Latest news with #KingswayFinancialServicesInc
Yahoo
3 days ago
- Business
- Yahoo
Kingsway Financial Services Inc. (KFS): A Bull Case Theory
We came across a bullish thesis on Kingsway Financial Services Inc. (KFS) on Andvsri's Substack. In this article, we will summarize the bulls' thesis on KFS. Kingsway Financial Services Inc. (KFS)'s share was trading at $12.86 as of 30th May. A professional insurance agent at work in a modern office, representing the company's independent agents. Kingsway Financial Services (KFS) has undergone a significant transformation from a troubled Canadian insurance company into a unique, publicly traded search fund platform. After years of poor management and failed investments, activist investor Joseph Stilwell took control and installed Larry Swets as CEO to utilize the company's substantial net operating losses (NOLs). However, Swets' tenure saw limited success until the 2016 acquisition of Argo Management Group and its founder, J.T. Fitzgerald. In 2018, Fitzgerald became CEO and began a comprehensive cleanup, exiting legacy assets, selling the insurance business, reincorporating in the U.S., and dramatically reducing debt. Under Fitzgerald, Kingsway launched the Kingsway Search Accelerator (KSX) to institutionalize the search fund model. Search funds—vehicles where entrepreneurs acquire and operate small businesses—have historically generated strong returns, and Kingsway's platform improves on the model with superior capital access, operational infrastructure, and a selective pipeline. Notably, the company's PWSC exit yielded a 10x return, and current portfolio companies are demonstrating strong performance. Recent catalysts include the addition of respected investors David Patinkin and Josh Horowitz to the board, strategic leadership changes in the warranty segment, and the acquisition of Bud's Plumbing, led by Rob Casper, a seasoned aggregator CEO. These moves suggest a path toward becoming a self-funded, pure-play search fund company, potentially unlocking greater valuation multiples. With substantial NOLs expiring by 2029, the urgency to monetize or streamline operations further supports the bullish outlook. Recent share price appreciation reflects growing investor recognition of Kingsway's evolving business model and strategic potential. For a comprehensive analysis of another standout stock covered by the same author, we recommend reading our summary of this on Copart, Inc. (CPRT). Kingsway Financial Services Inc. (KFS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 4 hedge fund portfolios held KFS at the end of the first quarter which was 5 in the previous quarter. While we acknowledge the potential of KFS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Greenhaven Road Capital's New Addition: Kingsway Financial (KFS)
Greenhaven Road Capital, an investment management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned around -12% net of fees and expenses, trailing the Russell 2000 by approximately 2% in large part. The Q1 letter focused on President Trump's Liberation Day and the attendant tariff policies rather than company fundamentals. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Greenhaven Road Capital highlighted stocks such as Kingsway Financial Services Inc. (NYSE:KFS). Headquartered in Chicago, Illinois, Kingsway Financial Services Inc. (NYSE:KFS) engages in extended warranty and business services. The one-month return of Kingsway Financial Services Inc. (NYSE:KFS) was 34.20%, and its shares gained 44.27% of their value over the last 52 weeks. On May 21, 2025, Kingsway Financial Services Inc. (NYSE:KFS) stock closed at $11.34 per share with a market capitalization of $307.244 million. Greenhaven Road Capital stated the following regarding Kingsway Financial Services Inc. (NYSE:KFS) in its Q1 2025 investor letter: "Kingsway Financial Services Inc. (NYSE:KFS) is invisible to most financial market participants. With a market capitalization of $225M, it is too small for many to invest in. The company has no sell side coverage, thus there are no 'consensus numbers.' In FactSet and other financial databases, the company is misclassified as a 'multi-line insurer'. To further compound the analytical challenge, GAAP accounting rules have the reported numbers understating the company's earning power. If I wanted to camouflage a company, the levers I would pull are all present here: small, no sell-side, mislabeled, and distorted GAAP financials. A service technician with a tool belt, inspecting an HVAC unit in a customer's home. Kingsway Financial Services Inc. (NYSE:KFS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 5 hedge fund portfolios held Kingsway Financial Services Inc. (NYSE:KFS) at the end of the fourth quarter, compared to 3 in the third quarter. While we acknowledge the potential of Kingsway Financial Services Inc. (NYSE:KFS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
08-05-2025
- Business
- Yahoo
Kingsway Financial: Q1 Earnings Snapshot
CHICAGO (AP) — CHICAGO (AP) — Kingsway Financial Services Inc. (KFS) on Thursday reported a loss of $3.2 million in its first quarter. The Chicago-based company said it had a loss of 13 cents per share. The merchant bank posted revenue of $28.3 million in the period. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on KFS at
Yahoo
19-03-2025
- Business
- Yahoo
Kingsway Financial Services (NYSE:KFS) shareholders have earned a 30% CAGR over the last five years
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. One great example is Kingsway Financial Services Inc. (NYSE:KFS) which saw its share price drive 277% higher over five years. The last week saw the share price soften some 2.8%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. View our latest analysis for Kingsway Financial Services Because Kingsway Financial Services made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. For the last half decade, Kingsway Financial Services can boast revenue growth at a rate of 12% per year. That's a pretty good long term growth rate. We'd argue this growth has been reflected in the share price which has climbed at a rate of 30% per year over in that time. Given that the business has made good progress on the top line, it would be worth taking a look at the growth trend. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Kingsway Financial Services' earnings, revenue and cash flow. Kingsway Financial Services shareholders are down 10% for the year, but the market itself is up 9.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 30% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before spending more time on Kingsway Financial Services it might be wise to click here to see if insiders have been buying or selling shares. But note: Kingsway Financial Services may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
