Kip McGrath Education Centres Limited provides supplementary English and maths education services in Australia, New Zealand, the United Kingdom, Europe, and internationally. More Details
+ 1 more risk
Flawless balance sheet with poor track record.
Share Price & News
How has Kip McGrath Education Centres's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KME is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: KME's weekly volatility (7%) has been stable over the past year.
7 Day Return
AU Consumer Services
1 Year Return
AU Consumer Services
Return vs Industry: KME underperformed the Australian Consumer Services industry which returned 34.4% over the past year.
Return vs Market: KME underperformed the Australian Market which returned 35.2% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Kip McGrath Education Centres's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StDoes The Market Have A Low Tolerance For Kip McGrath Education Centres Limited's (ASX:KME) Mixed Fundamentals?
1 month ago | Simply Wall StReturns On Capital Signal Tricky Times Ahead For Kip McGrath Education Centres (ASX:KME)
2 months ago | Simply Wall StAre Insiders Selling Kip McGrath Education Centres Limited (ASX:KME) Stock?
Is Kip McGrath Education Centres undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: KME (A$1.16) is trading above our estimate of fair value (A$0.99)
Significantly Below Fair Value: KME is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: KME is poor value based on its PE Ratio (41.1x) compared to the Australian Consumer Services industry average (23.6x).
PE vs Market: KME is poor value based on its PE Ratio (41.1x) compared to the Australian market (20.2x).
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 (3.4x) compared to the AU Consumer Services industry average (1.8x).
How is Kip McGrath Education Centres forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
How has Kip McGrath Education Centres performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KME has a large one-off gain of A$957.0K impacting its December 31 2020 financial results.
Growing Profit Margin: KME's current net profit margins (8.1%) are lower than last year (14.3%).
Past Earnings Growth Analysis
Earnings Trend: KME's earnings have grown by 11.1% per year over the past 5 years.
Accelerating Growth: KME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KME had negative earnings growth (-46.2%) over the past year, making it difficult to compare to the Consumer Services industry average (-2.3%).
Return on Equity
High ROE: KME's Return on Equity (7.8%) is considered low.
How is Kip McGrath Education Centres's financial position?
Financial Position Analysis
Short Term Liabilities: KME's short term assets (A$13.0M) exceed its short term liabilities (A$8.9M).
Long Term Liabilities: KME's short term assets (A$13.0M) exceed its long term liabilities (A$2.8M).
Debt to Equity History and Analysis
Debt Level: KME's debt to equity ratio (3.4%) is considered satisfactory.
Reducing Debt: KME's debt to equity ratio has reduced from 10.1% to 3.4% over the past 5 years.
Debt Coverage: KME's debt is well covered by operating cash flow (924.3%).
Interest Coverage: KME's interest payments on its debt are well covered by EBIT (11.7x coverage).
What is Kip McGrath Education Centres's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KME's dividend (1.73%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: KME's dividend (1.73%) is low compared to the top 25% of dividend payers in the Australian market (5.21%).
Stability and Growth of Payments
Stable Dividend: KME has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: KME's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (106.6%), KME's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Storm McGrath (50 yo)
Mr. Storm McGrath, MBA, has been the Chief Executive Officer of Kip McGrath Education Centres Limited since 2007 and also serves as its Managing Director. Mr. McGrath serves as Director of the Kip McGrath ...
CEO Compensation Analysis
Compensation vs Market: Storm's total compensation ($USD353.75K) is about average for companies of similar size in the Australian market ($USD287.14K).
Compensation vs Earnings: Storm's compensation has been consistent with company performance over the past year.
Experienced Management: KME's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
Experienced Board: KME's board of directors are considered experienced (3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KME insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.4%.
Kip McGrath Education Centres Limited's company bio, employee growth, exchange listings and data sources
- Name: Kip McGrath Education Centres Limited
- Ticker: KME
- Exchange: ASX
- Founded: 1974
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: AU$60.313m
- Shares outstanding: 52.22m
- Website: https://www.kipmcgrath.com
- Kip McGrath Education Centres Limited
- 6 Newcomen Street
- Level 3
- New South Wales
Kip McGrath Education Centres Limited provides supplementary English and maths education services in Australia, New Zealand, the United Kingdom, Europe, and internationally. It sells franchises and offers ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/15 11:00|
|End of Day Share Price||2021/05/14 00:00|
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.