# K-Bro Linen Inc. (KBL.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Professional Services. Price C$43.18, market value C$556 million.

## Valuation
- **P/E (trailing): 25.3×** (5-yr avg 32.9×, 3-yr avg 20.6×). K-Bro Linen Inc. trades at 25.3× trailing earnings, well below its own five-year average of 32.9×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 16.6×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.9×**. Enterprise value is 7.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 9.3%** (5-yr avg 8.2%). Free cash flow equals 9.3% of the market value, in line with its five-year average of 8.2%. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Gross margin: 52.2%**. K-Bro Linen Inc. keeps 52.2% of revenue after the direct cost of what it sells.
- **Operating margin: 8.2%**. 8.2% of revenue is left after running the business.
- **Net margin: 3.5%**. 3.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.6%**. 6.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.4%**. Return on all capital, debt included, is 6.4%.
- **Return on assets: 3.1%**. Each dollar of assets produces 3.1% of profit.

## Growth
- **Revenue growth (1 yr): 35.6%** (3-yr 22.4%/yr, 5-yr 20.9%/yr). Revenue grew 35.6% over the last year, against 20.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -14.7%** (3-yr 61.3%/yr, 5-yr 33.2%/yr). Earnings per share fell 14.7%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 47.8%/yr**. Free cash flow has compounded at 47.8% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.17**. Debt is 1.17 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 2.7×**. It would take 2.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 2.6×**. Operating profit covers interest 2.6×, thin but manageable.
- **Current ratio: 1.88** (quick 1.13). Current assets cover the next year's liabilities 1.88 times.
- **Altman Z-score: 2.38**. A Z-score of 2.38 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 2.78%** (C$1.20 per share, trailing). K-Bro Linen Inc. yields 2.78%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 79%** (30% of free cash flow). 79% of earnings goes out as dividends, leaving a thin cushion.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.
- **Shareholder yield: 3.3%**. Dividends plus net buybacks return 3.3% of the market value a year.

## Price and momentum
- **Total return (1 yr): 20.8%** (YTD 25.0%, 3-mo 3.8%). The shares are up 20.8% over twelve months including dividends.
- **From 52-week high: -11.3%** (28.5% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 33**. An RSI of 33 is neutral.
- **Beta (1 yr): 0.31** (volatility 21%). Beta of 0.31 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=KBL.TO · Page: https://foliofundamentals.com/stocks/kbl.to

Not investment advice.