K-Bro Linen, Inc. (KBL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Information Services Corp.

GDI Integrated Facility Services, Inc.

Calian Group Ltd.

CCL Industries, Inc.

Diversified Royalty Corp.

CAE, Inc.

Galaxy Digital Holdings Ltd.

TECSYS, Inc.

K-Bro Linen, Inc.

CGI, Inc.

Brookfield Business Partners LP

Why is K-Bro Linen, Inc. ?

Poor Management Efficiency with a low ROCE of 8.21%

The company has been able to generate a Return on Capital Employed (avg) of 8.21% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 14.84% of over the last 5 years

Negative results in Jun 25

DIVIDEND PAYOUT RATIO(Y) Lowest at 61.04%
DEBT-EQUITY RATIO (HY) Highest at 113.61 %
INVENTORY TURNOVER RATIO(HY) Lowest at 5.81%

With ROE of 6.69%, it has a expensive valuation with a 1.40 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.57%, its profits have risen by 10.6% ; the PEG ratio of the company is 1.5

Underperformed the market in the last 1 year

The stock has generated a return of 2.57% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to K-Bro Linen, Inc. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is K-Bro Linen, Inc. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

K-Bro Linen, Inc.

-12.24%

0.39

24.00%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.36%

EBIT Growth (5y)

14.84%

EBIT to Interest (avg)

3.53

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.14

Tax Ratio

20.07%

Dividend Payout Ratio

67.25%

Pledged Shares

Institutional Holding

0.45%

ROCE (avg)

8.21%

ROE (avg)

6.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.38

EV to EBIT

18.65

EV to EBITDA

8.73

EV to Capital Employed

1.20

EV to Sales

1.55

PEG Ratio

1.50

Dividend Yield

ROCE (Latest)

6.44%

ROE (Latest)

6.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.68% (YoY

CASH AND EQV(HY)

Highest at CAD 38.5 MM

NET SALES(Q)

Highest at CAD 113.07 MM

-15What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 61.04%

DEBT-EQUITY RATIO (HY)

Highest at 113.61 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.81%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.56%

INTEREST(Q)

Highest at CAD 4.06 MM

Here's what is working for K-Bro Linen, Inc.

Net Sales

Highest at CAD 113.07 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 38.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -6.68% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 10.62 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for K-Bro Linen, Inc.

Interest

At CAD 4.06 MM has Grown at 43.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest

Highest at CAD 4.06 MM

in the last five periods and Increased by 43.07% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 113.61 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.81%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.56%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 61.04%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)