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Kelly Partners Group Holdings Ltd. (KPG) AI Stock Analysis
Kelly Partners Group Holdings Ltd.
(ASX:KPG)
The overall score of 59 reflects a mixed outlook. Financial performance is constrained by high leverage and thin margins, though revenue growth and cash flow are strengths. Technical indicators show positive momentum but face long-term resistance. Valuation appears stretched relative to earnings, limiting upside potential. Positive sentiment from the earnings call and strategic initiatives provide some offsetting optimism. The primary risk remains the company's debt burden, while its cash flow generation and growth plans are key strengths.
Kelly Partners Group Holdings Ltd. (KPG) vs. iShares MSCI Australia ETF (EWA)
- Market Cap
- AUD 196.49M
- Dividend Yield
- ―
- Average Volume (3M)
- 56.96K
- Price to Earnings (P/E)
- 55.6
- Beta (1Y)
- 1.34
- Revenue Growth
- 18.25%
- EPS Growth
- 2.90%
- Country
- Australia
- Employees
- 192
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
Kelly Partners Group Holdings Ltd. Business Overview & Revenue Model
Company Description
Kelly Partners Group Holdings Limited, an Australian firm founded in 2006 and based in North Sydney, delivers a comprehensive array of chartered accounting and professional services. The company caters to both private enterprises and high-net-worth i...
How the Company Makes Money
KPG makes money primarily by delivering accounting and advisory services through its operating practices and charging clients professional fees. Key revenue streams include (1) recurring and periodic compliance work (e.g., preparation and lodgement o...
Kelly Partners Group Holdings Ltd. Earnings Call Summary
Overall the call presented a solid operational and financial performance: strong revenue (+18.2%), margin and profitability improvement (underlying NPATA +~18%), robust cash generation (+30% cash from ops, +50% FCF) and high returns (ROIC 23.2%, ROE ~35.7%). Management emphasized disciplined M&A, global expansion, and strategic initiatives (international listing, long-dated debenture, dual-class governance) while also noting AI advantages and a scalable adjacent business (WrkPod). Key negatives were market-driven share price volatility (large declines), founder dilution from margin financing, U.S. profitability lag, some accounting noncash adjustments that complicate headline 'nonrecurring' numbers, and modestly increased debt to fund acquisitions. On balance the company demonstrated strong fundamentals and disciplined strategy with manageable risks.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The call guided that Kelly Partners will push aggressive global expansion over the next 5 years — pursuing an international listing, securing long‑dated HoldCo funding (a Constellation‑style 15‑year debenture or similar) and implementing a dual‑class governance structure to accelerate M&A — while keeping disciplined capital metrics (A$74.7m drawn of A$89.4m facilities, net debt A$70.7m, cash/headroom A$18.6m, net debt/EBITDA 1.52x from 1.42x and historically ≤2x). Management stressed continued reinvestment into high‑return opportunities rather than routine dividends while ROIC remains strong (ROIC 23.2%, ROIC+organic 26.1%, parent ROE 35.7%, group ROE 40.8%) and said the group can fund sizable global growth at moderate gearing (comfortable up to ~2.5x). Underpinning the guidance were FY26 operating metrics: revenue A$159.2m (run‑rate ~A$164m, +18.2% YoY: organic 2.9% / 4.5% adj, acquisitions +15.3%), underlying EBITDA A$17.9m, underlying NPATA A$10.8m (+18.9%), statutory NPATA A$8.4m (+18%), cash from operations A$32.4m (+30.1%), consolidated free cash flow A$18.4m (+50.5%; FCF per share A$0.221, +17.5%), operating EBITDA margin 28.4% (Australia 31.9%), EV/EBITDA ~12.6x, and scale metrics of >700 people, revenue per person >A$220k, 105 partners, 43 businesses in 6 countries (45.2m shares on issue vs 45.5m at IPO).
Kelly Partners Group Holdings Ltd. Financial Statement Overview
Summary
Kelly Partners Group has demonstrated robust revenue growth and solid cash flow generation, as indicated by a Cash Flow Score of 40. However, high leverage (Balance Sheet Score 20) and thin profitability (Income Statement Score 30) weigh heavily on its financial health. The company's debt-to-equity ratio of 3.9 and low interest coverage increase risk. Overall, financial performance is below average, resulting in a score of 56.
Income Statement
30NegativeBalance Sheet
20Very NegativeCash Flow
40Negative| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.17M | 159.17M | 134.61M | 108.14M | 86.52M | 64.86M |
| Gross Profit | 28.93M | 29.21M | 26.01M | 53.90M | 14.71M | 16.66M |
| EBITDA | 45.74M | 46.02M | 37.20M | 31.69M | 24.92M | 24.14M |
| Net Income | 3.53M | 3.53M | 3.41M | 3.52M | 3.93M | 5.56M |
Balance Sheet | ||||||
| Total Assets | 231.44M | 231.44M | 198.96M | 159.32M | 132.59M | 106.64M |
| Cash, Cash Equivalents and Short-Term Investments | 3.94M | 3.94M | 6.87M | 3.27M | 5.33M | 2.97M |
| Total Debt | 117.43M | 117.43M | 101.88M | 79.75M | 72.66M | 53.74M |
| Total Liabilities | 158.75M | 158.75M | 132.48M | 106.96M | 97.12M | 72.69M |
| Stockholders Equity | 30.23M | 30.23M | 28.42M | 22.64M | 20.54M | 20.70M |
Cash Flow | ||||||
| Free Cash Flow | 34.66M | 34.66M | 28.74M | 21.33M | 16.85M | 10.11M |
| Operating Cash Flow | 38.89M | 38.89M | 31.27M | 25.61M | 19.50M | 17.58M |
| Investing Cash Flow | -26.69M | -26.69M | -19.78M | -14.82M | -11.33M | -20.93M |
| Financing Cash Flow | -14.89M | -14.89M | -11.39M | -5.95M | -14.95M | 3.58M |
Kelly Partners Group Holdings Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:KPG, the sentiment is Positive. The current price of 4.34 is above the 20-day moving average (MA) of 4.26, below the 50-day MA of 4.49, and below the 200-day MA of 4.71, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:KPG.
Kelly Partners Group Holdings Ltd. Peers Comparison
Overall Rating
AU:SIQ77Outperform
AU:CUP75Outperform
AU:IPH70Outperform
AU:FLN61Neutral- AU:KPG59Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AU:SIQ | 77Outperform | AUD 1.68B | 18.74 | 29.94% | 4.52% | 10.49% | 5.31% |
| AU:CUP | 75Outperform | AUD 355.38M | 19.33 | 10.76% | 3.02% | 15.47% | 60.30% |
| AU:IPH | 70Outperform | AUD 992.89M | 12.52 | 12.36% | 10.05% | 0.59% | 19.69% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| AU:FLN | 61Neutral | AUD 49.60M | -25.58 | -8.93% | ― | -6.17% | -191.49% |
| AU:KPG | 59Neutral | AUD 196.49M | 55.64 | 11.79% | ― | 18.25% | 2.90% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| AU:KPG | Kelly Partners Group Holdings Ltd. | 4.34 | -5.17 | -54.36% | |
| AU:FLN | Freelancer Ltd. | 0.11 | -0.14 | -56.00% | |
| AU:SIQ | Smartgroup Corporation Ltd | 12.18 | 4.39 | 56.39% | |
| AU:CUP | Countplus Limited | 1.66 | 0.61 | 59.13% | |
| AU:IPH | IPH Ltd. | 3.88 | 0.46 | 13.45% |
Kelly Partners Group Holdings Ltd. Corporate Events
Kelly Partners maps ASX exit and Nasdaq move as ESS Trust buys insider shares
Kelly Partners Group Holdings Ltd. is a professional services firm specialising in accounting and business advisory, with a strong emphasis on equity-based remuneration through an employee share scheme and long-term incentive plans. Its KPG EMP Share...
Kelly Partners Calls Online EGM as Expert Backs Key Transaction
Kelly Partners Group Holdings Ltd. has called an online-only Extraordinary General Meeting for 23 October 2026, underscoring the importance of shareholder participation in several proposed resolutions that may affect their holdings. The company is en...
Kelly Partners Plans Nasdaq Move, ASX Exit and Loyalty Share Structure
Kelly Partners Group Holdings Ltd. is an Australian accounting and professional services firm that has built a serial-acquisition growth model focused on business clients. With a growing proportion of its shares held outside Australia, the company is...
S&P Dow Jones Unveils September Rebalance of Key S&P/ASX Indices
S&P Dow Jones Indices has announced its September 2026 quarterly rebalance of the S&P/ASX indices, with several additions and removals across the S&P/ASX 50, 100, 200 and 300 benchmarks, while the S&P/ASX 20 remains unchanged. The res...
Kelly Partners rides out share slump with record cash flow and global expansion
Kelly Partners Group Holdings reported a sharp decline in its share price over the 2026 financial year, closing at $3.79 versus $10.77 a year earlier, but management framed the setback as short-term market sentiment rather than a reflection of underl...
Kelly Partners Updates Corporate Governance and Diversity Metrics
Kelly Partners Group Holdings has issued its latest Corporate Governance Statement, confirming broad compliance with the ASX Corporate Governance Council’s 4th edition principles and recommendations as at 12 August 2026. The document outlines b...
Kelly Partners Publishes 2026 Annual Report Detailing Group Performance
Kelly Partners Group Holdings Ltd. has released its annual report for the year ended 30 June 2026, detailing the performance and position of the consolidated group. The report includes directors’ commentary, audited financial statements, cash f...
Kelly Partners Sets Earnings and Acquisition Targets to Lift Intrinsic Value
Kelly Partners has outlined a strategic framework aimed at building per-share intrinsic value by lifting the earning power of its operating businesses. Central to this plan is a 35% EBITDA target, supported by organic growth in its accounting and com...
Kelly Partners lifts FY26 revenue and scale as growth momentum eases
Kelly Partners Group Holdings reported solid operational expansion in FY26, increasing headcount to 711, partners to 105 and businesses to 43, while adding a sixth country with the Philippines. Revenue rose to $159 million with a revenue run rate of...
Kelly Partners lifts core earnings on acquisitive growth despite weaker comprehensive income
Kelly Partners Group Holdings reported an 18.2% rise in revenues from ordinary activities to $159.2 million for the year to 30 June 2026, with statutory profit attributable to owners edging up 3.5% to $3.53 million. Underlying NPATA, a non-standard m...
Kelly+Partners sets FY26 results release and investor briefing
Kelly+Partners Group Holdings Ltd, an ASX-listed specialist chartered accounting network, focuses on providing services to private clients, private businesses, their owners and families, particularly in the SME segment. Since its establishment in 200...
Kelly Partners Founder Restructures Shareholding Under Loan Funding Deal
Kelly Partners Group Holdings has disclosed a change in director Brett Kelly’s interests, reflecting a restructuring of how his family investment vehicle holds shares in the company. The notice details that Kelly Investments 1 Pty Ltd, acting f...
Kelly Partners Founder Brett Kelly Trims Stake in Modest On-Market Trade
Kelly Partners Group Holdings reported a minor change in the shareholding of founder and director Brett Kelly, reflecting an on-market sale of 20,000 ordinary shares held through Kelly Investments 1 Pty Ltd. Following the transaction, Kelly retains s...
Kelly Partners Founder Brett Kelly Trims Stake in Modest Share Sale
Kelly Partners Group Holdings has disclosed a minor change in the shareholding of its founder and CEO Brett Kelly, who remains a major shareholder through a combination of direct holdings, family investment vehicles and superannuation entities. The a...
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 17, 2026