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KME

Kip McGrath Education CentresASX:KME Stock Report

Market Cap

AU$50.7m

7D

0.5%

1Y

-23.9%

Updated

17 Oct, 2021

Data

Company Financials
KME fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends1/6

KME Overview

Kip McGrath Education Centres Limited provides supplementary English and Maths education services in Australia, New Zealand, the United Kingdom, Europe, and internationally.

Price History & Performance

Summary of all time highs, changes and price drops for Kip McGrath Education Centres
Historical stock prices
Current Share PriceAU$0.97
52 Week HighAU$0.89
52 Week LowAU$1.65
Beta0.53
1 Month Change-3.48%
3 Month Change-21.14%
1 Year Change-23.92%
3 Year Change27.63%
5 Year Change169.44%
Change since IPO21.25%

Recent News & Updates

Apr 15
Returns On Capital Signal Tricky Times Ahead For Kip McGrath Education Centres (ASX:KME)

Returns On Capital Signal Tricky Times Ahead For Kip McGrath Education Centres (ASX:KME)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

Mar 09
Are Insiders Selling Kip McGrath Education Centres Limited (ASX:KME) Stock?

Are Insiders Selling Kip McGrath Education Centres Limited (ASX:KME) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...

Shareholder Returns

KMEAU Consumer ServicesAU Market
7D0.5%3.6%0.9%
1Y-23.9%58.1%20.2%

Return vs Industry: KME underperformed the Australian Consumer Services industry which returned 58.1% over the past year.

Return vs Market: KME underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is KME's price volatile compared to industry and market?
KME volatility
KME Beta0.53
Industry Beta0.95
Market Beta1

Stable Share Price: KME is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KME's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1974n/aStorm McGrathhttps://www.kipmcgrath.com

Kip McGrath Education Centres Limited provides supplementary English and Maths education services in Australia, New Zealand, the United Kingdom, Europe, and internationally. The company also provides tutorial assistance in English and Maths to primary and secondary students; and online tutoring services. It has a franchise network of approximately 560 tutoring centers.

Kip McGrath Education Centres Fundamentals Summary

How do Kip McGrath Education Centres's earnings and revenue compare to its market cap?
KME fundamental statistics
Market CapAU$50.65m
Earnings (TTM)AU$1.73m
Revenue (TTM)AU$19.27m

29.2x

P/E Ratio

2.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KME income statement (TTM)
RevenueAU$19.27m
Cost of RevenueAU$8.44m
Gross ProfitAU$10.82m
ExpensesAU$9.09m
EarningsAU$1.73m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.033
Gross Margin56.18%
Net Profit Margin9.00%
Debt/Equity Ratio2.3%

How did KME perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

60%

Payout Ratio

Valuation

Is Kip McGrath Education Centres undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KME (A$0.97) is trading below our estimate of fair value (A$2.15)

Significantly Below Fair Value: KME is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KME's PE Ratio (29.2x) is in line with the Australian Consumer Services industry average.

PE vs Market: KME is poor value based on its PE Ratio (29.2x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KME's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KME is overvalued based on its PB Ratio (2.7x) compared to the AU Consumer Services industry average (2.6x).


Future Growth

How is Kip McGrath Education Centres forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.4%

Forecasted Consumer Services industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Kip McGrath Education Centres has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Kip McGrath Education Centres performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KME has a large one-off gain of A$508.0K impacting its June 30 2021 financial results.

Growing Profit Margin: KME's current net profit margins (9%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: KME's earnings have grown by 4.1% per year over the past 5 years.

Accelerating Growth: KME's earnings growth over the past year (10.2%) exceeds its 5-year average (4.1% per year).

Earnings vs Industry: KME earnings growth over the past year (10.2%) underperformed the Consumer Services industry 43.2%.


Return on Equity

High ROE: KME's Return on Equity (9.4%) is considered low.


Financial Health

How is Kip McGrath Education Centres's financial position?


Financial Position Analysis

Short Term Liabilities: KME's short term assets (A$12.0M) exceed its short term liabilities (A$9.2M).

Long Term Liabilities: KME's short term assets (A$12.0M) exceed its long term liabilities (A$3.1M).


Debt to Equity History and Analysis

Debt Level: KME's debt to equity ratio (2.3%) is considered satisfactory.

Reducing Debt: KME's debt to equity ratio has reduced from 6.9% to 2.3% over the past 5 years.

Debt Coverage: KME's debt is well covered by operating cash flow (1450.1%).

Interest Coverage: KME's interest payments on its debt are well covered by EBIT (19.1x coverage).


Balance Sheet


Dividend

What is Kip McGrath Education Centres's current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KME's dividend (2.06%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: KME's dividend (2.06%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: KME has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: KME's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.1%), KME's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Storm McGrath (51 yo)

14.75yrs

Tenure

AU$519,745

Compensation

Mr. Storm McGrath, MBA, has been the Chief Executive Officer of Kip McGrath Education Centres Limited since 2007 and also serves as its Managing Director. Mr. McGrath serves as Director of the Kip McGrath...


CEO Compensation Analysis

Compensation vs Market: Storm's total compensation ($USD385.77K) is about average for companies of similar size in the Australian market ($USD302.72K).

Compensation vs Earnings: Storm's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KME's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: KME's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kip McGrath Education Centres Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Kip McGrath Education Centres Limited
  • Ticker: KME
  • Exchange: ASX
  • Founded: 1974
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: AU$50.653m
  • Shares outstanding: 52.22m
  • Website: https://www.kipmcgrath.com

Location

  • Kip McGrath Education Centres Limited
  • 6 Newcomen Street
  • Level 3
  • Newcastle
  • New South Wales
  • 2300
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:05
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.