| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 4/6 |
| Dividends | 4/6 |
KMPR Stock Overview
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance in the United States.
Kemper Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$64.00 |
| 52 Week High | US$83.98 |
| 52 Week Low | US$51.39 |
| Beta | 0.70 |
| 1 Month Change | 19.43% |
| 3 Month Change | -1.92% |
| 1 Year Change | -17.12% |
| 3 Year Change | -14.20% |
| 5 Year Change | 46.12% |
| Change since IPO | 303.15% |
Recent News & Updates
Kemper Hammered With Higher Losses, But The Longer-Term Value Is Still Meaningful
Kemper reported far larger than expected losses in the second quarter, with higher auto accident frequency (related to the lifting of COVID-19 restrictions) and severity wiping out underwriting profits. It will take a few quarters to fix the issue, as auto insurance rates are regulated and Kemper cannot immediately pass on all the rate increases it wants and needs. If Kemper's loss experiences prove to be typical, it could force some "hot hands" out of the non-standard auto market who entered in recent years chasing higher returns. At 1x book and with a good operating history up until now, Kemper shares look undervalued, but there is still a risk of even larger losses and it will take time to fix.
Shareholder Returns
| KMPR | US Insurance | US Market | |
|---|---|---|---|
| 7D | 1.6% | -0.2% | -0.5% |
| 1Y | -17.1% | 23.5% | 13.7% |
Return vs Industry: KMPR underperformed the US Insurance industry which returned 23.5% over the past year.
Return vs Market: KMPR underperformed the US Market which returned 13.7% over the past year.
Price Volatility
| KMPR volatility | |
|---|---|
| KMPR Average Weekly Movement | 4.9% |
| Insurance Industry Average Movement | 4.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: KMPR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: KMPR's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1990 | 9,500 | Joe Lacher | https://www.kemper.com |
Kemper Corporation, a diversified insurance holding company, provides property and casualty, and life and health insurance in the United States. The company operates through three segments: Specialty Property & Casualty Insurance, Preferred Property & Casualty Insurance, and Life & Health Insurance. It provides automobile, homeowners, renters, fire, umbrella, general liability, and other types of property and casualty insurance to individuals; and commercial automobile insurance to businesses.
Kemper Fundamentals Summary
| KMPR fundamental statistics | |
|---|---|
| Market Cap | US$4.07b |
| Earnings (TTM) | US$82.70m |
| Revenue (TTM) | US$5.68b |
49.3x
P/E Ratio0.7x
P/S RatioIs KMPR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KMPR income statement (TTM) | |
|---|---|
| Revenue | US$5.68b |
| Cost of Revenue | US$4.19b |
| Gross Profit | US$1.50b |
| Expenses | US$1.41b |
| Earnings | US$82.70m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 1.30 |
| Gross Margin | 26.33% |
| Net Profit Margin | 1.45% |
| Debt/Equity Ratio | 27.0% |
How did KMPR perform over the long term?
See historical performance and comparisonDividends
1.9%
Current Dividend Yield96%
Payout RatioValuation
Is Kemper undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KMPR ($64) is trading below our estimate of fair value ($132.52)
Significantly Below Fair Value: KMPR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KMPR is poor value based on its PE Ratio (49.3x) compared to the US Insurance industry average (11.4x).
PE vs Market: KMPR is poor value based on its PE Ratio (49.3x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: KMPR is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: KMPR is good value based on its PB Ratio (1x) compared to the US Insurance industry average (1.2x).
Future Growth
How is Kemper forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
107.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KMPR's forecast earnings growth (107.1% per year) is above the savings rate (2%).
Earnings vs Market: KMPR's earnings (107.1% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: KMPR's revenue (4.3% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: KMPR's revenue (4.3% 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 (8.2%).
Past Performance
How has Kemper performed over the past 5 years?
33.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KMPR has a large one-off loss of $55.1M impacting its September 30 2021 financial results.
Growing Profit Margin: KMPR's current net profit margins (1.5%) are lower than last year (8.7%).
Past Earnings Growth Analysis
Earnings Trend: KMPR has become profitable over the past 5 years, growing earnings by 33% per year.
Accelerating Growth: KMPR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KMPR had negative earnings growth (-81.1%) over the past year, making it difficult to compare to the Insurance industry average (39.8%).
Return on Equity
High ROE: KMPR's Return on Equity (2%) is considered low.
Financial Health
How is Kemper's financial position?
Financial Position Analysis
Short Term Liabilities: KMPR's short term assets ($2.2B) do not cover its short term liabilities ($2.7B).
Long Term Liabilities: KMPR's short term assets ($2.2B) do not cover its long term liabilities ($8.1B).
Debt to Equity History and Analysis
Debt Level: KMPR's net debt to equity ratio (17.9%) is considered satisfactory.
Reducing Debt: KMPR's debt to equity ratio has reduced from 36.3% to 27% over the past 5 years.
Debt Coverage: KMPR's debt is well covered by operating cash flow (44.9%).
Interest Coverage: KMPR's interest payments on its debt are well covered by EBIT (6.9x coverage).
Balance Sheet
Dividend
What is Kemper current dividend yield, its reliability and sustainability?
1.94%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KMPR's dividend (1.94%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: KMPR's dividend (1.94%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: KMPR's dividends per share have been stable in the past 10 years.
Growing Dividend: KMPR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (96.2%), KMPR's dividend payments are not 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 (30.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Joe Lacher (52 yo)
6.17yrs
Tenure
US$9,251,315
Compensation
Mr. Joseph Patrick Lacher, also known as Joe, Jr, has been the President, Chief Executive Officer and Director of Kemper Corporation since November 11, 2015. He is Non-Executive Chairman of Kemper Corporat...
CEO Compensation Analysis
Compensation vs Market: Joe's total compensation ($USD9.25M) is above average for companies of similar size in the US market ($USD5.13M).
Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: KMPR's management team is seasoned and experienced (5.2 years average tenure).
Board Members
Experienced Board: KMPR's board of directors are considered experienced (6.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KMPR 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.
Top Shareholders
Company Information
Kemper Corporation's 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
- Implied Market Cap: US$4.074b
- Shares outstanding: 63.65m
- Website: https://www.kemper.com
Number of Employees
Location
- Kemper Corporation
- 200 East Randolph Street
- Suite 3300
- Chicago
- Illinois
- 60601
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:15 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.