Kemper (KMPR) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: 3.13%
• Average Volume (3M): 901.96K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.63
• Revenue Growth: 4.51%
• EPS Growth: -8.29%
• Country: US
• Employees: 7,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 0.33
• Shares Outstanding: 58,546,860
• 10 Day Avg. Volume: 918,850
• 30 Day Avg. Volume: 901,964
• PEG Ratio: -0.06
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 13.30
• P/FCF Ratio: 12.93
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 67.73
• Enterprise Value/Ebitda: 10.12
• 1Y Price Target: $47.50
• Price Target Upside: 16.19% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): 4.44
• Revenue Forecast (FY): $4.76B

• Rating: 52 Neutral
• Price Target: $42.00 ▲(2.74% Upside)

Kemper's overall stock score reflects a mix of challenges and opportunities. Financial performance is hindered by low margins and historical volatility, while technical analysis indicates bearish momentum. Valuation metrics suggest potential undervaluation, and the earnings call revealed both strategic initiatives and ongoing challenges. The most significant factors are the financial performance and technical analysis, which weigh heavily on the overall score.

Positive Factors

Specialty Auto Business Growth

The growth in the specialty auto business indicates strong market demand and operational efficiency, which can drive long-term profitability and competitive positioning in the auto insurance sector.

Balance Sheet Strengthening

Reducing debt levels improves financial stability and flexibility, allowing Kemper to invest in growth opportunities and withstand economic fluctuations more effectively.

Life Segment Stability

Stable performance in the Life segment contributes to diversified revenue streams and reduces dependency on more volatile segments, supporting long-term financial health.

Negative Factors

Declining Revenue Trend

A declining revenue trend poses challenges to sustaining growth and profitability, necessitating strategic adjustments to reverse the trend and enhance market competitiveness.

High Leverage

High leverage can limit financial flexibility and increase risk, particularly in volatile market conditions, impacting long-term financial stability and growth potential.

California Market Challenges

Regulatory and environmental challenges in key markets like California can hinder growth and profitability, requiring strategic adaptation to mitigate risks and capitalize on opportunities.

Kemper Business Overview & Revenue Model

Company Description

Kemper Corporation (KMPR) is a diversified insurance holding company that primarily operates in the property and casualty insurance sector as well as the life and health insurance sectors. The company offers a range of insurance products, including auto, home, and life insurance, catering to individual and family needs. Kemper is focused on providing affordable insurance solutions for the middle-income market and operates through various subsidiaries that enhance its product offerings and geographic reach.

How the Company Makes Money

Kemper generates revenue primarily through the sale of insurance premiums across its various segments. The company earns money by collecting premiums from policyholders for property and casualty insurance as well as life and health insurance products. Additionally, Kemper invests the premiums collected until claims are paid out, generating investment income from the invested assets. Key revenue streams include direct premiums written from auto, homeowners, and life insurance policies. The company also benefits from reinsurance arrangements that help manage risk and stabilize earnings. Significant partnerships with independent agents and brokers facilitate the distribution of its insurance products, enhancing its market presence and contributing to its revenue generation.

Kemper Financial Statement Overview

Summary

Kemper faces financial challenges with declining revenues, high leverage, and inconsistent cash flows. However, improvements in cash generation and management are notable. The company needs to focus on profitability and leverage to enhance 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.84B	4.63B	4.91B	5.45B	5.61B	5.18B
Gross Profit	61.50M	589.40M	4.91B	-211.30M	354.80M	1.16B
EBITDA	411.70M	499.10M	-232.40M	-245.40M	-105.90M	601.10M
Net Income	248.70M	317.80M	-272.10M	-286.60M	-123.70M	409.90M
Balance Sheet
Total Assets	12.44B	12.63B	12.74B	13.36B	14.92B	14.34B
Cash, Cash Equivalents and Short-Term Investments	496.10M	1.13B	587.00M	7.39B	432.30M	1.08B
Total Debt	943.10M	1.39B	1.39B	1.39B	1.12B	1.17B
Total Liabilities	9.72B	9.85B	10.24B	10.92B	10.91B	9.78B
Stockholders Equity	2.73B	2.79B	2.51B	2.44B	4.01B	4.56B
Cash Flow
Free Cash Flow	606.30M	329.70M	-189.10M	-241.10M	292.90M	394.60M
Operating Cash Flow	584.60M	382.90M	-135.30M	-210.30M	350.70M	448.00M
Investing Cash Flow	258.60M	-244.40M	107.90M	-108.40M	-118.20M	-757.00M
Financing Cash Flow	-792.70M	-137.20M	-122.00M	382.90M	-290.40M	378.30M

Kemper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 40.88 is above the 20-day moving average (MA) of 40.36, below the 50-day MA of 41.95, and below the 200-day MA of 54.72, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 51.07 is Neutral, neither overbought nor oversold. The STOCH value of 60.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KMPR.

Kemper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.58B	21.32	22.24%	―	54.41%	52.71%
HGTY	70 Outperform	$4.49B	47.53	16.42%	―	17.47%	54.19%
MCY	69 Neutral	$5.19B	11.80	21.47%	1.33%	6.18%	-21.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AHL	62 Neutral	$3.41B	―	13.97%	―	―	―
LMND	60 Neutral	$6.17B	―	-31.34%	―	30.53%	21.82%
KMPR	52 Neutral	$2.39B	10.65	9.03%	3.13%	4.51%	-8.29%

Kemper Corporate Events

Kemper Approves Retention Awards for Key Executives

On November 4, 2025, Kemper Corporation’s Human Resources and Compensation Committee approved retention awards for key senior executives, including Bradley T. Camden, John M. Boschelli, and Matthew A. Hunton. These awards, in the form of restricted stock units, are part of a strategy to retain critical leadership following recent changes in the company’s leadership structure. The awards vest over two years, contingent on continued service, highlighting the company’s commitment to stability and continuity in its executive team.

Kemper Announces Executive Transition with Duane A. Sanders

On October 20, 2025, Kemper Corporation announced that Duane A. Sanders will leave his position as Executive Vice President and Chief Claims Officer, P&C, effective October 22, 2025, but will remain as Executive Vice President, Executive Advisor until the end of the year to facilitate a smooth transition. The company plans to enter into a Separation and Release Agreement with Mr. Sanders, which will include compensation and benefits in exchange for a release of claims and agreement to restrictive covenants, with further details to be disclosed later.

Kemper Appoints Interim CEO as Lacher Steps Down

On October 14, 2025, Kemper Corporation announced that Joseph P. Lacher, Jr. would step down as President and CEO, with C. Thomas Evans, Jr. appointed as interim CEO. Lacher will remain as an advisor until the end of the year to ensure a smooth transition. The Board has initiated a search for a new CEO, highlighting the company’s commitment to long-term growth and stability. Evans, with over three decades at Kemper, is expected to maintain continuity during this transition period.