K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
TSX:KBL - CA48243M1077 - Common Stock
36.55 CAD
+0.04 (+0.11%)
Overall KBL gets a fundamental rating of 6 out of 10. We evaluated KBL against 23 industry peers in the Commercial Services & Supplies industry. While KBL has a great profitability rating, there are some minor concerns on its financial health. KBL is not overvalued while it is showing excellent growth. This is an interesting combination.
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.
Each year in the past 5 years KBL has been profitable.
In the past 5 years KBL always reported a positive cash flow from operatings.
1.2 Ratios
KBL has a better Return On Assets (2.60%) than 60.87% of its industry peers.
Looking at the Return On Equity, with a value of 6.84%, KBL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
The Return On Invested Capital of KBL (4.45%) is better than 65.22% of its industry peers.
KBL had an Average Return On Invested Capital over the past 3 years of 5.86%. This is in line with the industry average of 6.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.84% | ||
| ROIC | 4.45% |
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 4.61%, KBL is doing good in the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Profit Margin of KBL has grown nicely.
KBL has a Operating Margin of 8.71%. This is in the better half of the industry: KBL outperforms 73.91% of its industry peers.
In the last couple of years the Operating Margin of KBL has grown nicely.
The Gross Margin of KBL (79.74%) is better 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 | 8.71% | ||
| PM (TTM) | 4.61% | ||
| GM | 79.74% |
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
KBL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KBL has less shares outstanding than it did 1 year ago.
KBL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KBL is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that KBL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.47, KBL is in line with its industry, outperforming 47.83% of the companies in the same industry.
The Debt to FCF ratio of KBL is 9.12, which is on the high side as it means it would take KBL, 9.12 years of fcf income to pay off all of its debts.
KBL's Debt to FCF ratio of 9.12 is in line compared to the rest of the industry. KBL outperforms 52.17% of its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that KBL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, KBL is in line with its industry, outperforming 47.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 9.12 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.56
WACC7.96%
2.3 Liquidity
KBL has a Current Ratio of 1.87. This is a normal value and indicates that KBL is financially healthy and should not expect problems in meeting its short term obligations.
KBL has a Current ratio of 1.87. This is amongst the best in the industry. KBL outperforms 82.61% of its industry peers.
A Quick Ratio of 1.19 indicates that KBL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.19, KBL perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
KBL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.31%.
Measured over the past years, KBL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.41% on average per year.
The Revenue has grown by 17.75% in the past year. This is quite good.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.31%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-30.23%
Revenue 1Y (TTM)17.75%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%20.98%
3.2 Future
KBL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.78% yearly.
KBL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.75% yearly.
EPS Next Y13.68%
EPS Next 2Y17.74%
EPS Next 3Y23.78%
EPS Next 5YN/A
Revenue Next Year34.06%
Revenue Next 2Y24.89%
Revenue Next 3Y16.75%
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.
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
Based on the Price/Earnings ratio of 23.58, the valuation of KBL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 73.91% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KBL to the average of the S&P500 Index (27.17), we can say KBL is valued inline with the index average.
A Price/Forward Earnings ratio of 14.91 indicates a correct valuation of KBL.
Based on the Price/Forward Earnings ratio, KBL is valued a bit cheaper than 69.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.78, KBL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
KBL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBL is cheaper than 69.57% of the companies in the same industry.
KBL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KBL is cheaper than 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.95 | ||
| EV/EBITDA | 10.71 |
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.
A more expensive valuation may be justified as KBL's earnings are expected to grow with 23.78% in the coming years.
PEG (NY)1.72
PEG (5Y)2.07
EPS Next 2Y17.74%
EPS Next 3Y23.78%
5. Dividend
5.1 Amount
KBL has a Yearly Dividend Yield of 3.20%.
KBL's Dividend Yield is rather good when compared to the industry average which is at 2.34. KBL pays more dividend than 86.96% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KBL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
5.2 History
The dividend of KBL decreases each year by -0.02%.
KBL has paid a dividend for at least 10 years, which is 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
KBL pays out 68.25% of its income as dividend. This is not a sustainable payout ratio.
DP68.25%
EPS Next 2Y17.74%
EPS Next 3Y23.78%
TSX:KBL (8/28/2025, 7:00:00 PM)
36.55
+0.04 (+0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners34.09%
Inst Owner ChangeN/A
Ins Owners2.47%
Ins Owner ChangeN/A
Market Cap474.78M
Analysts77.78
Price Target51.68 (41.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend1.2
Dividend Growth(5Y)-0.02%
DP68.25%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-48.14%
Min EPS beat(2)-68.73%
Max EPS beat(2)-27.55%
EPS beat(4)1
Avg EPS beat(4)-23.96%
Min EPS beat(4)-68.73%
Max EPS beat(4)6.63%
EPS beat(8)2
Avg EPS beat(8)-19.01%
EPS beat(12)4
Avg EPS beat(12)-4.94%
EPS beat(16)4
Avg EPS beat(16)-18.05%
Revenue beat(2)2
Avg Revenue beat(2)1.09%
Min Revenue beat(2)0.99%
Max Revenue beat(2)1.19%
Revenue beat(4)4
Avg Revenue beat(4)2.15%
Min Revenue beat(4)0.99%
Max Revenue beat(4)3.72%
Revenue beat(8)8
Avg Revenue beat(8)2.41%
Revenue beat(12)11
Avg Revenue beat(12)1.92%
Revenue beat(16)14
Avg Revenue beat(16)2.07%
PT rev (1m)1.67%
PT rev (3m)5.19%
EPS NQ rev (1m)11.26%
EPS NQ rev (3m)-1.98%
EPS NY rev (1m)-16.32%
EPS NY rev (3m)-16.32%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)43.03%
Revenue NY rev (1m)25.55%
Revenue NY rev (3m)25.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.58 | ||
| Fwd PE | 14.91 | ||
| P/S | 1.18 | ||
| P/FCF | 12.95 | ||
| P/OCF | 9.53 | ||
| P/B | 1.74 | ||
| P/tB | 7.79 | ||
| EV/EBITDA | 10.71 |
EPS(TTM)1.55
EY4.24%
EPS(NY)2.45
Fwd EY6.71%
FCF(TTM)2.82
FCFY7.72%
OCF(TTM)3.83
OCFY10.49%
SpS31.1
BVpS20.96
TBVpS4.69
PEG (NY)1.72
PEG (5Y)2.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.84% | ||
| ROCE | 5.75% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 7.26% | ||
| OM | 8.71% | ||
| PM (TTM) | 4.61% | ||
| GM | 79.74% | ||
| FCFM | 9.08% |
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-Score5
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 9.12 | ||
| Debt/EBITDA | 4.21 | ||
| Cap/Depr | 34.53% | ||
| Cap/Sales | 3.25% | ||
| Interest Coverage | 2.66 | ||
| Cash Conversion | 68.02% | ||
| Profit Quality | 197.03% | ||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 1.47 |
F-Score5
WACC7.96%
ROIC/WACC0.56
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)-4.31%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-30.23%
EPS Next Y13.68%
EPS Next 2Y17.74%
EPS Next 3Y23.78%
EPS Next 5YN/A
Revenue 1Y (TTM)17.75%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%20.98%
Revenue Next Year34.06%
Revenue Next 2Y24.89%
Revenue Next 3Y16.75%
Revenue Next 5YN/A
EBIT growth 1Y13.84%
EBIT growth 3Y42.76%
EBIT growth 5Y12.58%
EBIT Next Year117.65%
EBIT Next 3Y33.5%
EBIT Next 5YN/A
FCF growth 1Y185.11%
FCF growth 3Y12.71%
FCF growth 5Y0.72%
OCF growth 1Y116.44%
OCF growth 3Y16.15%
OCF growth 5Y2.61%