Kingsway Corporation (KWY) AI Stock Analysis
KWY AI stock analysis summary
AI ResearchKingsway Corporation (KWY) is an asset management firm operating in extended warranty administration and business consulting services. While FY2025 revenue grew 21.5% to $136.7M, net income remained negative at -$10.7M. Over the past year, the stock fell 37.0% compared to a 16.8% gain for the S&P 500.
- Market cap
- $277.4M
- Revenue (TTM)
- $158.9M
- P/E
- — fwd 8.3x
- 1Y return
- -37.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- Quarterly revenue grew 33.2% year-over-year in the period ended June 30, 2026, supporting trailing twelve month revenue of $158.9M.
- The stock trades at a forward P/E of 8.3x and a price-to-sales ratio of 1.7x, both below the median of its US-listed Financial Services peers.
- Company insiders maintain strong ownership alignment by holding 27.1% of shares.
Bear case
- The business has produced consecutive annual net losses, reporting net income of -$9.3M in FY2024 and -$10.7M in FY2025.
- Free cash flow remained negative at -$1.6M in FY2025, while trailing twelve month return on equity stood at -18.0%.
- KWY stock has declined 37.0% over the past year, trailing the S&P 500 return of 16.8%.
What Kingsway does
Kingsway Corporation operates through two primary segments: Extended Warranty and Kingsway Search Xcelerator. The Extended Warranty segment markets, sells, and administers vehicle service agreements for automobiles, motorcycles, and ATVs, while also distributing warranty products for HVAC, standby generator, commercial LED lighting, and commercial refrigeration equipment. Its Kingsway Search Xcelerator segment provides operational accounting, financial reporting, advisory, technical accounting, human resources, and compliance consulting services. It also delivers financial executive staffing, permanent placement recruiting, healthcare staffing, property management software, and outsourced cardiac telemetry monitoring services to hospitals.
Growth and profitability
Kingsway Corporation generated a 3-year revenue compound annual growth rate of 6.0% between FY2022 and FY2025. Annual revenue moved from $114.7M in FY2022 to $107.7M in FY2023, before increasing 4.5% to $112.5M in FY2024 and 21.5% to $136.7M in FY2025. Profitability shifted from net income of $24.7M in FY2022 and $23.6M in FY2023 to net income of -$9.3M in FY2024 and -$10.7M in FY2025. In FY2025, gross margin was 44.3% and operating margin was -10.2%. For the trailing twelve months ended June 30, 2026, revenue stood at $158.9M, supported by latest quarterly revenue growth of 33.2% year-over-year, with a profit margin of -4.6% and diluted EPS of -$0.30.
Balance sheet and cash flow
As of June 30, 2026, Kingsway Corporation held $46.1M in cash and short-term investments against total debt of $68.4M, resulting in net debt of $22.3M. The company reported total assets of $227.8M, shareholders' equity of $29.1M, a current ratio of 0.87, and a debt-to-equity ratio of 2.35. During FY2025, operating cash flow stood at -$3,000, free cash flow was -$1.6M, and capital expenditures were $1.6M. Capital allocation in FY2025 included $345,000 directed to share buybacks and $1.0M in dividends paid.
Valuation and performance
At its last close of $9.59 on October 16, 2026, Kingsway Corporation had a market capitalization of $277.4M and an enterprise value of $313.4M. The company trades at an EV/EBITDA multiple of 45.0x, above the 11.7x median of its US-listed Financial Services peers. Its price-to-sales ratio of 1.7x and forward P/E of 8.3x compare with peer medians of 3.2x and 10.8x, respectively. The stock carries a price-to-book ratio of 21.4x and a PEG ratio of 0.83. Over the past year, KWY fell 37.0%, underperforming the S&P 500 return of 16.8%.
What analysts expect
Kingsway Corporation does not have consensus rating counts or price targets published. The company's next scheduled earnings date is November 5, 2026. Recent earnings history shows trailing twelve month EPS of -$0.30, following annual EPS of -$0.43 in FY2025, -$0.35 in FY2024, $0.88 in FY2023, and $1.44 in FY2022.
Key risks and what to watch
- A current ratio of 0.87 as of June 30, 2026, indicates short-term obligations exceed current liquid assets.
- A debt-to-equity ratio of 2.35 and total debt of $68.4M indicate elevated financial leverage against shareholders' equity of $29.1M.
- Short interest represents 8.5% of the float, pointing to elevated market skepticism.
- Dilution risk is present after share count expanded 24.4% over a 5-year period.
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 KWY AI stock analysis
This page is an AI-written research summary of Kingsway Corporation (KWY). 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: KWY income statement, KWY balance sheet, KWY key metrics, KWY chart. See the KWY stock overview for the latest quote and news.
KWY AI stock analysis FAQ
What does Kingsway Corporation do?
Kingsway Corporation provides extended warranty and business services. It administers vehicle and commercial equipment service agreements and offers operational accounting, executive staffing, and cardiac telemetry monitoring services.
When is Kingsway Corporation's next earnings date?
The company is scheduled to report earnings on November 5, 2026.
How much debt does Kingsway Corporation have?
As of June 30, 2026, Kingsway Corporation held $68.4M in total debt and $46.1M in cash and short-term investments, leaving net debt at $22.3M with a debt-to-equity ratio of 2.35.
How has KWY performed compared to the S&P 500?
Over the past year leading up to October 16, 2026, KWY stock fell 37.0%, while the S&P 500 gained 16.8%.