ScoreWhy is K-Bro Linen, Inc. ?
1
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)
2
Poor long term growth as Operating profit has grown by an annual rate 14.84% of over the last 5 years
3
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%
4
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
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 ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is K-Bro Linen, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
K-Bro Linen, Inc.
5.54%
0.39
24.00%
S&P/TSX 60
21.87%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
16.84%
EBIT Growth (5y)
19.70%
EBIT to Interest (avg)
3.53
Debt to EBITDA (avg)
1.35
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
1.11
Tax Ratio
20.07%
Dividend Payout Ratio
67.25%
Pledged Shares
0
Institutional Holding
0.45%
ROCE (avg)
8.21%
ROE (avg)
6.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
Price to Book Value
1.65
EV to EBIT
18.81
EV to EBITDA
8.60
EV to Capital Employed
1.35
EV to Sales
1.53
PEG Ratio
2.35
Dividend Yield
NA
ROCE (Latest)
7.18%
ROE (Latest)
6.96%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CAD 52.03 MM
CASH AND EQV(HY)
Highest at CAD 51.07 MM
NET SALES(Q)
Highest at CAD 155.95 MM
OPERATING PROFIT(Q)
Highest at CAD 32.08 MM
PRE-TAX PROFIT(Q)
Highest at CAD 12.1 MM
NET PROFIT(Q)
Highest at CAD 8.86 MM
-14What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 10.48% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 108.22 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 6.45 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.14 times
INTEREST(Q)
Highest at CAD 5.02 MM
Here's what is working for K-Bro Linen, Inc.
Operating Cash Flow
Highest at CAD 52.03 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CAD MM)
Net Sales
At CAD 155.95 MM has Grown at 54.42%
over average net sales of the previous four periods of CAD 100.99 MMMOJO Watch
Near term sales trend is very positive
Net Sales (CAD MM)
Pre-Tax Profit
At CAD 12.1 MM has Grown at 112.99%
over average net sales of the previous four periods of CAD 5.68 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CAD MM)
Net Sales
Highest at CAD 155.95 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Operating Profit
Highest at CAD 32.08 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (CAD MM)
Pre-Tax Profit
Highest at CAD 12.1 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CAD MM)
Net Profit
Highest at CAD 8.86 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Net Profit
At CAD 8.86 MM has Grown at 94.31%
over average net sales of the previous four periods of CAD 4.56 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CAD MM)
Cash and Eqv
Highest at CAD 51.07 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at CAD 14.91 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Depreciation
At CAD 14.91 MM has Grown at 40.37%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (CAD MM)
Here's what is not working for K-Bro Linen, Inc.
Interest
At CAD 5.02 MM has Grown at 23.77%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Interest
Highest at CAD 5.02 MM
in the last five periods and Increased by 23.77% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Debt-Equity Ratio
Highest at 108.22 %
in the last five Semi-Annual periodsMOJO 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 6.45 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 6.14 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 10.48% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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