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

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 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
AU$0.50
â–¼(-9.09% Downside)
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
Cash Flow Management
Strong cash flow management indicates that the company can effectively convert its operations into cash, providing financial stability and the ability to reinvest in growth opportunities.
Conservative Balance Sheet
A conservative balance sheet with low leverage reduces financial risk and enhances the company's ability to withstand economic downturns, ensuring long-term sustainability.
Gross Profit Margin Improvement
Improved gross profit margins suggest better cost management and pricing power, which can lead to enhanced profitability and competitive positioning over time.
Negative Factors
Profitability Challenges
Negative net profit margins highlight ongoing profitability issues, which can hinder the company's ability to generate shareholder value and reinvest in growth.
Declining Revenue Growth
Declining revenue growth reflects potential challenges in market demand or competitive pressures, which could impact long-term business expansion and market share.
Negative Return on Equity
A negative return on equity indicates inefficient use of shareholder capital, which can deter investment and limit the company's ability to raise funds for future growth.

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
Positive
Last Price0.55
Price Trends
50DMA
0.57
Positive
100DMA
0.58
Negative
200DMA
0.51
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
55.22
Neutral
STOCH
77.14
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 0.55 is above the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.57, and above the 200-day MA of 0.51, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.14 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
AU$82.83M10.0260.13%1.03%120.57%―
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
53
Neutral
AU$167.84M768.750.15%―-1.08%―
48
Neutral
AU$31.39M-5.9910.80%1.82%-2.81%-503.02%
48
Neutral
AU$62.29M―-53.18%―-13.91%53.37%
48
Neutral
AU$16.58M-13.02-7.51%―1.42%86.97%
41
Neutral
AU$26.80M-4.64-126.76%―-14.55%70.98%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:KME
Kip McGrath Education Centres Limited
0.57
0.11
23.91%
AU:EDU
EDU Holdings Limited
0.94
0.85
944.44%
AU:NXD
iCollege Ltd.
0.29
0.14
93.33%
AU:AKG
Academies Australasia Group Limited
0.12
0.00
0.00%
AU:CLU
Cluey Ltd
0.06
0.02
50.00%
AU:3PL
3P Learning Ltd.
0.62
-0.18
-22.50%

Kip McGrath Education Centres Limited Corporate Events

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 lifted, which could impact employee retention and motivation strategies.

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 confidence in the company’s prospects, potentially impacting stakeholder perceptions and market positioning.

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 currently holds no relevant interests in securities or contracts related to the company.

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 relations, as Campbell held indirect interests in 600,000 securities through HSBC Custody Nominees on behalf of Hetale Pty Limited ATF Eagle’s Nest Retirement Fund.

Kip McGrath Education Centres Approves Key Resolutions at AGM
Nov 25, 2025

Kip McGrath Education Centres Limited held its Annual General Meeting on November 25, 2025, where several resolutions were passed with significant majority support. Key resolutions included the approval of an additional 10% share placement capacity and the issuance of performance rights to Ms. Melinda Smith. These decisions are likely to impact the company’s financial strategy and governance structure, potentially enhancing its market position and operational flexibility.

Kip McGrath Education Centres Highlights Investment Risks at AGM
Nov 25, 2025

Kip McGrath Education Centres Limited held its Annual General Meeting on November 25, 2025, presenting information about the company’s operations and financial conditions. The presentation emphasized the inherent risks of investing in the company and clarified that past performance is not indicative of future results. The company disclaims responsibility for any reliance on the presentation’s content and highlights the forward-looking nature of certain statements, which are subject to various risks and uncertainties.

Kip McGrath Appoints New Director Melinda Smith
Nov 2, 2025

Kip McGrath Education Centres Limited has announced the appointment of Melinda Smith as a new director, effective November 3, 2025. The notice indicates that Smith currently holds no relevant interests in securities or contracts with the company, suggesting a fresh perspective and potential strategic shifts in the company’s governance.

Kip McGrath Appoints New CEO to Lead Strategic Direction
Nov 2, 2025

Kip McGrath Education Centres Limited has appointed Ms. Melinda Smith as the new Chief Executive Officer and Managing Director, succeeding Mr. Damian Banks. This leadership change is expected to bring new strategic direction while Mr. Banks continues to contribute as Non-Executive Chairman, potentially impacting the company’s future operations and market positioning.

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

Kip McGrath Education Centres Limited has announced an update regarding its ongoing buy-back program. As of October 29, 2025, the company has repurchased a total of 911,973 ordinary fully paid securities, including 50,000 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.

Kip McGrath Appoints Adrian Sturrock as New CFO
Oct 28, 2025

Kip McGrath Education Centres Limited has appointed Adrian Sturrock as its new Chief Financial Officer. With over 30 years of experience, including senior roles at Blackmores and BOD Science, Sturrock’s expertise is expected to support the company’s growth ambitions. The appointment is seen as a strategic move to strengthen the company’s financial leadership and operational capabilities.

Kip McGrath Education Centres Updates on Share Buy-Back Program
Oct 28, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing on-market buy-back program. As of October 28, 2025, the company has bought back a total of 861,973 ordinary fully paid securities, including 50,000 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.

Kip McGrath Updates on Share Buy-Back Progress
Oct 26, 2025

Kip McGrath Education Centres Limited has announced an update on its ongoing share buy-back program, revealing that a total of 49,255 ordinary fully paid securities were bought back on the previous day, adding to a cumulative total of 762,718 securities repurchased. This buy-back initiative is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value, reflecting its commitment to optimizing financial operations and reinforcing its market position.

Kip McGrath Education Centres Announces AGM with Key Resolutions
Oct 26, 2025

Kip McGrath Education Centres Limited has announced its upcoming Annual General Meeting, scheduled for November 25, 2025, in Sydney. Key agenda items include the adoption of the remuneration report, the election of Ms. Anne Bell as a director, and a proposal to authorize an additional buy-back of up to 10% of its issued shares, which could impact the company’s financial strategy and shareholder value.

Kip McGrath Updates on Securities Buy-Back Program
Oct 23, 2025

Kip McGrath Education Centres Limited has announced an update regarding its ongoing on-market buy-back program. As of October 24, 2025, the company has bought back a total of 762,718 ordinary fully paid securities, including 50,000 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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: Nov 18, 2025