Kip McGrath Education Centres Limited (AU:KME)
ASX:KME
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Kip McGrath Education Centres Limited
(Sydney:KME)
Select Model
Select Model
Rating:48Neutral
Price Target:
AU$0.49
▼(-19.17% Downside)
Action:ReiteratedDate:11/18/25
The overall stock score of 48 reflects significant profitability challenges and bearish technical indicators. While the company has strong cash flow management and a conservative balance sheet, these strengths are overshadowed by negative net profit margins and a negative P/E ratio. The technical analysis suggests a bearish trend, further impacting the score.
Positive Factors
Franchise-based business model
Kip McGrath's franchising model creates a scalable, low-capex growth engine: fees and royalties provide recurring revenue while corporate support and licensed curriculum centralize product development. Over months this structure supports margin resilience and faster roll-out without heavy corporate investment.
Negative Factors
Negative net profitability
A sustained negative net margin near -17% shows the company fails to convert operational results into bottom-line profit. Over months this erodes retained earnings and constrains the firm's ability to fund growth or support franchisees without drawing on cash or raising capital, weakening long-term resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-based business model
Kip McGrath's franchising model creates a scalable, low-capex growth engine: fees and royalties provide recurring revenue while corporate support and licensed curriculum centralize product development. Over months this structure supports margin resilience and faster roll-out without heavy corporate investment.
Read all positive factors
Kip McGrath Education Centres Limited (KME) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$31.17M
Dividend Yield1.67%
Average Volume (3M)53.74K
Price to Earnings (P/E)4.7
Beta (1Y)0.46
Revenue Growth-2.81%
EPS Growth-503.02%
CountryAU
Employees25
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding55,165,443
10 Day Avg. Volume92,410
30 Day Avg. Volume53,744
Financial Highlights & Ratios
PEG Ratio-0.19
Price to Book (P/B)4.04
Price to Sales (P/S)2.40
P/FCF Ratio12.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$31.30M
Kip McGrath Education Centres Limited Business Overview & Revenue Model
Company Description
Kip McGrath Education Centres Limited offers English and Maths education services in Australia, New Zealand, the United Kingdom, and internationally. The company also provides tutorial assistance in English and Maths to primary and secondary stude...
How the Company Makes Money
Kip 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...
Kip McGrath Education Centres Limited Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.29M | 31.41M | 28.85M | 26.65M | 24.63M | 19.24M |
| Gross Profit | 14.11M | 17.37M | 10.63M | 10.18M | 9.67M | 8.09M |
| EBITDA | 8.86M | 3.82M | 6.99M | 6.71M | 6.21M | 5.12M |
| Net Income | -4.17M | -5.32M | 1.32M | 1.92M | 1.88M | 1.73M |
Balance Sheet | ||||||
| Total Assets | 29.00M | 30.47M | 34.88M | 37.11M | 36.38M | 30.73M |
| Cash, Cash Equivalents and Short-Term Investments | 8.19M | 6.93M | 5.40M | 9.15M | 7.63M | 10.57M |
| Total Debt | 3.78M | 3.11M | 3.69M | 3.63M | 3.15M | 2.21M |
| Total Liabilities | 9.95M | 11.84M | 11.18M | 14.03M | 14.45M | 12.27M |
| Stockholders Equity | 19.05M | 18.64M | 23.70M | 23.08M | 21.92M | 18.46M |
Cash Flow | ||||||
| Free Cash Flow | 6.63M | 5.93M | -1.57M | 2.81M | 277.00K | 1.37M |
| Operating Cash Flow | 6.82M | 6.26M | 2.86M | 6.37M | 5.05M | 6.16M |
| Investing Cash Flow | -1.57M | -1.96M | -4.44M | -3.57M | -6.96M | -4.79M |
| Financing Cash Flow | -2.63M | -2.77M | -2.18M | -1.28M | -1.04M | -2.63M |
Kip McGrath Education Centres Limited Technical Analysis
Positive
0.60
Price Trends
0.54
Positive
0.55
Positive
0.56
Positive
Market Momentum
<0.01
Negative
55.53
Neutral
71.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KME, the sentiment is Positive. The current price of 0.6 is above the 20-day moving average (MA) of 0.55, above the 50-day MA of 0.54, and above the 200-day MA of 0.56, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.53 is Neutral, neither overbought nor oversold. The STOCH value of 71.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:KME.
Kip McGrath Education Centres Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$87.46M | 8.09 | 71.63% | 1.17% | 120.57% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | AU$73.68M | 119.49 | 0.87% | ― | -1.08% | ― | |
48 Neutral | AU$31.17M | 4.70 | -22.15% | 1.67% | -2.81% | -503.02% | |
45 Neutral | AU$13.92M | -4.84 | -6.74% | ― | 1.42% | 86.97% | |
42 Neutral | AU$36.90M | -25.24 | -34.51% | ― | -13.91% | 53.37% | |
41 Neutral | AU$13.55M | -2.37 | -111.42% | ― | -14.55% | 70.98% |
* Consumer Defensive Sector Average
AU:KME
Kip McGrath Education Centres Limited
0.57
0.13
29.00%
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Kip McGrath Education Centres Limited Corporate Events
Kip McGrath Lifts Profit and Dividend as New CEO Resets Franchise Strategy
Feb 25, 2026
Kip McGrath Education Centres reported half-year revenue of $15.2 million, up 1.6%, with net profit after tax from continuing operations rising 15.4% to $1.5 million, supported by cost savings and operational efficiencies. Despite a 5% decline in ...
Kip McGrath Declares Interim A$0.01 Dividend for Half-Year to June 2026
Feb 25, 2026
Kip McGrath Education Centres Limited has declared an ordinary dividend of A$0.01 per fully paid share, relating to a six‑month period ending 30 June 2026. The dividend will trade ex‑dividend on 11 March 2026, with a record date of 12 ...
Kip McGrath Lifts Half-Year Profit and Increases Interim Dividend
Feb 25, 2026
Kip McGrath Education Centres Limited reported half-year revenue from continuing operations of $15.2 million, up 1.6%, with EBITDA rising 3.9% to $4.3 million and profit after tax from continuing operations up 15.4% to $1.5 million. Overall profit...
Kip McGrath Cancels 315,826 Shares Following On‑Market Buy-Back
Jan 12, 2026
Kip McGrath Education Centres Limited has cancelled 315,826 ordinary fully paid shares as part of an on‑market buy-back completed on 31 December 2025. The reduction in issued capital is likely to marginally enhance earnings per share and may...
Kip McGrath Announces Change of Company Secretary
Jan 7, 2026
Kip McGrath Education Centres Limited has announced a change in its company secretary role, with Brett Edwards resigning and Adrian Sturrock being appointed as company secretary, both effective from 17 December 2025. The board-approved transition ...
Kip McGrath Continues On-Market Share Buy-Back With Daily Purchases
Jan 1, 2026
Kip McGrath Education Centres Limited has reported an update on its ongoing on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code KME. As of 2 January 2026, the company disclosed that it had repurchas...
Kip McGrath Continues On-Market Share Buy-Back With Latest Daily Update
Dec 30, 2025
Kip McGrath Education Centres Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. As of 31 December 2025, the company reported that a total of 1,349,950 shares...
Kip McGrath Continues On-Market Share Buy-Back Programme
Dec 29, 2025
Kip McGrath Education Centres Limited has continued its on-market share buy-back program, reporting that it repurchased 66,666 ordinary fully paid shares on the previous trading day, bringing the total bought back so far to 1,283,284 shares. The o...
Kip McGrath Updates Market on Progress of On-Market Share Buy-Back
Dec 28, 2025
Kip McGrath Education Centres Limited has provided an updated daily notification on its on-market share buy-back program for its ordinary fully paid shares traded under the ASX code KME. As of 29 December 2025, the company reported that it had rep...
Kip McGrath Continues On‑Market Share Buy-Back with Latest Daily Update
Dec 22, 2025
Kip McGrath Education Centres Limited has updated the market on its ongoing on‑market share buy-back programme for its ordinary fully paid shares, reporting that a total of 1,155,244 shares had been repurchased before the previous trading da...
Kip McGrath Cancels 293,271 Shares Following On‑Market Buy-Back
Dec 19, 2025
Kip McGrath Education Centres Limited has cancelled 293,271 ordinary fully paid shares following an on‑market share buy-back completed on 18 December 2025. The reduction in issued capital signals the company’s ongoing capital managemen...
Kip McGrath Updates Buy-Back Figures
Dec 17, 2025
Kip McGrath Education Centres Limited announced a correction to their previous buy-back notification. The company has bought back a total of 1,135,485 securities, with an additional 19,759 securities bought back on the previous day. This update cl...
Kip McGrath Education Centres Updates on Share Buy-Back Program
Dec 16, 2025
Kip McGrath Education Centres Limited has announced a daily update on its ongoing on-market buy-back program, reporting the repurchase of 19,759 ordinary fully paid securities on the previous day. This buy-back initiative, which began on August 26...
Kip McGrath Updates on Securities Buy-Back Progress
Dec 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 the latest notification, the company has repurchased a total of 1,135,485 securities, with 33,334 bough...
Kip McGrath Director Increases Stake in Company
Dec 12, 2025
Kip McGrath Education Centres Limited announced a change in the director’s interest, with Damian Banks acquiring an additional 100,000 indirect shares through an on-market trade, bringing his total to 1,500,000 indirect shares. This change r...
Kip McGrath Education Centres Continues Securities Buy-Back Program
Dec 11, 2025
Kip McGrath Education Centres Limited has announced a daily buy-back of its ordinary fully paid securities, with a total of 67,445 securities bought back on the previous day. This move is part of an ongoing buy-back program, which reflects the com...
Kip McGrath Education Centres Continues Share Buy-Back Program
Dec 9, 2025
Kip McGrath Education Centres Limited has announced a daily update on its ongoing buy-back program, where it repurchased 71,125 ordinary fully paid securities on the previous day. This buy-back initiative reflects the company’s strategy to m...
Kip McGrath Education Centres Updates Share Buy-Back Progress
Dec 8, 2025
Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program, reporting the acquisition of 24,175 ordinary fully paid securities on the previous day. This buy-back initiative is part of the company’s st...
Kip McGrath Issues Performance Rights to Employees
Dec 4, 2025
Kip McGrath Education Centres Limited announced the issuance of 140,000 performance rights under an employee incentive scheme. These unquoted securities are subject to transfer restrictions and are not listed on the ASX until the restrictions are ...
Kip McGrath Director Increases Stake, Signaling Confidence
Nov 28, 2025
Kip McGrath Education Centres Limited announced a change in the director’s interest, with Damian Banks increasing his indirect holdings by acquiring 200,000 additional securities through an on-market trade. This change reflects a growing con...
Kip McGrath Education Centres Appoints New Director
Nov 28, 2025
Kip McGrath Education Centres Limited has announced the appointment of Anne Bell as a director, effective from November 25, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, although Anne Bell...
Director Resignation at Kip McGrath Education Centres
Nov 28, 2025
Kip McGrath Education Centres Limited announced the resignation of Ian Houston Campbell from his position as a director, effective November 25, 2025. This change in leadership may impact the company’s strategic direction and stakeholder rela...
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.