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Kip McGrath Education Centres Limited
(Sydney:KME)
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Rating:75Outperform
Price Target:
AU$0.82
▲(13.33% Upside)
Action:Upgraded
Date:08/19/26
The score is driven primarily by solid financial quality—strong recent cash generation and low leverage—tempered by weaker revenue/margin stability. Technicals are supportive due to strong price trend, but stretched momentum signals raise pullback risk. Valuation is fair with a mid-teens P/E and modest dividend yield.
Positive Factors
Strong Cash Generation
Robust operating and free cash flow supports internal funding, franchisee support and business resilience. Free cash flow was close to net income, indicating solid earnings conversion and reducing reliance on external financing.
Negative Factors
Revenue Contraction
The decline indicates weaker top-line momentum and may reflect pressure on enrolments, pricing or network activity. Sustained revenue softness would limit royalty growth and reduce operating leverage across the education services platform.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Robust operating and free cash flow supports internal funding, franchisee support and business resilience. Free cash flow was close to net income, indicating solid earnings conversion and reducing reliance on external financing.
Read all positive factors
Kip McGrath Education Centres Limited (KME) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$38.06M
Dividend Yield2.03%
Average Volume (3M)251.81K
Price to Earnings (P/E)15.9
Beta (1Y)0.79
Revenue Growth-4.20%
EPS GrowthN/A
CountryAU
Employees25
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.05
Shares Outstanding52,490,810
10 Day Avg. Volume365,897
30 Day Avg. Volume251,815
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)1.63
Price to Sales (P/S)0.96
P/FCF Ratio4.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.05
Revenue Forecast (FY)AU$31.20M
Kip McGrath Education Centres Limited Business Overview & Revenue Model
Company Description
Kip McGrath Education Centres Limited is a global provider of English and Mathematics educational support, with operations spanning Australia, New Zealand, the United Kingdom, and numerous other international markets. The company specializes in of...
How the Company Makes Money
KME makes money primarily through a franchising model and related education service fees. Key revenue streams include: (1) Franchise fees and royalties: Franchisees pay ongoing fees/royalties to use the Kip McGrath brand, operating system, and cur...
Kip McGrath Education Centres Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
80
Positive
Cash Flow
83
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 30.00M | 31.41M | 28.85M | 26.65M | 24.63M |
| Gross Profit | 12.41M | 17.37M | 10.63M | 10.18M | 9.67M |
| EBITDA | 7.71M | 3.82M | 6.99M | 6.71M | 6.21M |
| Net Income | 2.52M | -5.32M | 1.32M | 1.92M | 1.88M |
Balance Sheet | |||||
| Total Assets | 26.74M | 30.47M | 34.88M | 37.11M | 36.38M |
| Cash, Cash Equivalents and Short-Term Investments | 6.90M | 6.93M | 5.40M | 9.15M | 7.63M |
| Total Debt | 2.17M | 3.11M | 3.69M | 3.63M | 3.15M |
| Total Liabilities | 9.08M | 11.84M | 11.18M | 14.03M | 14.45M |
| Stockholders Equity | 17.66M | 18.64M | 23.70M | 23.08M | 21.92M |
Cash Flow | |||||
| Free Cash Flow | 6.82M | 5.93M | -1.57M | 2.81M | 277.00K |
| Operating Cash Flow | 6.99M | 6.26M | 2.86M | 6.37M | 5.05M |
| Investing Cash Flow | -1.27M | -1.96M | -4.44M | -3.57M | -6.96M |
| Financing Cash Flow | -4.84M | -2.77M | -2.18M | -1.28M | -1.04M |
Kip McGrath Education Centres Limited Technical Analysis
Positive
0.72
Price Trends
0.62
Positive
0.58
Positive
0.57
Positive
Market Momentum
0.03
Positive
65.39
Neutral
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KME, the sentiment is Positive. The current price of 0.72 is below the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.62, and above the 200-day MA of 0.57, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 65.39 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:KME.
Kip McGrath Education Centres Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$38.06M | 15.93 | 13.76% | 9.59% | -4.20% | ― | |
69 Neutral | AU$85.54M | 84.16 | 1.36% | 14.46% | 0.48% | -138.21% | |
65 Neutral | AU$85.97M | 8.70 | 6.79% | 11.17% | -5.02% | 4425.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | AU$57.87M | 14.49 | 3.46% | 34.02% | 1.98% | -72.40% | |
51 Neutral | AU$100.30M | -0.27 | -72.04% | 42.31% | -10.83% | -649.32% | |
41 Neutral | AU$4.52M | -0.43 | -451.00% | ― | -5.29% | -53.01% |
* Consumer Defensive Sector Average
AU:KME
Kip McGrath Education Centres Limited
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Kip McGrath Education Centres Limited Corporate Events
Crimson Consulting Completes Dispatch of Takeover Documents for Kip McGrath
Aug 17, 2026
Crimson Consulting Australia Pty Ltd has completed the dispatch of its bidder’s statement for a takeover offer to acquire all Kip McGrath Education Centres Limited securities it does not already own. The offer documents, dated 30 July and 7 ...
Crimson Consulting Launches $0.73-a-Share Takeover Bid for Kip McGrath
Aug 17, 2026
Crimson Consulting Australia Pty Ltd, a wholly owned subsidiary of New Zealand-based Crimson Consulting Limited, has formally commenced the dispatch of its bidder’s statement for an off-market takeover offer for all shares in Kip McGrath Edu...
Kip McGrath Builds on Recurring Franchise Revenue and Tech-Led Growth
Aug 11, 2026
Kip McGrath Education Centres reported solid growth in FY26, with revenue rising to $30.1 million at an approximate 9% compound annual growth rate over five years and EBITDA reaching $7.5 million, representing a 25% margin. The business is increas...
Kip McGrath Swings to Profit Despite Revenue Decline
Aug 10, 2026
Kip McGrath Education Centres Limited reported a 4.3% decline in revenue from continuing operations to $30.1 million for the year to 30 June 2026, yet profit after tax from continuing operations rose 2.1% to $2.34 million and overall profit attrib...
Kip McGrath Appoints Advisers to Assess Unsolicited Takeover Approach
Aug 3, 2026
Kip McGrath Education Centres Limited has appointed Houlihan Lokey as financial adviser and Norton Rose Fulbright as legal adviser to help evaluate an unsolicited takeover approach from Crimson Consulting Australia. The board is assessing whether ...
Kip McGrath Confirms Unsolicited Off-Market Takeover Approach
Jul 30, 2026
Kip McGrath Education Centres Limited has disclosed that it received an unsolicited off-market takeover approach from Crimson Consulting Australia Pty Ltd, with the proposal lodged simultaneously with the ASX and ASIC. The board has stressed that ...
Crimson Consulting Launches $0.73-a-Share Takeover Bid for Kip McGrath
Jul 30, 2026
Crimson Consulting Australia Pty Ltd, a wholly owned subsidiary of New Zealand-based Crimson Consulting Limited, has formally lodged its bidder’s statement for an off-market takeover offer for all shares in Kip McGrath Education Centres Limi...
Kip McGrath Reports Lapse of Performance Rights
Jul 14, 2026
Kip McGrath Education Centres Limited has reported the lapse of 182,068 performance rights listed under ASX code KMEAU. The rights ceased on July 2, 2026 after the conditional requirements attached to these securities were not met or became incapa...
Kip McGrath to Issue 150,736 Unquoted Performance Rights Under Incentive Scheme
Jul 13, 2026
Kip McGrath Education Centres Limited has notified the market of the planned issue of 150,736 unquoted performance rights under its employee incentive scheme. These securities, coded KMEAU, will be subject to transfer restrictions and are schedule...
Kip McGrath Issues New Performance Rights Under Employee Incentive Scheme
Jul 9, 2026
Kip McGrath Education Centres Limited has notified the market of the issue of 33,151 unquoted performance rights under its employee incentive scheme, dated 8 July 2026. These securities are subject to transfer restrictions and will not be quoted o...
Kip McGrath Director Damian Banks Increases Indirect Shareholding
Jul 1, 2026
Kip McGrath Education Centres Limited has reported a change in the indirect shareholding of director Damian Banks, as disclosed to the Australian Securities Exchange. The change reflects an on-market purchase of additional shares held via HSBC Cus...
Kip McGrath Continues Daily On-Market Share Buy-Back
Jun 30, 2026
Kip McGrath Education Centres Limited, an ASX-listed provider of tutoring and educational support services, runs a network of centres delivering structured academic programs to school-aged learners. Its ordinary fully paid shares trade under the c...
Director Anne Bell Builds Stake in Kip McGrath Education Centres
Jun 30, 2026
Kip McGrath Education Centres Limited has disclosed a change in director Anne Bell’s interests in the company’s securities. Over three trading days in late June 2026, Bell acquired 80,000 shares via on-market trades, paying a total con...
Kip McGrath Director Increases Indirect Shareholding
Jun 29, 2026
Kip McGrath Education Centres Limited has reported a change in director Damian Banks’ relevant interest in the company’s securities, reflecting an increase in his indirect shareholding via a superannuation structure. Following on-marke...
Kip McGrath Continues On-Market Share Buy-Back Program
Jun 25, 2026
Kip McGrath Education Centres Limited has continued its on-market share buy-back program for its ordinary fully paid shares, with a daily update noting that 42,865 shares were repurchased on the previous day. This takes the cumulative total bought...
Kip McGrath Director Lynne Lewis Increases Shareholding via On-Market Buy
Jun 25, 2026
Kip McGrath Education Centres Limited has reported a change in the shareholding of director Lynne Lewis, reflecting increased alignment between management and shareholders in the education services group. The disclosed transaction highlights ongoi...
Kip McGrath Reports Progress on Ongoing On-Market Share Buy-Back
Jun 24, 2026
Kip McGrath Education Centres Limited has updated the market on its ongoing on-market share buy-back of ordinary fully paid shares, confirming that a total of 4,142,092 securities had been repurchased prior to the latest trading day and a further ...
Kip McGrath Cancels 2.4 Million Shares in On-Market Buy-Back
May 28, 2026
Kip McGrath Education Centres Limited has cancelled 2,400,349 ordinary fully paid shares as part of an on-market share buy-back completed on May 25, 2026. The reduction in issued capital may improve key per-share metrics and signals managementR...
Kip McGrath Updates Market on Progress of On‑Market Share Buy‑Back
May 26, 2026
Kip McGrath Education Centres Limited has provided an updated notification to the Australian Securities Exchange regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily report shows that a total ...
Kip McGrath Continues On-Market Share Buy-Back Program
May 24, 2026
Kip McGrath Education Centres Limited has continued its on-market share buy-back program, repurchasing 42,233 ordinary fully paid shares on the previous trading day, bringing the cumulative total bought back to 4,070,718 shares. The ongoing buy-ba...
Kip McGrath Reports Ongoing Progress in On-Market Share Buy-Back
May 22, 2026
Kip McGrath Education Centres Limited has updated the market on progress under its on-market share buy-back program for its ordinary fully paid shares. The company reported that it repurchased 72,000 shares in the previous trading day, bringing th...
Kip McGrath Updates Market on Progress of On‑Market Share Buy‑Back
May 21, 2026
Kip McGrath Education Centres Limited has updated the market on its ongoing on‑market share buy‑back program for its ordinary fully paid shares listed under the ASX code KME. The company reported that a total of 3,930,718 shares had be...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.