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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make KBL suitable for value investing!
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.
In the past 5 years KBL has always been profitable.
Each year in the past 5 years KBL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.04%, KBL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KBL's Return On Equity of 9.27% is fine compared to the rest of the industry. KBL outperforms 70.83% of its industry peers.
The Return On Invested Capital of KBL (7.12%) is better than 79.17% of its industry peers.
KBL had an Average Return On Invested Capital over the past 3 years of 5.86%. This is below the industry average of 7.99%.
The 3 year average ROIC (5.86%) for KBL is below the current ROIC(7.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 9.27% | ||
| ROIC | 7.12% |
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 4.61% is fine compared to the rest of the industry. KBL outperforms 70.83% of its industry peers.
In the last couple of years the Profit Margin of KBL has grown nicely.
Looking at the Operating Margin, with a value of 8.98%, KBL is in the better half of 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 (79.21%) is better than 100.00% of its industry peers.
KBL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.98% | ||
| PM (TTM) | 4.61% | ||
| GM | 79.21% |
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.
Compared to 1 year ago, KBL has less shares outstanding
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
An Altman-Z score of 2.08 indicates that KBL is not a great score, but indicates 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 5.01. This is a neutral value as KBL would need 5.01 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.01, KBL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
KBL has a Debt/Equity ratio of 0.84. This is a neutral value indicating KBL is somewhat dependend on debt financing.
KBL has a Debt to Equity ratio (0.84) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.96
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.82 indicates that KBL should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.82, KBL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 1.18 indicates that KBL should not have too much problems paying its short term obligations.
KBL has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
KBL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.09%.
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.
Looking at the last year, KBL shows a quite strong growth in Revenue. The Revenue has grown by 16.35% in the last year.
The Revenue has been growing by 8.16% on average over the past years. This is quite good.
EPS 1Y (TTM)3.09%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-52.94%
Revenue 1Y (TTM)16.35%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%13.39%
3.2 Future
KBL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.29% yearly.
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
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.61, which indicates a rather expensive current valuation of KBL.
Based on the Price/Earnings ratio, KBL is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KBL to the average of the S&P500 Index (26.25), we can say KBL is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.51 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 70.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. KBL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 12.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KBL is valued a bit cheaper than 79.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KBL is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 7.53 |
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.
The excellent 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 27.29% in the coming years.
PEG (NY)0.57
PEG (5Y)1.81
EPS Next 2Y25.11%
EPS Next 3Y27.29%
5. Dividend
5.1 Amount
KBL has a Yearly Dividend Yield of 3.45%.
Compared to an average industry Dividend Yield of 2.37, KBL pays a better dividend. On top of this KBL pays more dividend than 87.50% of the companies listed in the same industry.
KBL's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| 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.
The dividend of KBL decreased in the last 3 years.
Dividend Growth(5Y)-0.02%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
71.58% of the earnings are spent on dividend by KBL. This is not a sustainable payout ratio.
DP71.58%
EPS Next 2Y25.11%
EPS Next 3Y27.29%
TSX:KBL (5/30/2025, 7:00:00 PM)
34.62
-0.18 (-0.52%)
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 Cap366.28M
Analysts80
Price Target49.13 (41.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.2
Dividend Growth(5Y)-0.02%
DP71.58%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-37.45%
Min EPS beat(2)-68.73%
Max EPS beat(2)-6.18%
EPS beat(4)1
Avg EPS beat(4)-20.89%
Min EPS beat(4)-68.73%
Max EPS beat(4)6.63%
EPS beat(8)3
Avg EPS beat(8)-8.15%
EPS beat(12)4
Avg EPS beat(12)-3.59%
EPS beat(16)5
Avg EPS beat(16)-13.84%
Revenue beat(2)2
Avg Revenue beat(2)1.85%
Min Revenue beat(2)0.99%
Max Revenue beat(2)2.7%
Revenue beat(4)4
Avg Revenue beat(4)2.94%
Min Revenue beat(4)0.99%
Max Revenue beat(4)4.36%
Revenue beat(8)8
Avg Revenue beat(8)2.58%
Revenue beat(12)11
Avg Revenue beat(12)2.1%
Revenue beat(16)14
Avg Revenue beat(16)2.3%
PT rev (1m)0%
PT rev (3m)1.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.61 | ||
| Fwd PE | 12.51 | ||
| P/S | 0.95 | ||
| P/FCF | 10.58 | ||
| P/OCF | 6.72 | ||
| P/B | 1.92 | ||
| P/tB | 4.04 | ||
| EV/EBITDA | 7.53 |
EPS(TTM)1.68
EY4.85%
EPS(NY)2.77
Fwd EY7.99%
FCF(TTM)3.27
FCFY9.45%
OCF(TTM)5.15
OCFY14.88%
SpS36.33
BVpS18.08
TBVpS8.57
PEG (NY)0.57
PEG (5Y)1.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.04% | ||
| ROE | 9.27% | ||
| ROCE | 9.2% | ||
| ROIC | 7.12% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 10.23% | ||
| OM | 8.98% | ||
| PM (TTM) | 4.61% | ||
| GM | 79.21% | ||
| FCFM | 9.01% |
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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.01 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 56.19% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 2.89 | ||
| Cash Conversion | 77.96% | ||
| Profit Quality | 195.23% | ||
| Current Ratio | 1.82 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 2.08 |
F-Score6
WACC7.42%
ROIC/WACC0.96
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)16.35%
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 1Y14.73%
EBIT growth 3Y42.76%
EBIT growth 5Y12.58%
EBIT Next Year117.65%
EBIT Next 3Y33.5%
EBIT Next 5YN/A
FCF growth 1Y135.23%
FCF growth 3Y12.71%
FCF growth 5Y0.72%
OCF growth 1Y111.91%
OCF growth 3Y16.15%
OCF growth 5Y2.61%