Kingsway Financial Services (KFS) AI Stock Analysis

• Market Cap: $404.23M
• Dividend Yield: N/A
• Average Volume (3M): 90.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 5.53%
• EPS Growth: -124.90%
• Country: US
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Dealerships
• EPS (TTM): -0.13
• Shares Outstanding: 28,873,415
• 10 Day Avg. Volume: 141,557
• 30 Day Avg. Volume: 90,854
• PEG Ratio: <0.01
• Price to Book (P/B): 8.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.32
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 3.50
• Enterprise Value/Ebitda: 13.28
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: $13.50 ▼(-3.57%Downside)

Kingsway Financial Services' overall score is primarily impacted by its financial struggles, including high leverage and negative cash flows. The strong technical indicators provide a positive outlook, but the overbought status is a concern. The mixed outcomes from the earnings call, with segment growth and acquisition benefits contrasted by profitability challenges, also influence the score.

Kingsway Financial Services Business Overview & Revenue Model

Company Description

Kingsway Financial Services (KFS) is a diversified holding company primarily engaged in the financial services sector. The company focuses on acquiring businesses and managing a portfolio of subsidiaries involved in extended warranty, vehicle service contracts, and insurance services. KFS leverages its expertise in the financial industry to optimize the performance and growth of its subsidiaries, providing a range of financial products and services to individual and commercial clients.

How the Company Makes Money

Kingsway Financial Services generates revenue through its portfolio of subsidiaries, which primarily operate in the extended warranty and insurance sectors. The company's revenue streams include premiums collected from insurance policies, fees from vehicle service contracts, and other financial products it offers. KFS also benefits from investment income derived from managing its subsidiaries' assets. The company strategically acquires businesses that complement its existing operations, enabling it to expand its service offerings and customer base, which in turn contributes to its earnings. Significant partnerships with automotive dealers, manufacturers, and other financial institutions enhance its distribution channels and market reach, further supporting its revenue model.

Kingsway Financial Services Financial Statement Overview

Summary

Kingsway Financial Services is experiencing financial difficulties. Despite strong gross profit margins, the company faces issues with high leverage, negative cash flows, and profitability challenges.

Income Statement

Kingsway Financial Services shows an inconsistent revenue growth pattern with a recent decline in EBIT and Net Income. Gross Profit margin is strong at 56.0% TTM, but the negative EBIT and Net Income margins indicate profitability challenges. The company needs to address operational inefficiencies to improve margins.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.17 TTM, indicating significant leverage. While the equity ratio is relatively low at 10.3%, the company's ROE is negative due to recent losses. Improving equity levels and managing debt could enhance financial stability.

Cash Flow

Cash flow analysis shows negative operating cash flow and free cash flow TTM, reflecting cash management issues. The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to earnings. Strategic improvements in cash generation are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.79M	109.38M	107.66M	114.69M	94.78M	65.72M
Gross Profit	63.16M	82.65M	76.03M	90.61M	87.72M	63.02M
EBITDA	3.56M	2.16M	5.93M	30.13M	3.24M	14.11M
Net Income	-10.23M	-9.27M	23.56M	24.72M	1.86M	-5.42M
Balance Sheet
Total Assets	192.12M	186.62M	197.72M	285.65M	475.63M	452.47M
Cash, Cash Equivalents and Short-Term Investments	13.76M	5.49M	9.26M	64.33M	12.80M	14.53M
Total Debt	62.40M	60.22M	45.61M	103.31M	295.19M	271.50M
Total Liabilities	170.65M	168.31M	173.11M	263.53M	412.96M	387.00M
Stockholders Equity	19.70M	16.66M	27.71M	21.68M	773.00K	4.51M
Cash Flow
Free Cash Flow	-10.43M	358.00K	-26.39M	11.89M	-6.74M	1.46M
Operating Cash Flow	-9.62M	1.07M	-26.19M	-14.57M	-5.91M	1.67M
Investing Cash Flow	-10.28M	-16.85M	6.46M	100.94M	-8.60M	4.01M
Financing Cash Flow	14.72M	11.44M	-39.96M	-37.93M	-540.00K	13.60M

Kingsway Financial Services Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.00
• 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 KFS, the sentiment is Positive. The current price of 14 is above the 20-day moving average (MA) of 13.56, above the 50-day MA of 11.17, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 69.29 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	77 Outperform	$745.21M	17.63	9.35%	―	2.24%	-57.33%
CRMT	67 Neutral	$460.10M	26.57	3.45%	―	-2.26%	―
KFS	59 Neutral	$404.23M	―	-46.36%	―	5.53%	-124.90%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	8.88%	0.06%	-64.88%
CANG	55 Neutral	$462.87M	6.63	0.12%	―	40.31%	-204.86%
RMBL	47 Neutral	$81.02M	―	-130.43%	―	-14.45%	78.09%
SDA	42 Neutral	$262.77M	―	-167.38%	―	―	―

Kingsway Financial Services Corporate Events

Kingsway Financial Hosts Investor Day at NYSE

On May 18, 2025, Kingsway Financial Services, Inc. announced the posting of an investor presentation on its website. The company also revealed plans to host an Investor Day at the New York Stock Exchange on May 19, 2025, which will be live-streamed for participants.

Kingsway Financial Services Raises $2M via Preferred Stock

On May 8, 2025, Kingsway Financial Services Inc., a Delaware corporation, conducted a private placement of 80,000 shares of a newly created Class D Preferred Stock, raising $2,000,000. This stock, offered without registration under the Securities Act, features conversion options into common stock, preferential dividends, and specific redemption terms, positioning it as a senior class of capital stock. The issuance is expected to impact the company’s financial structure by introducing a new class of preferred stock with fixed, cumulative dividends and a liquidation preference, potentially affecting stakeholders’ interests and the company’s capital strategy.

Kingsway Financial Services Director Resigns, New Appointment Made

On April 11, 2025, Charles Frischer resigned from his position as a director and member of the Audit Committee at Kingsway Financial Services Inc., with no disagreements cited as the reason for his departure. Subsequently, Adam Patinkin, already serving on the company’s Board of Directors, was appointed to the Audit Committee, indicating a seamless transition in the company’s governance structure.