(KFS) Kingsway Financial - Overview
Stock: Extended Warranty, Business Services
EPS (Earnings per Share)
Revenue
| Risk 5d forecast | |
|---|---|
| Volatility | 31.7% |
| Relative Tail Risk | -12.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.27 |
| Alpha | 53.21 |
| Character TTM | |
|---|---|
| Beta | 0.566 |
| Beta Downside | 0.319 |
| Drawdowns 3y | |
|---|---|
| Max DD | 37.10% |
| CAGR/Max DD | 0.34 |
Description: KFS Kingsway Financial December 28, 2025
KFS (NYSE:KFS) operates two distinct businesses: an Extended Warranty segment that sells vehicle and equipment service contracts across the U.S., and the Kingsway Search Xcelerator segment that provides outsourced finance, HR, staffing, and specialized healthcare services. Both lines are distributed primarily through credit unions and dealer networks, leveraging long-term relationships to reduce customer acquisition costs.
In the warranty space, KFS benefits from a market projected to grow at a 5% CAGR through 2029, driven by higher vehicle age and increasing consumer demand for predictable maintenance costs. The segment’s gross margin historically hovers around 30% ± 3%, but is sensitive to underwriting loss ratios, which have trended higher in periods of elevated claims activity (e.g., post-pandemic supply chain disruptions). In the Search Xcelerator business, staffing demand remains buoyant as the U.S. labor market stays tight; the healthcare staffing sub-segment has seen revenue growth of roughly 12% YoY in 2023, outpacing the broader staffing industry’s 7% growth rate.
Key economic drivers for KFS include discretionary spending trends (affecting warranty uptake), credit-union loan volumes (a proxy for dealer sales pipelines), and overall employment levels (which influence staffing revenues). As of the latest filing, KFS reported $215 million in total revenue with a 9% operating margin, but the company’s forward-looking guidance remains uncertain due to potential regulatory changes in warranty underwriting and labor-cost inflation.
For a deeper dive into KFS’s valuation metrics and scenario analysis, you might explore the analyst tools on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 3.0
| Net Income: -10.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.00 > 0.02 and ΔFCF/TA 8.06 > 1.0 |
| NWC/Revenue: 18.64% < 20% (prev 15.00%; Δ 3.64% < -1%) |
| CFO/TA -0.00 > 3% & CFO -117.2k > Net Income -10.6m |
| Net Debt (-8.26m) to EBITDA (5.00m): -1.65 < 3 |
| Current Ratio: 319.3 > 1.5 & < 3 |
| Outstanding Shares: last quarter (28.5m) vs 12m ago 4.82% < -2% |
| Gross Margin: 89.61% > 18% (prev 0.47%; Δ 8913 % > 0.5%) |
| Asset Turnover: 60.09% > 50% (prev 56.17%; Δ 3.92% > 0%) |
| Interest Coverage Ratio: -0.66 > 6 (EBITDA TTM 5.00m / Interest Expense TTM 5.31m) |
Altman Z'' -6.55
| A: 0.10 (Total Current Assets 23.9m - Total Current Liabilities 75.0k) / Total Assets 235.1m |
| B: -1.58 (Retained Earnings -371.3m / Total Assets 235.1m) |
| C: -0.02 (EBIT TTM -3.53m / Avg Total Assets 213.1m) |
| D: -1.86 (Book Value of Equity -371.4m / Total Liabilities 199.3m) |
| Altman-Z'' Score: -6.55 = D |
Beneish M -3.32
| DSRI: 1.09 (Receivables 14.7m/11.2m, Revenue 128.1m/107.3m) |
| GMI: 0.53 (GM 89.61% / 47.44%) |
| AQI: 0.94 (AQ_t 0.84 / AQ_t-1 0.90) |
| SGI: 1.19 (Revenue 128.1m / 107.3m) |
| TATA: -0.04 (NI -10.6m - CFO -117.2k) / TA 235.1m) |
| Beneish M-Score: -3.32 (Cap -4..+1) = AA |
What is the price of KFS shares?
Over the past week, the price has changed by -1.71%, over one month by +5.77%, over three months by -9.66% and over the past year by +64.26%.
Is KFS a buy, sell or hold?
What are the forecasts/targets for the KFS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 1 | -92.4% |
| Analysts Target Price | 1 | -92.4% |
| ValueRay Target Price | 15.2 | 15.2% |
KFS Fundamental Data Overview February 03, 2026
P/B = 23.0807
Revenue TTM = 128.1m USD
EBIT TTM = -3.53m USD
EBITDA TTM = 5.00m USD
Long Term Debt = 70.7m USD (from longTermDebt, last quarter)
Short Term Debt = 825.0k USD (from shortTermDebt, last fiscal year)
Debt = 1.03m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -8.26m USD (from netDebt column, last quarter)
Enterprise Value = 375.7m USD (384.0m + Debt 1.03m - CCE 9.29m)
Interest Coverage Ratio = -0.66 (Ebit TTM -3.53m / Interest Expense TTM 5.31m)
EV/FCF = -333.4x (Enterprise Value 375.7m / FCF TTM -1.13m)
FCF Yield = -0.30% (FCF TTM -1.13m / Enterprise Value 375.7m)
FCF Margin = -0.88% (FCF TTM -1.13m / Revenue TTM 128.1m)
Net Margin = -8.29% (Net Income TTM -10.6m / Revenue TTM 128.1m)
Gross Margin = 89.61% ((Revenue TTM 128.1m - Cost of Revenue TTM 13.3m) / Revenue TTM)
Gross Margin QoQ = 70.64% (prev 73.72%)
Tobins Q-Ratio = 1.60 (Enterprise Value 375.7m / Total Assets 235.1m)
Interest Expense / Debt = 145.8% (Interest Expense 1.50m / Debt 1.03m)
Taxrate = 21.0% (US default 21%)
NOPAT = -2.79m (EBIT -3.53m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 319.3 (out of range, set to none) (Total Current Assets 23.9m / Total Current Liabilities 75.0k)
Debt / Equity = 0.06 (Debt 1.03m / totalStockholderEquity, last quarter 16.6m)
Debt / EBITDA = -1.65 (Net Debt -8.26m / EBITDA 5.00m)
Debt / FCF = 7.33 (negative FCF - burning cash) (Net Debt -8.26m / FCF TTM -1.13m)
Total Stockholder Equity = 21.7m (last 4 quarters mean from totalStockholderEquity)
RoA = -4.98% (Net Income -10.6m / Total Assets 235.1m)
RoE = -48.96% (Net Income TTM -10.6m / Total Stockholder Equity 21.7m)
RoCE = -3.82% (EBIT -3.53m / Capital Employed (Equity 21.7m + L.T.Debt 70.7m))
RoIC = -3.79% (negative operating profit) (NOPAT -2.79m / Invested Capital 73.5m)
WACC = 7.98% (E(384.0m)/V(385.0m) * Re(8.0%) + (debt cost/tax rate unavailable))
Discount Rate = 8.0% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 2.56%
Fair Price DCF = unknown (Cash Flow -1.13m)
EPS Correlation: -36.79 | EPS CAGR: -30.93% | SUE: N/A | # QB: 0
Revenue Correlation: 78.83 | Revenue CAGR: 26.02% | SUE: N/A | # QB: 0