Kingsway Financial Services (KFS) AI Stock Analysis

• Market Cap: $405.67M
• Dividend Yield: N/A
• Average Volume (3M): 75.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 14.24%
• EPS Growth: -67.80%
• Country: US
• Employees: 433
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -0.10
• Shares Outstanding: 28,873,415
• 10 Day Avg. Volume: 75,042
• 30 Day Avg. Volume: 75,957
• PEG Ratio: 0.18
• Price to Book (P/B): 13.66
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 635.75
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 3.34
• Enterprise Value/Gross Profit: 3.34
• Enterprise Value/Ebitda: 85.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $13.00 ▲(0.54% Upside)

The overall stock score for Kingsway Financial Services is 50, reflecting a mixed financial performance with profitability challenges and cash flow concerns. Despite positive earnings call sentiment and strategic growth initiatives, the technical indicators suggest a bearish trend, and the valuation metrics are unattractive due to negative profitability.

Kingsway Financial Services Business Overview & Revenue Model

Company Description

Kingsway Financial Services (KFS) is a diversified financial services company specializing in insurance and risk management solutions. Operating primarily in the insurance sector, KFS offers a range of products including auto, home, and commercial insurance, as well as investment services. The company aims to provide comprehensive financial solutions tailored to meet the needs of individuals and businesses, leveraging technology to enhance customer experience and operational efficiency.

How the Company Makes Money

KFS generates revenue through multiple streams, primarily from premiums collected on insurance policies sold to clients. The company also earns income from investment returns on its insurance reserves, which are strategically allocated into a diversified portfolio of assets. Additionally, KFS may receive commissions from third-party insurance products and services, as well as fees for financial advisory services. Significant partnerships with insurance carriers and financial institutions further bolster its revenue generation capabilities, allowing KFS to offer a broader range of products and enhance its market presence.

Kingsway Financial Services Financial Statement Overview

Summary

Kingsway Financial Services shows a mixed financial performance. While revenue growth is positive, profitability remains a challenge with negative net margins. The balance sheet shows improved leverage, but returns on equity are negative. Cash flow management is a concern with declining free cash flow growth. The company needs to focus on improving operational efficiency and cash generation to enhance financial health.

Income Statement

The income statement shows a mixed performance. The company has experienced revenue growth of 8.61% in the TTM, which is a positive indicator. However, the net profit margin is negative at -8.81%, indicating profitability challenges. The gross profit margin is strong at 88.15%, but the negative EBIT margin of -1.65% suggests operational inefficiencies. Overall, while revenue is growing, profitability remains a concern.

Balance Sheet

The balance sheet reveals a significant improvement in leverage, with a debt-to-equity ratio of 0.06 in the TTM compared to previous years. However, the return on equity is negative at -51.48%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is not provided, but the reduction in debt levels is a positive sign for financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by -45.51% in the TTM, reflecting cash management issues. The operating cash flow to net income ratio is negative, indicating that the company is not generating enough cash from operations to cover its net losses. The free cash flow to net income ratio is positive at 9.34, suggesting some ability to cover net losses with free cash flow, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	128.06M	112.53M	107.66M	114.69M	81.41M	68.60M
Gross Profit	128.06M	112.53M	107.66M	114.69M	81.41M	68.60M
EBITDA	5.00M	3.53M	36.12M	49.50M	4.60M	0.00
Net Income	-10.61M	-9.27M	23.56M	24.72M	-342.00K	-6.72M
Balance Sheet
Total Assets	235.13M	186.62M	197.72M	285.65M	475.63M	452.47M
Cash, Cash Equivalents and Short-Term Investments	9.29M	13.63M	15.18M	64.33M	12.80M	35.25M
Total Debt	1.03M	60.22M	45.61M	103.31M	96.58M	271.50M
Total Liabilities	199.31M	168.31M	173.11M	263.53M	460.88M	433.81M
Stockholders Equity	16.65M	16.66M	27.71M	21.68M	773.00K	4.51M
Cash Flow
Free Cash Flow	-1.13M	358.00K	-26.39M	11.89M	-6.74M	1.46M
Operating Cash Flow	-117.16K	1.07M	-26.19M	-14.57M	-5.91M	1.67M
Investing Cash Flow	-30.05M	-16.85M	6.46M	100.94M	-8.60M	4.01M
Financing Cash Flow	31.94M	11.44M	-39.96M	-37.93M	-540.00K	13.60M

Kingsway Financial Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFS, the sentiment is Negative. The current price of 12.93 is below the 20-day moving average (MA) of 13.71, below the 50-day MA of 14.31, and above the 200-day MA of 11.92, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 34.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFS.

Kingsway Financial Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARS	68 Neutral	$643.33M	17.05	6.11%	―	0.20%	-20.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRMT	54 Neutral	$150.58M	11.70	2.54%	―	0.79%	―
RDNW	53 Neutral	$127.10M	-1.11	-268.06%	―	-12.43%	66.92%
KFS	50 Neutral	$405.67M	-33.32	-39.82%	―	14.24%	-67.80%
UXIN	42 Neutral	$564.90M	-13.84	―	―	―	―
VRM	41 Neutral	$118.39M	-0.63	-52.02%	―	-81.31%	87.13%

Kingsway Financial Services Corporate Events

Kingsway Financial Services Reports Strong Q3 2025 Growth

Kingsway Financial Services Inc. is a publicly-traded company in the United States that employs the Search Fund model to acquire and develop businesses, primarily operating in the asset-light services sector with a focus on recurring revenue streams.

Kingsway Financial Services Sees Revenue Surge in Q3 2025

Kingsway Financial Services Inc. reported a 37% increase in consolidated revenue to $37.2 million for the third quarter of 2025, driven by a significant 104% growth in its Kingsway Search Xcelerator (KSX) division, which for the first time represents the majority of the company’s revenue. Despite the revenue growth, the company recorded a net loss of $2.4 million, slightly higher than the previous year’s loss of $2.3 million, indicating ongoing challenges in achieving profitability.

The most recent analyst rating on (KFS) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Kingsway Financial Services stock, see the KFS Stock Forecast page.

Kingsway Financial Services Reports Strong Q3 Revenue Growth Driven by KSX Division

Kingsway Financial Services Inc. reported a significant revenue growth of 37% for the third quarter of 2025, reaching $37.2 million. The Kingsway Search Xcelerator (KSX) division saw a remarkable 104% increase in revenue, making up the majority of the company’s revenue for the first time. Despite this growth, the company reported a slight increase in net loss to $2.4 million compared to the previous year’s quarter. The results highlight Kingsway’s strong performance in its KSX division, which could impact its market positioning and stakeholder interests.

The most recent analyst rating on (KFS) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Kingsway Financial Services stock, see the KFS Stock Forecast page.

Kingsway Financial Services Reports Strong Revenue Growth Amid Strategic Acquisitions

Kingsway Financial Services reported a 37% increase in revenue for the third quarter of 2025, reaching $37.2 million, with its Kingsway Search Xcelerator (KSX) division contributing significantly with a 104% revenue growth. Despite the revenue increase, the company experienced a slight net loss of $2.4 million. Recent acquisitions, including Roundhouse Electric and AAA Flexible Pipe Cleaning, are expected to bolster Kingsway’s revenue and EBITDA, positioning the company for future growth and enhancing its industry standing.

The most recent analyst rating on (KFS) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Kingsway Financial Services stock, see the KFS Stock Forecast page.

Kingsway Financial Services: Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Kingsway Financial Services reflected a cautiously optimistic sentiment. While the company celebrated significant achievements, such as a successful private placement and robust growth in the KSX segment, it also acknowledged challenges, including a dip in adjusted EBITDA and hurdles within the Extended Warranty segment. Overall, the highlights slightly surpassed the lowlights, indicating a strategic shift towards growth despite some operational difficulties.

Kingsway Financial Services Reports Q2 2025 Results

Kingsway Financial Services Inc., a unique publicly-traded company in the U.S., employs the Search Fund model to acquire and build high-quality B2B and B2C services companies, focusing on asset-light, profitable, and recurring revenue businesses. In its second quarter of 2025, Kingsway reported a 16.9% increase in consolidated revenue, reaching $30.9 million, despite a net loss of $3.2 million. The company’s KSX segment showed significant growth with a 42.1% increase in revenue, while the Extended Warranty segment saw a modest rise of 3.1%. However, the adjusted consolidated EBITDA decreased to $1.7 million from $2.5 million in the previous year. Notably, Kingsway reduced its net debt to $46.2 million from $52.0 million at the end of 2024. The company also completed a $15.7 million private placement, enhancing its financial resources for growth. Additionally, Kingsway made strategic acquisitions, including Roundhouse Electric & Equipment Co., AAA Flexible Pipe Cleaning Corp, and The HR Team, Inc., which are expected to contribute significantly to its revenue and EBITDA. Looking ahead, Kingsway’s management remains optimistic about its growth trajectory, emphasizing the robust KSX acquisition pipeline and the company’s commitment to building a larger, more profitable business through its public Search Fund strategy.