Kestrel Group, Ltd. (KG) AI Stock Analysis
KG AI stock analysis summary
AI ResearchKestrel Group, Ltd. (KG) is a Bermuda-based reinsurance company providing fronting and legacy reinsurance services. The company delivered $34.0M in revenue for FY2025 alongside net income of $46.7M, but its trailing twelve months reflect a profit margin of -86.0%. Shares have dropped 81.8% over the past year, leaving its market cap at $36.0M.
- Market cap
- $36.0M
- Revenue (TTM)
- $44.6M
- P/E
- —
- 1Y return
- -81.8% S&P 500 16.8%
- Avg. target
- —
Bull case
- Revenue rebounded significantly in FY2025, advancing 785.1% to $34.0M.
- The company generated net income of $46.7M in FY2025, achieving an operating margin of 145.7%.
- The stock trades at a price-to-book ratio of 0.4x and a price-to-sales ratio of 0.8x, well below the US-listed Financial Services peer median price-to-sales of 3.2x.
Bear case
- The company reported negative free cash flow of -$96.1M in FY2025 and has generated negative operating cash flow each year since FY2021.
- Trailing twelve month performance remains deeply unprofitable with a profit margin of -86.0% and an eps of -$4.64.
- Shares have fallen 81.8% over the past year, trailing the S&P 500 (SPY) return of 16.8%.
What Kestrel does
Kestrel Group, Ltd. engages in the reinsurance business and is based in Hamilton, Bermuda. The company operates through two main segments: Program Services and Legacy Reinsurance. Through its operations, Kestrel Group offers fronting services to insurance program managers, managing general agencies, reinsurers, and reinsurance brokers in Bermuda. Founded and completing its IPO in 1998, the organization maintains a workforce of 44 employees within the Financial Services sector and Insurance - Reinsurance industry.
Growth and profitability
Kestrel Group experienced significant volatility in revenue, declining from $98.7M in FY2021 to $58.1M in FY2022 and $1.3M in FY2023. Revenue subsequently rebounded to $3.8M in FY2024 and reached $34.0M in FY2025, representing an annual revenue growth of 785.1%. Net income shifted from -$60.4M in FY2022 and -$4.2M in FY2023 to $46.7M in FY2025, producing a net margin of 137.2% and an operating margin of 145.7%. However, its five-year revenue CAGR from FY2020 to FY2025 sits at -28.8%. For the trailing twelve months ended June 30, 2026, revenue was $44.6M with quarterly revenue growth of 20.1%, though operating margin was -97.1% and eps was -$4.64.
Balance sheet and cash flow
As of June 30, 2026, Kestrel Group held $26.3M in cash and short-term investments against total debt of $177.0M, resulting in net debt of $150.7M. Shareholders' equity was $114.0M against total assets of $919.6M, yielding a debt-to-equity ratio of 1.55. Cash flow from operations has remained negative across recent fiscal years, finishing at -$96.1M in FY2025, which matched free cash flow of -$96.1M. During FY2025, dividends paid totaled $40.0M, while the company recorded a share count change over 5 years of 94.7%.
Valuation and performance
At a last close of $4.60 on October 16, 2026, Kestrel Group had a market cap of $36.0M and an enterprise value of $201.1M. The stock trades at a price-to-sales multiple of 0.8x and an ev-to-ebitda multiple of 2.4x, both lower than the median of its US-listed Financial Services peers of 3.2x and 11.7x, respectively. The company also trades at a price-to-book multiple of 0.4x. Over the past 1-year period, KG shares declined 81.8% compared to a gain of 16.8% for the S&P 500 (SPY), while its 5-year return fell 92.7% versus an 83.0% gain for the index.
What analysts expect
Wall Street coverage details show that Kestrel Group has recorded 0 EPS beats over the last 4 quarters. The company's next earnings date is scheduled for November 4, 2026. Trading at $4.60 as of October 16, 2026, the stock trades 53.1% below its 200-day average and near its 52-week low of $4.31 compared to its 52-week high of $26.44.
Key risks and what to watch
- Total debt stands at $177.0M against cash and short-term investments of only $26.3M, leaving net debt at $150.7M.
- The company's five-year revenue CAGR from FY2020 to FY2025 contracted at -28.8%, reflecting historic top-line instability.
- The company missed earnings expectations across the board with 0 EPS beats over the last 4 quarters.
- The share count change over 5 years expanded by 94.7%, indicating substantial shareholder dilution.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this KG AI stock analysis
This page is an AI-written research summary of Kestrel Group, Ltd. (KG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: KG income statement, KG balance sheet, KG key metrics, KG chart. See the KG stock overview for the latest quote and news.
KG AI stock analysis FAQ
What is Kestrel Group's core business?
Kestrel Group, Ltd. is a Bermuda-based reinsurance provider operating in Program Services and Legacy Reinsurance segments. It offers fronting services to insurance program managers, reinsurers, and reinsurance brokers.
What are Kestrel Group's latest annual revenue and profitability figures?
In FY2025, Kestrel Group reported revenue of $34.0M, reflecting revenue growth of 785.1%. Net income for the year was $46.7M with an operating margin of 145.7%.
How much debt does Kestrel Group have on its balance sheet?
As of June 30, 2026, the company carried total debt of $177.0M and cash and short-term investments of $26.3M, yielding net debt of $150.7M. Its debt-to-equity ratio was 1.55.
When is Kestrel Group's next earnings report?
The company's next earnings date is scheduled for November 4, 2026.