K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:KBL • CA48243M1077
34.19 CAD
+0.07 (+0.21%)
Last: Feb 2, 2026, 07:00 PM
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 not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year KBL was profitable.
- KBL had a positive operating cash flow in the past year.
- 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
- 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.
- With a decent Return On Invested Capital value of 4.87%, KBL is doing good in the industry, outperforming 70.83% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of KBL (4.25%) is better than 70.83% of its industry peers.
- KBL's Profit Margin has improved in the last couple of years.
- KBL has a better Operating Margin (8.43%) than 75.00% of its industry peers.
- KBL's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 79.55%, KBL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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
- KBL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for KBL has been reduced compared to 1 year ago.
- KBL has less 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 1.53. This is a bad value and indicates that KBL is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 1.53, KBL perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
- 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 has a Debt to FCF ratio (8.78) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.08 is on the high side and indicates that KBL has dependencies on debt financing.
- KBL has a Debt to Equity ratio (1.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.63
WACC7.71%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that KBL should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.89, KBL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- KBL has a Quick Ratio of 1.22. This is a normal value and indicates that KBL is financially healthy and should not expect problems in meeting 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.
- Looking at the last year, KBL shows a very strong growth in Revenue. The Revenue has grown by 26.29%.
- 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)-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
- Based on estimates for the next years, KBL will show a quite strong growth in Revenue. The Revenue will grow by 14.45% on average per year.
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
- 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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 23.42 indicates a rather expensive valuation of KBL.
- Compared to the rest of the industry, the Price/Earnings ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 75.00% of the companies listed in the same industry.
- KBL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.41, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.70 indicates a correct valuation of KBL.
- 87.50% of the companies in the same industry are more expensive than KBL, based on the Price/Forward Earnings ratio.
- KBL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.64.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 14.7 |
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 87.50% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, KBL is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 9.01 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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 21.05% in the coming years.
PEG (NY)1.83
PEG (5Y)2.05
EPS Next 2Y14.69%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.53%, KBL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.02, KBL pays a better dividend. On top of this KBL pays more dividend than 91.67% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, KBL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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 23.42 and the Price/Book (PB) ratio is 1.6.
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.