KG

Kestrel Group, Ltd.

KG·NASDAQ

$12.25

+6.9%
Financial ServicesInsurance - Reinsurance

Kestrel Group Ltd. engages in provides reinsurance products and services to regional and specialty property and casualty insurers. It operates through the following segments: Legacy Reinsurance, Insurance Programs, and Corporate. The Legacy Reinsurance segment focuses on the results of operations of all businesses of the company and its subsidiaries. The Insurance Programs segment refers to the results of operations of all businesses of Kestrel Group LLC. The Corporate segment relates to the general corporate and management-related expenses of the company and its subsidiaries. The company is headquartered in Hamilton, Bermuda.

At a Glance

Live Snapshot
Market Cap$95.84M
EPS8.1500
P/E Ratio1.50
Earnings Date08/07/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is compressed (P/E 1.5).

Valuation inputs: P/E 1.5, earnings yield +66.7%, momentum +6.9%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +36.4%, ROIC +9.0%).

Profitability stack: net margin +1.4%, ROE +36.4%, ROIC +9.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +76.6%, momentum +6.9%, net margin +1.4%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Kestrel Group, Ltd. Market vs Earnings Trajectory

KG · NASDAQ

Loading price and EPS data...

KG

Kestrel Group, Ltd. Fair Value Envelope

KG · NASDAQ

Our analysis suggests that KG has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $12.2499, this represents a potential HIDDEN relative to our calculated worth for Kestrel Group, Ltd..

Intrinsic Value
Current Price: $12.2499
KG

Kestrel Group, Ltd. Profit Bridge

KG · NASDAQ
Revenue34.05M
Cost of Goods Sold (8.99M)
Gross Profit25.06M
Operating Expenses (-24.55M)
Operating Income49.61M
Interest Expense (9.87M)
Other Income/Expense0.00
Pretax Income49.61M
Income Tax (68.00K)
Net Income46.73M
Net Income
46.73M

Profitability Analysis

Gross Margin

73.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

145.7%

Outstanding operational efficiency. The company generates substantial profit from core operations.

Net Profit Margin

137.2%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

0.1%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.

73.59%
Gross Profit Margin
3Y-
5Y-
10Y-
145.69%
Operating Profit Margin
3Y-
5Y-
10Y-
137.23%
Net Profit Margin
3Y-
5Y-
10Y-
36.42%
Return on Equity
3Y-
5Y-
10Y-
8.51%
Return on Assets
3Y-
5Y-
10Y-
9.02%
Return on Invested Capital
3Y-
5Y-
10Y-
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Kestrel Group, Ltd. Cash Conversion Engine

KG · NASDAQ
Net Income46.73M
Depreciation & Amortization94.00K
Stock-Based Compensation0.00
Change in Working Capital-69.45M
Others-73.51M
Capital Expenditures0.00
Free Cash Flow-96.14M

Cash Flow Quality Analysis

FCF Conversion Rate

-205.8%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

Working Capital Impact

-$69.45M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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Kestrel Group, Ltd. Funding & Solvency Profile

KG · NASDAQ
Cash & Cash Equivalents62.21M
Net Receivables297.00K
Inventory0.00
Other Current Assets0.00
Total Current Assets63 M
Property, Plant & Equipment0.00
Goodwill & Intangible Assets8.51M
Long-Term Investments417.94M
Other Non-Current Assets38.89M
Total Non-Current Assets457 M
Total Assets
527.85M

Financial Health Analysis

Debt-to-Equity Ratio

3.35x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

63 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

12% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

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Kestrel Group, Ltd. Street Expectations Map

KG · NASDAQ

No Target Data

No analyst price targets available for kg.

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Kestrel Group, Ltd. Insider Positioning

KG · NASDAQ

During the last 12 months, there has been no insider trading activity reported for KG.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Neutral

No insider trading activity reported. This could indicate blackout periods, lack of conviction, or regulatory restrictions.

Insider Participation

No Activity

No insider trading activity reported from any insiders in the past year.

0.00%
Dividend Yield
3Y-
5Y-
10Y-
 

kg Dividend History

KG
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%