K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:KBL • CA48243M1077
34.12 CAD
+0.11 (+0.32%)
Last: Jan 30, 2026, 07:00 PM
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. KBL has an excellent profitability rating, but there are some minor concerns on its financial health. KBL is not priced too expensively while it is growing strongly. Keep and eye on this one!
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.
- In the past 5 years KBL has always 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 (2.69%) which is comparable to the rest of the industry.
- With a decent Return On Equity value of 6.96%, KBL is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- KBL has a better Return On Invested Capital (4.87%) than 70.83% of its industry peers.
- KBL had an Average Return On Invested Capital over the past 3 years of 5.86%. This 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
- KBL has a better Profit Margin (4.25%) than 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 8.43%, KBL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of KBL has grown nicely.
- With an excellent Gross Margin value of 79.55%, KBL belongs to the best 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.
- The debt/assets ratio for KBL is higher compared to a year ago.
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.
- KBL has a Altman-Z score of 1.53. This is comparable to the rest of the industry: KBL outperforms 54.17% of its industry peers.
- The Debt to FCF ratio of KBL is 8.78, which is on the high side as it means it would take KBL, 8.78 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 8.78, KBL perfoms like the industry average, 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.
- KBL's Debt to Equity ratio of 1.08 is in line compared to the rest of the industry. KBL outperforms 45.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.08 | ||
| Debt/FCF | 8.78 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.63
WACC7.73%
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.
- KBL's Current ratio of 1.89 is amongst the best of the industry. KBL outperforms 83.33% of its industry peers.
- A Quick Ratio of 1.22 indicates that KBL should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.22, KBL is in the better half of 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.
- 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.
- KBL shows a strong growth in Revenue. In the last year, 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
- 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.
- 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
- Based on the Price/Earnings ratio of 23.37, the valuation of KBL can be described as rather expensive.
- KBL's Price/Earnings ratio is a bit cheaper when compared to the industry. KBL is cheaper than 75.00% of the companies in the same industry.
- KBL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.30, which is the current average of the S&P500 Index.
- KBL is valuated correctly with a Price/Forward Earnings ratio of 14.67.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KBL indicates a rather cheap valuation: KBL is cheaper than 87.50% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of KBL to the average of the S&P500 Index (25.57), we can say KBL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.37 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KBL is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- 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 | 11.92 | ||
| EV/EBITDA | 9 |
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.
- The decent 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 21.05% in the coming years.
PEG (NY)1.82
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.
- KBL's Dividend Yield is rather good when compared to the industry average which is at 1.00. KBL pays more dividend than 91.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, 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.
- 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
- KBL pays out 69.40% of its income as dividend. 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 23.37 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.