NYSE:KMPR

Stock Analysis Report

Executive Summary

Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States.

Rewards

Trading at 38.2% below its fair value

Earnings grew by 88% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -6.9% per year for the next 3 years

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

How has Kemper's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KMPR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

KMPR

2.2%

US Insurance

2.0%

US Market


1 Year Return

5.6%

KMPR

19.7%

US Insurance

23.6%

US Market

Return vs Industry: KMPR underperformed the US Insurance industry which returned 20.4% over the past year.

Return vs Market: KMPR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

KMPRIndustryMarket
7 Day1.6%2.2%2.0%
30 Day0.7%1.8%3.9%
90 Day4.8%4.8%12.0%
1 Year7.0%5.6%22.8%19.7%26.2%23.6%
3 Year88.6%79.9%37.5%26.8%53.2%43.3%
5 Year141.6%117.9%74.8%53.8%75.7%56.3%

Price Volatility Vs. Market

How volatile is Kemper's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kemper undervalued compared to its fair value and its price relative to the market?

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMPR ($78.52) is trading below our estimate of fair value ($127.14)

Significantly Below Fair Value: KMPR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KMPR is good value based on its PE Ratio (12.5x) compared to the Insurance industry average (16.4x).

PE vs Market: KMPR is good value based on its PE Ratio (12.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: KMPR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KMPR is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Kemper forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-6.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMPR's earnings are forecast to decline over the next 3 years (-6.9% per year).

Earnings vs Market: KMPR's earnings are forecast to decline over the next 3 years (-6.9% per year).

High Growth Earnings: KMPR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KMPR's revenue (6.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: KMPR's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KMPR's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has Kemper performed over the past 5 years?

35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMPR has high quality earnings.

Growing Profit Margin: KMPR's current net profit margins (8.5%) are higher than last year (6.6%).


Past Earnings Growth Analysis

Earnings Trend: KMPR's earnings have grown significantly by 35.7% per year over the past 5 years.

Accelerating Growth: KMPR's earnings growth over the past year (88%) exceeds its 5-year average (35.7% per year).

Earnings vs Industry: KMPR earnings growth over the past year (88%) exceeded the Insurance industry -11.3%.


Return on Equity

High ROE: KMPR's Return on Equity (10.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kemper's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KMPR has a low level of unsold assets or inventory.

Debt Coverage by Assets: KMPR's debt is covered by short term assets (assets are 2.1x debt).


Financial Institutions Analysis

Asset Level: KMPR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if KMPR has a sufficient allowance for bad loans.

Low Risk Liabilities: KMPR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if KMPR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KMPR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if KMPR has an appropriate level of bad loans.


Next Steps

Dividend

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

1.42%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: KMPR's dividend (1.43%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: KMPR's dividend (1.43%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: KMPR's dividend payments have been volatile in the past 10 years.

Growing Dividend: KMPR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.8%), KMPR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMPR's dividends in 3 years are forecast to be well covered by earnings (19% payout ratio).


Next Steps

Management

What is the CEO of Kemper's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Joe Lacher (50yo)

4.2yrs

Tenure

US$6,905,879

Compensation

Mr. Joseph Patrick Lacher, Jr., also known as Joe, has been the President, Chief Executive Officer and Director of Kemper Corporation since November 11, 2015. From November 2009 to July 2011, Mr. Lacher wa ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.91M) is about average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: KMPR's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

64yo

Average Age

Experienced Board: KMPR's board of directors are considered experienced (4.5 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$195,90316 Sep 19
Kimberly Holmes
EntityIndividual
Shares2,600
Max PriceUS$75.35
BuyUS$34,87504 Sep 19
Robert Joyce
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares500
Max PriceUS$69.75
SellUS$1,297,07207 May 19
John Boschelli
EntityIndividual
Role
Chief Investment Officer
Senior VP & Chief Investment Officer
Shares14,336
Max PriceUS$90.61

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.4%.


Management Team

  • Duane Sanders (62yo)

    Senior VP and President of Property & Casualty Division

    • Compensation: US$4.52m
  • Rich Roeske (58yo)

    VP & Chief Accounting Officer

    • Tenure: 20.4yrs
    • Compensation: US$1.11m
  • John Boschelli (50yo)

    Senior VP & Chief Investment Officer

    • Tenure: 10.7yrs
    • Compensation: US$1.80m
  • Joe Lacher (50yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$6.91m
  • Charles Brooks (52yo)

    Senior Vice President of Operations & Systems

    • Tenure: 2.8yrs
    • Compensation: US$1.36m
  • Tom Evans (60yo)

    Senior VP

    • Tenure: 4.7yrs
  • Jim McKinney (39yo)

    Senior VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$2.23m
  • Mark Green (51yo)

    Executive VP of Business Development & Reinsurance and President of Life & Health Division

    • Compensation: US$1.74m
  • Barbara Ciesemier

    Assistant Vice President of Corporate Communications

    • Tenure: 2yrs
  • Christine Patrick

    Vice President of Investor Relations


    Board Members

    • David Storch (66yo)

      Independent Director

      • Tenure: 9.7yrs
      • Compensation: US$196.21k
    • Doug G. Geoga (63yo)

      Independent Director

      • Tenure: 19.9yrs
      • Compensation: US$201.38k
    • George Cochran (64yo)

      Independent Director

      • Tenure: 4.9yrs
      • Compensation: US$219.25k
    • Joe Lacher (50yo)

      President

      • Tenure: 4.2yrs
      • Compensation: US$6.91m
    • Bob Joyce (71yo)

      Non-Executive Chairman

      • Tenure: 4.2yrs
      • Compensation: US$305.71k
    • Christopher Sarofim (56yo)

      Director

      • Tenure: 6.7yrs
      • Compensation: US$192.21k
    • Kathleen Cronin (56yo)

      Independent Director

      • Tenure: 4.9yrs
      • Compensation: US$209.17k
    • Lacy Johnson (66yo)

      Independent Director

      • Tenure: 3.4yrs
      • Compensation: US$188.45k
    • Teresa Canida (65yo)

      Independent Director

      • Tenure: 1.5yrs
      • Compensation: US$43.52k
    • Sohail Ali

      Executive Director

      • Tenure: 0.7yrs

    Company Information

    Kemper Corporation's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Kemper Corporation
    • Ticker: KMPR
    • Exchange: NYSE
    • Founded: 1990
    • Industry: Property and Casualty Insurance
    • Sector: Insurance
    • Market Cap: US$5.252b
    • Shares outstanding: 66.65m
    • Website: https://www.kemper.com

    Number of Employees


    Location

    • Kemper Corporation
    • 200 East Randolph Street
    • Suite 3300
    • Chicago
    • Illinois
    • 60601
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    KMPRNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 1990
    UI2DB (Deutsche Boerse AG)YesCommon SharesDEEURApr 1990
    KMPR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.10BRBRLMay 2019

    Biography

    Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance to individuals and businesses in the United States. It operates through three segments: Preferred Property & Casualty Insurance, Specialty Property & Casualty Insurance, and Life and Health Insurance. The company provides automobile, homeowners, renters, fire, umbrella, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses. The company distributes its products through independent agents and brokers. The company also offers life insurance, including permanent and term insurance, as well as supplemental accident and health insurance products; Medicare supplement insurance; and limited health insurance coverages, such as fixed indemnity, specified disease, and accident-only plans to individuals in rural areas. The company was formerly known as Unitrin, Inc. and changed its name to Kemper Corporation in August 2011. Kemper Corporation was founded in 1990 and is headquartered in Chicago, Illinois. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:42
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.