The Rejuvenation of Kingsway Financial Services Inc. (NYSE:KFS)

The Rejuvenation of Kingsway Financial Services Inc. (NYSE:KFS)

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The Kingsway Financial Services Inc. (KFS) shares are trading at higher $2.30. The current analyst price target stands at $1.00.

To add more color to this target, the company’s high over the last year is $2.95 and the low is $1.26. Over the last 52 weeks, KFS is down -22.03% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, KFS reported a profit of $-3.84 million. Kingsway Financial Services Inc. also saw revenues decrease to $18.25 million. In addition, KFS has free cash flow of $9000.0 as of 09-2019 The company’s EBITDA came in at $3.43 million which compares well with its peers.

KFS booked profit margins of -27.10%, its Return on Equity (ROE) is -132.50%, and its Return on Assets is -4.00%. All told, it is clear that, KFS needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. KFS has a short ratio of 0.02 and outstanding shares of 21.87M.

Company Outlook

KFS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 12910.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.76. Investors should also keep an eye on sector updates as KFS has historically followed its peers on positive news.

All told, Kingsway Financial Services Inc. KFS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, KFS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Kingsway Financial Services Inc. KFS is now commanding a market cap of 51.29M and a float of 16.17M. KFS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of KFS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in KFS, either long or short, and we have not been compensated for this article.