Education
About Us
Working with TipRanks
Follow Us
Kemper Corp (KMPR)
NYSE:KMPR
Top Page
Kemper
(NYSE:KMPR)
59Neutral
Positive Factors
Earnings
Strong 4Q24 results with operating EPS significantly beating estimates, driven primarily by the Life and Health segment.
Growth
Growth is returning faster than expected, with management guiding for further acceleration in early next year.
Performance
Solid PIF growth despite seasonal weakness indicates strong performance, bolstering confidence for future growth.
Stock Valuation
Shares of KMPR are viewed as attractive in terms of risk and reward, with the potential for the stock to trade higher as confidence in growth and margins increases.
Negative Factors
Margins
The business is currently exceeding target margins by a modest amount, suggesting a positive trend in profitability.
Profitability
Investor concerns about profitability have been addressed, with a focus on the pace at which current strong underwriting margins will adjust back to target margins.
Kemper (KMPR) vs. S&P 500 (SPY)
Market Cap
$4.40B
Dividend Yield1.85%
Average Volume (3M)371.41K
Price to Earnings (P/E)13.8
Beta (1Y)0.54
Revenue Growth-6.08%
EPS GrowthN/A
CountryUS
Employees7,400
SectorFinancial
Sector Strength81
IndustryInsurance
Share Statistics
EPS (TTM)4.91
Shares Outstanding64,023,080
10 Day Avg. Volume456,331
30 Day Avg. Volume371,409
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.91
Price to Cash Flow (P/CF)6.10
P/FCF Ratio4.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$84.40Price Target Upside22.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Kemper Business Overview & Revenue Model
Company DescriptionKemper Corporation (KMPR) is a diversified insurance holding company based in the United States. It provides a wide range of insurance products and services through its subsidiaries, including automobile, homeowners, life, health, and other forms of insurance. Kemper operates through two primary segments: Property & Casualty Insurance and Life & Health Insurance. The company caters to individuals, families, and businesses, offering both standard and specialty insurance solutions tailored to meet the needs of its customers.
How the Company Makes MoneyKemper Corporation generates revenue primarily through the collection of premiums from policyholders in exchange for the insurance coverage it provides. In the Property & Casualty Insurance segment, it earns money by underwriting personal and commercial auto insurance, homeowners insurance, and other specialty insurance products. These products are mainly sold through a network of independent agents and brokers. In the Life & Health Insurance segment, Kemper makes money by offering life insurance, health insurance, and annuity products. The company also invests a portion of the premiums it collects in various financial instruments, generating investment income that contributes to its overall earnings. Key factors that influence Kemper's revenue include underwriting performance, claims expenses, investment returns, and policy renewal rates.
Kemper Financial Statement Overview
Summary
Kemper's financial performance displays challenges such as declining revenue and profitability, high leverage, and fluctuating cash flows. While recent improvement in cash generation is noted, the company must address profitability and leverage issues for better financial stability.Income Statement
Kemper's income statement shows a declining trend in revenue and profitability over the years. The gross profit margin is consistent, but net income has turned negative, indicating issues with cost management or operations. Revenue decreased by approximately 5.6% from 2022 to 2023, with a slight improvement in 2024. The lack of EBIT and EBITDA data for the recent periods limits a comprehensive profitability analysis.45
Neutral
Balance Sheet
The balance sheet reflects high leverage with an increasing debt-to-equity ratio over the years. As of 2023, the debt-to-equity ratio is around 0.55, indicating significant reliance on debt financing. The equity ratio is unavailable due to missing total assets data for 2024, but a declining trend in stockholders' equity raises concerns about financial stability.55
Neutral
Cash Flow
Kemper's cash flow statement reveals fluctuating free cash flow with recent positive growth in 2024. The operating cash flow to net income ratio shows improvement, indicating better cash generation relative to net income. The free cash flow to net income ratio is volatile, reflecting inconsistent cash management.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.64B | 4.91B | 5.58B | 5.79B | 5.20B | Gross Profit |
| 4.64B | 4.91B | 5.58B | 5.79B | 5.20B | EBIT |
| 0.00 | 0.00 | 44.70M | -250.10M | 415.50M | EBITDA |
| 0.00 | -232.40M | -245.40M | -105.70M | 601.10M | Net Income Common Stockholders |
| 312.50M | -272.10M | -301.20M | -120.50M | 409.90M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.13B | 587.00M | 7.39B | 8.42B | 8.69B | Total Assets |
| 12.63B | 12.74B | 13.36B | 14.92B | 14.34B | Total Debt |
| 1.39B | 1.39B | 1.39B | 1.12B | 1.17B | Net Debt |
| 1.33B | 1.33B | 1.17B | 973.70M | 966.70M | Total Liabilities |
| 9.85B | 10.24B | 10.92B | 1.35B | 1.46B | Stockholders Equity |
| 2.79B | 2.51B | 2.44B | 4.01B | 4.56B |
| Cash Flow | Free Cash Flow | |||
| 382.90M | -188.00M | -241.10M | 292.90M | 371.70M | Operating Cash Flow |
| 382.90M | -134.20M | -210.30M | 350.70M | 425.10M | Investing Cash Flow |
| -244.40M | 107.90M | -108.40M | -118.20M | -757.00M | Financing Cash Flow |
| -137.20M | -122.00M | 382.90M | -290.40M | 401.20M |
Kemper Technical Analysis
Positive
68.80
Price Trends
66.46
Positive
66.76
Positive
63.63
Positive
Market Momentum
0.45
Negative
59.24
Neutral
58.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KMPR, the sentiment is Positive. The current price of 68.8 is above the 20-day moving average (MA) of 66.94, above the 50-day MA of 66.46, and above the 200-day MA of 63.63, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMPR.
Kemper Risk Analysis
Kemper disclosed 27 risk factors in its most recent earnings report. Kemper 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
Kemper Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.10B | 10.09 | 17.61% | 2.21% | 13.22% | 24.83% | |
80 Outperform | $161.01B | 18.93 | 36.98% | 1.80% | 21.36% | 118.77% | |
78 Outperform | $119.47B | 13.01 | 15.01% | 1.22% | 11.78% | 4.39% | |
75 Outperform | $59.46B | 12.09 | 18.94% | 1.58% | 12.23% | 68.50% | |
72 Outperform | $55.47B | 12.32 | 23.80% | 1.76% | 12.28% | ― | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% | |
59 Neutral | $4.40B | 13.80 | 12.01% | 1.85% | -6.08% | ― |
* Financial Sector Average
Performance Comparison
KMPR
Kemper
67.01
7.33
12.28%
CB
Chubb
298.36
44.31
17.44%
ALL
Allstate
209.29
40.12
23.72%
CINF
Cincinnati Financial
147.54
28.36
23.80%
PGR
Progressive
274.67
68.96
33.52%
TRV
Travelers Companies
262.68
38.49
17.17%
Kemper Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 0.85% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive overall sentiment primarily due to strong financial performance, growing specialty auto business, and strengthened balance sheet despite some challenges in the California market and minor adverse development in commercial auto.Highlights
Strong Fourth Quarter and Year-End Financial Performance
Kemper delivered net income of $318 million for the year and $97 million for the fourth quarter, with a strong return on equity of 12% and return on adjusted equity of just over 18%.
Specialty Auto Business Growth
The specialty auto business achieved a combined ratio of 91.5% and PIF growth of over 5% year-over-year, with expectations of robust growth trends continuing into 2025.
Balance Sheet Strengthening
Kemper repurchased $14 million of shares, increased the quarterly dividend, and plans to retire $450 million of debt. This will bring the debt to capital ratio back into the low 20s.
Life Segment Stability
The Life segment produced strong return on capital and distributable cash flows, with adjusted net operating income of $24 million in Q4, an increase of $9 million from the previous quarter.
Lowlights
California Market Challenges
California presents unique challenges due to its regulatory approach and impacts from wildfires, although these are not expected to have a meaningful impact on Kemper's financials.
Adverse Development in Commercial Auto
Kemper experienced adverse development in the commercial auto line, particularly related to extra contractual obligations, though this was described as end-of-year cleanup.
Company Guidance
During Kemper's Fourth Quarter 2024 Earnings Conference Call, significant guidance was provided regarding the company's financial performance and outlook. Kemper reported a net income of $318 million for the year and $97 million for the fourth quarter, with a strong specialty auto business delivering an underlying combined ratio of 91.5%. The company achieved 5% year-over-year PIF growth and anticipates continued robust growth as it enters the 2025 buying season. The life segment also remained stable, contributing to a return on equity of 12% and a return on adjusted equity of over 18% for the year. Kemper emphasized its strategy of leveraging competitive advantages in a hard market environment, particularly in regions like California, Florida, and Texas, where regulatory and market dynamics vary. The company also highlighted its actions to strengthen the balance sheet, including share repurchases, a dividend increase, and plans to retire $450 million of debt. Overall, Kemper expressed confidence in sustaining profitable growth and delivering long-term shareholder value.Kemper Corporate Events
Financial Disclosures
Kemper Schedules Q4 2024 Earnings Release and Minimizes Wildfire Losses
Neutral
Jan 22, 2025
On January 22, 2025, Kemper Corporation announced its schedule for the fourth quarter 2024 earnings release, set to be issued after markets close on February 5, 2025. The company also provided an initial estimate of less than $1 million in preliminary losses from the California wildfires for the first quarter of 2025, indicating limited exposure to this catastrophe.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.