K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KBL - CA48243M1077 - Common Stock
35.41 CAD
+0.59 (+1.69%)
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. 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
KBL had positive earnings in the past year.
KBL had a positive operating cash flow in the past year.
KBL had positive earnings in each of the past 5 years.
In the past 5 years KBL always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.69%, KBL perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
KBL's Return On Equity of 6.96% is fine compared to the rest of the industry. KBL outperforms 62.50% of its industry peers.
KBL has a Return On Invested Capital of 4.87%. This is in the better half of the industry: KBL outperforms 70.83% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KBL is in line with the industry average of 6.19%.
| 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
With a decent Profit Margin value of 4.25%, KBL is doing good in the industry, outperforming 70.83% 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 8.43%. This is in the better half of the industry: KBL outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of KBL has grown nicely.
KBL's Gross Margin of 79.55% is amongst the best of the industry. KBL outperforms 100.00% of its industry peers.
KBL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.43% | ||
| 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.
KBL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KBL has less shares outstanding
KBL has a worse debt/assets ratio than last year.
2.2 Solvency
KBL has an Altman-Z score of 1.56. This is a bad value and indicates that KBL is not financially healthy and even has some risk of bankruptcy.
KBL has a Altman-Z score of 1.56. This is comparable to the rest of the industry: KBL outperforms 54.17% of 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.
Looking at the Debt to FCF ratio, with a value of 8.78, KBL is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.08 is on the high side and indicates that KBL has dependencies on debt 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 | 1.56 |
ROIC/WACC0.64
WACC7.62%
2.3 Liquidity
KBL has a Current Ratio of 1.89. This is a normal value and indicates that KBL is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.89, KBL belongs to the best 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.
With a decent Quick ratio value of 1.22, KBL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| 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.
KBL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.41% yearly.
Looking at the last year, KBL shows a very strong growth in Revenue. The Revenue has grown by 26.29%.
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
KBL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.97% yearly.
The Revenue is expected to grow by 14.45% on average over the next years. This is quite good.
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.
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 24.25, the valuation of KBL can be described as rather expensive.
75.00% of the companies in the same industry are more expensive than KBL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.56, KBL is valued at the same level.
A Price/Forward Earnings ratio of 15.23 indicates a correct valuation of KBL.
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 23.79. KBL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 15.23 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KBL indicates a rather cheap valuation: KBL is cheaper than 83.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.37 | ||
| EV/EBITDA | 9.22 |
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.
KBL has a very decent profitability rating, which may justify a higher PE ratio.
KBL's earnings are expected to grow with 21.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.89
PEG (5Y)2.13
EPS Next 2Y14.69%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
KBL has a Yearly Dividend Yield of 3.45%.
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 1.87, KBL pays a better dividend.
| 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
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%
TSX:KBL (12/12/2025, 7:00:00 PM)
35.41
+0.59 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners34.41%
Inst Owner ChangeN/A
Ins Owners1.95%
Ins Owner ChangeN/A
Market Cap459.98M
Revenue(TTM)455.44M
Net Income(TTM)19.34M
Analysts78
Price Target51.17 (44.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.2
Dividend Growth(5Y)-0.02%
DP69.4%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.22%
Min EPS beat(2)-27.55%
Max EPS beat(2)-16.88%
EPS beat(4)0
Avg EPS beat(4)-29.84%
Min EPS beat(4)-68.73%
Max EPS beat(4)-6.18%
EPS beat(8)1
Avg EPS beat(8)-21.56%
EPS beat(12)4
Avg EPS beat(12)-3.39%
EPS beat(16)4
Avg EPS beat(16)-16.57%
Revenue beat(2)2
Avg Revenue beat(2)1.18%
Min Revenue beat(2)1.17%
Max Revenue beat(2)1.19%
Revenue beat(4)4
Avg Revenue beat(4)1.51%
Min Revenue beat(4)0.99%
Max Revenue beat(4)2.7%
Revenue beat(8)8
Avg Revenue beat(8)2.27%
Revenue beat(12)12
Avg Revenue beat(12)2.04%
Revenue beat(16)14
Avg Revenue beat(16)2.06%
PT rev (1m)-0.99%
PT rev (3m)-0.99%
EPS NQ rev (1m)28.35%
EPS NQ rev (3m)28.35%
EPS NY rev (1m)-1.45%
EPS NY rev (3m)-0.75%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)0.56%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.25 | ||
| Fwd PE | 15.23 | ||
| P/S | 1.01 | ||
| P/FCF | 12.37 | ||
| P/OCF | 8.85 | ||
| P/B | 1.66 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 9.22 |
EPS(TTM)1.46
EY4.12%
EPS(NY)2.33
Fwd EY6.57%
FCF(TTM)2.86
FCFY8.09%
OCF(TTM)4
OCFY11.3%
SpS35.06
BVpS21.39
TBVpS5.33
PEG (NY)1.89
PEG (5Y)2.13
Graham Number26.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.69% | ||
| ROE | 6.96% | ||
| ROCE | 6.3% | ||
| ROIC | 4.87% | ||
| ROICexc | 5.09% | ||
| ROICexgc | 7.92% | ||
| OM | 8.43% | ||
| PM (TTM) | 4.25% | ||
| GM | 79.55% | ||
| FCFM | 8.17% |
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%
ROICexgc growth 3Y37.67%
ROICexgc 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-Score4
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.78 | ||
| Debt/EBITDA | 3.64 | ||
| Cap/Depr | 33.47% | ||
| Cap/Sales | 3.24% | ||
| Interest Coverage | 2.59 | ||
| Cash Conversion | 62.97% | ||
| Profit Quality | 192.32% | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z | 1.56 |
F-Score4
WACC7.62%
ROIC/WACC0.64
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)-17.52%
EPS 3Y29.72%
EPS 5Y11.41%
EPS Q2Q%-11.69%
EPS Next Y12.83%
EPS Next 2Y14.69%
EPS Next 3Y21.05%
EPS Next 5Y21.97%
Revenue 1Y (TTM)26.29%
Revenue growth 3Y18.59%
Revenue growth 5Y8.16%
Sales Q2Q%49.28%
Revenue Next Year34.88%
Revenue Next 2Y26.27%
Revenue Next 3Y18.13%
Revenue Next 5Y14.45%
EBIT growth 1Y13.52%
EBIT growth 3Y42.76%
EBIT growth 5Y12.58%
EBIT Next Year174.43%
EBIT Next 3Y48.38%
EBIT Next 5Y36.13%
FCF growth 1Y60.87%
FCF growth 3Y12.71%
FCF growth 5Y0.72%
OCF growth 1Y51.78%
OCF growth 3Y16.15%
OCF growth 5Y2.61%
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.
What is the valuation status of K-BRO LINEN INC (KBL.CA) stock?
ChartMill assigns a valuation rating of 5 / 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.
How financially healthy is K-BRO LINEN INC?
The financial health rating of K-BRO LINEN INC (KBL.CA) is 4 / 10.
Can you provide the dividend sustainability for KBL stock?
The dividend rating of K-BRO LINEN INC (KBL.CA) is 5 / 10 and the dividend payout ratio is 69.4%.