K-Bro Linen (KBL) AI Stock Analysis

• Market Cap: C$365.86M
• Dividend Yield: 3.44%
• Average Volume (3M): 18.86K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.48
• Revenue Growth: 16.35%
• EPS Growth: 3.98%
• Country: CA
• Employees: 3,240
• Sector: Industrials
• Sector Strength: 92
• Industry: Specialty Business Services
• EPS (TTM): 0.32
• Shares Outstanding: 10,501,039
• 10 Day Avg. Volume: 27,692
• 30 Day Avg. Volume: 18,858
• PEG Ratio: 2.04
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.45
• 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: C$48.80
• Price Target Upside: 40.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: C$39.00 ▲(11.94%Upside)

K-Bro Linen's overall score is driven by strong financial performance, particularly in revenue growth and cash flow generation. Positive corporate events, including strategic acquisitions, contribute significantly to the score, while neutral technical indicators and moderate valuation provide a stable outlook.

K-Bro Linen Business Overview & Revenue Model

Company Description

K-Bro Linen Inc., together with its subsidiaries, provides laundry and linen services to healthcare institutions, hotels, and other commercial organizations in Canada and the United Kingdom. Its services include processing, management, and distribution of general and operating room linens, such as sheets, blankets, towels, surgical gowns, and drapes and other linens. The company also offers other services, including bulk dock-to-dock, exchange cart preparation, cart delivery, surgical linen, distribution and control of employee uniforms, personal clothing, customer reporting, customer service visiting, and textile procurement services. In addition, it provides linen rental, workwear hire, and cleanroom garment services. K-Bro Linen Inc. was founded in 1954 and is headquartered in Edmonton, Canada.

How the Company Makes Money

K-Bro Linen generates revenue primarily through its contract-based services, where it enters into long-term agreements with healthcare and hospitality institutions for the rental and laundering of linens and garments. These contracts often include comprehensive textile management services, allowing clients to outsource their linen and laundry needs. Additionally, K-Bro Linen benefits from economies of scale and operational efficiencies in its processing facilities, which contribute to its profitability. The company's revenue streams are further supported by its strategic presence in multiple markets, enabling it to leverage cross-border expertise and relationships.

K-Bro Linen Financial Statement Overview

Summary

K-Bro Linen exhibits a strong financial position with consistent revenue growth, solid cash flow generation, and moderate profitability. While the company maintains operational efficiency, there's room to enhance net profitability and monitor debt levels to ensure long-term financial stability. Overall, the financial statements present a promising outlook with stable growth prospects.

Income Statement

K-Bro Linen has shown strong revenue growth with a TTM increase of about 12.40% from the previous year. The company maintains a healthy gross profit margin of approximately 38.81% in the TTM, indicating efficient control over production costs. However, the net profit margin is relatively modest at 5.19%, suggesting room for improvement in managing non-operating expenses. Steady EBIT and EBITDA margins at 8.95% and 18.11% respectively reflect stable operational efficiency.

Balance Sheet

The balance sheet presents a debt-to-equity ratio of 1.02, which is relatively high but manageable, indicating a balanced use of debt and equity. The equity ratio stands at 41.66%, showing a substantial portion of assets funded by equity. Return on Equity is decent at 9.94%, suggesting moderate profitability relative to equity. The financial leverage appears controlled but warrants monitoring to avoid increased financial risk.

Cash Flow

The company demonstrates robust cash flow health with an operating cash flow to net income ratio of 2.50, indicating strong cash earnings. Free cash flow growth is positive, with a slight increase to $30.73 million, highlighting effective cash management. Free cash flow to net income ratio at 1.64 further supports the company's capability to generate cash in excess of capital expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
360.63M	320.88M	276.62M	223.99M	196.59M	252.41M
	Gross Profit
140.00M	114.48M	234.35M	186.99M	164.82M	216.69M
	EBIT
32.28M	28.49M	9.27M	15.44M	15.54M	19.17M
	EBITDA
65.32M	56.45M	36.49M	42.79M	38.24M	47.57M
	Net Income Common Stockholders
18.72M	17.61M	3.91M	8.69M	3.78M	10.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.83M	5.86M	2.64M	1.11M	2.42M	5.30M
	Total Assets
322.23M	364.72M	325.76M	332.52M	323.81M	352.06M
	Total Debt
70.20M	123.55M	98.82M	94.91M	86.66M	109.32M
	Net Debt
67.38M	117.69M	96.19M	93.80M	84.24M	104.02M
	Total Liabilities
123.57M	190.28M	149.22M	146.12M	134.31M	156.01M
	Stockholders Equity
198.66M	174.43M	176.54M	186.40M	189.50M	196.05M
Cash Flow		Free Cash Flow
30.73M	29.02M	14.67M	21.38M	37.98M	29.54M
	Operating Cash Flow
46.76M	41.01M	26.13M	31.88M	42.40M	43.92M
	Investing Cash Flow
-81.95M	-34.26M	-11.43M	-10.49M	-4.41M	-14.33M
	Financing Cash Flow
50.34M	-3.72M	-13.11M	-22.69M	-40.83M	-27.10M

K-Bro Linen Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KBL, the sentiment is Negative. The current price of 34.84 is below the 20-day moving average (MA) of 34.90, above the 50-day MA of 34.82, and below the 200-day MA of 35.08, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 52.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KBL.

K-Bro Linen Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.B	77 Outperform	C$1.76B	9.84	9.65%	4.28%	-2.58%	100.21%
KBL	74 Outperform	C$365.86M	20.43	9.69%	3.44%	16.35%	3.98%
GDI	73 Outperform	C$754.55M	19.82	7.93%	―	1.49%	152.09%
DXT	72 Outperform	C$544.26M	17.31	15.03%	4.01%	-10.24%	-23.79%
DCM	69 Neutral	C$95.68M	13.28	21.19%	1.45%	-5.30%	―
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%
CGY	63 Neutral	C$462.74M	10,997.30	0.01%	2.75%	3.03%	-99.78%

K-Bro Linen Corporate Events

K-Bro Linen Inc. Announces AGM Results and Strong Shareholder Support

K-Bro Linen Inc. announced the results of its annual general meeting, where shareholders approved all items of business, including the election of directors. The meeting saw a 67.79% participation rate of outstanding shares. This approval reflects strong shareholder support and is likely to positively impact the company’s operations and its position in the industry.

The most recent analyst rating on (TSE:KBL) stock is a Buy with a C$45.00 price target. To see the full list of analyst forecasts on K-Bro Linen stock, see the TSE:KBL Stock Forecast page.

K-Bro Linen Secures $80 Million for Strategic Acquisition

K-Bro Linen Inc. has successfully closed an $80 million subscription receipt offering, including the full exercise of the over-allotment option. The proceeds will be used to finance the acquisition of STAR Mayan Limited, a leading commercial laundry business in England, enhancing K-Bro’s market position in the healthcare and hospitality sectors. The acquisition is expected to close by June 11, 2025, and the subscription receipts will convert into common shares upon completion. If the acquisition does not close by June 30, 2025, the subscription receipts will be canceled, and investors will receive their funds back.

The most recent analyst rating on (TSE:KBL) stock is a Buy with a C$45.00 price target. To see the full list of analyst forecasts on K-Bro Linen stock, see the TSE:KBL Stock Forecast page.

K-Bro Linen Files Final Prospectus for $70 Million Public Offering

K-Bro Linen Inc. has filed a final prospectus for its public equity financing of $70,136,500 in subscription receipts, with a potential increase to $80,656,975 if the over-allotment option is fully exercised. This move is part of K-Bro’s strategy to strengthen its financial position and expand its market presence. The prospectus is available on SEDAR+, and the offering is not registered for sale in the United States. This development could enhance K-Bro’s operational capabilities and market positioning, potentially benefiting stakeholders by supporting future growth initiatives.

The most recent analyst rating on (TSE:KBL) stock is a Buy with a C$45.00 price target. To see the full list of analyst forecasts on K-Bro Linen stock, see the TSE:KBL Stock Forecast page.

K-Bro Linen Reports Record Q1 Results and Acquires UK-Based Star Mayan

K-Bro Linen Inc. reported a strong Q1 2025 with a 13.4% revenue increase to $91 million, driven by growth in both healthcare and hospitality segments. The company announced a transformative acquisition of UK-based Star Mayan, enhancing its market position by creating a top three national platform in the UK. This acquisition is expected to diversify K-Bro’s revenue and strengthen its presence in the UK healthcare market, aligning with trends similar to the Canadian market.

The most recent analyst rating on (TSE:KBL) stock is a Buy with a C$45.00 price target. To see the full list of analyst forecasts on K-Bro Linen stock, see the TSE:KBL Stock Forecast page.

K-Bro Linen Expands U.K. Presence with Major Acquisition of Star Mayan

K-Bro Linen Inc. has announced the acquisition of U.K.-based Star Mayan Limited for £107 million, significantly enhancing its presence in the U.K.’s commercial laundry market. This acquisition positions K-Bro as a top three national player in the U.K., with a combined market share of approximately 10% in the £1.6 billion industry. The acquisition is expected to diversify K-Bro’s revenue streams, particularly in the healthcare sector, and create significant synergies and operational efficiencies. The move is seen as a strategic step to expand K-Bro’s geographic footprint and enhance its service capabilities in both the healthcare and hospitality markets.

The most recent analyst rating on (TSE:KBL) stock is a Buy with a C$45.00 price target. To see the full list of analyst forecasts on K-Bro Linen stock, see the TSE:KBL Stock Forecast page.

K-Bro Linen Inc. Announces Virtual 2025 Annual General Meeting

K-Bro Linen Inc. announced it will hold its Annual General Meeting virtually on June 3, 2025. The meeting will include presentations by the company’s President and CEO, Linda McCurdy, and CFO, Kristie Plaquin. This announcement underscores K-Bro’s commitment to transparency and engagement with its stakeholders, potentially impacting its operations and market positioning within the linen processing industry.

K-Bro Linen to Announce Q1 2025 Financial Results and Host Conference Call

K-Bro Linen Inc. has announced the release date for its Q1 2025 financial results, scheduled for May 14, 2025, after market close. A conference call and webcast will follow on May 15, 2025, to discuss the results, featuring remarks from the company’s President and CEO, Linda McCurdy, and CFO, Kristie Plaquin. This announcement is part of K-Bro’s ongoing efforts to maintain transparency with its stakeholders and provide insights into its financial performance.

K-Bro Linen Declares April 2025 Dividend

K-Bro Linen Inc. announced a dividend of 10.00 cents CDN per common share for April 2025, payable on May 15, 2025, to shareholders of record on April 30, 2025. This announcement underscores K-Bro’s commitment to providing returns to its shareholders and reinforces its position as a leading player in the laundry and linen processing industry, with implications for continued investor confidence and market stability.

K-Bro Linen Reports Record 2024 Results and Positive Outlook

K-Bro Linen Inc. reported a record increase in revenue and earnings for 2024, with a 16.4% rise in revenue to $373.6 million. The company experienced growth in both its healthcare and hospitality segments, with hospitality revenue increasing by 30.3%. K-Bro also completed the acquisition of Buanderie Villeray, enhancing its operations in the hospitality and healthcare sectors. The company is optimistic about its future growth prospects, supported by a strong liquidity position and an active M&A pipeline.