Over the past six months, Kemper’s stock price fell to $60. Shareholders have lost 8.8% of their capital, which is disappointing considering the S&P 500 has climbed by 4.1%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.

Is there a buying opportunity in Kemper, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Do We Think Kemper Will Underperform?

Even though the stock has become cheaper, we're cautious about Kemper. Here are three reasons why KMPR doesn't excite us and a stock we'd rather own.

1. Declining Net Premiums Earned Reflects Weakness

While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.

Kemper’s net premiums earned has declined by 2.4% annually over the last four years, much worse than the broader insurance industry.

2. EPS Trending Down

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Sadly for Kemper, its EPS and revenue declined by 2.8% and 1.4% annually over the last five years. We tend to steer our readers away from companies with falling revenue and EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Kemper’s low margin of safety could leave its stock price susceptible to large downswings.

3. Substandard BVPS Growth Indicates Limited Asset Expansion

In the insurance industry, book value per share (BVPS) provides a clear picture of shareholder value, as it represents the total equity backing a company’s insurance operations and growth initiatives.

To the detriment of investors, Kemper’s BVPS grew at a sluggish 5% annual clip over the last two years.

Final Judgment

We cheer for all companies serving everyday consumers, but in the case of Kemper, we’ll be cheering from the sidelines. After the recent drawdown, the stock trades at 1.3× forward P/B (or $60 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - you can find more timely opportunities elsewhere. Let us point you toward the most dominant software business in the world.

Stocks We Like More Than Kemper

Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.