K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
TSX:KBL - Toronto Stock Exchange - CA48243M1077 - Common Stock - Currency: CAD
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 has a great profitability rating, 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! This makes KBL very considerable for value investing!
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.
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
The Return On Assets of KBL (4.04%) is better than 83.33% of its industry peers.
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 75.00% 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 7.19%.
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
Looking at the Profit Margin, with a value of 4.61%, KBL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
KBL's Profit Margin has improved in the last couple of years.
The Operating Margin of KBL (8.98%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of KBL has grown nicely.
Looking at the Gross Margin, with a value of 79.21%, 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 | 8.98% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KBL is destroying value.
Compared to 1 year ago, KBL has less shares outstanding
Compared to 5 years ago, KBL has less shares outstanding
KBL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.09 indicates that KBL is not a great score, but indicates only limited risk for bankruptcy at the moment.
KBL has a Altman-Z score (2.09) which is comparable to the rest of the industry.
The Debt to FCF ratio of KBL is 5.01, which is a neutral value as it means it would take KBL, 5.01 years of fcf income to pay off all of its debts.
KBL has a Debt to FCF ratio of 5.01. This is in the better half of the industry: KBL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that KBL is somewhat dependend on debt financing.
The Debt to Equity ratio of KBL (0.84) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 5.01 | ||
| Altman-Z | 2.09 |
ROIC/WACC0.94
WACC7.54%
2.3 Liquidity
A Current Ratio of 1.82 indicates that KBL should not have too much problems paying its short term obligations.
KBL has a better Current ratio (1.82) than 83.33% of its industry peers.
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%.
The Earnings Per Share has been growing by 11.41% on average over the past years. This is quite good.
KBL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.35%.
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)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
The Earnings Per Share is expected to grow by 27.29% on average over the next years. This is a very strong growth
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KBL is valuated rather expensively with a Price/Earnings ratio of 20.83.
Compared to the rest of the industry, the Price/Earnings ratio of KBL indicates a somewhat cheap valuation: KBL is cheaper than 79.17% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. KBL is valued slightly cheaper when compared to this.
KBL is valuated correctly with a Price/Forward Earnings ratio of 12.65.
66.67% of the companies in the same industry are more expensive than KBL, based on the Price/Forward Earnings ratio.
KBL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 12.65 |
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 cheaply inside the industry as 87.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.7 | ||
| EV/EBITDA | 7.58 |
4.3 Compensation for Growth
KBL's 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)0.58
PEG (5Y)1.83
EPS Next 2Y25.11%
EPS Next 3Y27.29%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.43%, KBL has a reasonable but not impressive dividend return.
KBL's Dividend Yield is rather good when compared to the industry average which is at 2.30. KBL pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KBL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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
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 (7/4/2025, 7:00:00 PM)
35
+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 Cap370.30M
Analysts77.78
Price Target50.83 (45.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
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)3.46%
PT rev (3m)3.46%
EPS NQ rev (1m)-31.09%
EPS NQ rev (3m)-35.94%
EPS NY rev (1m)0%
EPS NY rev (3m)1.41%
Revenue NQ rev (1m)9.06%
Revenue NQ rev (3m)9.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.83 | ||
| Fwd PE | 12.65 | ||
| P/S | 0.96 | ||
| P/FCF | 10.7 | ||
| P/OCF | 6.79 | ||
| P/B | 1.94 | ||
| P/tB | 4.08 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)1.68
EY4.8%
EPS(NY)2.77
Fwd EY7.91%
FCF(TTM)3.27
FCFY9.35%
OCF(TTM)5.15
OCFY14.72%
SpS36.33
BVpS18.08
TBVpS8.57
PEG (NY)0.58
PEG (5Y)1.83
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 | 2.09 |
F-Score6
WACC7.54%
ROIC/WACC0.94
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%