Kingsway Financial Services (KFS) AI Stock Analysis

• Market Cap: $346.97M
• Dividend Yield: N/A
• Average Volume (3M): 47.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 5.53%
• EPS Growth: -124.90%
• Country: US
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Auto - Dealerships
• EPS (TTM): -0.13
• Shares Outstanding: 27,537,151
• 10 Day Avg. Volume: 71,207
• 30 Day Avg. Volume: 47,674
• PEG Ratio: 1.02
• Price to Book (P/B): 14.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.13
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 5.76
• Enterprise Value/Ebitda: 19.43
• 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 ▲(4.33%Upside)

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 financial services company operating primarily in the insurance sector. It specializes in providing property and casualty insurance, along with extended warranty services. The company aims to deliver innovative financial solutions to meet the evolving needs of its clients, thereby enhancing their financial security and stability.

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
-9.27M	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
358.00K	-26.39M	11.89M	-6.74M	1.46M
	Operating Cash Flow
1.07M	-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: 12.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 12.94 is above the 20-day moving average (MA) of 11.04, above the 50-day MA of 9.30, and above the 200-day MA of 8.53, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 80.95 is Negative, neither overbought nor oversold. The STOCH value of 73.90 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	74 Outperform	$651.51M	15.50	9.35%	―	2.24%	-57.33%
CRMT	67 Neutral	$410.78M	58.67	1.50%	―	-2.26%	―
CANG	67 Neutral	$511.65M	6.63	0.12%	―	40.31%	-204.86%
Sector *	62 Neutral	$6.93B	11.25	2.95%	3.88%	2.69%	-24.71%
KFS	59 Neutral	$346.97M	―	-46.36%	―	5.53%	-124.90%
RMBL	46 Neutral	$57.17M	―	-130.43%	―	-14.45%	78.09%
SDA	46 Neutral	$279.19M	―	-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.