K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
TSX:KBL - Toronto Stock Exchange - CA48243M1077 - Common Stock - Currency: CAD
KBL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 24 industry peers in the Commercial Services & Supplies industry. While KBL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. KBL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KBL had positive earnings in the past year.
In the past year KBL had a positive cash flow from operations.
KBL had positive earnings in each of the past 5 years.
KBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of KBL (4.14%) is better than 79.17% of its industry peers.
The Return On Equity of KBL (9.94%) is better than 79.17% of its industry peers.
KBL has a Return On Invested Capital of 6.40%. This is in the better half of the industry: KBL outperforms 79.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KBL is below the industry average of 8.06%.
The last Return On Invested Capital (6.40%) for KBL is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.94% | ||
| ROIC | 6.4% |
ROA(3y)2.88%
ROA(5y)2.58%
ROE(3y)5.66%
ROE(5y)4.91%
ROIC(3y)4.36%
ROIC(5y)3.73%
1.3 Margins
With a decent Profit Margin value of 5.19%, KBL is doing good in the industry, outperforming 75.00% 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 9.36%, 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.
KBL has a better Gross Margin (79.03%) than 95.83% of its industry peers.
KBL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.36% | ||
| PM (TTM) | 5.19% | ||
| GM | 79.03% |
OM growth 3Y73.4%
OM growth 5Y15.97%
PM growth 3Y41.59%
PM growth 5Y16.21%
GM growth 3Y0.08%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KBL is destroying value.
Compared to 1 year ago, KBL has less shares outstanding
KBL has more shares outstanding than it did 5 years ago.
KBL has a worse debt/assets ratio than last year.
2.2 Solvency
KBL has an Altman-Z score of 1.99. 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.
KBL has a Altman-Z score (1.99) which is in line with its industry peers.
KBL has a debt to FCF ratio of 6.27. This is a slightly negative value and a sign of low solvency as KBL would need 6.27 years to pay back of all of its debts.
KBL has a better Debt to FCF ratio (6.27) than 66.67% of its industry peers.
KBL has a Debt/Equity ratio of 0.96. This is a neutral value indicating KBL is somewhat dependend on debt financing.
KBL's Debt to Equity ratio of 0.96 is in line compared to the rest of the industry. KBL outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.92
WACC6.99%
2.3 Liquidity
KBL has a Current Ratio of 2.08. This indicates that KBL is financially healthy and has no problem in meeting its short term obligations.
KBL has a Current ratio of 2.08. This is in the better half of the industry: KBL outperforms 79.17% of its industry peers.
A Quick Ratio of 1.40 indicates that KBL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.40, KBL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
KBL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.54%, which is quite impressive.
Measured over the past years, KBL shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.72% on average per year.
KBL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.67%.
KBL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.03% yearly.
EPS 1Y (TTM)38.54%
EPS 3Y67.28%
EPS 5Y22.72%
EPS Q2Q%24.19%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y17.74%
Revenue growth 5Y6.03%
Sales Q2Q%20.23%
3.2 Future
KBL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.79% yearly.
Based on estimates for the next years, KBL will show a small growth in Revenue. The Revenue will grow by 7.01% on average per year.
EPS Next Y13.7%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
EPS Next 5Y18.79%
Revenue Next Year17.87%
Revenue Next 2Y11.63%
Revenue Next 3Y8.38%
Revenue Next 5Y7.01%
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 20.16, KBL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 79.17% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBL to the average of the S&P500 Index (30.43), we can say KBL is valued slightly cheaper.
KBL is valuated correctly with a Price/Forward Earnings ratio of 14.66.
Based on the Price/Forward Earnings ratio, KBL is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. KBL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
KBL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBL is cheaper than 79.17% of the companies in the same industry.
75.00% of the companies in the same industry are more expensive than KBL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.29 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KBL has a very decent profitability rating, which may justify a higher PE ratio.
KBL's earnings are expected to grow with 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)0.89
EPS Next 2Y21.54%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.33%, KBL has a reasonable but not impressive dividend return.
KBL's Dividend Yield is rather good when compared to the industry average which is at 2.05. KBL pays more dividend than 91.67% of the companies in the same industry.
KBL's Dividend Yield is a higher than the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
The dividend of KBL has a limited annual growth rate of 0.12%.
KBL has paid a dividend for at least 10 years, which is a reliable track record.
KBL has decreased its dividend recently.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
KBL pays out 68.03% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KBL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP68.03%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
K-BRO LINEN INC
TSX:KBL (2/14/2025, 7:00:00 PM)
35.68
-0.31 (-0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners34.47%
Inst Owner ChangeN/A
Ins Owners2.33%
Ins Owner ChangeN/A
Market Cap377.49M
Analysts80
Price Target48.28 (35.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.21
Dividend Growth(5Y)0.12%
DP68.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.32%
Min EPS beat(2)-15.28%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-13.27%
Min EPS beat(4)-39.35%
Max EPS beat(4)6.63%
EPS beat(8)4
Avg EPS beat(8)9.84%
EPS beat(12)4
Avg EPS beat(12)-12.14%
EPS beat(16)6
Avg EPS beat(16)-2.48%
Revenue beat(2)2
Avg Revenue beat(2)4.04%
Min Revenue beat(2)3.72%
Max Revenue beat(2)4.36%
Revenue beat(4)4
Avg Revenue beat(4)3.03%
Min Revenue beat(4)1.92%
Max Revenue beat(4)4.36%
Revenue beat(8)8
Avg Revenue beat(8)2.3%
Revenue beat(12)10
Avg Revenue beat(12)2.24%
Revenue beat(16)14
Avg Revenue beat(16)2.44%
PT rev (1m)0%
PT rev (3m)3.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.69%
EPS NY rev (1m)0%
EPS NY rev (3m)6.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.93%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.16 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.05 | ||
| P/FCF | 12.29 | ||
| P/OCF | 8.07 | ||
| P/B | 2 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)1.77
EY4.96%
EPS(NY)2.43
Fwd EY6.82%
FCF(TTM)2.9
FCFY8.14%
OCF(TTM)4.42
OCFY12.39%
SpS34.09
BVpS17.8
TBVpS8.33
PEG (NY)1.47
PEG (5Y)0.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.94% | ||
| ROCE | 8.6% | ||
| ROIC | 6.4% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 9.26% | ||
| OM | 9.36% | ||
| PM (TTM) | 5.19% | ||
| GM | 79.03% | ||
| FCFM | 8.52% |
ROA(3y)2.88%
ROA(5y)2.58%
ROE(3y)5.66%
ROE(5y)4.91%
ROIC(3y)4.36%
ROIC(5y)3.73%
ROICexc(3y)4.42%
ROICexc(5y)3.79%
ROICexgc(3y)5.37%
ROICexgc(5y)4.6%
ROCE(3y)5.87%
ROCE(5y)5.02%
ROICexcg growth 3Y101.63%
ROICexcg growth 5Y21.21%
ROICexc growth 3Y99.84%
ROICexc growth 5Y21.48%
OM growth 3Y73.4%
OM growth 5Y15.97%
PM growth 3Y41.59%
PM growth 5Y16.21%
GM growth 3Y0.08%
GM growth 5Y-0.25%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.27 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 50.81% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 71.61% | ||
| Profit Quality | 164.15% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.99 |
F-Score7
WACC6.99%
ROIC/WACC0.92
Cap/Depr(3y)42.31%
Cap/Depr(5y)38.84%
Cap/Sales(3y)4.19%
Cap/Sales(5y)4.1%
Profit Quality(3y)262.15%
Profit Quality(5y)411.39%
High Growth Momentum
Growth
EPS 1Y (TTM)38.54%
EPS 3Y67.28%
EPS 5Y22.72%
EPS Q2Q%24.19%
EPS Next Y13.7%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
EPS Next 5Y18.79%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y17.74%
Revenue growth 5Y6.03%
Sales Q2Q%20.23%
Revenue Next Year17.87%
Revenue Next 2Y11.63%
Revenue Next 3Y8.38%
Revenue Next 5Y7.01%
EBIT growth 1Y34.82%
EBIT growth 3Y104.17%
EBIT growth 5Y22.95%
EBIT Next Year137.75%
EBIT Next 3Y38.44%
EBIT Next 5Y27.97%
FCF growth 1Y58.97%
FCF growth 3Y-8.58%
FCF growth 5YN/A
OCF growth 1Y42.44%
OCF growth 3Y-1.11%
OCF growth 5Y18.5%