Kingstone Companies (KINS) AI Stock Analysis

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Kingstone Companies

(NASDAQ:KINS)

Rating:67Neutral

Price Target:

$17.50

▲(16.12%Upside)

Kingstone Companies is performing well financially with improved profitability and cash flow generation. The earnings call was positive, but technical indicators suggest bearish trends. While the stock valuation appears reasonable, the absence of a dividend yield is a drawback for income investors.

Kingstone Companies (KINS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$215.13M

Dividend YieldN/A

Average Volume (3M)393.53K

Price to Earnings (P/E)9.4

Beta (1Y)0.59

Revenue Growth22.35%

EPS Growth6613.46%

CountryUS

Employees99

SectorFinancial

Sector Strength79

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)0.17

Shares Outstanding14,005,797

10 Day Avg. Volume264,070

30 Day Avg. Volume393,531

Financial Highlights & Ratios

PEG Ratio0.97

Price to Book (P/B)2.46

Price to Sales (P/S)0.00

P/FCF Ratio0.01

Enterprise Value/Market Cap-173.26

Enterprise Value/Revenue-60.34

Enterprise Value/Gross Profit-219.42

Enterprise Value/Ebitda-368.29

Forecast

1Y Price Target

$17.00

Price Target Upside12.81% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Kingstone Companies Business Overview & Revenue Model

Company DescriptionKingstone Companies, Inc. is an insurance holding company primarily engaged in the property and casualty insurance sector. Through its subsidiaries, the company provides a range of insurance products, including personal and commercial lines. Its core offerings focus on homeowners, dwelling fire, and commercial liability insurance, serving clients primarily in the Northeastern United States.

How the Company Makes MoneyKingstone Companies generates revenue primarily through the underwriting and sale of insurance policies. The company collects premiums from policyholders, which serve as its main revenue stream. Additionally, Kingstone invests the premiums it collects in a diversified portfolio of securities, aiming to earn investment income. The company's earnings are also influenced by its ability to manage claims and expenses efficiently. Significant partnerships with independent agents and brokers help expand its reach and customer base, further contributing to its revenue growth.

Kingstone Companies Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -17.15%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call reflects a strong performance with continued profitability, strategic growth, and improved financial health. However, there are concerns about increased fire losses and challenges in rate matching with new transactions. The overall sentiment is slightly positive due to the significant growth and strategic advancements despite some challenges.

Q1-2025 Updates

Positive Updates

Sixth Consecutive Quarter of Profitability

Kingstone reported its sixth consecutive quarter of profitability, with an 18% growth in direct written premiums and net income of $3.9 million, or $0.27 per diluted share.

Growth in Core Business

The core business saw a 23% growth in direct written premiums, led by a 68% increase in new business count and a 19% higher renewal average premium.

Successful Renewal Rights Transaction

Kingstone executed a renewal rights agreement with AmGUARD, providing competitive advantages and expected to contribute $25 million to $35 million in premiums over a 12-month period.

Improved Select Homeowners Program

The Select homeowners program's cumulative frequency decreased for 13 straight quarters, with frequency at 1.6% compared to 2.3% for the legacy product.

Strong Investment Income

Net investment income increased by 36% to $2 million, supported by strong cash generation and strategic investment in fixed-income securities.

Healthy Financial Position

Kingstone finalized the sale of its headquarters, resulting in a $1.5 million after-tax gain, and fully paid off holding company debt, saving over $800,000 in annual interest.

Negative Updates

Increase in Fire Losses

The non-catastrophe loss ratio increased by 0.4 percentage points due to an increase in severity from a few large fire losses, although it was considered a random uptick.

Challenges with Rate Matching

Kingstone is facing challenges in matching rates to risks optimally, particularly with the AmGUARD transaction, where pricing discrepancies may exist.

Dwelling Fire Product Decline

The dwelling fire product faced declines, prompting rate segmentation changes to address this issue.

Company Guidance

During the Kingstone Companies First Quarter 2025 Earnings Conference Call, CEO Meryl Golden provided guidance on several key metrics. The company reported an 18% growth in direct written premiums, with a 23% increase in their core business. Net income for the quarter was $3.9 million, equating to $0.27 per diluted share. The Select homeowners' program showed a frequency decrease, now at 1.6% compared to the legacy product's 2.3%. The company expects to benefit from a renewal rights agreement with AmGUARD, estimating $25 million to $35 million in premiums over a 12-month period. Despite a 3.3 percentage point increase in attritional losses, catastrophe losses decreased by 3.5 points. The company's combined ratio stood at 93.7%, with operating income up by $1.6 million to $2.4 million. Additionally, Kingstone announced the sale of its headquarters, resulting in a one-time after-tax gain of $1.5 million, and paid off its holding company debt, saving $800,000 in annual interest. They also reported a 36% increase in net investment income, reaching $2 million for the quarter. The company reaffirmed its calendar year 2025 guidance, expressing optimism about continued growth and profitability.

Kingstone Companies Financial Statement Overview

Summary

Kingstone Companies shows strong profitability improvement and cash flow generation. However, historical volatility in margins and a moderate equity ratio indicate areas for stabilization.

Income Statement

Positive

Kingstone Companies shows a strong recovery with TTM (Trailing-Twelve-Months) revenue growth of 9.5% and a net profit margin of 12.3%, reflecting improved profitability. However, historical volatility in EBIT margin indicates some operational challenges.

Balance Sheet

Neutral

The balance sheet shows a moderate debt-to-equity ratio of 0.07, suggesting low leverage. However, the equity ratio stands at 21.3%, highlighting potential limitations in asset-backed equity, though improved from previous years.

Cash Flow

Positive

Significant improvement in cash flow with a substantial free cash flow growth rate and an operating cash flow to net income ratio of 860.5, indicating robust cash generation. However, past volatility raises caution for sustainable cash flow management.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
169.88M	155.14M	144.19M	130.16M	161.23M	131.37M
	Gross Profit
169.88M	155.14M	144.19M	130.16M	161.23M	131.37M
	EBIT
26.20M	23.29M	-7.37M	-27.94M	-9.41M	-1.29M
	EBITDA
31.49M	29.25M	-389.56K	-24.64M	-6.12M	1.58M
	Net Income Common Stockholders
20.81M	18.36M	-6.17M	-22.52M	-7.38M	972.39K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
177.47M	28.67M	8.98M	166.67M	182.37M	177.01M
	Total Assets
292.53M	374.92M	247.22M	320.33M	331.31M	317.58M
	Total Debt
29.52M	11.17M	25.29M	25.16M	29.82M	29.65M
	Net Debt
3.93M	-17.50M	16.31M	13.20M	5.53M	10.18M
	Total Liabilities
215.67M	308.21M	212.71M	284.16M	255.64M	224.78M
	Stockholders Equity
76.86M	66.71M	34.50M	36.17M	75.67M	92.80M
Cash Flow		Free Cash Flow
17.91B	55.61M	-13.15M	-5.47M	19.85M	-13.56M
	Operating Cash Flow
17.91B	57.95M	-11.33M	-915.52K	24.35M	-10.23M
	Investing Cash Flow
-11.87B	-35.26M	9.46M	-5.91M	-15.95M	581.29K
	Financing Cash Flow
2.80B	-2.99M	-1.12M	-5.51M	-3.57M	-3.27M

Kingstone Companies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price15.07

Price Trends

50DMA

16.93

Negative

100DMA

16.57

Negative

200DMA

14.28

Positive

Market Momentum

MACD

-0.60

Positive

RSI

40.66

Neutral

STOCH

25.22

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KINS, the sentiment is Negative. The current price of 15.07 is below the 20-day moving average (MA) of 16.08, below the 50-day MA of 16.93, and above the 200-day MA of 14.28, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 40.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KINS.

Kingstone Companies Risk Analysis

Kingstone Companies disclosed 31 risk factors in its most recent earnings report. Kingstone Companies reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Kingstone Companies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HRTG	76 Outperform	$729.27M	9.19	27.59%	―	11.41%	53.85%
KINS	67 Neutral	$215.13M	9.40	35.29%	―	22.35%	6613.46%
GBLI	66 Neutral	$462.50M	16.22	4.14%	4.32%	-10.61%	-19.48%
Sector *	64 Neutral	$12.85B	9.81	7.79%	78.20%	12.23%	-7.93%
ACIC	61 Neutral	$519.32M	7.03	31.11%	―	12.19%	5.12%
CNFR	56 Neutral	$9.53M	0.40	-251.22%	―	-25.13%	―
NODK	46 Neutral	$264.53M	51.99	2.40%	―	-6.46%	―

* Financial Sector Average

Performance Comparison

KINS

Kingstone Companies

15.12

10.37

218.32%

GBLI

Global Indemnity

31.18

1.44

4.84%

ACIC

American Coastal Insurance

10.66

0.20

1.91%

HRTG

Heritage Insurance Holdings

23.88

16.11

207.34%

CNFR

Conifer Holdings

0.79

-0.11

-12.22%

NODK

NI Holdings

12.56

-2.70

-17.69%

Kingstone Companies Corporate Events

Financial Disclosures

Kingstone Companies Reports Strong Q1 2025 Results

Positive

May 8, 2025

Kingstone Companies reported its first quarter 2025 financial results, achieving its sixth consecutive quarter of profitability. The company saw a 23% growth in direct premiums written for its core business, driven by a favorable competitive landscape in Downstate New York. Net income increased by 172% compared to the previous year, and the company reaffirmed its full-year 2025 guidance, reflecting optimism about its future prospects.

Regulatory Filings and Compliance

Kingstone Companies Issues Regulation FD Disclosure

Neutral

Apr 24, 2025

Kingstone Companies has released a press statement, clarifying that the information provided is not to be considered material or complete for investment decisions. The company emphasizes that the press release information is furnished for informational purposes and not incorporated into any registration statement under the Securities Act.

Executive/Board Changes

Kingstone Companies CFO Jennifer Gravelle to Resign

Neutral

Mar 31, 2025

On March 28, 2025, Kingstone Companies announced that Jennifer Gravelle, the Vice President, Chief Financial Officer, and Treasurer, will resign from her positions effective April 18, 2025, to pursue other opportunities. Her departure is not due to any disagreements with the company’s operations, policies, or practices.

Financial Disclosures

Kingstone Companies Reports Record Q4 2024 Results

Positive

Mar 13, 2025

Kingstone Companies reported record financial results for the fourth quarter and full year 2024, with a 31% growth in core direct premiums written and a combined ratio of 80%. The company achieved its fifth consecutive quarter of profitability, driven by disciplined underwriting, lower frequency of losses, and no catastrophe losses, positioning itself for sustainable long-term profitability.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.