Kingswood Holdings (AIM:KWG) - Share price, News & Analysis

KWG fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	3/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

KWG Stock Overview

Kingswood Holdings Limited engages in the investment management and financial planning business in the United Kingdom and the United States.

Rewards

Earnings are forecast to grow 131.84% per year

Risk Analysis

Does not have a meaningful market cap (£51M)

Kingswood Holdings Competitors

Forward Partners Group

AIM:FWD

UK£61.2m

LMS Capital

LSE:LMS

UK£24.8m

Frontier IP Group

AIM:FIPP

UK£39.1m

TMT Investments

AIM:TMT

US$122.0m

Price History & Performance

Summary of all time highs, changes and price drops for Kingswood Holdings
Historical stock prices
Current Share Price	UK£0.23
52 Week High	UK£0.34
52 Week Low	UK£0.22
Beta	-0.15
1 Month Change	-1.68%
3 Month Change	-13.33%
1 Year Change	-13.33%
3 Year Change	192.50%
5 Year Change	11.43%
Change since IPO	-99.26%

Shareholder Returns

	KWG	GB Capital Markets	GB Market
7D	-1.3%	2.1%	-0.6%
1Y	-13.3%	-14.2%	-11.2%

Return vs Industry: KWG matched the UK Capital Markets industry which returned -14.2% over the past year.

Return vs Market: KWG underperformed the UK Market which returned -11.2% over the past year.

Price Volatility

Is KWG's price volatile compared to industry and market?
KWG volatility
KWG Average Weekly Movement	2.7%
Capital Markets Industry Average Movement	4.6%
Market Average Movement	5.4%
10% most volatile stocks in GB Market	10.8%
10% least volatile stocks in GB Market	2.7%

Stable Share Price: KWG is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: KWG's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	292	David Lawrence	https://www.kingswood-group.com

Kingswood Holdings Limited engages in the investment management and financial planning business in the United Kingdom and the United States. It operates through three segments: Investment Management, Wealth Planning, and US Operations. The company provides wealth planning, advice process, pensions and retirement planning, inheritance tax and estate planning, tax planning, succession planning, protection advisory, cash management, and foreign exchange services.

Kingswood Holdings Fundamentals Summary

How do Kingswood Holdings's earnings and revenue compare to its market cap?
KWG fundamental statistics
Market Cap	UK£50.76m
Earnings (TTM)	-UK£17.43m
Revenue (TTM)	UK£149.72m

0.3x

P/S Ratio

-2.9x

P/E Ratio

Is KWG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KWG income statement (TTM)
Revenue	UK£149.72m
Cost of Revenue	UK£120.50m
Gross Profit	UK£29.22m
Other Expenses	UK£46.65m
Earnings	-UK£17.43m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.08
Gross Margin	19.52%
Net Profit Margin	-11.64%
Debt/Equity Ratio	0.5%

How did KWG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is KWG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KWG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for KWG. This is calculated by dividing KWG's market cap by their current preferred multiple.
What is KWG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	UK£50.76m

KWG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	14.6x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does KWG's PB Ratio compare to its peers?

KWG PB Ratio vs Peers

The above table shows the PB ratio for KWG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	0.6x
FWD Forward Partners Group	0.4x	n/a	UK£61.2m
LMS LMS Capital	0.5x	n/a	UK£24.8m
FIPP Frontier IP Group	0.8x	n/a	UK£39.1m
TMT TMT Investments	0.4x	n/a	US$122.0m
KWG Kingswood Holdings	8.7x	131.8%	UK£50.8m

Price-To-Book vs Peers: KWG is expensive based on its Price-To-Book Ratio (8.7x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does KWG's PE Ratio compare vs other companies in the GB Capital Markets Industry?

Price-To-Book vs Industry: KWG is expensive based on its Price-To-Book Ratio (8.7x) compared to the UK Capital Markets industry average (1x)

Price to Book Ratio vs Fair Ratio

What is KWG's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KWG PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	8.7x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate KWG's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of KWG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate KWG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate KWG's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Kingswood Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

131.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KWG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.9%).

Earnings vs Market: KWG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KWG is expected to become profitable in the next 3 years.

Revenue vs Market: KWG's revenue is expected to decline over the next 3 years (-10.5% per year).

High Growth Revenue: KWG's revenue is forecast to decline over the next 3 years (-10.5% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: KWG's Return on Equity is forecast to be low in 3 years time (11.6%).

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Past Performance

How has Kingswood Holdings performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-34.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KWG is currently unprofitable.

Growing Profit Margin: KWG is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: KWG is unprofitable, and losses have increased over the past 5 years at a rate of 34.2% per year.

Accelerating Growth: Unable to compare KWG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KWG is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (23.2%).

Return on Equity

High ROE: KWG has a negative Return on Equity (-19.8%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Kingswood Holdings's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: KWG's short term assets (£48.7M) exceed its short term liabilities (£33.8M).

Long Term Liabilities: KWG's short term assets (£48.7M) exceed its long term liabilities (£22.0M).

Debt to Equity History and Analysis

Debt Level: KWG has more cash than its total debt.

Reducing Debt: KWG's debt to equity ratio has reduced from 30.3% to 0.5% over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable KWG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: KWG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 6.4% per year.

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Dividend

What is Kingswood Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate KWG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate KWG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KWG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KWG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as KWG has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure

CEO

David Lawrence

0.33

Tenure

Mr. David Lawrence is Chief Executive Officer of Kingswood Holdings Limited from April 2022 He served as Chief Executive Officer of UK at Kingswood Holdings Limited since December 2020 to April 2022. He wa...

Leadership Team

Experienced Management: KWG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.

Board Members

Experienced Board: KWG's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31