Kingsway Corporation (KWY): fair value, margin of safety and Wheel Score

Is KWY undervalued?

At 9.71 (close of 16 Oct 2026), KWY has no GLS fair value: every one of the nine models needs a positive input (the company lost money over the last twelve months, EPS -0.25, it pays no dividend and its debts exceed what its assets would fetch), so the margin of safety is blank and the Wheel Score cannot be computed. Our screens leave the stock out at the first rule. What can be said from the nightly row is below.

The nightly engine files KWY under Speculative / Distressed - negative earnings or a Piotroski score of 3 or less - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan.

Nine valuation models for KWY

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Kingsway Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 2.5/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.

Returns on capital are thin or negative - ROIC -9.8%, ROE -34.2%, ROA -4.6% - with debt at 2.48 times equity and negative free cash flow. Debt of 2.48 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

Kingsway Corporation pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain.

Institutional ownership scores 5/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 45: Weak

With a Wheel Score of 45 Kingsway Corporation sits in the Weak band, capped at 45 because the engine files it as Speculative / Distressed. The parts - Value 13/25, Health 13/20, Moat 4/15, Premium 20/20, Stability 6/20 - show where: Moat (4/15) scores lowest.

Implied volatility is 40% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 211 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.

Volume runs at 26k shares a day on a market cap of $281M, with a beta of 0.25 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for KWY in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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