K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KBL - CA48243M1077 - Common Stock
34.55 CAD
-0.2 (-0.58%)
We assign a fundamental rating of 6 out of 10 to KBL. KBL was compared to 24 industry peers in the Commercial Services & Supplies industry. KBL has an excellent profitability rating, but there are some minor concerns on its financial health. KBL is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year KBL was profitable.
- In the past year KBL had a positive cash flow from operations.
- Each year in the past 5 years KBL has been profitable.
- Each year in the past 5 years KBL had a positive operating cash flow.
1.2 Ratios
- KBL's Return On Assets of 2.69% is in line compared to the rest of the industry. KBL outperforms 54.17% of its industry peers.
- The Return On Equity of KBL (6.96%) is better than 62.50% of its industry peers.
- KBL's Return On Invested Capital of 4.87% is fine compared to the rest of the industry. KBL outperforms 70.83% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for KBL is in line with the industry average of 5.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 6.96% | ||
| ROIC | 4.87% |
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
- KBL's Profit Margin of 4.25% is fine compared to the rest of the industry. KBL outperforms 70.83% of its industry peers.
- KBL's Profit Margin has improved in the last couple of years.
- The Operating Margin of KBL (8.43%) is better than 75.00% of its industry peers.
- KBL's Operating Margin has improved in the last couple of years.
- KBL has a better Gross Margin (79.55%) than 100.00% 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 | 8.43% | ||
| PM (TTM) | 4.25% | ||
| GM | 79.55% |
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.
- KBL has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for KBL has been reduced compared to 5 years ago.
- Compared to 1 year ago, KBL has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.54, we must say that KBL is in the distress zone and has some risk of bankruptcy.
- KBL has a Altman-Z score (1.54) which is in line with its industry peers.
- KBL has a debt to FCF ratio of 8.78. This is a slightly negative value and a sign of low solvency as KBL would need 8.78 years to pay back of all of its debts.
- KBL's Debt to FCF ratio of 8.78 is in line compared to the rest of the industry. KBL outperforms 50.00% of its industry peers.
- KBL has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
- The Debt to Equity ratio of KBL (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.63
WACC7.68%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that KBL should not have too much problems paying its short term obligations.
- The Current ratio of KBL (1.89) is better than 83.33% of its industry peers.
- A Quick Ratio of 1.22 indicates that KBL should not have too much problems paying its short term obligations.
- KBL's Quick ratio of 1.22 is fine compared to the rest of the industry. KBL outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- The earnings per share for KBL have decreased strongly by -17.52% in the last 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 26.29% in the past year. This is a very strong growth!
- KBL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.16% yearly.
EPS 1Y (TTM)-17.52%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-11.69%
Revenue 1Y (TTM)26.29%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%49.28%
3.2 Future
- The Earnings Per Share is expected to grow by 21.97% on average over the next years. This is a very strong growth
- KBL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.45% yearly.
EPS Next Y12.83%
EPS Next 2Y14.69%
EPS Next 3Y21.05%
EPS Next 5Y21.97%
Revenue Next Year34.88%
Revenue Next 2Y26.27%
Revenue Next 3Y18.13%
Revenue Next 5Y14.45%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- KBL is valuated rather expensively with a Price/Earnings ratio of 23.66.
- KBL's Price/Earnings ratio is a bit cheaper when compared to the industry. KBL is cheaper than 75.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. KBL is around the same levels.
- KBL is valuated correctly with a Price/Forward Earnings ratio of 14.86.
- KBL's Price/Forward Earnings ratio is rather cheap when compared to the industry. KBL is cheaper than 83.33% of the companies in the same industry.
- KBL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.66 | ||
| Fwd PE | 14.86 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KBL indicates a rather cheap valuation: KBL is cheaper than 83.33% of the companies listed in the same industry.
- KBL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KBL is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.07 | ||
| EV/EBITDA | 9.08 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KBL does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of KBL may justify a higher PE ratio.
- A more expensive valuation may be justified as KBL's earnings are expected to grow with 21.05% in the coming years.
PEG (NY)1.85
PEG (5Y)2.07
EPS Next 2Y14.69%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
- KBL has a Yearly Dividend Yield of 3.45%.
- KBL's Dividend Yield is rather good when compared to the industry average which is at 0.99. KBL pays more dividend than 91.67% of the companies in the same industry.
- KBL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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.
- KBL has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-0.02%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
- 69.40% of the earnings are spent on dividend by KBL. This is not a sustainable payout ratio.
DP69.4%
EPS Next 2Y14.69%
EPS Next 3Y21.05%
K-BRO LINEN INC / KBL.CA FAQ
What is the ChartMill fundamental rating of K-BRO LINEN INC (KBL.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to KBL.CA.
Can you provide the valuation status for K-BRO LINEN INC?
ChartMill assigns a valuation rating of 6 / 10 to K-BRO LINEN INC (KBL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for K-BRO LINEN INC?
K-BRO LINEN INC (KBL.CA) has a profitability rating of 7 / 10.
What are the PE and PB ratios of K-BRO LINEN INC (KBL.CA) stock?
The Price/Earnings (PE) ratio for K-BRO LINEN INC (KBL.CA) is 23.66 and the Price/Book (PB) ratio is 1.62.
What is the financial health of K-BRO LINEN INC (KBL.CA) stock?
The financial health rating of K-BRO LINEN INC (KBL.CA) is 4 / 10.