Kemper (KMPR) AI Stock Analysis

• Market Cap: $3.38B
• Dividend Yield: 2.36%
• Average Volume (3M): 956.02K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.64
• Revenue Growth: 2.75%
• EPS Growth: 572.22%
• Country: US
• Employees: 7,400
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.30
• Shares Outstanding: 62,742,783
• 10 Day Avg. Volume: 1,226,275
• 30 Day Avg. Volume: 956,022
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 9.96
• 1Y Price Target: $66.50
• Price Target Upside: 24.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: ―

Kemper's overall score reflects mixed financial health with challenges in profitability and leverage, offset by positive earnings guidance and undervaluation. Technical indicators signal a bearish trend, but earnings call highlights suggest potential for improvement and stability in the long term.

Positive Factors

Earnings

Kemper reported first-quarter operating EPS of $1.65, as a better-than-expected core loss ratio drove earnings outperformance.

Policy Growth

Policy growth reached 14% year-over-year in the first quarter, indicating a shift to pursuing growth due to more favorable results.

Negative Factors

Earnings Growth

There remains significant downside risk to margin and earnings growth from continued adverse development in the commercial auto book given social inflation issues.

Margins

Kemper's margins are now showing signs of significant deterioration and are normalizing from unsustainable levels.

Market Competition

Top-line growth will continue to slow as the auto market transitions out of a hard market and competition increases.

Kemper Business Overview & Revenue Model

Company Description

Kemper 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 Money

Kemper 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 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	3.66B	320.70M	4.91B	5.58B	5.79B	5.20B
Gross Profit	1.75B	263.80M	4.91B	5.58B	5.79B	5.20B
EBITDA	518.20M	445.40M	-232.40M	-245.40M	-105.70M	601.10M
Net Income	340.70M	317.80M	-272.10M	-301.20M	-120.50M	409.90M
Balance Sheet
Total Assets	0.00	12.63B	12.74B	13.36B	14.92B	14.34B
Cash, Cash Equivalents and Short-Term Investments	0.00	1.13B	587.00M	7.39B	8.42B	8.69B
Total Debt	0.00	1.39B	1.39B	1.39B	1.12B	1.17B
Total Liabilities	9.66B	9.85B	10.24B	10.92B	1.35B	1.46B
Stockholders Equity	2.95B	2.79B	2.51B	2.44B	4.01B	4.56B
Cash Flow
Free Cash Flow	612.00M	329.70M	-188.00M	-241.10M	292.90M	371.70M
Operating Cash Flow	586.60M	382.90M	-134.20M	-210.30M	350.70M	425.10M
Investing Cash Flow	84.40M	-244.40M	107.90M	-108.40M	-118.20M	-757.00M
Financing Cash Flow	-601.40M	-137.20M	-122.00M	382.90M	-290.40M	401.20M

Kemper Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 53.40
• 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 Negative. The current price of 53.4 is below the 20-day moving average (MA) of 55.30, below the 50-day MA of 59.57, and below the 200-day MA of 63.17, indicating a bearish trend. The MACD of -2.05 indicates Negative momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 78.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KMPR.

Kemper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLMR	83 Outperform	$3.24B	21.99	22.45%	―	52.60%	50.69%
MCY	79 Outperform	$4.08B	10.45	21.56%	1.70%	14.93%	22.19%
SIGI	75 Outperform	$4.70B	12.65	12.19%	1.95%	12.27%	66.53%
HGTY	74 Outperform	$3.74B	53.26	12.70%	―	17.25%	-11.72%
Sector *	67 Neutral	¥850.22B	13.13	9.24%	2.97%	7.76%	9.30%
KMPR	58 Neutral	$3.38B	10.15	12.21%	2.36%	2.75%	572.22%
LMND	55 Neutral	$4.23B	―	-35.10%	―	22.91%	4.95%

Kemper Corporate Events

Kemper Schedules Q4 2024 Earnings Release and Minimizes Wildfire Losses

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.