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Kip McGrath Education Centres Limited (AU:KME)
ASX:KME
Australian Market
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Kip McGrath Education Centres Limited (KME) AI Stock Analysis

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AU:KME

Kip McGrath Education Centres Limited

(Sydney:KME)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
AU$0.50
â–¼(-12.28% Downside)
The overall stock score is primarily influenced by strong cash flow management and a conservative balance sheet. However, profitability challenges and valuation concerns weigh down the score. Technical indicators suggest stability but limited momentum.

Kip McGrath Education Centres Limited (KME) vs. iShares MSCI Australia ETF (EWA)

Kip McGrath Education Centres Limited Business Overview & Revenue Model

Company DescriptionKip McGrath Education Centres Limited (KME) is a global education franchise that specializes in providing supplementary tutoring services for children aged between 5 and 18 years. Operating in the education sector, KME focuses on enhancing students' academic performance through tailored learning programs in subjects such as English, Mathematics, and Reading. The company operates a network of franchised centers worldwide, offering both in-person and online tutoring services, making quality education accessible to a diverse range of students.
How the Company Makes MoneyKip McGrath Education Centres Limited generates revenue primarily through its franchise model. The company earns money by charging franchise fees to new franchisees, which typically includes an upfront investment as well as ongoing royalties based on a percentage of the franchisee's gross revenue. Additionally, KME earns income from the sale of educational resources and materials used in its tutoring programs. Significant partnerships with educational institutions and organizations also contribute to its revenue by enhancing brand visibility and credibility, allowing for broader student enrollment across its centers. Furthermore, KME's expansion into online tutoring services has opened new avenues for revenue, catering to a growing demand for digital learning solutions.

Kip McGrath Education Centres Limited Financial Statement Overview

Summary
Kip McGrath Education Centres Limited shows strong cash flow management and a conservative balance sheet with low leverage. However, profitability challenges are evident with negative net profit margins and return on equity, despite operational efficiency.
Income Statement
45
Neutral
The company has shown inconsistent revenue growth with a recent decline of 3.97%. Gross profit margins have improved significantly to 55.3%, but net profit margin is negative at -16.9%, indicating profitability challenges. EBIT and EBITDA margins are moderate, suggesting operational efficiency but not translating into net profitability.
Balance Sheet
60
Neutral
The company maintains a low debt-to-equity ratio of 0.17, indicating conservative leverage. However, the negative return on equity of -28.5% reflects poor profitability relative to shareholder investments. The equity ratio is stable, suggesting a solid asset base supported by equity.
Cash Flow
70
Positive
Free cash flow has grown by 29.6%, showing strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.72, indicating good cash conversion. However, the free cash flow to net income ratio is slightly below 1, suggesting that not all net income is being converted into free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue31.36M31.41M28.85M26.65M24.63M19.24M
Gross Profit14.99M17.37M10.63M10.18M9.67M8.09M
EBITDA5.84M3.82M6.99M6.71M6.21M5.12M
Net Income-5.32M-5.32M1.32M1.92M1.88M1.73M
Balance Sheet
Total Assets30.47M30.47M34.88M37.11M36.38M30.73M
Cash, Cash Equivalents and Short-Term Investments6.93M6.93M5.40M9.15M7.63M10.57M
Total Debt3.11M3.11M3.69M3.63M3.15M2.21M
Total Liabilities11.84M11.84M11.18M14.03M14.45M12.27M
Stockholders Equity18.64M18.64M23.70M23.08M21.92M18.46M
Cash Flow
Free Cash Flow5.93M5.93M-1.57M2.81M277.00K1.37M
Operating Cash Flow6.26M6.26M2.86M6.37M5.05M6.16M
Investing Cash Flow-1.96M-1.96M-4.44M-3.57M-6.96M-4.79M
Financing Cash Flow-2.77M-2.77M-2.18M-1.28M-1.04M-2.63M

Kip McGrath Education Centres Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.57
Price Trends
50DMA
0.59
Negative
100DMA
0.58
Negative
200DMA
0.50
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
38.02
Neutral
STOCH
55.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KME, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.58, below the 50-day MA of 0.59, and above the 200-day MA of 0.50, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KME.

Kip McGrath Education Centres Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
61
Neutral
AU$82.83M10.0260.13%1.74%120.57%―
56
Neutral
AU$58.95M―-53.18%―-13.91%53.37%
53
Neutral
AU$32.79M-6.2610.80%1.75%-2.81%-503.02%
53
Neutral
AU$167.84M768.750.15%―-1.08%―
49
Neutral
AU$16.58M-13.02-7.51%―1.42%86.97%
41
Neutral
AU$26.80M-4.64-126.76%―-14.55%71.13%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KME
Kip McGrath Education Centres Limited
0.57
0.15
35.71%
AU:EDU
EDU Holdings Limited
0.58
0.50
625.00%
AU:NXD
iCollege Ltd.
0.26
0.15
136.36%
AU:AKG
Academies Australasia Group Limited
0.12
<0.01
9.09%
AU:CLU
Cluey Ltd
0.08
0.03
60.00%
AU:3PL
3P Learning Ltd.
0.62
-0.37
-37.37%

Kip McGrath Education Centres Limited Corporate Events

Kip McGrath Updates on Share Buy-Back Progress
Oct 22, 2025

Kip McGrath Education Centres Limited announced an update on their ongoing share buy-back program, with 50,000 ordinary fully paid securities bought back on the previous day, bringing the total to 662,718. This buy-back initiative indicates the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Oct 22, 2025

Kip McGrath Education Centres Limited has announced a daily update on its ongoing buy-back program, with a total of 66,000 ordinary fully paid securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Updates on Share Buy-Back Progress
Oct 21, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back program. As of the latest notification, the company has bought back a total of 530,718 securities, with an additional 66,000 securities acquired on the previous day. This buy-back initiative reflects the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Updates on Securities Buy-Back Program
Oct 20, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing buy-back program, with a total of 66,000 ordinary fully paid securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates Share Buy-Back Progress
Oct 16, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program. As of October 17, 2025, the company has repurchased a total of 398,718 securities, with 66,000 bought back on the previous day. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Oct 15, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back program. As of October 16, 2025, the company has repurchased a total of 398,718 ordinary fully paid securities, with 66,198 bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Progress
Oct 14, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back of ordinary fully paid securities. As of October 15, 2025, the company has repurchased a total of 332,520 securities, including 31,808 bought back on the previous day. This buy-back initiative indicates the company’s strategy to enhance shareholder value and optimize its capital structure.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates Share Buy-Back Progress
Oct 13, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program, with a total of 27,536 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 273,176 securities. This buy-back initiative is part of the company’s strategy to enhance shareholder value and optimize its capital structure, reflecting a positive outlook on its financial health and commitment to returning capital to its investors.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Updates on Ongoing Share Buy-Back Program
Oct 9, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back program. As of the latest update, the company has bought back a total of 205,956 ordinary fully paid securities, with an additional 67,220 securities purchased on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Announces Board Changes with Director Retirement and New Appointment
Oct 8, 2025

Kip McGrath Education Centres Limited has announced the retirement of Ian Campbell, a long-serving Non-Executive Director and past Chairman, who will not seek re-election after his term ends at the upcoming AGM. Campbell has been instrumental in guiding the company through challenging times, including the COVID-19 pandemic, ensuring its continued profitability. In his place, the board proposes the appointment of Anne Bell, a seasoned CFO and business leader with extensive experience in strategy development, governance, and compliance. Her appointment is expected to bring valuable expertise to the board, particularly as the proposed Chair of the Audit and Risk Committee.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates Share Buy-Back Progress
Oct 7, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing share buy-back program. As of October 8, 2025, the company has bought back a total of 172,415 ordinary fully paid securities, including 21,111 securities purchased on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Announces CEO Start Date
Oct 7, 2025

Kip McGrath Education Centres Limited has announced that Melinda Smith will officially begin her role as the new Chief Executive Officer and Managing Director on November 3, 2025. This leadership change is expected to impact the company’s strategic direction and potentially enhance its market position in the education sector.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Oct 6, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back program. As of October 7, 2025, the company has repurchased a total of 151,304 ordinary fully paid securities, including 4,928 bought back on the previous day. This buy-back initiative reflects the company’s strategic decision to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Updates on Share Buy-Back Progress
Oct 6, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program, reporting the purchase of 35,419 ordinary fully paid securities on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Progress
Oct 2, 2025

Kip McGrath Education Centres Limited announced an update on its ongoing share buy-back program, with a total of 17,572 ordinary fully paid securities bought back on the previous day, adding to the 93,385 securities already repurchased. This buy-back initiative reflects the company’s strategic move to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Oct 1, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program. The company reported that it bought back a total of 2,186 ordinary fully paid securities on the previous day, adding to a cumulative total of 91,199 securities repurchased since the start of the program. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates Share Buy-Back Progress
Sep 30, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program, reporting the acquisition of 15,582 ordinary fully paid securities on the previous day, bringing the total number of shares bought back to 75,617. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Sep 29, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing buy-back program, which involves the repurchase of its ordinary fully paid securities on the market. The latest notification reveals that the company bought back 37,001 securities on the previous day, adding to the total of 38,616 securities repurchased before that day. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Adjusts Share Buy-Back Period for Compliance
Sep 23, 2025

Kip McGrath Education Centres Limited has announced changes to its share buy-back program, adjusting the buy-back period to comply with regulatory reporting requirements. The revised period now runs from September 23, 2025, to September 22, 2026, allowing the company to buy back up to 5,690,718 shares, which represents 10% of its issued share capital.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Director Increases Stake with Additional Securities Acquisition
Sep 15, 2025

Kip McGrath Education Centres Limited has announced a change in the director’s interest, with Director Damian Banks acquiring an additional 200,000 indirect securities through an on-market trade. This change increases his total indirect holdings to 1.2 million securities, potentially signaling confidence in the company’s future prospects and impacting stakeholders’ perceptions of the company’s market positioning.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Education Centres Issues Investor Update with Risk Advisory
Aug 26, 2025

Kip McGrath Education Centres Limited has released an investor update, emphasizing that the information provided is for informational purposes only and not to be construed as financial advice. The update highlights the inherent risks associated with investing in the company’s shares and disclaims any responsibility for potential losses. The company also notes that past performance is not indicative of future results and includes forward-looking statements that are subject to various uncertainties.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Reports FY25 Results and Announces Share Buy-Back
Aug 26, 2025

Kip McGrath Education Centres Limited reported an 8.9% increase in revenue from continuing operations for FY25, with a significant focus on strengthening its core franchise business and exiting the USA market. Despite a statutory net loss of $5.3 million due to the USA operations’ impairment and other costs, the company announced a share buy-back and maintained a strong cash balance with no debt. The company experienced growth in its franchise business, particularly in the UK and APAC regions, and aims to improve its earnings further, despite its underlying net profit being below the cost of capital.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Announces On-Market Buy-Back
Aug 26, 2025

Kip McGrath Education Centres Limited has announced an on-market buy-back of its ordinary fully paid securities, as per the notification dated August 26, 2025. This strategic financial move is likely aimed at optimizing the company’s capital structure and could potentially enhance shareholder value, reflecting positively on its market positioning.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Announces Strategic Share Buy-Back Program
Aug 26, 2025

Kip McGrath Education Centres Limited announced a share buy-back program, intending to repurchase up to 10% of its ordinary shares on the market. This initiative, aimed at enhancing shareholder value, will run for a year starting September 2025, with the company maintaining flexibility in execution based on market conditions and financial considerations.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Announces Dividend Distribution for 2025
Aug 26, 2025

Kip McGrath Education Centres Limited has announced a dividend distribution of AUD 0.005 per share, with the payment scheduled for September 25, 2025. This announcement reflects the company’s financial performance for the period ending June 30, 2025, and may influence stakeholder perceptions regarding the company’s financial health and operational stability.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Reports Mixed Financial Results Amidst Operational Challenges
Aug 26, 2025

Kip McGrath Education Centres Limited reported a mixed financial performance for the year ending June 30, 2025. While revenue from continuing operations increased by 8.9% and EBITDA rose by 13.4%, the company experienced a significant loss attributable to discontinued operations, resulting in an overall loss of $5.316 million. The company declared a final dividend of 0.5 cents per share, maintaining its commitment to shareholder returns despite the challenging financial results.

The most recent analyst rating on (AU:KME) stock is a Buy with a A$0.50 price target. To see the full list of analyst forecasts on Kip McGrath Education Centres Limited stock, see the AU:KME Stock Forecast page.

Kip McGrath Announces Investor Webinar Following FY25 Report
Aug 13, 2025

Kip McGrath Education Centres Limited announced an investor webinar to be hosted by Executive Chairman Damian Banks and Interim CFO Roxana Lupou on 26 August 2025, following the release of the FY25 Annual Report. This event reflects the company’s commitment to transparency and engagement with investors, potentially impacting its market positioning by fostering investor confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025