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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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K-Bro Linen, 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 20.42% of over the last 5 years

Flat results in Mar 26

INTEREST(HY) At CAD 9.06 MM has Grown at 50.78%
PRE-TAX PROFIT(Q) At CAD 2.53 MM has Fallen at -58.96%
NET PROFIT(Q) At CAD 2.33 MM has Fallen at -48.19%

With ROE of 7.18%, it has a expensive valuation with a 2.08 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 37.07%, its profits have risen by 12.4%

Real-Time Research Report

Verdict Report

How 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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

K-Bro Linen, Inc.

40.9%

1.67

24.63%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.31%

EBIT Growth (5y)

20.42%

EBIT to Interest (avg)

3.09

Debt to EBITDA (avg)

1.60

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.06

Tax Ratio

26.90%

Dividend Payout Ratio

78.87%

Pledged Shares

Institutional Holding

0.45%

ROCE (avg)

8.49%

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

2.08

EV to EBIT

18.17

EV to EBITDA

7.95

EV to Capital Employed

1.59

EV to Sales

1.42

PEG Ratio

Dividend Yield

ROCE (Latest)

8.76%

ROE (Latest)

7.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 73.25 MM

NET SALES(HY)

At CAD 289.47 MM has Grown at 41.87%

CASH AND EQV(HY)

Highest at CAD 51.37 MM

NET PROFIT(Q)

At CAD 8.38 MM has Grown at 71.9%

-10What is not working for the Company

INTEREST(Q)

At CAD 4.91 MM has Grown at 10.57%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 50.55%

RAW MATERIAL COST(Y)

Grown by 17.18% (YoY

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

Net Sales

At CAD 289.47 MM has Grown at 41.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Cash Flow

Highest at CAD 73.25 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Profit

At CAD 8.38 MM has Grown at 71.9%

over average net sales of the previous four periods of CAD 4.87 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 51.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at CAD 15.23 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 4.91 MM has Grown at 10.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Dividend Payout Ratio

Lowest at 50.55%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 17.18% (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