K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
TSX:KBL - Toronto Stock Exchange - CA48243M1077 - Common Stock - Currency: CAD
Overall KBL gets a fundamental rating of 6 out of 10. We evaluated KBL 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KBL was profitable.
KBL had a positive operating cash flow in the past year.
Each year in the past 5 years KBL has been profitable.
KBL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KBL has a Return On Assets of 4.14%. This is amongst the best in the industry. KBL outperforms 83.33% of its industry peers.
With an excellent Return On Equity value of 9.94%, KBL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
KBL has a better Return On Invested Capital (6.40%) than 79.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KBL is below the industry average of 8.11%.
The last Return On Invested Capital (6.40%) for KBL is above the 3 year average (4.36%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.94% | ||
| ROIC | 6.4% |
ROA(3y)2.88%
ROA(5y)2.58%
ROE(3y)5.66%
ROE(5y)4.91%
ROIC(3y)4.36%
ROIC(5y)3.73%
1.3 Margins
KBL's Profit Margin of 5.19% is fine compared to the rest of the industry. KBL outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of KBL has grown nicely.
KBL has a better Operating Margin (9.36%) than 79.17% of its industry peers.
In the last couple of years the Operating Margin of KBL has grown nicely.
The Gross Margin of KBL (79.03%) is better than 95.83% 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 | 9.36% | ||
| PM (TTM) | 5.19% | ||
| GM | 79.03% |
OM growth 3Y73.4%
OM growth 5Y15.97%
PM growth 3Y41.59%
PM growth 5Y16.21%
GM growth 3Y0.08%
GM growth 5Y-0.25%
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
The number of shares outstanding for KBL has been increased compared to 5 years ago.
The debt/assets ratio for KBL is higher compared to a year ago.
2.2 Solvency
KBL has an Altman-Z score of 1.93. This is not the best score and indicates that KBL is in the grey zone with still only limited risk for bankruptcy at the moment.
KBL has a Altman-Z score of 1.93. This is comparable to the rest of the industry: KBL outperforms 58.33% of its industry peers.
The Debt to FCF ratio of KBL is 6.27, which is on the high side as it means it would take KBL, 6.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.27, KBL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
KBL has a Debt/Equity ratio of 0.96. This is a neutral value indicating KBL is somewhat dependend on debt financing.
KBL has a Debt to Equity ratio of 0.96. This is comparable to the rest of the industry: KBL outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.27 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.91
WACC7.04%
2.3 Liquidity
A Current Ratio of 2.08 indicates that KBL has no problem at all paying its short term obligations.
KBL has a better Current ratio (2.08) than 79.17% of its industry peers.
KBL has a Quick Ratio of 1.40. This is a normal value and indicates that KBL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.40, KBL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
KBL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.54%, which is quite impressive.
KBL shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.72% yearly.
Looking at the last year, KBL shows a quite strong growth in Revenue. The Revenue has grown by 16.67% in the last year.
The Revenue has been growing slightly by 6.03% on average over the past years.
EPS 1Y (TTM)38.54%
EPS 3Y67.28%
EPS 5Y22.72%
EPS Q2Q%24.19%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y17.74%
Revenue growth 5Y6.03%
Sales Q2Q%20.23%
3.2 Future
KBL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.79% yearly.
KBL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.01% yearly.
EPS Next Y13.7%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
EPS Next 5Y18.79%
Revenue Next Year17.87%
Revenue Next 2Y11.63%
Revenue Next 3Y8.38%
Revenue Next 5Y7.01%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.81, which indicates a rather expensive current valuation of KBL.
KBL's Price/Earnings ratio is rather cheap when compared to the industry. KBL is cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of KBL to the average of the S&P500 Index (29.35), we can say KBL is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.68, the valuation of KBL can be described as correct.
Compared to the rest of the industry, the Price/Forward 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 rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 13.68 |
4.2 Price Multiples
KBL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KBL is cheaper than 79.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KBL is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.47 | ||
| EV/EBITDA | 8.03 |
4.3 Compensation for Growth
KBL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of KBL may justify a higher PE ratio.
KBL's earnings are expected to grow with 21.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.37
PEG (5Y)0.83
EPS Next 2Y21.54%
EPS Next 3Y21.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, KBL has a reasonable but not impressive dividend return.
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.
Compared to an average S&P500 Dividend Yield of 2.33, KBL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of KBL has a limited annual growth rate of 0.12%.
KBL has been paying a dividend for at least 10 years, so it has a reliable track record.
KBL has decreased its dividend recently.
Dividend Growth(5Y)0.12%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
68.03% of the earnings are spent on dividend by KBL. This is not a sustainable payout ratio.
KBL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP68.03%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
TSX:KBL (3/7/2025, 7:00:00 PM)
33.3
+0.1 (+0.3%)
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 Cap352.31M
Analysts80
Price Target48.28 (44.98%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.21
Dividend Growth(5Y)0.12%
DP68.03%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.32%
Min EPS beat(2)-15.28%
Max EPS beat(2)6.63%
EPS beat(4)1
Avg EPS beat(4)-13.27%
Min EPS beat(4)-39.35%
Max EPS beat(4)6.63%
EPS beat(8)4
Avg EPS beat(8)9.84%
EPS beat(12)4
Avg EPS beat(12)-12.14%
EPS beat(16)6
Avg EPS beat(16)-2.48%
Revenue beat(2)2
Avg Revenue beat(2)4.04%
Min Revenue beat(2)3.72%
Max Revenue beat(2)4.36%
Revenue beat(4)4
Avg Revenue beat(4)3.03%
Min Revenue beat(4)1.92%
Max Revenue beat(4)4.36%
Revenue beat(8)8
Avg Revenue beat(8)2.3%
Revenue beat(12)10
Avg Revenue beat(12)2.24%
Revenue beat(16)14
Avg Revenue beat(16)2.44%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 13.68 | ||
| P/S | 0.98 | ||
| P/FCF | 11.47 | ||
| P/OCF | 7.54 | ||
| P/B | 1.87 | ||
| P/tB | 4 | ||
| EV/EBITDA | 8.03 |
EPS(TTM)1.77
EY5.32%
EPS(NY)2.43
Fwd EY7.31%
FCF(TTM)2.9
FCFY8.72%
OCF(TTM)4.42
OCFY13.27%
SpS34.09
BVpS17.8
TBVpS8.33
PEG (NY)1.37
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 9.94% | ||
| ROCE | 8.6% | ||
| ROIC | 6.4% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 9.26% | ||
| OM | 9.36% | ||
| PM (TTM) | 5.19% | ||
| GM | 79.03% | ||
| FCFM | 8.52% |
ROA(3y)2.88%
ROA(5y)2.58%
ROE(3y)5.66%
ROE(5y)4.91%
ROIC(3y)4.36%
ROIC(5y)3.73%
ROICexc(3y)4.42%
ROICexc(5y)3.79%
ROICexgc(3y)5.37%
ROICexgc(5y)4.6%
ROCE(3y)5.87%
ROCE(5y)5.02%
ROICexcg growth 3Y101.63%
ROICexcg growth 5Y21.21%
ROICexc growth 3Y99.84%
ROICexc growth 5Y21.48%
OM growth 3Y73.4%
OM growth 5Y15.97%
PM growth 3Y41.59%
PM growth 5Y16.21%
GM growth 3Y0.08%
GM growth 5Y-0.25%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 6.27 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 50.81% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 3.5 | ||
| Cash Conversion | 71.61% | ||
| Profit Quality | 164.15% | ||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 1.93 |
F-Score7
WACC7.04%
ROIC/WACC0.91
Cap/Depr(3y)42.31%
Cap/Depr(5y)38.84%
Cap/Sales(3y)4.19%
Cap/Sales(5y)4.1%
Profit Quality(3y)262.15%
Profit Quality(5y)411.39%
High Growth Momentum
Growth
EPS 1Y (TTM)38.54%
EPS 3Y67.28%
EPS 5Y22.72%
EPS Q2Q%24.19%
EPS Next Y13.7%
EPS Next 2Y21.54%
EPS Next 3Y21.74%
EPS Next 5Y18.79%
Revenue 1Y (TTM)16.67%
Revenue growth 3Y17.74%
Revenue growth 5Y6.03%
Sales Q2Q%20.23%
Revenue Next Year17.87%
Revenue Next 2Y11.63%
Revenue Next 3Y8.38%
Revenue Next 5Y7.01%
EBIT growth 1Y34.82%
EBIT growth 3Y104.17%
EBIT growth 5Y22.95%
EBIT Next Year137.75%
EBIT Next 3Y38.44%
EBIT Next 5Y27.97%
FCF growth 1Y58.97%
FCF growth 3Y-8.58%
FCF growth 5YN/A
OCF growth 1Y42.44%
OCF growth 3Y-1.11%
OCF growth 5Y18.5%