K-Bro Linen
Market Cap
CA$434.3m
Last Updated
2020/01/17 02:10 UTC
Data Sources
Company Financials +
Executive Summary
K-Bro Linen Inc., together with its subsidiaries, engages in the processing, management, and distribution of general linen and operating room linen to healthcare institutions, hotels, and other commercial accounts in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with adequate balance sheet.
Share Price & News
How has K-Bro Linen's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: KBL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-0.5%
KBL
2.7%
CA Commercial Services
1.2%
CA Market
1 Year Return
13.7%
KBL
29.7%
CA Commercial Services
9.6%
CA Market
Return vs Industry: KBL underperformed the Canadian Commercial Services industry which returned 25.4% over the past year.
Return vs Market: KBL exceeded the Canadian Market which returned 10.4% over the past year.
Shareholder returns
| KBL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.5% | 2.7% | 1.2% |
| 30 Day | -1.9% | 4.8% | 2.6% |
| 90 Day | 11.5% | 13.8% | 6.0% |
| 1 Year | 17.3%13.7% | 32.7%29.7% | 13.1%9.6% |
| 3 Year | 8.6%-1.1% | 47.5%38.3% | 17.1%6.4% |
| 5 Year | 1.7%-12.1% | 102.2%74.7% | 36.1%16.0% |
Price Volatility Vs. Market
How volatile is K-Bro Linen's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
What Kind Of Shareholders Own K-Bro Linen Inc. (TSE:KBL)?2 weeks ago | Simply Wall St
Is There An Opportunity With K-Bro Linen Inc.'s (TSE:KBL) 36% Undervaluation?1 month ago | Simply Wall St
Can K-Bro Linen Inc. (TSE:KBL) Improve Its Returns?Valuation
Is K-Bro Linen undervalued compared to its fair value and its price relative to the market?
38.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KBL (CA$40.76) is trading below our estimate of fair value (CA$67.22)
Significantly Below Fair Value: KBL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KBL is poor value based on its PE Ratio (43.8x) compared to the Commercial Services industry average (16.6x).
PE vs Market: KBL is poor value based on its PE Ratio (43.8x) compared to the Canadian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: KBL is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: KBL is overvalued based on its PB Ratio (2.2x) compared to the CA Commercial Services industry average (1.4x).
Next Steps
Future Growth
How is K-Bro Linen forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
17.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KBL's forecast earnings growth (17.3% per year) is above the savings rate (1.4%).
Earnings vs Market: KBL's earnings (17.3% per year) are forecast to grow faster than the Canadian market (10.3% per year).
High Growth Earnings: KBL's earnings are forecast to grow, but not significantly.
Revenue vs Market: KBL's revenue (2.5% per year) is forecast to grow slower than the Canadian market (5% per year).
High Growth Revenue: KBL's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if KBL's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has K-Bro Linen performed over the past 5 years?
-16.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KBL has high quality earnings.
Growing Profit Margin: KBL's current net profit margins (3.9%) are higher than last year (1.7%).
Past Earnings Growth Analysis
Earnings Trend: KBL's earnings have declined by -16.8% per year over the past 5 years.
Accelerating Growth: KBL's earnings growth over the past year (154.9%) exceeds its 5-year average (-16.8% per year).
Earnings vs Industry: KBL earnings growth over the past year (154.9%) exceeded the Commercial Services industry 17.6%.
Return on Equity
High ROE: KBL's Return on Equity (5.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is K-Bro Linen's financial position?
Financial Position Analysis
Short Term Liabilities: KBL's short term assets (CA$70.9M) exceed its short term liabilities (CA$40.7M).
Long Term Liabilities: KBL's short term assets (CA$70.9M) do not cover its long term liabilities (CA$119.1M).
Debt to Equity History and Analysis
Debt Level: KBL's debt to equity ratio (34.2%) is considered satisfactory.
Reducing Debt: KBL's debt to equity ratio has increased from 28.8% to 34.2% over the past 5 years.
Debt Coverage: KBL's debt is well covered by operating cash flow (60.8%).
Interest Coverage: KBL's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Inventory Level: KBL has a high level of physical assets or inventory.
Debt Coverage by Assets: KBL's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is K-Bro Linen's current dividend yield, its reliability and sustainability?
2.90%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: KBL's dividend (2.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).
High Dividend: KBL's dividend (2.94%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).
Stability and Growth of Payments
Stable Dividend: KBL's dividend payments have been volatile in the past 10 years.
Growing Dividend: KBL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (129%), KBL'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.
Next Steps
Management
What is the CEO of K-Bro Linen's salary, the management and board of directors tenure and is there insider trading?
17.5yrs
Average management tenure
CEO
Linda McCurdy (51yo)
20yrs
Tenure
CA$1,917,005
Compensation
Ms. Linda Jane McCurdy, MBA has been the Chief Executive Officer and President at K-Bro Linen Inc., since January 2000. Ms. McCurdy joined K-Bro in May 1998 as Chief Financial Officer. She has been Chief E ...
CEO Compensation Analysis
Compensation vs Market: Linda's total compensation ($USD1.47M) is above average for companies of similar size in the Canadian market ($USD1.00M).
Compensation vs Earnings: Linda's compensation has been consistent with company performance over the past year.
Management Age and Tenure
17.5yrs
Average Tenure
Experienced Management: KBL's management team is seasoned and experienced (17.5 years average tenure).
Board Age and Tenure
15.1yrs
Average Tenure
66yo
Average Age
Experienced Board: KBL's board of directors are seasoned and experienced ( 15.1 years average tenure).
Insider Trading
Insider Buying: KBL insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 4,500 |
| Max Price | CA$41.75 |
| Entity | Individual |
| Role | Other Key Executive General Manager of Calgary Plant |
| Shares | 1,043 |
| Max Price | CA$41.76 |
| Entity | Individual |
| Shares | 825 |
| Max Price | CA$40.15 |
| Entity | Individual |
| Shares | 750 |
| Max Price | CA$37.02 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.
Management Team
Kristie Plaquin
Chief Financial Officer
- Tenure: 5.4yrs
- Compensation: CA$560.57k
Linda McCurdy (51yo)
President
- Tenure: 20yrs
- Compensation: CA$1.92m
Ron Graham
General Manager of Vancouver Plant
- Tenure: 18yrs
- Compensation: CA$278.27k
Jeff Gannon
General Manager of Calgary Plant
- Tenure: 17yrs
- Compensation: CA$266.07k
Sean Curtis
Senior VP & COO
- Tenure: 21yrs
- Compensation: CA$932.66k
Kevin Stephenson
General Manager of Toronto
- Tenure: 14yrs
- Compensation: CA$290.01k
Timothy Bruns
President of Unitrin Specialty
Sean Jackson
General Manager of Regina
Jessica Lévesque
Director Général of Quebec
Michael Jones
Managing Director of Fishers Services Limited
- Compensation: CA$420.34k
Board Members
Matt Hills (59yo)
Director
- Tenure: 15.1yrs
- Compensation: CA$217.80k
Mike Percy (71yo)
Independent Director
- Tenure: 4.6yrs
- Compensation: CA$86.05k
Steve Matyas (66yo)
Independent Director
- Tenure: 15.1yrs
- Compensation: CA$91.05k
Ross Smith (80yo)
Independent Chairman of the Board
- Compensation: CA$126.05k
Linda McCurdy (51yo)
President
- Tenure: 20yrs
- Compensation: CA$1.92m
Company Information
K-Bro Linen Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: K-Bro Linen Inc.
- Ticker: KBL
- Exchange: TSX
- Founded: 1954
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: CA$434.311m
- Shares outstanding: 10.51m
- Website: https://www.k-brolinen.com
Number of Employees
Location
- K-Bro Linen Inc.
- 14903-137 Avenue NW
- Edmonton
- Alberta
- T5V 1R9
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KBL | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Feb 2005 |
| KBRL.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Feb 2005 |
Biography
K-Bro Linen Inc., together with its subsidiaries, engages in the processing, management, and distribution of general linen and operating room linen to healthcare institutions, hotels, and other commercial accounts in Canada. The company also offers other services, including bulk dock-to-dock, exchange cart preparation, delivery of carts, surgical linen, distribution and control of employee uniforms, personal clothing, customer reporting, customer service visiting, and textile procurement services. K-Bro Linen Inc. was founded in 1954 and is headquartered in Edmonton, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/17 02:10 |
| End of Day Share Price | 2020/01/16 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.