Kingsway Financial Services (KFS) AI Stock Analysis

• Market Cap: $218.92M
• Dividend Yield: N/A
• Average Volume (3M): 84.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: 2.95%
• EPS Growth: -130.51%
• Country: US
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 63
• Industry: Auto - Dealerships
• EPS (TTM): -0.32
• Shares Outstanding: 27,537,151
• 10 Day Avg. Volume: 63,720
• 30 Day Avg. Volume: 84,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.98
• Price to Cash Flow (P/CF): -507.00
• P/FCF Ratio: 45.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kingsway Financial Services shows a moderate overall performance. Strengths lie in positive revenue and EBITDA growth and strategic acquisitions, as highlighted in the earnings call. Technical analysis presents a neutral outlook with mixed signals. However, the company's financial performance is weakened by negative net income and cash flow issues, while valuation is negatively impacted by a high P/E ratio and lack of dividends.

Kingsway Financial Services Business Overview & Revenue Model

Company Description

Kingsway Financial Services Inc., through its subsidiaries, engages in the extended warranty business services, asset management, and real estate businesses. The company operates through three segments: Extended Warranty, Leased Real Estate, and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements and related products for new and used automobiles, motorcycles, and ATVs. This segment also sells new home warranty products, as well as offers uninsured warrant administration services to homebuilders and homeowners; markets and distributes warranty products to manufacturers, distributors, and installers of heating, ventilation and air conditioning, standby generator, commercial LED lighting, and commercial refrigeration equipment; and provides equipment breakdown and maintenance support services to companies. The Leased Real Estate segment owns a parcel of real property consisting of approximately 192 acres located in the State of Texas. The Kingsway Search Xcelerator offers outsourced finance and human resources consulting services, including operational accounting, such as bookkeeping, accounting, financial reporting, and analysis and strategic finance services; technical accounting comprising initial public offerings, SEC reporting, and international consolidation services; human resources, workforce management, and compliance support services; and advisory services. The company offers its products and services through credit unions, dealers, homebuilders, and consumers. Kingsway Financial Services Inc. was incorporated in 1989 and is based in Itasca, Illinois.

How the Company Makes Money

Kingsway Financial Services generates revenue through various streams, primarily focused on insurance premiums and service fees. The company's key revenue sources include underwriting income from property and casualty insurance policies and fees from extended warranty services. Additionally, KFS engages in strategic investments and partnerships to enhance its financial offerings and expand its market reach, which contributes to its earnings. By managing risk effectively and optimizing its investment portfolio, the company maximizes returns and sustains profitability.

Kingsway Financial Services Financial Statement Overview

Summary

Kingsway Financial Services faces challenges in profitability and cash flow, with positive aspects in gross profit margins and debt management. The company has limited revenue growth and negative net income, impacting overall financial health. High reliance on liabilities and negative cash flow metrics indicate potential risks in financial stability and liquidity.

Income Statement

Kingsway Financial Services has shown a positive gross profit margin of 75.6% for the most recent year, indicating strong cost management relative to revenue. However, the company has a negative net income, leading to a negative net profit margin of -8.6%, which raises concerns about profitability. The revenue growth rate from the previous year is modest at 1.6%, showing limited growth momentum. EBIT and EBITDA margins are relatively low at 2.0%, reflecting challenges in operational efficiency.

Balance Sheet

The company has a low debt-to-equity ratio of 0.0 due to no outstanding debt, which is positive for financial stability. However, the return on equity (ROE) is negative at -112.3%, driven by negative net income and low equity levels, highlighting inefficiencies. The equity ratio stands at 4.5%, suggesting a high reliance on liabilities to finance assets, which poses a risk.

Cash Flow

Kingsway's free cash flow growth rate shows improvement but remains negative, indicating ongoing cash flow challenges. The operating cash flow to net income ratio is low at -0.06, suggesting insufficient cash generation relative to net income. Free cash flow to net income ratio is also negative, reflecting cash flow issues that could impact future operations.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
109.38M	107.66M	114.69M	94.78M	65.72M
	Gross Profit
82.65M	76.03M	90.61M	87.72M	63.02M
	EBIT
2.16M	954.00K	37.57M	-21.35M	-21.59M
	EBITDA
2.16M	5.93M	30.13M	3.24M	14.11M
	Net Income Common Stockholders
-9.45M	23.56M	24.72M	1.86M	-5.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.49M	9.26M	64.33M	12.80M	14.53M
	Total Assets
186.62M	197.72M	285.65M	475.63M	452.47M
	Total Debt
60.22M	45.61M	103.31M	295.19M	271.50M
	Net Debt
54.73M	36.52M	39.14M	282.55M	257.13M
	Total Liabilities
168.31M	173.11M	263.53M	412.96M	387.00M
	Stockholders Equity
16.66M	27.71M	21.68M	773.00K	4.51M
Cash Flow		Free Cash Flow
-104.00K	-26.39M	11.89M	-6.74M	1.46M
	Operating Cash Flow
605.00K	-26.19M	-14.57M	-5.91M	1.67M
	Investing Cash Flow
-16.85M	6.46M	100.94M	-8.60M	4.01M
	Financing Cash Flow
11.44M	-39.96M	-37.93M	-540.00K	13.60M

Kingsway Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFS, the sentiment is Positive. The current price of 7.97 is above the 20-day moving average (MA) of 7.87, above the 50-day MA of 7.79, and below the 200-day MA of 8.24, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 52.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFS.

Kingsway Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	73 Outperform	$718.28M	15.59	9.60%	―	4.35%	-58.76%
CANG	69 Neutral	$397.49M	5.38	7.59%	―	-53.97%	―
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
CRMT	60 Neutral	$385.33M	52.17	1.50%	―	-2.26%	―
KFS	56 Neutral	$218.92M	―	-40.97%	―	2.95%	-130.51%
SDA	44 Neutral	$281.32M	―	-167.38%	―	―	―
RMBL	41 Neutral	$94.09M	―	-110.47%	―	-12.27%	79.29%