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Kip McGrath Education Centres Limited (KME) AI Stock Analysis
Kip McGrath Education Centres Limited
(ASX:KME)
The score is driven primarily by solid financial recovery, healthy margins, improving returns and strong cash generation, complemented by a clear price uptrend, while overbought technical conditions, volatility in earnings and cash flows, and only moderately attractive valuation keep the rating in the low 70s rather than at the top of the range.
Kip McGrath Education Centres Limited (KME) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 37.27M
- Dividend Yield
- 9.86%
- Average Volume (3M)
- 199.72K
- Price to Earnings (P/E)
- 15.6
- Beta (1Y)
- 0.78
- Revenue Growth
- -4.20%
- EPS Growth
- ―
- Country
- Australia
- Employees
- 25
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Education & Training Services
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 offer...
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 curric...
Kip McGrath Education Centres Limited Financial Statement Overview
Summary
Recovering profitability, strong margins, solid cash generation and low leverage support a healthy financial profile, but recent revenue decline, volatile earnings and a shrinking equity base temper the strength.
Income Statement
76PositiveBalance Sheet
69PositiveCash Flow
74Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.00M | 30.00M | 31.41M | 28.85M | 26.65M | 24.63M |
| Gross Profit | 12.41M | 12.41M | 17.37M | 10.63M | 10.18M | 9.67M |
| EBITDA | 7.71M | 7.71M | 7.98M | 7.10M | 6.71M | 6.21M |
| Net Income | 2.52M | 2.52M | -5.32M | 1.32M | 1.92M | 1.88M |
Balance Sheet | ||||||
| Total Assets | 26.74M | 26.74M | 30.47M | 34.88M | 37.11M | 36.38M |
| Cash, Cash Equivalents and Short-Term Investments | 6.90M | 6.90M | 6.93M | 5.40M | 9.15M | 7.63M |
| Total Debt | 2.17M | 2.17M | 3.11M | 3.69M | 3.63M | 3.15M |
| Total Liabilities | 9.08M | 9.08M | 11.84M | 11.18M | 14.03M | 14.45M |
| Stockholders Equity | 17.66M | 17.66M | 18.64M | 23.70M | 23.08M | 21.92M |
Cash Flow | ||||||
| Free Cash Flow | 6.82M | 6.82M | 5.93M | -1.57M | 2.81M | 277.00K |
| Operating Cash Flow | 6.99M | 6.99M | 6.26M | 2.86M | 6.37M | 5.05M |
| Investing Cash Flow | -1.27M | -1.27M | -1.96M | -4.44M | -3.57M | -6.96M |
| Financing Cash Flow | -4.84M | -4.84M | -2.77M | -2.18M | -1.28M | -1.04M |
Kip McGrath Education Centres Limited Technical Analysis
Price Trends
Market Momentum
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 0.71 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.68, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.80 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 is Neutral, 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
Overall Rating
AU:KME72Outperform
AU:3PL62Neutral
AU:EVO59Neutral
AU:NDO52Neutral
AU:GEM38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 72Outperform | AUD 37.27M | 15.60 | 13.76% | 9.86% | -4.20% | ― | |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| 62Neutral | AUD 85.97M | 8.70 | 6.79% | 11.17% | -5.02% | 4425.00% | |
| 59Neutral | AUD 75.35M | -10.63 | -9.41% | 16.22% | 5.99% | -145.93% | |
| 52Neutral | AUD 59.00M | 14.77 | 3.46% | 34.67% | 1.98% | -72.40% | |
| 38Underperform | AUD 77.16M | -0.21 | -72.04% | ― | -10.83% | -649.32% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:KME | Kip McGrath Education Centres Limited | 0.71 | 0.18 | 34.72% | |
| AU:EVO | Evolve Education Group Ltd | 0.37 | -0.23 | -38.13% | |
| AU:GEM | G8 Education Limited | 0.10 | -0.71 | -87.58% | |
| AU:3PL | 3P Learning Ltd. | 0.32 | -0.23 | -42.10% | |
| AU:NDO | Nido Education Limited | 0.26 | -0.37 | -58.86% |
Kip McGrath Education Centres Limited Corporate Events
Crimson Consulting Completes Dispatch of Takeover Documents for Kip McGrath
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 Aug...
Crimson Consulting Launches $0.73-a-Share Takeover Bid for Kip McGrath
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 Educat...
Kip McGrath Builds on Recurring Franchise Revenue and Tech-Led Growth
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 increasing...
Kip McGrath Swings to Profit Despite Revenue Decline
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 attributa...
Kip McGrath Appoints Advisers to Assess Unsolicited Takeover Approach
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 the...
Kip McGrath Confirms Unsolicited Off-Market Takeover Approach
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 sha...
Crimson Consulting Launches $0.73-a-Share Takeover Bid for Kip McGrath
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 Limited...
Kip McGrath Reports Lapse of Performance Rights
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 incapable...
Kip McGrath to Issue 150,736 Unquoted Performance Rights Under Incentive Scheme
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 scheduled t...
Kip McGrath Issues New Performance Rights Under Employee Incentive Scheme
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 on t...
Kip McGrath Director Damian Banks Increases Indirect Shareholding
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 Custod...
Kip McGrath Continues Daily On-Market Share Buy-Back
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 code...
Director Anne Bell Builds Stake in Kip McGrath Education Centres
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 consid...
Kip McGrath Director Increases Indirect Shareholding
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-market p...
Kip McGrath Continues On-Market Share Buy-Back Program
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 ba...
Kip McGrath Director Lynne Lewis Increases Shareholding via On-Market Buy
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 ongoing...
Kip McGrath Reports Progress on Ongoing On-Market Share Buy-Back
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 10,...
Kip McGrath Cancels 2.4 Million Shares in On-Market Buy-Back
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 management’...
Kip McGrath Updates Market on Progress of On‑Market Share Buy‑Back
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 of...
Kip McGrath Continues On-Market Share Buy-Back Program
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-back,...
Kip McGrath Reports Ongoing Progress in On-Market Share Buy-Back
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 the t...
Kip McGrath Updates Market on Progress of On‑Market Share Buy‑Back
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 been...
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.
Date of analysis: Aug 19, 2026