Kelly Partners Group Holdings Ltd. (AU:KPG)
ASX:KPG
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Kelly Partners Group Holdings Ltd.
(Sydney:KPG)
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Rating:62Neutral
Price Target:
AU$5.00
▼(-40.48% Downside)
Action:ReiteratedDate: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
Recurring SME fee-for-service model
Kelly Partners’ core model is recurring fee-for-service to SMEs combined with practice ownership economics. That drives predictable, repeatable revenue and high client retention, supporting stable cash generation and revenue visibility that underpins durable profitability and organic cross-sell opportunities.
Negative Factors
Elevated leverage from recent acquisitions
Leverage rose materially following acquisition financing, reducing financial flexibility. Higher net debt and scheduled repayments increase refinancing and liquidity risk during integration, potentially constraining capital allocation choices (M&A vs buybacks) and amplifying downside if growth or cash conversion weakens.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SME fee-for-service model
Kelly Partners’ core model is recurring fee-for-service to SMEs combined with practice ownership economics. That drives predictable, repeatable revenue and high client retention, supporting stable cash generation and revenue visibility that underpins durable profitability and organic cross-sell opportunities.
Read all positive factors
Kelly Partners Group Holdings Ltd. (KPG) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$212.34M
Dividend Yield0.11%
Average Volume (3M)40.17K
Price to Earnings (P/E)43.9
Beta (1Y)1.01
Revenue Growth24.47%
EPS Growth21.28%
CountryAU
Employees192
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding45,274,956
10 Day Avg. Volume47,437
30 Day Avg. Volume40,175
Financial Highlights & Ratios
PEG Ratio-48.26
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 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 off...
How the Company Makes Money
KPG makes money primarily by delivering fee-for-service professional services through its network of accounting practices. The core revenue stream is recurring client fees for compliance and advisory work, including ongoing accounting and bookkeep...
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
Negative
8.40
Price Trends
5.89
Negative
7.16
Negative
8.87
Negative
Market Momentum
-0.37
Negative
33.02
Neutral
17.28
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 5.05, above the 50-day MA of 5.89, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.37 indicates Negative momentum. The RSI at 33.02 is Neutral, neither overbought nor oversold. The STOCH value of 17.28 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | AU$179.17M | 5.06 | 12.32% | 4.11% | 27.05% | 520.93% | |
75 Outperform | AU$1.16B | 14.94 | 31.30% | 5.51% | 11.64% | 18.08% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | AU$212.34M | 43.95 | 10.41% | 0.11% | 24.47% | 21.28% |
* Industrials Sector Average
AU:KPG
Kelly Partners Group Holdings Ltd.
4.69
-4.65
-49.79%
AU:SIQ
Smartgroup Corporation Ltd
8.44
1.79
26.97%
AU:CUP
Countplus Limited
1.07
0.40
61.36%
Kelly Partners Group Holdings Ltd. Corporate Events
Kelly Partners Founder Adjusts Stake via Funded Share Disposal
Mar 24, 2026
Kelly Partners Group Holdings has disclosed a change in the interests of founder and director Brett Kelly, detailing adjustments to his direct and indirect holdings in the company. Through entities including Kelly Investments 1 Pty Ltd and related...
Kelly+Partners takes control stake in Hello AI to drive group-wide AI rollout
Mar 12, 2026
Kelly+Partners has entered a strategic partnership with UK-based specialist consultancy Hello AI Collective, taking a 50.10% controlling stake in a new entity that will operate the Hello AI business while founder Daniel Boyles retains 49.90% and b...
Kelly Partners’ Brett Kelly Alters Shareholding, Uses Stock-Backed Loan
Mar 12, 2026
Kelly Partners Group Holdings has disclosed changes in director Brett Kelly’s interests, including a small on-market acquisition of 1,803 ordinary shares and the disposal of 950,000 shares held via HSBC Custody Nominees, for proceeds of abou...
Kelly Partners Founder Brett Kelly Increases Stake via On‑Market Share Purchase
Mar 6, 2026
Kelly Partners Group Holdings founder Brett Kelly has modestly increased his stake in the company through an on‑market purchase of 1,835 ordinary shares on 6 March 2026. The transaction, executed via Kelly Investments 1 Pty Ltd for considera...
Kelly Partners’ Brett Kelly Adds Modestly to Shareholding via Super Fund
Feb 27, 2026
Kelly Partners Group Holdings Limited has disclosed a change in managing director Brett Kelly’s relevant interests in the company’s securities, reflecting a small on-market purchase rather than any disposal. The filing outlines his var...
Kelly Partners Launches On-Market Share Buy-Back Program
Feb 10, 2026
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, ad...
Kelly Partners Boosts Revenue Run Rate and Network Scale in 1H26
Feb 10, 2026
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 ...
Kelly Partners Lifts Revenue 17% as Global Expansion and McDonald’s Focus Drive Growth
Feb 10, 2026
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 drive...
Kelly Partners lifts revenue and underlying earnings as acquisitions expand footprint
Feb 10, 2026
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. Underlyi...
Kelly+Partners sets date for 1H26 results as accounting network continues global expansion
Feb 8, 2026
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 s...
Kelly Partners Says No Undisclosed Information Behind Share Price Movements
Feb 5, 2026
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 disclosu...
Kelly Partners Founder Brett Kelly Restructures Shareholdings Under New Loan Security Arrangements
Dec 24, 2025
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–...
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.