K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
TSX:KBL - Toronto Stock Exchange - CA48243M1077 - Common Stock - Currency: CAD
Overall KBL gets a fundamental rating of 6 out of 10. We evaluated KBL against 24 industry peers in the Commercial Services & Supplies industry. KBL scores excellent on profitability, but there are some minor concerns on its financial health. KBL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KBL had positive earnings in the past year.
KBL had a positive operating cash flow in the past year.
Each year in the past 5 years KBL has been profitable.
KBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KBL has a Return On Assets of 4.27%. This is amongst the best in the industry. KBL outperforms 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 9.88%, KBL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
KBL's Return On Invested Capital of 7.23% is amongst the best of the industry. KBL outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBL is below the industry average of 7.91%.
The 3 year average ROIC (5.86%) for KBL is below the current ROIC(7.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.88% | ||
| ROIC | 7.23% |
ROA(3y)3.43%
ROA(5y)2.82%
ROE(3y)7.39%
ROE(5y)5.77%
ROIC(3y)5.86%
ROIC(5y)4.36%
1.3 Margins
With a decent Profit Margin value of 5.01%, KBL is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Profit Margin of KBL has grown nicely.
With a decent Operating Margin value of 9.49%, KBL is doing good in the industry, outperforming 79.17% of the companies in the same industry.
KBL's Operating Margin has improved in the last couple of years.
The Gross Margin of KBL (79.14%) is better than 95.83% of its industry peers.
In the last couple of years the Gross Margin of KBL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.49% | ||
| PM (TTM) | 5.01% | ||
| GM | 79.14% |
OM growth 3Y20.38%
OM growth 5Y4.09%
PM growth 3Y8.87%
PM growth 5Y3%
GM growth 3Y0.73%
GM growth 5Y-0.05%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KBL is destroying value.
Compared to 1 year ago, KBL has less shares outstanding
The number of shares outstanding for KBL has been reduced compared to 5 years ago.
The debt/assets ratio for KBL is higher compared to a year ago.
2.2 Solvency
KBL has an Altman-Z score of 2.08. This is not the best score and indicates that KBL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.08, KBL is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
KBL has a debt to FCF ratio of 5.84. This is a neutral value as KBL would need 5.84 years to pay back of all of its debts.
KBL has a Debt to FCF ratio of 5.84. This is comparable to the rest of the industry: KBL outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 0.88 indicates that KBL is somewhat dependend on debt financing.
KBL has a Debt to Equity ratio (0.88) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.84 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.99
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.95 indicates that KBL should not have too much problems paying its short term obligations.
The Current ratio of KBL (1.95) is better than 83.33% of its industry peers.
A Quick Ratio of 1.28 indicates that KBL should not have too much problems paying its short term obligations.
KBL has a better Quick ratio (1.28) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.09% over the past year.
The Earnings Per Share has been growing by 11.41% on average over the past years. This is quite good.
The Revenue has grown by 16.43% in the past year. This is quite good.
Measured over the past years, KBL shows a quite strong growth in Revenue. The Revenue has been growing by 8.16% on average per year.
EPS 1Y (TTM)3.09%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-52.94%
Revenue 1Y (TTM)16.43%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%13.39%
3.2 Future
Based on estimates for the next years, KBL will show a very strong growth in Earnings Per Share. The EPS will grow by 27.29% on average per year.
KBL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.30% yearly.
EPS Next Y35.85%
EPS Next 2Y25.11%
EPS Next 3Y27.29%
EPS Next 5YN/A
Revenue Next Year6.78%
Revenue Next 2Y4.61%
Revenue Next 3Y4.3%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.65, KBL is valued on the expensive side.
75.00% of the companies in the same industry are more expensive than KBL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.35, KBL is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.54 indicates a correct valuation of KBL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 75.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, KBL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 12.54 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than KBL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 7.77 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KBL has an outstanding profitability rating, which may justify a higher PE ratio.
KBL's earnings are expected to grow with 27.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.58
PEG (5Y)1.81
EPS Next 2Y25.11%
EPS Next 3Y27.29%
5. Dividend
5.1 Amount
KBL has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
KBL's Dividend Yield is rather good when compared to the industry average which is at 2.37. KBL pays more dividend than 87.50% of the companies in the same industry.
KBL's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
The dividend of KBL decreases each year by -0.02%.
KBL has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of KBL decreased recently.
Dividend Growth(5Y)-0.02%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
67.88% of the earnings are spent on dividend by KBL. This is not a sustainable payout ratio.
DP67.88%
EPS Next 2Y25.11%
EPS Next 3Y27.29%
TSX:KBL (5/27/2025, 7:00:00 PM)
34.69
-0.06 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners34.32%
Inst Owner ChangeN/A
Ins Owners2.38%
Ins Owner ChangeN/A
Market Cap367.02M
Analysts80
Price Target49.13 (41.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend1.2
Dividend Growth(5Y)-0.02%
DP67.88%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.22%
Min EPS beat(2)-6.18%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-13.54%
Min EPS beat(4)-39.35%
Max EPS beat(4)6.63%
EPS beat(8)4
Avg EPS beat(8)20.01%
EPS beat(12)4
Avg EPS beat(12)-10.04%
EPS beat(16)5
Avg EPS beat(16)-9.99%
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)2.7%
Max Revenue beat(2)3.72%
Revenue beat(4)4
Avg Revenue beat(4)3.18%
Min Revenue beat(4)1.92%
Max Revenue beat(4)4.36%
Revenue beat(8)8
Avg Revenue beat(8)2.56%
Revenue beat(12)10
Avg Revenue beat(12)1.95%
Revenue beat(16)14
Avg Revenue beat(16)2.32%
PT rev (1m)0%
PT rev (3m)1.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.65 | ||
| Fwd PE | 12.54 | ||
| P/S | 0.98 | ||
| P/FCF | 11.99 | ||
| P/OCF | 7.35 | ||
| P/B | 1.94 | ||
| P/tB | 4.1 | ||
| EV/EBITDA | 7.77 |
EPS(TTM)1.68
EY4.84%
EPS(NY)2.77
Fwd EY7.98%
FCF(TTM)2.89
FCFY8.34%
OCF(TTM)4.72
OCFY13.61%
SpS35.31
BVpS17.9
TBVpS8.47
PEG (NY)0.58
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 9.88% | ||
| ROCE | 9.33% | ||
| ROIC | 7.23% | ||
| ROICexc | 7.41% | ||
| ROICexgc | 10.14% | ||
| OM | 9.49% | ||
| PM (TTM) | 5.01% | ||
| GM | 79.14% | ||
| FCFM | 8.2% |
ROA(3y)3.43%
ROA(5y)2.82%
ROE(3y)7.39%
ROE(5y)5.77%
ROIC(3y)5.86%
ROIC(5y)4.36%
ROICexc(3y)5.98%
ROICexc(5y)4.44%
ROICexgc(3y)7.67%
ROICexgc(5y)5.61%
ROCE(3y)7.57%
ROCE(5y)5.63%
ROICexcg growth 3Y37.67%
ROICexcg growth 5Y10.99%
ROICexc growth 3Y31.26%
ROICexc growth 5Y8.45%
OM growth 3Y20.38%
OM growth 5Y4.09%
PM growth 3Y8.87%
PM growth 5Y3%
GM growth 3Y0.73%
GM growth 5Y-0.05%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 5.84 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 57.39% | ||
| Cap/Sales | 5.17% | ||
| Interest Coverage | 3.2 | ||
| Cash Conversion | 72.26% | ||
| Profit Quality | 163.67% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 2.08 |
F-Score6
WACC7.29%
ROIC/WACC0.99
Cap/Depr(3y)48.42%
Cap/Depr(5y)40.03%
Cap/Sales(3y)4.35%
Cap/Sales(5y)4%
Profit Quality(3y)234.71%
Profit Quality(5y)389.92%
High Growth Momentum
Growth
EPS 1Y (TTM)3.09%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-52.94%
EPS Next Y35.85%
EPS Next 2Y25.11%
EPS Next 3Y27.29%
EPS Next 5YN/A
Revenue 1Y (TTM)16.43%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%13.39%
Revenue Next Year6.78%
Revenue Next 2Y4.61%
Revenue Next 3Y4.3%
Revenue Next 5YN/A
EBIT growth 1Y19.01%
EBIT growth 3Y42.76%
EBIT growth 5Y12.58%
EBIT Next Year117.65%
EBIT Next 3Y33.5%
EBIT Next 5YN/A
FCF growth 1Y5.52%
FCF growth 3Y12.71%
FCF growth 5Y0.72%
OCF growth 1Y21.81%
OCF growth 3Y16.15%
OCF growth 5Y2.61%