Kuwait Finance House K.S.C.P. (KFH.KW) stock analysis

In our weekly check, Kuwait Finance House K.S.C.P. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11.

About Kuwait Finance House K.S.C.P.

Kuwait Finance House K.S.C.P. is a Financial Services company (Banks - Diversified), listed on KUW as KFH.KW.

What our checks show for KFH.KW

Red flags

• The net margin fell by 13.9 points over 5 years, to 16%: the company keeps less of each sale as profit.
• The gross margin fell by 56 points, to 44%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Analysts expect revenue to shrink about 24% a year.
• Free cash flow is negative (-9.3% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 76% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 7.3 years.
• Return on capital (ROCE) is only 2.3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Strengths

• Analysts expect earnings per share to grow about 16% a year over the next years.
• Analysts expect the net margin to improve by 22.2 points from today's 16%.
• Revenue grew 58.9% a year over the last 3 years.
• Net profit grew 22.8% a year over the last 3 years.
• The dividend takes 28% of profit: there is a cushion.
• A large company: market value $13.57 billion.

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Questions

What grade does Kuwait Finance House K.S.C.P. (KFH.KW) have?

In our weekly check, Kuwait Finance House K.S.C.P. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 0, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of KFH.KW stock?

This week's biggest flags for Kuwait Finance House K.S.C.P.: Margins falling, Gross margin falling, Profits not backed by cash. In total 11 of 25 checks show a warning or a red flag.

What does Kuwait Finance House K.S.C.P. do?

Kuwait Finance House K.S.C.P. is a Financial Services company (Banks - Diversified), listed on KUW as KFH.KW.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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