summary

Financials are pressured by deteriorating profitability (losses in 2024 that widened in 2025 with negative operating earnings and ~-4% net margin) and persistently negative operating/free cash flow (2021–2025, with a sharp outflow in 2025). The main offset is a conservative balance sheet with no reported debt and sizable equity, which reduces financial risk but does not fully compensate for weak earnings and cash generation.

Income Statement

Revenue has been relatively stable from 2020–2025 (roughly flat overall), but profitability has been inconsistent. After a strong 2023 (healthy profit and operating earnings), results deteriorated to losses in 2024 and widened further in 2025, with negative operating earnings and a ~-4% net margin in 2025. The combination of choppy earnings and recent losses weighs on the income statement score despite steady top-line levels.

Balance Sheet

The balance sheet shows no reported debt across the periods provided, which materially reduces financial risk. Equity is sizable relative to the company’s scale, and total assets have stayed broadly steady. That said, returns on equity swung from positive in 2023 to negative in 2024–2025, indicating that recent profitability weakness is eroding the quality of balance-sheet returns even if leverage remains low.

Cash Flow

Cash generation is a clear weak spot: operating cash flow and free cash flow are negative in most years shown (2021–2025), including a sharp outflow in 2025. While the reported free-cash-flow growth rate is positive in 2025, it is off a negative base and does not change the fact that cash flow remains meaningfully negative. Persistent cash outflows reduce financial flexibility and increase dependence on portfolio actions or capital management.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	485.45M	490.74M	494.97M	475.95M	494.65M
Gross Profit	485.45M	126.33M	120.51M	103.98M	100.83M
EBITDA	-28.02M	-2.80M	74.56M	-14.16M	20.89M
Net Income	-20.76M	-4.96M	54.92M	-16.22M	10.70M
Balance Sheet
Total Assets	4.89B	5.02B	4.64B	4.97B	5.43B
Cash, Cash Equivalents and Short-Term Investments	8.43M	274.35M	9.70M	2.27B	3.17B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	4.23B	4.44B	4.44B	4.08B	4.20B
Stockholders Equity	665.58M	581.45M	609.36M	491.69M	830.43M
Cash Flow
Free Cash Flow	-130.81M	-59.67M	-51.45M	-54.87M	-46.95M
Operating Cash Flow	-130.55M	-58.37M	-50.54M	-54.33M	-46.32M
Investing Cash Flow	45.03M	-13.01M	-2.60M	-89.17M	-7.86M
Financing Cash Flow	85.85M	69.78M	55.07M	145.85M	52.40M

Kansas City Life Insurance Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.25
• 50DMA: Negative
• 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 32.50, above the 50-day MA of 32.76, and above the 200-day MA of 31.82, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 50.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.54 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
AAME	68 Neutral	$56.91M	25.36	4.75%	0.74%	11.99%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GNW	58 Neutral	$3.14B	16.56	2.86%	―	1.41%	150.35%
BHF	54 Neutral	$3.45B	8.55	7.20%	―	27.71%	―
CIA	52 Neutral	$246.45M	―	4.93%	―	-0.55%	-51.14%
KCLI	47 Neutral	$309.86M	-14.97	-5.65%	1.75%	-3.32%	-162.81%