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Kelly Partners Group Holdings Ltd.
(Sydney:KPG)
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Rating:62Neutral
Price Target:
AU$4.00
▼(-52.38% Downside)
Action:Reiterated
Date:03/24/26
The score is driven by solid fundamentals and a constructive earnings update (growth, margins, and cash conversion), partially offset by balance-sheet leverage risk. Technicals meaningfully reduce the score due to a strong downtrend and negative momentum, while valuation is mixed with a high yield but an elevated P/E.
Positive Factors
Revenue growth & run-rate
Double-digit reported growth and a 22% uplift in revenue run-rate reflect a widening recurring-fee base and scaled advisory capacity. This larger, diversified revenue stream from organic and acquired practices supports durable top-line momentum and provides a steadier foundation for medium-term cash generation and margin expansion.
Negative Factors
Elevated leverage
Material debt increase to fund acquisitions tightens financial flexibility and raises refinancing and covenant exposure. Near-term scheduled repayments and ~$60m acquisition term debt create recurring cash demands that could constrain further acquisitive growth, share returns or investment if market rates or profitability deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & run-rate
Double-digit reported growth and a 22% uplift in revenue run-rate reflect a widening recurring-fee base and scaled advisory capacity. This larger, diversified revenue stream from organic and acquired practices supports durable top-line momentum and provides a steadier foundation for medium-term cash generation and margin expansion.
Read all positive factors
Kelly Partners Group Holdings Ltd. (KPG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$179.29M
Dividend Yield0.11%
Average Volume (3M)40.17K
Price to Earnings (P/E)59.3
Beta (1Y)1.23
Revenue Growth21.18%
EPS Growth-17.84%
CountryAU
Employees192
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.07
Shares Outstanding45,274,956
10 Day Avg. Volume47,437
30 Day Avg. Volume40,175
Financial Highlights & Ratios
PEG Ratio-48.24
Price to Book (P/B)17.02
Price to Sales (P/S)3.59
P/FCF Ratio16.83
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)N/A
Revenue Forecast (FY)N/A
Kelly Partners Group Holdings Ltd. Business Overview & Revenue Model
Company Description
Kelly Partners Group Holdings Limited, an Australian firm founded in 2006 and based in North Sydney, delivers a comprehensive array of chartered accounting and professional services. The company caters to both private enterprises and high-net-wort...
How the Company Makes Money
KPG makes money primarily by charging fees for professional accounting and advisory services delivered through its network of practices. Key revenue streams include (1) recurring compliance and tax work (e.g., preparation and lodgement of tax retu...
Kelly Partners Group Holdings Ltd. Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 03, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational performance: double-digit revenue, EBITDA and NPATA growth; high margins, robust ROE, a clear programmatic M&A engine, and ongoing investments in software and AI. These positives are tempered by a near-50% share-price decline, increased leverage from recent acquisitions, a temporary spike in working capital debt and modest organic growth. Management presented confidence in the strategy, pipeline and balance-sheet resilience and outlined actions (buybacks, refinancing, continued M&A discipline) to address near-term market-driven challenges.Positive Updates
Revenue Growth and Run Rate Expansion
Group revenue increased 17% to $76.0M (from $64.9M) for the half; reported revenue run rate is $164.2M, representing ~22% growth versus FY25 revenue ($134.6M).
Negative Updates
Significant Share Price Decline
KPG share price down ~49.5% over the last 12 months (management highlighted similar sell-offs in peers like Xero and Constellation), prompting buyback and employee scheme commentary.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Run Rate Expansion
Group revenue increased 17% to $76.0M (from $64.9M) for the half; reported revenue run rate is $164.2M, representing ~22% growth versus FY25 revenue ($134.6M).
Read all positive updates
Company Guidance
Management reiterated that capital allocation will prioritise accretive M&A and continued investment in internal software/AI (six acquisitions in the half adding ~$18–$22m of revenue) with buybacks secondary, and signalled expected organic growth of roughly 5% (reported organic +4.2%) while total group revenue rose 17% to $76.0m and the revenue run‑rate is ~$164.2m (≈22% uplift vs FY25 $134.6m). Profitability and cash metrics remain a focus: group operating EBITDA margin 27.6% (Australia 31.3%), underlying EBITDA +15.2% to $21m, underlying NPATA +12.8% to $5.6m, cash conversion ~101.1% (guidance range 85–100%), free cash flow per share +10%, and strong returns (group ROE 38.1%, parent ROE 32.6%, long‑term BV CAGR ~34.9%). Balance sheet guidance emphasised conservative gearing: net debt $77.1m (up $18.6m), net debt/underlying EBITDA 1.79x (from 1.42x), scheduled debt repayments annualising ~$14m, ~ $60m acquisition term debt, and management reiterated a per‑share growth mindset and intention to pursue an appropriate secondary listing when debt structuring is complete.Kelly Partners Group Holdings Ltd. Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| 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
Neutral
8.40
Price Trends
3.98
Negative
4.59
Negative
6.63
Negative
Market Momentum
-0.03
Negative
53.94
Neutral
51.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KPG, the sentiment is Neutral. The current price of 8.4 is above the 20-day moving average (MA) of 3.74, above the 50-day MA of 3.98, and above the 200-day MA of 6.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:KPG.
Kelly Partners Group Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | AU$1.70B | 20.21 | 29.68% | 5.51% | 7.67% | 5.03% | |
76 Outperform | AU$222.08M | 12.52 | 12.32% | 4.11% | 9.90% | 216.48% | |
75 Outperform | AU$1.02B | 14.25 | 10.55% | 10.58% | 8.13% | -9.10% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$179.29M | 59.28 | 10.41% | 0.11% | 21.18% | -17.84% | |
53 Neutral | AU$51.86M | 23.95 | 9.18% | ― | 4.34% | ― | |
40 Underperform | AU$14.80M | -2.67 | -26.25% | ― | -13.52% | 7.82% |
* Industrials Sector Average
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Kelly Partners Group Holdings Ltd. Corporate Events
Kelly Partners Founder Brett Kelly Trims Stake in Modest On-Market Trade
Jul 3, 2026
Kelly Partners Group Holdings reported a minor change in the shareholding of founder and director Brett Kelly, reflecting an on-market sale of 20,000 ordinary shares held through Kelly Investments 1 Pty Ltd. Following the transaction, Kelly retain...
Kelly Partners Founder Brett Kelly Trims Stake in Modest Share Sale
Jun 26, 2026
Kelly Partners Group Holdings has disclosed a minor change in the shareholding of its founder and CEO Brett Kelly, who remains a major shareholder through a combination of direct holdings, family investment vehicles and superannuation entities. Th...
Kelly Partners Discloses Brett Kelly’s Modest On-Market Share Sale
Jun 19, 2026
Kelly Partners Group Holdings has disclosed a change in managing director Brett Kelly’s interests in the company’s shares, as required under ASX listing rules. The notice details that Kelly, through his associated entities and accounts...
Kelly Partners abandons planned Eurofast partnership after due diligence delays
Jun 16, 2026
Kelly Partners Group Holdings Ltd., an Australian listed accounting and business advisory firm, had been pursuing a potential partnership with Eurofast International, a Nicosia-based professional services provider with operations across 18 countri...
Kelly Partners’ Brett Kelly Adjusts Shareholding and Secures Loan Against Stake
May 8, 2026
Kelly Partners Group Holdings has disclosed a change in director Brett Kelly’s interests, primarily involving the reduction of 650,000 ordinary shares held via HSBC Custody Nominees as part of pre-arranged funding arrangements. Following the...
Kelly Partners shareholders back subsidiary financial assistance at EGM
May 8, 2026
Kelly Partners Group Holdings Ltd. reported the outcome of its Extraordinary General Meeting held on 8 May 2026, where shareholders voted on a single special resolution concerning the provision of financial assistance by a KPGH subsidiary. The res...
Kelly Partners Wins Shareholder Backing for Financing Strategic Acquisition
May 8, 2026
Kelly Partners Group Holdings Ltd. has secured shareholder approval at an extraordinary general meeting to allow a KPGH subsidiary to receive financial assistance in connection with a strategic acquisition. The resolution enables the subsidiary to...
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.