KINS Stock Risk & Deep Value Analysis
Kingstone Companies Inc
Financial Services • Insurance - Property & Casualty
DVR Score
out of 10
What You Need to Know About KINS Stock
We analyzed Kingstone Companies Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran KINS through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate-Aggressive. Here's what we found.
KINS Risk Analysis & Red Flags
What Could Go Wrong
A recurrence of significant catastrophe events, similar to the 11 winter events that caused a $5.8 million net loss in Q1 2026, could repeatedly push Kingstone's GAAP combined ratio above 100%. This volatility would severely hinder its ability to accumulate capital, attract stable investment, and sustain profitability, ultimately diminishing its valuation regardless of underlying operational efficiency.
Risk Matrix
Overall
Moderate-Aggressive
Financial
Medium
Market
Medium
Competitive
High
Execution
Medium
Regulatory
Medium
Red Flags
- ⚠
Q1 2026 net loss of $5.8 million and diluted EPS of -$0.40, marking a significant profitability setback from FY2025's strong performance.
- ⚠
Operating in a highly commoditized regional P&C insurance market, lacking strong proprietary technology or brand-based competitive advantages for exponential growth.
- ⚠
Q1 2026 revenue of $59.78 million and EPS of -$0.35 both missed consensus estimates by $7.12 million and $0.09 respectively.
Upcoming Risk Events
- 📅
Q2 2026 Earnings Miss (estimated August 6, 2026): Another quarter with a GAAP combined ratio above 105% due to new catastrophe events or underwriting deterioration.
- 📅
Share Repurchase Program Cancellation: The company halts or significantly reduces its share repurchase program, signaling a shift in capital allocation priorities or reduced confidence.
When to Reconsider
- 🚪
Exit if the GAAP combined ratio consistently exceeds 100% for two consecutive quarters, signaling a breakdown in underwriting profitability.
- 🚪
Sell if net premiums earned growth decelerates below 10% YoY for two consecutive quarters, indicating loss of market traction or competitive pressure.
- 🚪
Exit if the share repurchase program is formally suspended or cancelled before 50% of the authorized shares are repurchased.
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What Does Kingstone Companies Inc (KINS) Do?
Market Cap
$224.88M
Sector
Financial Services
Industry
Insurance - Property & Casualty
Employees
99
Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company ("KICO"), provides property and casualty insurance products in the United States. It offers personal line of insurance products, such as homeowners, dwelling fire, cooperative/condominiums, renters, and personal umbrella policies; and commercial auto insurance products. It also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies. In addition, the company offers reinsurance products. It underwrites its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.
Visit Kingstone Companies Inc WebsiteInvestment Thesis
If Kingstone can consistently deliver a GAAP combined ratio below 95% (excluding severe, infrequent catastrophe events) and successfully expand its E&S business with 20%+ annual direct premium growth over the next two years, then its EPS could stabilize and grow towards the $3.00-$3.50 range, leading to a potential re-rating of its trailing P/E from 7.0x to 10-12x. This is bullish because the market currently over-emphasizes short-term catastrophe impacts and undervalues the company's underlying operational improvements and capital allocation strategy (share buyback).
Is KINS Stock Undervalued?
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KINS Price Targets & Strategy
12-Month Target
$28.00
Bull Case
$36.00
Bear Case
$10.00
Valuation Basis
10x forward P/E applied to estimated FY2026 EPS of $2.80
Entry Strategy
Consider dollar-cost averaging between $14-$16, establishing a position around recent price levels given the recent Q1 setback and potential for recovery.
Exit Strategy
Take 50% profit at $28, with a stop-loss order placed if the stock closes below $12 (prior support zone) for two consecutive days.
Portfolio Allocation
2-4% for moderate risk tolerance
Price Targets & Strategy
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Is KINS Financially Healthy?
Valuation
P/E Ratio
7.24
Forward P/E
5.78
EV/EBITDA
6.50
PEG Ratio
0.19
Price/Book
1.90
Price/Sales
1.03
Profitability
Operating Margin
17.49%
Net Margin
13.86%
Return on Equity
28.27%
Revenue Growth
31.95%
EPS
$2.17
Balance Sheet
Current Ratio
0.19
Quick Ratio
0.07
Debt/Equity
0.04
Other
Beta (Volatility)
0.51
Dividend Yield
1.32%
Does KINS Have a Competitive Moat?
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⚪ None
Moat Trend
Stable
Moat Sources
1 Identified
Kingstone's moat durability is low due to the commoditized nature of personal lines P&C insurance. While it possesses regional expertise and is working towards efficient underwriting, these advantages are easily replicable by larger insurers or new entrants without strong network effects, significant switching costs, or proprietary technology.
Moat Erosion Risks
- •Intense price competition from larger national carriers or InsurTech companies entering its regional markets.
- •Inability to consistently manage and price for catastrophic weather events, eroding underwriting profits and capital.
KINS Competitive Moat Analysis
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KINS Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (No specific data provided, but generally cautious given industry and recent Q1 results)
Institutional Sentiment
Neutral (Trailing P/E of 7.00 suggests low market expectations, not strong institutional conviction)
Insider Activity (Form 4)
Positive (A director bought 14,000 shares in the open market, indicating confidence in future prospects)
Options Flow
Normal options activity (No specific unusual options activity or put/call ratio direction provided in the research)
Earnings Intelligence
Next Earnings
2026-08-06 (Estimated for Q2 2026)
Surprise Probability
Medium (Q1 was a miss, but underlying operational improvements and growth in investment income suggest potential for an upside surprise if catastrophe events are minimal)
Historical Earnings Pattern
Volatile (Q1 2026 results led to negative market reaction following the miss; prior performance from FY2025 indicated strong positive reaction)
Key Metrics to Watch
Competitive Position
Top Competitor
UNIVERSALINS (Universal Insurance Holdings Inc.)
Market Share Trend
Stable (No specific data provided for market share shifts, but direct premiums written growth of +19.6% YoY suggests maintaining or slightly gaining share in its regions)
Valuation vs Peers
Trading at a discount on trailing P/E (7.00) compared to many regional P&C insurers, reflecting higher perceived risk and volatility post-Q1.
Competitive Advantages
- •Regional underwriting expertise and local market knowledge
- •Improved underlying combined ratio (88.3% in Q1 2026) indicating operational efficiency
- •Growing net investment income contributing to overall profitability
Market Intelligence
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What Could Drive KINS Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings (estimated August 6, 2026): A GAAP combined ratio below 98% and EPS exceeding -$0.26 consensus would signal recovery from Q1 cat events.
- •Share Repurchase Program Execution: Announcement of initial repurchases (e.g., 200,000 shares or more) by Q3 2026, indicating management's confidence in undervaluation.
Medium-Term (6-18 months)
- •FY2026 Annual Report & Guidance (estimated early 2027): Positive outlook for FY2027 with a projected GAAP combined ratio below 95% and sustained direct premiums written growth above 15% YoY.
- •California E&S Expansion Success: Specific metrics by Q4 2026, such as direct premiums written from the California E&S segment exceeding $10M, signaling effective market penetration.
Long-Term (18+ months)
- •Consistent Underwriting Profitability: Sustained GAAP combined ratio below 90% across multiple fiscal years (e.g., FY2027-FY2029) would validate the operational improvements and reduce volatility perceptions.
- •Regional Market Leadership: Achieving a top 3 market share position in specific regional/niche segments by FY2029, driving outsized premium growth and pricing power relative to peers.
Catalysts & Growth Drivers
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What's the Bull Case for KINS?
- ✓
Quarterly GAAP combined ratio (must be consistently below 100% excluding force majeure events).
- ✓
Direct Premiums Written growth (YoY > 18% to signal sustained market penetration).
- ✓
Book value per share growth (evidence of capital accumulation and shareholder value creation).
Bull Case Analysis
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Competing with KINS
See how Kingstone Companies Inc compares to related companies
| Company | Market Cap | DVR Score | P/E | Revenue | Profit Margin | Rev Growth | |
|---|---|---|---|---|---|---|---|
Kingstone Companies Inc KINS | $224.9M | 2.5 | 7.2 | $214.9M | 13.9% | 31.9% | |
Bank of America Corp BAC | $366.2B | 0.1 | 11.6 | — | 30.2% | 99.4% | Compare → |
JPMorgan Chase & Co JPM | $831.2B | 0.9 | 14.1 | $177.0B | 33.3% | 109.0% | Compare → |
Mastercard Inc MA | $431.8B | 0.8 | 27.7 | $28.9B | 45.9% | 16.8% | Compare → |
Visa Inc V | $605.8B | 1.6 | 27.2 | $41.4B | 51.7% | 14.4% | Compare → |
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How Kingstone Companies Inc Makes Money
Kingstone Companies Inc. is a regional property and casualty (P&C) insurance holding company that underwrites personal lines insurance policies, primarily homeowners, dwelling fire, and personal umbrella coverage in several Northeastern states. The company generates its revenue by collecting premiums from policyholders, which it then invests to earn investment income. Its business model relies on accurately assessing risk, efficient underwriting to maintain a low combined ratio (premiums minus claims and expenses), and prudent investment of its float to generate profits while providing essential coverage to its customer base.
Read Full Business Model BreakdownFAQ
What is the DVR Score for Kingstone Companies Inc (KINS)?
As of June 5, 2026, Kingstone Companies Inc has a DVR Score of 2.5 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of Kingstone Companies Inc?
Kingstone Companies Inc's market capitalization is approximately $224.9M. The company operates in the Financial Services sector within the Insurance - Property & Casualty industry.
What ticker symbol does Kingstone Companies Inc use?
KINS is the ticker symbol for Kingstone Companies Inc. The company trades on the NCM.
What is the risk level for KINS stock?
Our analysis rates Kingstone Companies Inc's overall risk as Moderate-Aggressive. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of KINS?
Kingstone Companies Inc currently has a price-to-earnings (P/E) ratio of 7.2. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Does Kingstone Companies Inc pay a dividend?
Yes, Kingstone Companies Inc pays a dividend with a current yield of approximately 1.32%.
Is Kingstone Companies Inc's revenue growing?
Kingstone Companies Inc has reported revenue growth of 31.9%. The company is showing strong top-line momentum.
Is KINS stock profitable?
Kingstone Companies Inc has a profit margin of 13.9%. The company is profitable but margins are modest.
How often is the KINS DVR analysis updated?
Our AI-powered analysis of Kingstone Companies Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on June 5, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for KINS (Kingstone Companies Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.