Kingsway Financial Services Inc revenue increased slightly on 1.1% in 2015
04.02.2016 • About Kingsway Financial Services Inc (
$KFS) • By InTwits
Kingsway Financial Services Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Kingsway Financial Services Inc doesn't have a profitable business model yet: 2015 ROIC is -3.1%
- Kingsway Financial Services Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is at -3.1%
- It operates with high leverage: Net Debt/EBITDA is 15.6x while industry average is 5.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Kingsway Financial Services Inc ($KFS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 228.5 | 159.6 | 172.3 | 158.2 | 160.0 | 1.1% |
| Net Income | -20.1 | -52.1 | -36.9 | -12.8 | 1.1 | -108.6% |
Balance Sheet
|
|---|
| Cash | 85.5 | 80.8 | 98.6 | 71.2 | 51.7 | -27.4% |
| Short Term Debt | 2.4 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 44.8 | 47.5 | 42.8 | 40.7 | 39.9 | -1.9% |
Cash flow
|
|---|
| Capex | 1.3 | 0.2 | 1.1 | 0.0 | 0.2 | |
Ratios
|
|---|
| Revenue growth | 38.6% | -30.2% | 7.9% | -8.2% | 1.1% | |
| Net Income Margin | -8.8% | -32.6% | -21.4% | -8.1% | 0.7% | 8.8% |
| CAPEX, % of revenue | 0.6% | 0.1% | 0.7% | 0.0% | 0.1% | 0.1% |
| ROIC | -4.9% | -14.0% | -14.9% | 0.6% | -3.1% | -3.8% |
| ROE | -15.0% | -55.3% | -73.3% | -36.0% | 2.0% | 37.9% |
Revenue and profitability
The company's Revenue increased slightly on 1.1% in 2015.
Net Income marign increased on 8.8 pp from -8.1% to 0.69% in 2015.
Capital expenditures (CAPEX) and working capital investments
Kingsway Financial Services Inc's CAPEX/Revenue was 0.13% in 2015. Kingsway Financial Services Inc showed almost no change in CAPEX/Revenue from 2012 to 2015.
Return on investment
The company operates at negative ROIC (-3.12%) and low but positive ROE (1.96%). ROIC decreased on 3.8 pp from 0.64% to -3.1% in 2015. ROE jumped on 37.9 pp from -36.0% to 2.0% in 2015.
Leverage (Debt)
Debt decreased slightly on 1.9% in 2015 while cash dropped on 27.4% in 2015.
Appendix 1: Peers in Financial
Below we provide Kingsway Financial Services Inc benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westaim Corp/The ($WED) | 35.7% | -99.9% | 38.0% | 5,680.8% | |
| Wall Financial Corp ($WFC) | | 35.2% | -74.1% | 285.4% | -75.3% |
| Element Financial Corp ($EFN) | | | 206.6% | 189.1% | |
| DealNet Capital Corp ($DLS) | -73.3% | 4,437.5% | 540.4% | 112.7% | |
| Gluskin Sheff + Associates Inc ($GS) | | -39.1% | 60.6% | 97.9% | -33.5% |
| |
|---|
| Median (72 companies) | 10.3% | 9.3% | 7.1% | 8.9% | 0.5% |
|---|
| Kingsway Financial Services Inc ($KFS) | | -30.2% | 7.9% | -8.2% | 1.1% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Olympia Financial Group Inc ($OLY) | 85.3% | 80.9% | 82.6% | 83.2% | |
| Morguard Corp ($MRC) | 74.8% | 74.0% | 69.9% | 68.6% | |
| DealNet Capital Corp ($DLS) | | 14.9% | 36.7% | 45.6% | |
| Brookfield Asset Management Inc ($BAM.A) | 34.3% | 25.6% | 30.7% | 28.6% | |
| Onex Corp ($OCX) | 20.0% | 20.1% | 26.2% | 27.9% | |
| |
|---|
| Median (11 companies) | 25.2% | 22.6% | 25.7% | 20.5% | 16.9% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 88.7% | 87.6% | 87.9% | 88.8% | |
| Equitable Group Inc ($EQB) | 89.7% | 88.1% | 87.4% | 86.0% | |
| Alaris Royalty Corp ($AD) | 97.0% | 81.3% | 61.8% | 81.8% | |
| Brookfield Real Estate Services Inc ($BRE) | 77.1% | 77.7% | 77.9% | 78.4% | |
| First National Financial Corp ($FN) | 66.1% | 67.8% | 76.5% | 77.1% | |
| |
|---|
| Median (49 companies) | 35.6% | 32.3% | 32.1% | 31.5% | 47.9% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Killam Properties Inc ($KMP) | 73.6% | 80.7% | 114.1% | 143.5% | |
| Dundee Corp ($DC.A) | | 10.3% | 14.1% | 88.8% | 123.6% |
| StorageVault Canada Inc ($SVI) | 29.6% | 150.5% | 73.3% | 79.1% | |
| Mainstreet Equity Corp ($MEQ) | 152.4% | 115.8% | 62.3% | 75.8% | 56.3% |
| First Capital Realty Inc ($FCR) | 102.8% | 127.9% | 76.1% | 73.8% | |
| |
|---|
| Median (74 companies) | 1.3% | 1.7% | 0.8% | 1.1% | 1.7% |
|---|
| Kingsway Financial Services Inc ($KFS) | 0.6% | 0.1% | 0.7% | 0.0% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Gluskin Sheff + Associates Inc ($GS) | 71.3% | 21.0% | 82.9% | 153.9% | 63.6% |
| Brookfield Real Estate Services Inc ($BRE) | 17.1% | 26.0% | 31.0% | 47.0% | |
| Redishred Capital Corp ($KUT) | -3.9% | -24.5% | 6.5% | 15.8% | |
| IGM Financial Inc ($IGM) | 15.3% | 14.2% | 14.2% | 13.7% | |
| Street Capital Group Inc ($SCB) | 2.3% | 10.9% | 11.0% | 13.4% | |
| |
|---|
| Median (76 companies) | 5.3% | 4.8% | 4.6% | 4.8% | 5.4% |
|---|
| Kingsway Financial Services Inc ($KFS) | -4.9% | -14.0% | -14.9% | 0.6% | -3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| First National Financial Corp ($FN) | 37.6x | 34.3x | 33.7x | 40.9x | |
| Element Financial Corp ($EFN) | | 140.2x | 31.9x | 37.6x | |
| Gazit-Globe Ltd ($GZT) | 14.8x | 12.8x | 12.7x | 15.3x | |
| Morguard Corp ($MRC) | 7.5x | 8.9x | | 14.2x | |
| StorageVault Canada Inc ($SVI) | 6.0x | 11.2x | 9.7x | 13.6x | |
| |
|---|
| Median (41 companies) | 5.3x | 5.3x | 4.8x | 4.3x | 2.4x |
|---|
