Kelly Partners Group Holdings Ltd. (KPG) AI Stock Analysis

• Market Cap: AU$283.42M
• Dividend Yield: 0.11%
• Average Volume (3M): 40.17K
• Price to Earnings (P/E): 93.7
• Beta (1Y): 0.93
• Revenue Growth: 24.47%
• EPS Growth: 21.28%
• Country: AU
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.05
• Shares Outstanding: 45,274,956
• 10 Day Avg. Volume: 47,437
• 30 Day Avg. Volume: 40,175
• PEG Ratio: -48.26
• Price to Book (P/B): 17.02
• Price to Sales (P/S): 3.59
• P/FCF Ratio: 16.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: AU$7.50 ▼(-10.71% Downside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by solid financial performance (strong growth and operating margins with decent cash conversion) but is held back by elevated leverage and weak technicals (price below major moving averages and negative MACD). Valuation is mixed: a very high P/E is a headwind, partially offset by the high dividend yield, while the earnings call reinforces growth execution but acknowledges increased debt and modest organic growth.

Positive Factors

Recurring SME fee-for-service model

Kelly Partners’ core business is recurring fee-for-service accounting and advisory delivered via a branded network of practices. This model creates durable, predictable revenue streams, high client retention and cross-sell opportunity, supporting stable cash flows and long-term service demand.

Programmatic M&A engine and geographic expansion

A repeatable acquisition program expands scale, captures practice ownership economics and diversifies revenue across geographies. Programmatic M&A accelerates revenue run-rate, broadens client reach and builds centralized uplift opportunities that can sustainably raise per-share earnings if integration is executed.

Strong cash conversion and high operating margins

High EBITDA margins combined with ~101% cash conversion and strong ROE indicate efficient operations and excellent cash generation. Durable cash flow supports reinvestment in software/AI, funds M&A without immediate equity dilution and underpins per-share growth over multiple reporting periods.

Negative Factors

Elevated leverage from acquisitions

Higher net debt and a rising net-debt/EBITDA ratio reduce financial flexibility and increase refinancing and interest-rate vulnerability. Over a 2–6 month horizon this constrains capital allocation, limits headroom for opportunistic investment and raises sensitivity to any cash-flow softness.

Low net profit margin despite healthy operating margins

A large gap between robust operating margins and a low net margin suggests material non-operating costs (interest, partner buy-ins, integration costs or tax items). This limits retained earnings and resilience, reducing the ability to self-fund growth or absorb shocks without increasing leverage.

Integration timing and modest organic growth

Rapid acquisition activity creates integration timing lag that delays margin uplift; combined with modest organic growth (~4% reported) this can temper sustainable revenue growth. Working-capital and overdraft spikes tied to deals also pressure near-term liquidity and operational focus.

Kelly Partners Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Kelly Partners Group Holdings Limited provides chartered accounting and other professional services to private businesses and high net worth individuals in Australia. The company operates through two segments, Accounting and Other Services. It offers accounting and taxation, corporate secretarial, outsourced CFO, audit, business structuring, bookkeeping, and other accounting related services. The company also provides financial broking, wealth management, investment office, and other non-accounting services. Kelly Partners Group Holdings Limited was founded in 2006 and is based in North Sydney, Australia.

How the Company Makes Money

Kelly Partners Group Holdings Ltd. generates revenue through multiple streams. The primary source of income comes from fees for accounting and tax services provided to SMEs, which include compliance services and advisory fees. KPG also earns revenue from consulting services that offer strategic insights and business development assistance. Additionally, the company may benefit from performance-based fees linked to the financial improvement of its clients. Strategic partnerships with technology providers enhance service delivery, allowing KPG to integrate advanced solutions into their offerings, which can lead to increased client retention and new business opportunities. The company's growth strategy includes expanding its network of partner firms, which contributes to its overall revenue growth by increasing its client base and service capabilities.

Kelly Partners Group Holdings Ltd. Financial Statement Overview

Summary

Strong revenue growth (11.98%) and healthy EBIT/EBITDA margins (16.88%/27.63%) support performance, and free cash flow conversion to net income is solid (FCF/NI 0.92). Offsetting this, leverage is high (debt-to-equity 3.58) and net margin is low (2.54%), raising balance-sheet risk.

Income Statement

Kelly Partners Group Holdings Ltd. has demonstrated strong revenue growth with a rate of 11.98% in the most recent year, indicating a positive trajectory. The gross profit margin is exceptionally high at 100%, suggesting efficient cost management. However, the net profit margin is relatively low at 2.54%, which may indicate high operating expenses or other costs. The EBIT and EBITDA margins are healthy at 16.88% and 27.63%, respectively, showing good operational efficiency.

Balance Sheet

The company has a high debt-to-equity ratio of 3.58, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is moderate at 12.01%, reflecting decent profitability relative to shareholder equity. The equity ratio is not provided, but the overall leverage suggests a need for cautious financial management.

Cash Flow

The free cash flow growth rate is positive at 5.64%, indicating improving cash generation capabilities. The operating cash flow to net income ratio is 0.58, suggesting that cash flow generation is not fully aligned with reported earnings. The free cash flow to net income ratio is strong at 0.92, indicating that a significant portion of earnings is converted into free cash flow.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	145.67M	134.61M	108.14M	86.52M	64.86M	48.91M
Gross Profit	26.44M	26.01M	53.90M	14.71M	16.66M	14.02M
EBITDA	41.25M	37.20M	31.69M	24.92M	24.14M	18.38M
Net Income	3.03M	3.41M	3.52M	3.93M	5.56M	4.62M
Balance Sheet
Total Assets	233.63M	198.96M	159.32M	132.59M	106.64M	67.61M
Cash, Cash Equivalents and Short-Term Investments	3.36M	6.87M	3.27M	5.33M	2.97M	4.04M
Total Debt	152.32M	101.88M	79.75M	72.66M	53.74M	31.85M
Total Liabilities	161.97M	132.48M	106.96M	97.12M	72.69M	42.46M
Stockholders Equity	29.72M	28.42M	22.64M	20.54M	20.70M	17.95M
Cash Flow
Free Cash Flow	28.80M	28.74M	21.33M	16.85M	10.11M	12.76M
Operating Cash Flow	32.20M	31.27M	25.61M	19.50M	17.58M	15.08M
Investing Cash Flow	-30.17M	-19.78M	-14.82M	-11.33M	-20.93M	-4.45M
Financing Cash Flow	-10.32M	-11.39M	-5.95M	-14.95M	3.58M	-11.00M

Kelly Partners Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KPG, the sentiment is Negative. The current price of 8.4 is above the 20-day moving average (MA) of 6.46, above the 50-day MA of 7.40, and below the 200-day MA of 9.55, indicating a bearish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 38.44 is Neutral, neither overbought nor oversold. The STOCH value of 2.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:KPG.

Kelly Partners Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIQ	79 Outperform	AU$1.12B	13.46	31.30%	5.51%	11.64%	18.08%
CUP	76 Outperform	AU$184.34M	13.02	8.06%	4.11%	27.05%	520.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KPG	59 Neutral	AU$283.42M	93.71	13.37%	0.11%	24.47%	21.28%

Kelly Partners Group Holdings Ltd. Corporate Events

Kelly Partners Launches On-Market Share Buy-Back Program

Kelly Partners Group Holdings Ltd., listed on the ASX under the code KPG, has ordinary fully paid shares and operates in the broader financial and professional services arena. The company serves a client base that typically requires accounting, advisory, and related services, positioning it within a competitive but stable professional services market.

The company has announced a new on-market share buy-back of its ordinary fully paid shares under ASX Appendix 3C. The move signals that management considers the current share price attractive and is prepared to return capital to shareholders, potentially improving earnings per share and capital management flexibility for investors over time.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Boosts Revenue Run Rate and Network Scale in 1H26

Kelly Partners Group Holdings reported 1H26 results showing expansion to 710 team members, 105 partner businesses across five countries, and revenue run rate growth to $76 million from $65 million a year earlier. The firm increased free cash flow per share to 12.1 cents, modestly lifted revenue per headcount, and continued to compound returns through a combination of organic growth and return on invested capital, despite a slight decline in combined ROIC plus organic growth versus the prior period.

The company’s share base rose marginally to 45.2 million, while returns on invested capital edged down to 20.8% from 22.2%, indicating strong but slightly moderating capital efficiency as the network scales. Overall, the results highlight continued top-line growth and geographic expansion, suggesting a strategy focused on building scale in professional services while maintaining disciplined capital allocation for stakeholders.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Lifts Revenue 17% as Global Expansion and McDonald’s Focus Drive Growth

Kelly Partners Group Holdings reported first-half 2026 revenue of $76.0 million, up 17.0% year on year, with underlying NPATA attributable to the parent rising 12.8% to $5.6 million and underlying EBITDA up 10.8% to $19.3 million. Growth was driven mainly by acquisitions, which contributed 12.8 percentage points of revenue expansion alongside 4.2% organic growth, though higher borrowing to fund deals lifted net debt to $77.1 million and increased gearing to 1.79 times underlying EBITDA.

The group continued its international expansion, completing six partnerships across Australia and the U.S. and establishing a Philippine BPO platform with more than 1,150 seats to support global operations. Its U.S. businesses now generate about $25 million, or 15% of group revenue, while strong Net Promoter Scores well above industry averages and a rising AFR ranking to 17th among Australia’s top accounting firms underscore its strengthening brand and challenger position in the mid-market advisory sector.

Operationally, Kelly Partners is leveraging technology and sector specialisation to deepen client engagement, rolling out Microsoft 365 Copilot to boost productivity and launching a mobile app tailored for McDonald’s owner-operators. Despite a modest decline in group EBITDA margins due to investment and integration costs, cash flow from operations improved and owner earnings increased, supporting the firm’s long-term strategy of compounding book value and scaling its partner-owner-driver model across key growth markets.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners lifts revenue and underlying earnings as acquisitions expand footprint

Kelly Partners Group Holdings reported a 17% rise in revenue to $75.99 million for the half-year to 31 December 2025, but statutory profit attributable to owners fell 15.5% to $2.11 million and total comprehensive income declined sharply. Underlying NPATA, which management says better reflects core earnings by excluding amortisation and non-recurring items, increased 12.8% to $5.56 million, highlighting stronger operational performance despite accounting charges and one-off costs.

The group continued its acquisition-driven expansion, buying several accounting and outsourced services businesses across New South Wales, the United States, and the Philippines that added $4.82 million in revenue and $0.46 million in profit before tax and amortisation over the period. No dividends were paid or declared for the half-year, and net tangible assets per share remained negative, underscoring a balance sheet heavily influenced by intangibles from acquisitions and the company’s reliance on earnings growth rather than asset backing for shareholder value.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly+Partners sets date for 1H26 results as accounting network continues global expansion

Kelly+Partners Group Holdings, an ASX-listed specialist chartered accounting network, has expanded from two Australian offices to 41 operating businesses across 42 locations worldwide, serving over 25,000 SME clients with a team of more than 700 staff and 100 partners. Its distinctive Hold Co structure and Partner-Owner-Driver model underpin a consolidation strategy that has reshaped over 50 external firms and launched more than 30 greenfield practices, aiming to address structural challenges in the accounting industry and support small and mid-sized enterprises.

The company announced it will release its financial results for the half year ended 31 December 2025 on 11 February 2026 and will host a group investor presentation the same day. The scheduled update gives investors and other stakeholders a forthcoming checkpoint on KPG’s growth trajectory and operational performance as it continues to build scale and influence in the Australian and global accounting market.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Says No Undisclosed Information Behind Share Price Movements

Kelly Partners Group Holdings Limited has responded to an ASX price query, stating it is not aware of any undisclosed information that could explain recent trading activity in its securities. The company confirmed it is not relying on any disclosure exceptions, has no alternative explanation for the price movements, and affirmed its compliance with ASX Listing Rule 3.1 and its internal continuous disclosure policy, seeking to reassure the market and stakeholders about the transparency of its disclosures.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$6.50 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Founder Brett Kelly Restructures Shareholdings Under New Loan Security Arrangements

Kelly Partners Group Holdings has disclosed changes in the shareholdings of its founder and director Brett Kelly, detailing a series of transfers between his direct and indirect holdings and various custodial arrangements over the period 19–22 December 2025. The notice shows that a significant portion of Kelly’s directly held ordinary shares was moved into structures involving custodians and lenders as security under loan and pledge agreements, signalling a reorganisation of his personal financing and security arrangements rather than a straightforward sale, and clarifying his ongoing economic interest in the company for investors monitoring board and insider ownership.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Group Climbs to 17th in AFR Top 100 Accounting Firms

Kelly Partners Group Holdings Limited has been ranked as the 17th largest accounting firm in Australia according to the 2025 Australian Financial Review’s Top 100 Accounting Firms list. The company has demonstrated consistent growth, with a current annual run rate revenue of AUD 164 million, and aims to break into the Top 10 accounting firms in Australia by achieving a revenue target of approximately AUD 200 million. Recent acquisitions and organic growth have contributed to this upward trajectory, positioning Kelly Partners for further expansion and increased market share.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Expands with New Partnership in Narrandera

Kelly Partners Group Holdings Limited has completed a partnership with an accounting firm in Narrandera, NSW, forming a new entity where it holds a 50.10% interest. This partnership, while not materially significant, highlights the company’s effective succession planning model and its ability to attract established firms. The acquisition contributes to the company’s growth strategy, with Kelly Partners completing multiple partnerships this financial year, boosting its revenue growth and market positioning.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Expands with Southern Highlands Acquisition

Kelly Partners Group Holdings Limited has announced a new partnership with an accounting firm in Southern Highlands, NSW, acquiring a 50.10% interest. This acquisition is part of Kelly+Partners’ strategy to assist with business succession and expand its market reach, contributing to an estimated annual revenue increase to $163 million.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Group AGM Results: Resolutions Carried with Strong Support

Kelly Partners Group Holdings Ltd. announced the results of its Annual General Meeting held on November 25, 2025. All resolutions presented to shareholders were carried, indicating strong support for the company’s current strategies and leadership. This outcome suggests continued stability and confidence in the company’s direction, which may positively impact its market positioning and stakeholder relations.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.

Kelly Partners Group Reports Strong FY25 Growth

Kelly Partners Group Holdings Ltd. reported significant growth in its 2025 financial year, with a 17% increase in team size and a 25% rise in revenue, reaching $134 million. The company also expanded its operations to more countries, reflecting its commitment to helping private business owners and communities thrive. This growth highlights the company’s strong market positioning and dedication to its mission and values.

The most recent analyst rating on (AU:KPG) stock is a Hold with a A$10.00 price target. To see the full list of analyst forecasts on Kelly Partners Group Holdings Ltd. stock, see the AU:KPG Stock Forecast page.