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K-Bro Linen

TSX:KBL
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KBL
TSX
CA$408M
Market Cap
  1. Home
  2. CA
  3. Commercial Services
Company description

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 last earnings update was 11 days ago. More info.


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KBL Share Price and Events
7 Day Returns
-2.5%
TSX:KBL
-1.1%
CA Commercial Services
-0.2%
CA Market
1 Year Returns
11.5%
TSX:KBL
-23.7%
CA Commercial Services
-1.9%
CA Market
KBL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
K-Bro Linen (KBL) -2.5% -0.1% 4.1% 11.5% -2.2% 2.3%
CA Commercial Services -1.1% -2.7% -10.8% -23.7% 0.4% -48.3%
CA Market -0.2% -1.6% 2.1% -1.9% 13.3% 4.3%
1 Year Return vs Industry and Market
  • KBL outperformed the Commercial Services industry which returned -23.7% over the past year.
  • KBL outperformed the Market in Canada which returned -1.9% over the past year.
Price Volatility
KBL
Industry
5yr Volatility vs Market

KBL Value

 Is K-Bro Linen undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of K-Bro Linen to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for K-Bro Linen.

TSX:KBL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:KBL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Commercial Services Unlevered Beta Simply Wall St/ S&P Global 0.77
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.77 (1 + (1- 26.5%) (28.79%))
0.955
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.955 * 5.96%)
7.64%

Discounted Cash Flow Calculation for TSX:KBL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for K-Bro Linen is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:KBL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.64%)
2019 31.30 Analyst x1 29.08
2020 31.95 Analyst x1 27.58
2021 32.59 Est @ 2.01% 26.13
2022 33.24 Est @ 1.99% 24.76
2023 33.90 Est @ 1.98% 23.46
2024 34.57 Est @ 1.97% 22.22
2025 35.25 Est @ 1.96% 21.05
2026 35.94 Est @ 1.96% 19.94
2027 36.64 Est @ 1.95% 18.89
2028 37.35 Est @ 1.95% 17.89
Present value of next 10 years cash flows CA$231.00
TSX:KBL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$37.35 × (1 + 1.95%) ÷ (7.64% – 1.95%)
CA$668.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$668.84 ÷ (1 + 7.64%)10
CA$320.31
TSX:KBL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$231.00 + CA$320.31
CA$551.31
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$551.31 / 10.46
CA$52.71
TSX:KBL Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$52.71
Current discount Discount to share price of CA$39.02
= -1 x (CA$39.02 - CA$52.71) / CA$52.71
26%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price K-Bro Linen is available for.
Intrinsic value
26%
Share price is CA$39.02 vs Future cash flow value of CA$52.71
Current Discount Checks
For K-Bro Linen to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • K-Bro Linen's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • K-Bro Linen's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for K-Bro Linen's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are K-Bro Linen's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:KBL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.57
TSX:KBL Share Price ** TSX (2019-05-17) in CAD CA$39.02
Canada Commercial Services Industry PE Ratio Median Figure of 10 Publicly-Listed Commercial Services Companies 17.82x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 14.85x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of K-Bro Linen.

TSX:KBL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:KBL Share Price ÷ EPS (both in CAD)

= 39.02 ÷ 0.57

67.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K-Bro Linen is overvalued based on earnings compared to the CA Commercial Services industry average.
  • K-Bro Linen is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does K-Bro Linen's expected growth come at a high price?
Raw Data
TSX:KBL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 67.94x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
40.4%per year
North America Commercial Services Industry PEG Ratio Median Figure of 37 Publicly-Listed Commercial Services Companies 1.76x
Canada Market PEG Ratio Median Figure of 252 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

TSX:KBL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 67.94x ÷ 40.4%

1.68x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K-Bro Linen is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on K-Bro Linen's assets?
Raw Data
TSX:KBL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$18.55
TSX:KBL Share Price * TSX (2019-05-17) in CAD CA$39.02
Canada Commercial Services Industry PB Ratio Median Figure of 20 Publicly-Listed Commercial Services Companies 1.38x
Canada Market PB Ratio Median Figure of 2,407 Publicly-Listed Companies 1.41x
TSX:KBL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:KBL Share Price ÷ Book Value per Share (both in CAD)

= 39.02 ÷ 18.55

2.1x

* Primary Listing of K-Bro Linen.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • K-Bro Linen is overvalued based on assets compared to the CA Commercial Services industry average.
X
Value checks
We assess K-Bro Linen's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Commercial Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Commercial Services industry average (and greater than 0)? (1 check)
  5. K-Bro Linen has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KBL Future Performance

 How is K-Bro Linen expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
40.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is K-Bro Linen expected to grow at an attractive rate?
  • K-Bro Linen's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • K-Bro Linen's earnings growth is expected to exceed the Canada market average.
  • K-Bro Linen's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:KBL Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:KBL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 40.4%
TSX:KBL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.2%
Canada Commercial Services Industry Earnings Growth Rate Market Cap Weighted Average 51.9%
Canada Commercial Services Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.5%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:KBL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:KBL Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 262 38 16 7
2019-12-31 251 36 13 7
TSX:KBL Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 242 23 6
2018-12-31 240 18 6
2018-09-30 228 16 4
2018-06-30 207 10 5
2018-03-31 187 17 5
2017-12-31 171 19 6
2017-09-30 162 18 9
2017-06-30 160 22 9
2017-03-31 159 24 10
2016-12-31 159 25 12
2016-09-30 158 22 11
2016-06-30 154 20 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • K-Bro Linen's earnings are expected to grow significantly at over 20% yearly.
  • K-Bro Linen's revenue is expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:KBL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from K-Bro Linen Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:KBL Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.51 1.58 1.33 4.00
2019-12-31 1.19 1.46 0.94 4.00
TSX:KBL Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.57
2018-12-31 0.59
2018-09-30 0.37
2018-06-30 0.53
2018-03-31 0.53
2017-12-31 0.63
2017-09-30 1.06
2017-06-30 1.11
2017-03-31 1.29
2016-12-31 1.45
2016-09-30 1.45
2016-06-30 1.50

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if K-Bro Linen will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess K-Bro Linen's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
K-Bro Linen has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KBL Past Performance

  How has K-Bro Linen performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare K-Bro Linen's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • K-Bro Linen's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • K-Bro Linen's 1-year earnings growth exceeds its 5-year average (17.6% vs -15.6%)
  • K-Bro Linen's earnings growth has not exceeded the CA Commercial Services industry average in the past year (17.6% vs 17.6%).
Earnings and Revenue History
K-Bro Linen's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from K-Bro Linen Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:KBL Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 241.93 6.02 50.22
2018-12-31 239.53 6.17 51.65
2018-09-30 227.60 3.83 47.10
2018-06-30 207.23 5.36 41.44
2018-03-31 186.99 5.12 37.12
2017-12-31 170.56 5.72 32.80
2017-09-30 162.30 9.20 30.77
2017-06-30 160.26 9.20 30.46
2017-03-31 159.24 10.25 31.30
2016-12-31 159.09 11.53 28.79
2016-09-30 157.52 11.49 26.97
2016-06-30 153.66 11.93 24.49
2016-03-31 149.53 11.58 20.29
2015-12-31 144.54 12.07 19.55
2015-09-30 140.65 12.99 19.44
2015-06-30 138.98 12.89 18.60
2015-03-31 137.99 13.19 18.20
2014-12-31 136.44 12.20 17.84
2014-09-30 134.99 11.23 16.16
2014-06-30 133.51 10.05 16.93
2014-03-31 131.83 9.61 16.50
2013-12-31 131.20 10.34 16.11
2013-09-30 130.44 10.98 16.21
2013-06-30 128.91 11.37 14.75
2013-03-31 127.77 11.44 14.66
2012-12-31 126.29 11.15 14.65
2012-09-30 123.86 10.03 14.67
2012-06-30 121.99 9.80 14.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • K-Bro Linen has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • K-Bro Linen used its assets less efficiently than the CA Commercial Services industry average last year based on Return on Assets.
  • K-Bro Linen's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess K-Bro Linen's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Commercial Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
K-Bro Linen has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KBL Health

 How is K-Bro Linen's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up K-Bro Linen's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • K-Bro Linen is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • K-Bro Linen's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of K-Bro Linen's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from K-Bro Linen Company Filings, last reported 1 month ago.

TSX:KBL Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 194.72 117.52 2.55
2018-12-31 198.66 70.20 2.83
2018-09-30 198.31 67.05 2.90
2018-06-30 201.07 70.51 8.15
2018-03-31 203.90 56.36 9.81
2017-12-31 201.59 42.78 11.28
2017-09-30 172.41 0.00 1.07
2017-06-30 171.60 0.00 5.31
2017-03-31 115.92 32.36
2016-12-31 116.67 25.80
2016-09-30 116.51 10.34
2016-06-30 115.17 7.25
2016-03-31 113.86 5.97
2015-12-31 113.24 2.35
2015-09-30 113.22 0.00 3.04
2015-06-30 111.43 0.00 2.77
2015-03-31 110.45 0.00 11.76
2014-12-31 109.44 0.00 13.74
2014-09-30 74.75 21.91
2014-06-30 72.81 22.59
2014-03-31 71.48 18.61
2013-12-31 71.12 19.64
2013-09-30 70.78 17.03
2013-06-30 69.97 15.34
2013-03-31 68.74 5.16
2012-12-31 67.69 5.82
2012-09-30 66.78 7.79
2012-06-30 65.67 7.11
  • K-Bro Linen's level of debt (60.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.1% vs 60.4% today).
  • Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess K-Bro Linen's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. K-Bro Linen has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KBL Dividends

 What is K-Bro Linen's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.08%
Current annual income from K-Bro Linen dividends. Estimated to be 3.08% next year.
If you bought CA$2,000 of K-Bro Linen shares you are expected to receive CA$62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • K-Bro Linen's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.03%).
  • K-Bro Linen's dividend is below the markets top 25% of dividend payers in Canada (5.73%).
Upcoming dividend payment

Purchase K-Bro Linen before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:KBL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
North America Commercial Services Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 1.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 332 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:KBL Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.20 2.00
2019-12-31 1.20 2.00
TSX:KBL Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-09 1.200 3.044
2019-04-15 1.200 3.050
2019-03-14 1.200 3.189
2019-02-15 1.200 3.190
2019-01-15 1.200 3.258
2018-12-14 1.200 3.558
2018-10-16 1.200 3.350
2018-09-14 1.200 3.149
2018-07-13 1.200 3.079
2018-06-15 1.200 3.187
2018-05-10 1.200 3.408
2018-04-13 1.200 3.414
2018-03-15 1.200 3.271
2018-02-15 1.200 3.159
2018-01-15 1.200 3.011
2017-12-15 1.200 2.897
2017-11-10 1.200 3.000
2017-10-13 1.200 3.091
2017-09-15 1.200 3.081
2017-08-09 1.200 3.062
2017-07-14 1.200 3.030
2017-06-15 1.200 3.007
2017-05-15 1.200 3.068
2017-04-13 1.200 3.064
2017-03-15 1.200 2.996
2017-02-15 1.200 2.759
2017-01-13 1.200 2.845
2016-12-15 1.200 2.877
2016-11-11 1.200 3.126
2016-10-14 1.200 3.030
2016-09-15 1.200 2.874
2016-07-15 1.200 2.762
2016-06-15 1.200 2.834
2016-05-12 1.200 2.917
2016-04-15 1.200 2.864
2016-03-10 1.200 2.739
2016-02-16 1.200 2.515
2016-01-15 1.200 2.403
2015-12-15 1.200 2.410
2015-10-15 1.200 2.396
2015-09-15 1.200 2.475
2015-08-13 1.200 2.539
2015-07-15 1.200 2.322
2015-06-15 1.200 2.270
2015-04-16 1.200 2.271
2015-03-13 1.200 2.318
2015-02-13 1.200 2.367
2015-01-15 1.200 2.483
2014-12-15 1.200 2.606
2014-11-14 1.200 2.757
2014-10-15 1.200 3.011
2014-09-15 1.200 3.052
2014-08-14 1.200 3.020
2014-07-15 1.200 3.123
2014-06-13 1.200 3.083
2014-05-09 1.200 3.130
2014-04-21 1.150 2.889
2014-02-14 1.150 2.988
2014-01-15 1.150 2.979
2013-12-13 1.150 2.948
2013-11-13 1.150 3.138
2013-10-15 1.150 3.320
2013-09-13 1.150 3.536
2013-08-15 1.150 3.436
2013-07-16 1.150 3.255
2013-06-19 1.150 3.357
2013-05-17 1.150 3.397
2013-04-15 1.150 3.479
2013-02-19 1.150 3.582
2013-01-16 1.150 3.826
2012-12-17 1.150 3.946
2012-11-19 1.150 3.953
2012-10-16 1.150 3.985
2012-09-17 1.150 4.056
2012-07-13 1.150 4.238
2012-06-15 1.150 4.722
2012-05-07 1.150 4.772
2012-04-18 1.100 4.746
2012-03-13 1.100 4.946
2012-02-15 1.100 5.010
2012-01-13 1.100 4.977
2011-12-15 1.100 4.946
2011-11-16 1.100 5.168
2011-10-14 1.100 5.683
2011-09-15 1.100 5.870
2011-08-16 1.100 5.400
2011-07-15 1.100 5.251
2011-06-15 1.100 5.177
2011-05-16 1.100 5.082
2011-04-18 1.100 5.115
2011-03-14 1.100 5.046
2011-02-15 1.100 5.394
2010-12-10 0.000 0.000
2010-10-18 1.100 6.158
2010-09-17 1.100 6.605
2010-08-18 1.100 6.680
2010-07-16 1.100 6.851
2010-06-18 1.100 7.079
2010-05-18 1.100 7.518
2010-04-16 1.100 7.123
2010-03-18 1.100 7.104
2010-02-18 1.100 7.309
2010-01-18 1.100 7.552
2009-12-18 1.100 7.909
2009-11-18 1.100 8.284
2009-10-19 1.100 8.566
2009-09-18 1.100 8.791
2009-08-18 1.100 8.706
2009-07-20 1.100 9.095
2009-06-18 1.100 9.156

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of K-Bro Linen's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess K-Bro Linen's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can K-Bro Linen afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. K-Bro Linen has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KBL Management

 What is the CEO of K-Bro Linen's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Linda McCurdy
COMPENSATION CA$1,966,208
AGE 50
TENURE AS CEO 19.3 years
CEO Bio

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 Executive Officer and President at K-Bro Linen Systems Inc since 2000. She served as Chief Financial Officer of Canadian Inovotech Inc., a biochemical products processor. Her experience also includes six years at the Overwaitea Food Group where she held a number of financial positions. She has been a Director of K-Bro Linen Inc. since December 10, 2004. She is a Certified General Accountant and has a Masters in Business Administration from the University of Western Ontario.

CEO Compensation
  • Linda's compensation has been consistent with company performance over the past year.
  • Linda's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the K-Bro Linen management team in years:

16.8
Average Tenure
  • The average tenure for the K-Bro Linen management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Linda McCurdy

TITLE
President
COMPENSATION
CA$2M
AGE
50
TENURE
19.3 yrs

Kristie Plaquin

TITLE
Chief Financial Officer
COMPENSATION
CA$508K
TENURE
4.8 yrs

Sean Curtis

TITLE
Senior VP & COO
COMPENSATION
CA$906K
TENURE
20.3 yrs

Kevin Stephenson

TITLE
General Manager of Toronto
COMPENSATION
CA$336K
TENURE
13.3 yrs

Trevor Rye

TITLE
General Manager of Edmonton
COMPENSATION
CA$253K

Timothy Bruns

TITLE
President of Unitrin Specialty

Ron Graham

TITLE
General Manager of Vancouver Plant
COMPENSATION
CA$278K
TENURE
17.3 yrs

Jeff Gannon

TITLE
General Manager of Calgary Plant
COMPENSATION
CA$266K
TENURE
16.3 yrs

Sean Jackson

TITLE
General Manager of Regina

Jessica Lévesque

TITLE
Director Général of Quebec
Board of Directors Tenure

Average tenure and age of the K-Bro Linen board of directors in years:

14.4
Average Tenure
65
Average Age
  • The average tenure for the K-Bro Linen board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ross Smith

TITLE
Chairman
COMPENSATION
CA$130K
AGE
79

Linda McCurdy

TITLE
President
COMPENSATION
CA$2M
AGE
50
TENURE
14.4 yrs

Steve Matyas

TITLE
Independent Director
COMPENSATION
CA$95K
AGE
65
TENURE
14.4 yrs

Matt Hills

TITLE
Director
COMPENSATION
CA$222K
AGE
58
TENURE
14.4 yrs

Mike Percy

TITLE
Independent Director
COMPENSATION
CA$90K
AGE
70
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • K-Bro Linen insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
25. Mar 19 Sell Ryo Utahara Individual 19. Mar 19 19. Mar 19 -750 CA$37.02 CA$-27,765
21. Dec 18 Buy Steven Matyas Individual 20. Dec 18 21. Dec 18 3,000 CA$32.59 CA$97,632
20. Dec 18 Sell Jeffrey Gannon Individual 19. Dec 18 19. Dec 18 -1,219 CA$32.34 CA$-39,422
19. Nov 18 Sell Jerry Ostrzyzek Individual 16. Nov 18 16. Nov 18 -2,800 CA$35.37 CA$-99,036
21. Sep 18 Sell Ronald Graham Individual 21. Sep 18 21. Sep 18 -5,117 CA$37.54 CA$-192,092
20. Sep 18 Sell Ronald Graham Individual 19. Sep 18 19. Sep 18 -2,300 CA$37.84 CA$-87,032
19. Sep 18 Sell Ronald Graham Individual 18. Sep 18 18. Sep 18 -1,900 CA$37.73 CA$-71,687
06. Sep 18 Sell Sean Curtis Individual 05. Sep 18 05. Sep 18 -15,000 CA$39.10 CA$-586,500
06. Sep 18 Sell Linda McCurdy Individual 05. Sep 18 05. Sep 18 -30,000 CA$39.10 CA$-1,173,000
05. Jun 18 Buy Matthew Hills Individual 04. Jun 18 05. Jun 18 2,500 CA$35.40 CA$88,467
X
Management checks
We assess K-Bro Linen's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. K-Bro Linen has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KBL News

Simply Wall St News

Do Institutions Own Shares In K-Bro Linen Inc. (TSE:KBL)?

K-Bro Linen is not a large company by global standards. … Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. … See our latest analysis for K-Bro Linen TSX:KBL Ownership Summary, May 10th 2019 What Does The Institutional Ownership Tell Us About K-Bro Linen?

Simply Wall St -

Should You Consider K-Bro Linen Inc. (TSE:KBL)?

Help shape the future of investing tools and you could win a $250 gift card! … Upon building up an investment case for a stock, we should look at various aspects. … that has been able to sustain great financial health over the past.

Simply Wall St -

Is K-Bro Linen Inc. (TSE:KBL) A Good Dividend Stock?

(TSE:KBL) be an attractive dividend share to own for the long haul? … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments. … In this case, K-Bro Linen likely looks attractive to investors, given its 3.1% dividend yield and a payment history of over ten years.

Simply Wall St -

Where K-Bro Linen Inc. (TSE:KBL) Stands In Terms Of Earnings Growth Against Its Industry

Measuring K-Bro Linen Inc.'s (TSE:KBL) track record of past performance is a valuable exercise for investors. … Today I will assess KBL's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements. … KBL's trailing twelve-month earnings (from 31 December 2018) of CA$6.2m has.

Simply Wall St -

Imagine Owning K-Bro Linen (TSE:KBL) And Wondering If The 17% Share Price Slide Is Justified

After all, the share price is down 17% in the last three years, significantly under-performing the market. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

Simply Wall St -

Why We’re Not Impressed By K-Bro Linen Inc.’s (TSE:KBL) 6.3% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

K-Bro Linen Inc. (TSE:KBL) Insiders Have Been Selling

K-Bro Linen Insider Transactions Over The Last Year. … That means that an insider was selling shares at around the current price of CA$37.55. … Over the last year we saw more insider selling of K-Bro Linen shares, than buying

Simply Wall St -

Is K-Bro Linen Inc.'s (TSE:KBL) ROE Of 1.9% Concerning?

Our data shows K-Bro Linen has a return on equity of 1.9% for the last year. … That means that for every CA$1 worth of shareholders' equity, it generated CA$0.019 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How Much Did K-Bro Linen Inc.'s (TSE:KBL) CEO Pocket Last Year?

In 2000 Linda McCurdy was appointed CEO of K-Bro Linen Inc. … First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Linda McCurdy's Compensation Compare With Similar Sized Companies?

Simply Wall St -

What Kind Of Investor Owns Most Of K-Bro Linen Inc. (TSE:KBL)?

Generally speaking, as a company grows, institutions will increase their ownership. … K-Bro Linen is not a large company by global standards. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

KBL Company Info

Description

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.

Details
Name: K-Bro Linen Inc.
KBL
Exchange: TSX
Founded: 1954
CA$408,147,795
10,459,964
Website: http://www.k-brolinen.com
Address: K-Bro Linen Inc.
14903-137 Avenue NW,
Edmonton,
Alberta, T5V 1R9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX KBL Common Shares The Toronto Stock Exchange CA CAD 03. Feb 2005
OTCPK KBRL.F Common Shares Pink Sheets LLC US USD 03. Feb 2005
Number of employees
Current staff
Staff numbers
2,870
K-Bro Linen employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 02:40
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/13
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.