K-Bro Linen Inc., together with its subsidiaries, provides laundry and linen services to healthcare institutions, hotels, and other commercial organizations in Canada and the United Kingdom. More Details
Reasonable growth potential and fair value.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: KBL's weekly volatility (5%) has been stable over the past year.
7 Day Return
CA Commercial Services
1 Year Return
CA Commercial Services
Return vs Industry: KBL exceeded the Canadian Commercial Services industry which returned 63.2% over the past year.
Return vs Market: KBL exceeded the Canadian Market which returned 36.9% over the past year.
Long-Term 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
4 days ago | Simply Wall StDid You Miss K-Bro Linen's (TSE:KBL) 73% Share Price Gain?
3 weeks ago | Simply Wall StHow Does K-Bro Linen Inc. (TSE:KBL) Fare As A Dividend Stock?
1 month ago | Simply Wall StWe Wouldn't Be Too Quick To Buy K-Bro Linen Inc. (TSE:KBL) Before It Goes Ex-Dividend
Is K-Bro Linen undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KBL (CA$44.59) is trading below our estimate of fair value (CA$78.98)
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 (124.5x) compared to the CA Commercial Services industry average (29.9x).
PE vs Market: KBL is poor value based on its PE Ratio (124.5x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: KBL is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: KBL is good value based on its PB Ratio (2.5x) compared to the CA Commercial Services industry average (2.7x).
How is K-Bro Linen forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KBL's forecast earnings growth (52.4% per year) is above the savings rate (1.5%).
Earnings vs Market: KBL's earnings (52.4% per year) are forecast to grow faster than the Canadian market (17.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: KBL's revenue (13.2% per year) is forecast to grow faster than the Canadian market (6.9% per year).
High Growth Revenue: KBL's revenue (13.2% 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
How has K-Bro Linen performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KBL has a large one-off gain of CA$6.9M impacting its December 31 2020 financial results.
Growing Profit Margin: KBL's current net profit margins (1.9%) are lower than last year (4.3%).
Past Earnings Growth Analysis
Earnings Trend: KBL's earnings have declined by 17.2% per year over the past 5 years.
Accelerating Growth: KBL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KBL had negative earnings growth (-65.2%) over the past year, making it difficult to compare to the Commercial Services industry average (-10%).
Return on Equity
High ROE: KBL's Return on Equity (2%) is considered low.
How is K-Bro Linen's financial position?
Financial Position Analysis
Short Term Liabilities: KBL's short term assets (CA$66.7M) exceed its short term liabilities (CA$38.8M).
Long Term Liabilities: KBL's short term assets (CA$66.7M) do not cover its long term liabilities (CA$95.6M).
Debt to Equity History and Analysis
Debt Level: KBL's debt to equity ratio (21.5%) is considered satisfactory.
Reducing Debt: KBL's debt to equity ratio has increased from 2.1% to 21.5% over the past 5 years.
Debt Coverage: KBL's debt is well covered by operating cash flow (104.3%).
Interest Coverage: KBL's interest payments on its debt are not well covered by EBIT (1x coverage).
What is K-Bro Linen current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KBL's dividend (2.69%) is higher than the bottom 25% of dividend payers in the Canadian market (1.51%).
High Dividend: KBL's dividend (2.69%) is low compared to the top 25% of dividend payers in the Canadian market (4.52%).
Stability and Growth of Payments
Stable Dividend: KBL's dividend payments have been volatile in the past 10 years.
Growing Dividend: KBL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (335%), KBL's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: KBL's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Linda McCurdy (52 yo)
Ms. Linda Jane McCurdy, M.B.A., has been the Chief Executive Officer and President at K-Bro Linen Inc., since January 2000. Ms. McCurdy joined K-Bro in May 1998 as Chief Financial Officer. She has been Chi...
CEO Compensation Analysis
Compensation vs Market: Linda's total compensation ($USD1.62M) is above average for companies of similar size in the Canadian market ($USD776.18K).
Compensation vs Earnings: Linda's compensation has been consistent with company performance over the past year.
Experienced Management: KBL's management team is seasoned and experienced (18.8 years average tenure).
Experienced Board: KBL's board of directors are seasoned and experienced ( 16.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: KBL insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
K-Bro Linen Inc.'s company bio, employee growth, exchange listings and data sources
- Name: K-Bro Linen Inc.
- Ticker: KBL
- Exchange: TSX
- Founded: 1954
- Industry: Diversified Support Services
- Sector: Commercial Services
- Market Cap: CA$472.541m
- Shares outstanding: 10.60m
- Website: https://www.k-brolinen.com
Number of Employees
- K-Bro Linen Inc.
- 14903-137 Avenue NW
- T5V 1R9
K-Bro Linen Inc., together with its subsidiaries, provides laundry and linen services to healthcare institutions, hotels, and other commercial organizations in Canada and the United Kingdom. Its services i...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/08 03:19|
|End of Day Share Price||2021/05/07 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.