K-BRO LINEN INC (KBL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:KBL - CA48243M1077 - Common Stock
34.5 CAD
-0.05 (-0.14%)
Overall KBL gets a fundamental rating of 6 out of 10. We evaluated KBL against 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
- 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.
- Each year in the past 5 years KBL had a positive operating cash flow.
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.
- 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
- KBL's Profit Margin of 4.25% is fine compared to the rest of the industry. KBL outperforms 70.83% of its industry peers.
- 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.
- KBL has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, KBL has a worse debt to assets ratio.
2.2 Solvency
- KBL has an Altman-Z score of 1.54. 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 1.54. 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.
- KBL has a Debt to FCF ratio of 8.78. This is comparable to the rest of the industry: KBL outperforms 50.00% of its industry peers.
- 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 of 1.08. This is comparable 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 | 1.54 |
ROIC/WACC0.63
WACC7.68%
2.3 Liquidity
- A Current Ratio of 1.89 indicates that KBL should not have too much problems paying its short term obligations.
- The Current ratio of KBL (1.89) is better than 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.
- KBL has a better Quick ratio (1.22) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
- KBL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -17.52%.
- The Earnings Per Share has been growing by 11.41% on average over the past years. This is quite good.
- KBL shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.29%.
- The Revenue has been growing by 8.16% on average over the past years. This is quite good.
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
- Based on estimates for the next years, KBL will show a very strong growth in Earnings Per Share. The EPS will grow by 21.97% on average per year.
- 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 23.63, 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 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 14.84 indicates a correct valuation of KBL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KBL indicates a rather cheap valuation: KBL is cheaper than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KBL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.63 | ||
| Fwd PE | 14.84 |
4.2 Price Multiples
- 87.50% of the companies in the same industry are more expensive than KBL, based on the Enterprise Value to EBITDA ratio.
- 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 | 12.05 | ||
| EV/EBITDA | 9.07 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of KBL 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)1.84
PEG (5Y)2.07
EPS Next 2Y14.69%
EPS Next 3Y21.05%
5. Dividend
5.1 Amount
- KBL has a Yearly Dividend Yield of 3.47%.
- Compared to an average industry Dividend Yield of 1.00, KBL pays a better dividend. On top of this KBL pays more dividend than 91.67% of the companies listed in the same industry.
- KBL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
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.
- 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 23.63 and the Price/Book (PB) ratio is 1.61.
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.