Research Report ►(comments)

Kingsway Financial Services, Inc offers personal and commercial lines of property and casualty insurance in Canada and the U.S. Its main product is non-standard automobile and trucking insurance. The company distributes its products by way of independent brokers in Canada, as well as through independent agents and program managers in the United States. In addition, Kingsway buys reinsurance from third parties.

Investment Impacts (help)

Canada Country Analysis ► (edit / improve) Canada (CAD) has a capitalist, service-based, economy and is one of the wealthiest countries in the world. The services and materials industry are the two main employers. Currency Analysis: the Canadian dollar has the potential to decrease in value especially if export markets for materials do not perform well. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and SWOT strengths. Trade Analysis: China, UK, Japan, Mexico and the US are Canada’s top trading partners, while the leading exports are energy and materials. Commodity Analysis: Canada has the capacity to produce a significant amount of crude oil. Other commodities include Uranium, lumber, zinc, and nickel. SWOT Analysis: The Leading Canadian strengths include Canada’s free trade policy, oil reserves, and universal health system. Profit Conclusion: An overvalued currency and low investment flow potential are negatives, while the favorable business environment is a significant positive. Canada’s potential is neutral.

Kingsway Financial Services, Inc., through its subsidiaries… ► (edit / improve)

Financial Industry Analysis ► (edit / improve)

WikiWealth.com Industry Description: The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, wealth management, and credit card companies… Read More.

WikiWealth.com Profit Analysis: The best way to profit from financial service stock investments is to find the most undervalued investments (Wall Street and Main Street buy ratings) during economic recessions. Those investments should be undervalued (see Wall Street Analysis on left side), and have high Main Street Common Sense investment ratings (see Main Street Analysis on right side). Interest rates are also lowest during this time period, which decreases the cost of borrowing money for financial service companies.

When an economic recovery occurs, financial stocks tend to outperform the general stock market, because consumers and businesses quickly resume spending on items such as cars or business loans they wanted, but resisted obtaining during tougher economic times. Eventually financial stocks become overvalued, because profits and stock prices increase past their fair values. During the last stages of an economic business cycle, just before a recession, it is best to sell financial stocks, because they are likely to decrease in price. Interest rates are highest at the end of recessions to fight inflation by making money for banks more expensive. Expensive (overvalued) stocks with low Main Street Common Sense ratings should be sold at any time to invest in better stocks. Two buys ratings are the best and two sell ratings are the worst possible stock investments. Click for more information: stock research ratings.

WikiWealth.com Industry Analysis: During economic recessions, consumers and businesses tend to cut back on expenses and investments to save money during tough economic times. Bank loans, equity or debt raising, general spending and many other financial activities slow during recessions. Less spending decreases business revenue and eventually decreases the stock prices of financial services companies. During economic recoveries, consumers have a greater desire to spend money and make business investments. Higher spending increases business revenue and eventually increases stock prices. During longer economic expansions, financial services may actually increase faster than the general market due to large investments by companies and mergers and acquisitions between companies. Consumers have more confidence in the stock market and increase stock investments and private business investments. Over-investment leads to higher inflation and higher interest rates, which make it harder to obtain money.

The return on money lent minus the expense of borrowing money equals the profits for many financial services companies. When interest rates increase, this raises the expense of borrowing money. Generally, interest rates increase near the end of the expansion phase of the business cycle to slow the potential for inflation. Interest rates are generally lowest during recessions, because inflation risk is lowest and the government wants to encourage business investments by making money relatively cheap to obtain.

¹ Investment potential (margin of safety) is a weighted average of the discounted cash flow analysis (DCF), the enterprise value (EV) market multiple analysis, and the Warren Buffett investment analysis. WikiWealth obtains 80% of their quantitative investment potential from fundamental investment analysis.
² The weighted average cost of capital (WACC) analysis for the industry is a broad representation of the WACC for each individual company. A sub-industry WACC analysis offers both stability and accuracy for each individual company.

SWOT Analysis - Kingsway Financial Services ► Add Your Input Below

WACC Discount Rate Analysis - Kingsway Financial Services ► Experiment with KFS's Analysis ►

Discounted Cash Flow Analysis - Kingsway Financial Services ► Experiment with KFS's Analysis ►

Comparative Value Multiple Analysis - Kingsway Financial Services ► Experiment with KFS's Analysis ►

Warren Buffett Intrinsic Value Analysis - Kingsway Financial Services ► Experiment with KFS's Analysis ►

WikiWealth Services

• Unique Analysis, Excel Models… etc.
• We provide many custom services to help in your company research and analysis. Contact us with any questions or request. Services start at $25 and are complete within 24 hours. See WikiWealth services for general information.

Investor Forum:

• Trade Ideas, Seek Advice, Info Updates,… etc.
• Request improvements: Descriptions, charts, analysis, structure, layout, content… anything we can do to improve WikiWealth
• Ask Questions: We are happy to help.
• Give Comments: Share your thoughts.

Financial Dictionary

• Explore common words accompanied with data, calculators, and real time examples.