K-Bro Linen (KBL) AI Stock Analysis

• Market Cap: C$465.41M
• Dividend Yield: 3.3%
• Average Volume (3M): 26.19K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.43
• Revenue Growth: 17.75%
• EPS Growth: 7.68%
• Country: CA
• Employees: 3,240
• Sector: Industrials
• Sector Strength: 75
• Industry: Specialty Business Services
• EPS (TTM): 0.70
• Shares Outstanding: 12,859,823
• 10 Day Avg. Volume: 16,570
• 30 Day Avg. Volume: 26,186
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$52.50
• Price Target Upside: 42.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: C$42.00 ▲(14.38% Upside)

K-Bro Linen's overall stock score is driven by its solid financial performance and improving cash flow generation. The technical analysis indicates strong momentum, although overbought conditions suggest caution. The valuation is reasonable with a supportive dividend yield, making it an attractive option for income investors. The absence of recent earnings call data and corporate events means these factors do not influence the score.

K-Bro Linen Business Overview & Revenue Model

Company Description

K-Bro Linen Inc. is a leading provider of linen and laundry services in Canada. The company operates within the healthcare and hospitality sectors, offering a range of services including the laundering, processing, and management of linen and related products. K-Bro Linen caters to hospitals, nursing homes, hotels, and other institutions, delivering high-quality, reliable, and efficient linen services tailored to meet the specific needs of its clients.

How the Company Makes Money

K-Bro Linen generates revenue primarily through long-term contracts with healthcare facilities and hospitality businesses. The company offers comprehensive linen and laundry services, including the collection, cleaning, and delivery of linen products. Revenue streams include fees for laundering services, lease arrangements for linen products, and management services for client-owned linen inventory. K-Bro's financial performance is bolstered by its established relationships with key clients, economies of scale, and its ability to offer customized solutions that enhance operational efficiency for its customers. The company's strategic expansion and acquisition activities also contribute to its revenue growth by broadening its market presence and service offerings.

K-Bro Linen Financial Statement Overview

Summary

K-Bro Linen demonstrates solid financial performance with strong revenue growth and efficient cash flow management. However, challenges exist in maintaining operating margins and managing high leverage, which could impact financial stability if not addressed.

Income Statement

The company shows strong revenue growth, with a significant increase from 2023 to TTM 2025. Gross profit margins are robust, indicating effective cost management. However, there is a slight decline in EBIT and net profit margins in TTM 2025 compared to the previous year, suggesting some pressure on operating efficiency or increased costs.

Balance Sheet

The debt-to-equity ratio is relatively high, indicating a significant reliance on debt financing, which could pose risks if not managed carefully. The equity ratio shows a stable proportion of equity financing. Return on Equity (ROE) is moderate, reflecting a decent return for shareholders but highlighting room for improvement.

Cash Flow

Strong operating cash flow relative to net income suggests good cash generation capability. Free cash flow shows healthy growth, supporting potential for reinvestment or debt reduction. The free cash flow to net income ratio is favorable, indicating efficient cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	403.96M	373.61M	320.88M	276.62M	223.99M	196.59M
Gross Profit	466.20M	323.57M	114.48M	234.35M	186.99M	164.82M
EBITDA	74.37M	68.76M	56.45M	36.49M	42.79M	38.24M
Net Income	18.61M	18.71M	17.61M	3.91M	8.69M	3.78M
Balance Sheet
Total Assets	716.76M	438.15M	364.72M	325.76M	332.52M	323.81M
Cash, Cash Equivalents and Short-Term Investments	25.06M	9.42M	5.86M	2.64M	1.11M	2.42M
Total Debt	334.42M	178.91M	123.55M	98.82M	94.91M	86.66M
Total Liabilities	444.46M	248.74M	190.28M	149.22M	146.12M	134.31M
Stockholders Equity	272.30M	189.41M	174.43M	176.54M	186.40M	189.50M
Cash Flow
Free Cash Flow	36.67M	30.62M	29.02M	14.67M	21.38M	37.98M
Operating Cash Flow	49.80M	49.95M	41.01M	26.13M	31.88M	42.40M
Investing Cash Flow	-204.96M	-73.24M	-34.26M	-11.43M	-10.49M	-4.41M
Financing Cash Flow	170.43M	26.23M	-3.72M	-13.11M	-22.69M	-40.83M

K-Bro Linen Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KBL, the sentiment is Positive. The current price of 36.72 is above the 20-day moving average (MA) of 35.90, above the 50-day MA of 35.01, and above the 200-day MA of 35.11, indicating a bullish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 59.06 is Neutral, neither overbought nor oversold. The STOCH value of 9.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	74 Outperform	C$1.69B	9.43	9.65%	9.43%	-2.58%	100.21%
DXT	72 Outperform	C$617.47M	17.59	14.80%	3.60%	-5.62%	88.69%
CGY	66 Neutral	C$582.52M	13,697.30	-0.21%	2.20%	1.44%	-103.80%
KBL	66 Neutral	C$465.41M	20.83	8.27%	3.30%	17.75%	7.68%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%
GDI	63 Neutral	C$636.40M	18.15	7.32%	―	-0.87%	117.78%
DCM	49 Neutral	C$84.07M	12.10	17.74%	3.45%	-8.92%	―

K-Bro Linen Corporate Events

K-Bro Linen Achieves Record Q2 Results and Expands UK Presence with Stellar Mayan Acquisition

K-Bro Linen Inc. reported record financial results for Q2 2025, with a 21% increase in revenue and significant growth in both healthcare and hospitality segments. The acquisition of Stellar Mayan, a major UK-based commercial laundry business, is expected to strengthen K-Bro’s market position and diversify its operations, as it continues to experience steady volume trends and anticipates stable EBITDA margins.

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 to Announce Q2 2025 Financial Results

K-Bro Linen Inc. announced the release date for its Q2 2025 financial results, scheduled for August 13, 2025, with a subsequent conference call and webcast on August 14, 2025. This announcement allows stakeholders to gain insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

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 Declares July 2025 Dividend

K-Bro Linen Inc. has declared a dividend of 10.00 cents CDN per common share for July 2025, to be paid on August 15, 2025, to shareholders of record on July 31, 2025. This announcement reflects K-Bro’s ongoing commitment to providing value 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.

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 Announces June 2025 Dividend

K-Bro Linen Inc. has declared a dividend of 10.00 cents CDN per common share for June 2025, payable on July 15, 2025, to shareholders of record on June 30, 2025. This announcement aligns with the company’s policy of distributing dividends to shareholders of record at the end of each month. The dividend is designated as an eligible dividend under Canadian tax legislation, which may have favorable tax implications for shareholders.

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 Star Mayan Acquisition

K-Bro Linen Inc. has completed the acquisition of U.K.-based Star Mayan Limited for £107.2 million, enhancing its presence in the U.K.’s commercial laundry and textile rental sector. This acquisition, funded through a combination of a bought deal financing and a new term loan, aims to integrate Star Mayan with K-Bro’s existing U.K. businesses, Fishers and Shortridge, to create a leading national platform. The move is expected to provide growth opportunities and strengthen K-Bro’s market position in the U.K.

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 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.