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K-Bro Linen (KBL) AI Stock Analysis
K-Bro Linen
(TSX:KBL)
The score is driven primarily by steady fundamental performance (revenue growth, stable operating margins, and positive/improving free cash flow) tempered by higher balance-sheet leverage and thin net margins. Technicals are constructive with the stock above key moving averages, while valuation is a modest headwind due to the higher P/E despite a mid-level dividend yield.
K-Bro Linen (KBL) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 533.54M
- Dividend Yield
- 2.89%
- Average Volume (3M)
- 9,815
- Price to Earnings (P/E)
- 24.7
- Beta (1Y)
- 0.53
- Revenue Growth
- 46.60%
- EPS Growth
- -4.27%
- Country
- Canada
- Employees
- 4,500
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Specialty Business Services
K-Bro Linen Business Overview & Revenue Model
Company Description
K-Bro Linen Inc., together with its subsidiaries, provides laundry and linen services to healthcare organizations, hotels, and other commercial accounts in Canada and the United Kingdom. The company engages in the processing, management, and distribu...
How the Company Makes Money
KBL makes money by providing commercial textile processing and linen service arrangements to business customers. Its primary revenue stream is recurring service revenue earned under customer contracts or service agreements where KBL supplies linens (...
K-Bro Linen Earnings Call Summary
The earnings call highlights K-Bro's strong revenue growth and successful integration of the Stellar Mayan acquisition, which has significantly expanded its market presence in the U.K. However, the company faced challenges with decreased EBITDA margins and increased costs due to the acquisition's cost structure. Overall, the positive growth metrics and strategic positioning outweigh the cost challenges.
Q3-2025 Updates
Positive Updates
Negative Updates
Company Guidance
During the K-Bro Linen Systems, Inc. Third Quarter 2025 Results Conference Call, CEO Linda McCurdy highlighted the company's record-breaking Q3 results, with revenue reaching $156 million and adjusted EBITDA at $33.5 million. These results represent a 49% increase in consolidated revenue compared to the same quarter in 2024, driven by a 67% rise in healthcare revenue and a 34% increase in hospitality revenue. The Stellar Mayan acquisition played a significant role, contributing to a 49.3% overall revenue increase and establishing a balanced revenue split between Canada and the U.K. The Canadian division saw an adjusted EBITDA margin rise to 22.8% due to labor efficiencies and the elimination of the Canadian carbon tax, while the U.K. division experienced a margin decrease to 20.3%, attributed to the Stellar Mayan margin profile. Net earnings grew by 8.9% to $8.9 million. Importantly, K-Bro reported a strong balance sheet with a net working capital of $95.7 million and a debt-to-EBITDA ratio of 2.7x, supported by substantial undrawn capacity on their credit facility.
K-Bro Linen Financial Statement Overview
Summary
Income statement trends are solid with a multi-year revenue uptrend and stable EBIT/EBITDA margins, supported by positive and improving TTM free cash flow. The main constraints are rising leverage (debt-to-equity above 1.0) and thin net margins, which reduce financial flexibility if conditions weaken.
Income Statement
72PositiveBalance Sheet
55NeutralCash Flow
66Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 592.20M | 506.78M | 373.61M | 320.88M | 276.62M | 223.99M |
| Gross Profit | 308.84M | 97.67M | 323.57M | 114.48M | 234.35M | 186.99M |
| EBITDA | 108.05M | 89.44M | 68.76M | 56.45M | 36.45M | 42.73M |
| Net Income | 21.73M | 17.99M | 18.71M | 17.61M | 3.91M | 8.69M |
Balance Sheet | ||||||
| Total Assets | 708.53M | 704.44M | 438.15M | 364.72M | 325.76M | 332.52M |
| Cash, Cash Equivalents and Short-Term Investments | 20.50M | 23.36M | 9.42M | 5.86M | 2.64M | 1.11M |
| Total Debt | 317.24M | 320.37M | 178.91M | 123.55M | 98.82M | 94.91M |
| Total Liabilities | 429.54M | 430.60M | 248.74M | 190.28M | 149.22M | 146.12M |
| Stockholders Equity | 278.99M | 273.85M | 189.41M | 174.43M | 176.54M | 186.40M |
Cash Flow | ||||||
| Free Cash Flow | 51.80M | 47.35M | 30.62M | 29.02M | 14.67M | 21.38M |
| Operating Cash Flow | 73.24M | 62.71M | 49.95M | 41.01M | 26.13M | 31.88M |
| Investing Cash Flow | -21.38M | -208.16M | -73.24M | -34.26M | -11.43M | -10.49M |
| Financing Cash Flow | -56.44M | 159.41M | 26.23M | -3.72M | -13.11M | -22.69M |
K-Bro Linen Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KBL, the sentiment is Positive. The current price of 41.47 is above the 20-day moving average (MA) of 41.16, below the 50-day MA of 42.40, and above the 200-day MA of 39.95, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 49.59 is Neutral, neither overbought nor oversold. The STOCH value of 37.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:KBL.
K-Bro Linen Peers Comparison
Overall Rating
TSE:DXT69Neutral
TSE:TCL.B65Neutral- TSE:KBL65Neutral
TSE:TCL.A63Neutral
TSE:DCM53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:DXT | 69Neutral | CAD 1.15B | 25.96 | 15.18% | 2.17% | 8.97% | 27.62% |
| TSE:TCL.B | 65Neutral | CAD 479.65M | 1.39 | 29.10% | 295.64% | -43.09% | 91.71% |
| TSE:KBL | 65Neutral | CAD 531.82M | 24.68 | 7.89% | 2.89% | 46.60% | -4.27% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| TSE:TCL.A | 63Neutral | CAD 479.65M | 1.39 | 29.10% | 363.60% | -43.09% | 91.71% |
| TSE:DCM | 53Neutral | CAD 137.65M | 28.02 | 10.60% | 4.55% | -4.58% | -36.77% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:KBL | K-Bro Linen | 41.47 | 4.92 | 13.45% | |
| TSE:DCM | Data Commun Management | 2.20 | 0.95 | 76.14% | |
| TSE:DXT | Dexterra Group Inc. | 18.43 | 8.24 | 80.95% | |
| TSE:TCL.A | Transcontinental Inc. | 5.59 | 2.87 | 105.67% | |
| TSE:TCL.B | Transcontinental Inc. Class B | 6.88 | 3.12 | 83.28% |
K-Bro Linen Corporate Events
K-Bro Linen Sets November 2026 Release and Call for Q3 Results
NeutralK-Bro Linen Inc., a leading Canadian and U.K. commercial laundry and linen services provider to healthcare, hospitality and other institutional clients, continues to leverage its extensive network of processing facilities and depots to deliver genera...
K-Bro Linen Declares Eligible October 2026 Dividend for Shareholders
PositiveK-Bro Linen Inc., a leading commercial laundry and linen processor in Canada with expanding operations across the U.K., has declared a cash dividend of 10.00 cents per common share for October 2026. The payment, designated as an eligible dividend und...
K-Bro Linen posts strong Q2 results as Stellar Mayan integration supports growth
PositiveK-Bro Linen reported a 33.0% year-over-year jump in Q2 2026 revenue to $150.4 million, driven by a 49.6% surge in healthcare revenue and 15.4% growth in hospitality. Adjusted EBITDA rose 25.6% to $29.8 million and net earnings climbed to $7.7 million...
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 10, 2026