K-Bro Linen Inc KBL

IndustrialsProfessional & Commercial ServicesCanada

Last close 41.67 CAD on Nov 2, 2026, +21.7% year to date

Quant rating

Quant rating C Rank 33 of 53 in Industrials

Growth B 8 of 53
Valuation B 11 of 53
Quality D 39 of 53
Revisions D 41 of 53
Momentum C 30 of 53

Wall Street consensus Buy (2.00)Average target 54.29 CAD +30.3%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 542M
Enterprise value: 839M
52-week range: 33.61 – 48.69
3-year range: 31.15 – 48.69
Dividend yield: 2.89%
Beta (5 years): 0.63
Shares outstanding: 13.0M
Next earnings: Nov 12, 2026

About the company

K-Bro Linen Inc. is the owner and operator of laundry and linen processing facilities in Canada and provides laundry and textile rental services in Scotland and the North of England. The Company and its wholly owned subsidiaries operate across Canada and the United Kingdom, providing a range of linen services to healthcare institutions, hotels and other commercial accounts that include the processing, management and distribution of general linen and operating room linen. The Company operates ten processing facilities and two distribution centers under two distinctive brands, including K-Bro Linen Systems Inc. and Buanderie HMR, in ten Canadian cities: Quebec City, Montreal, Toronto, Regina, Saskatoon, Prince Albert, Edmonton, Calgary, Vancouver and Victoria. The Company's laundry and linen processing facilities provide linen rental, workwear hire and cleanroom garment services to the hospitality, healthcare, manufacturing and pharmaceutical sectors.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	507	374	321	277	224	–
Revenue growth	35.6%	16.4%	16.0%	23.5%	13.9%	20.9%
EPS (basic, normalized)	1.51	1.77	1.64	0.36	0.81	–
EPS growth	−14.7%	8.0%	355.6%	−55.6%	–	–
Gross margin	79.3%	79.1%	78.1%	76.1%	77.4%	78.0%
Net margin	3.5%	5.0%	5.5%	1.4%	3.9%	3.9%
ROE	7.8%	10.3%	10.0%	2.2%	4.6%	7.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	20.5
Current ratio	1.85x
Long-term debt (mil)	288
Net debt (mil)	297
Total equity (mil)	279
Net debt / equity	1.06x
Net debt / EBITDA	3.01x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	507	+35.6%	1.7x	98.7	+39.5%	8.5x	1.51	−14.7%	27.6x
2026	599	+18.1%	1.4x	111	+12.4%	7.6x	1.94	+28.1%	21.5x
2027	621	+3.6%	1.4x	115	+4.0%	7.3x	2.46	+27.3%	16.9x
2028	643	+3.6%	1.3x	120	+4.2%	7.0x	2.69	+9.2%	15.5x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	599	0.0%	−0.6%	−0.5%	1.94	0.0%	−4.7%	+1.4%
2027	621	0.0%	+0.4%	+0.5%	2.46	0.0%	+0.5%	+4.1%
2028	643	−0.1%	+1.0%	+0.9%	2.69	−4.6%	−9.1%	−9.1%

Earnings surprises EPS beat in 2 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	80.2	93.5	104	95.4	91.0	113	156	147	139	150
Sales mean (mil)	77.9	88.7	99.7	92.0	89.2	111	153	139	127	151
Surprise	+2.9%	+5.4%	+4.8%	+3.7%	+2.0%	+2.2%	+2.2%	+5.3%	+9.2%	−0.1%
EPS reported	0.17	0.43	0.77	0.40	0.08	0.30	0.68	0.22	0.18	0.68
EPS mean	0.28	0.50	0.71	0.42	0.25	0.41	0.81	0.41	0.03	0.57
Surprise	−38.7%	−14.4%	+7.7%	−5.2%	−68.4%	−26.8%	−16.0%	−46.3%	+500.0%	+19.8%

Peer comparison Professional & Commercial Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
KBL K-Bro Linen Inc	542M	3.01x	3.5%	1.94x	21.5x	16.9x	7.6x	7.3x
CTAS Cintas Corporation	124.8B	0.70x	17.7%	17.25x	40.6x	36.4x	26.8x	24.5x
UNF UniFirst Corporation	6.5B	−0.59x	6.1%	2.10x	30.6x	27.5x	12.6x	11.8x
HCSG Healthcare Services Group, Inc.	2.4B	−2.21x	3.2%	3.27x	19.5x	20.4x	10.9x	11.3x
EBF Ennis Inc	750M	−0.71x	10.9%	1.70x	13.5x	13.2x	6.7x	6.5x
ANRG Anaergia Inc	316M	284.85x	3.9%	−6.37x	54.3x	18.7x	40.4x	21.5x
Mean		47.51x	7.5%	3.32x	30.0x	22.2x	17.5x	13.8x
Median		0.05x	5.0%	2.02x	26.1x	19.6x	11.8x	11.5x

Technical analysis

1M−1.2%
3M−11.5%
1Y+14.1%
3Y+42.9%

Financial statements in millions of CAD

Income statement in millions of CAD, fiscal years

Income statement, K-Bro Linen Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	507	374	321	277	224	197
Cost of revenue	105	77.9	70.2	66.0	50.6	43.4
Gross profit	402	296	251	211	173	153
Selling, general & administrative expenses	305	228	194	174	134	122
Research & development	–	–	–	–	–	–
Depreciation/amortization	49.7	33.7	27.3	26.1	26.9	27.9
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	7.2	0.1	0.3	0	−3.7	−6.9
Other operating expenses	−1.5	−1.6	−0.9	−0.1	0	0
Operating income	41.2	35.3	29.5	10.4	15.9	10.4
Net interest income (expense)	−16.4	−11.0	−6.3	−3.8	−3.0	−3.6
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−0.1	−0.3	−0.4	−1.2	−0.5	−0.3
Net income before taxes	24.7	24.0	22.9	5.4	12.5	6.4
Provision for taxes	6.7	5.3	5.3	1.5	3.8	2.6
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	18.0	18.7	17.6	3.9	8.7	3.8
Extraordinary items	–	–	–	–	–	–
Net income	18.0	18.7	17.6	3.9	8.7	3.8
EBIT, normalized	48.4	35.4	29.8	10.4	12.2	3.5
EBITDA, normalized	98.2	69.1	57.1	36.5	39.0	31.4
Basic EPS, normalized	1.51	1.77	1.64	0.36	0.81	–

Balance sheet in millions of CAD, fiscal years

Balance sheet, K-Bro Linen Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	23.4	9.4	5.9	2.6	1.1	2.4
Receivables	84.3	56.4	50.3	39.7	36.8	28.5
Total inventory	75.2	38.7	35.3	31.4	31.3	31.5
Prepaid expenses	11.9	7.8	7.4	6.4	4.5	4.2
Other current assets	0.8	1.1	0.7	0.7	0	0
Total current assets	196	114	99.6	80.8	73.8	66.7
Property, plant & equipment	303	225	207	203	214	209
Goodwill	143	75.0	48.9	37.4	38.2	38.5
Intangibles	62.5	24.7	9.4	4.4	7.0	10.0
Long-term investments	–	–	–	–	–	–
Note receivable	–	–	–	–	–	–
Other long-term assets	0	0	0	0	0	0
Total assets	704	438	365	326	333	324
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	74.1	42.8	38.2	32.5	30.1	24.6
Accrued expenses	–	–	–	–	–	–
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	27.1	12.2	12.0	9.6	9.2	8.3
Other current liabilities	2.8	3.3	7.3	1.4	4.2	5.8
Total current liabilities	104	58.3	57.5	43.5	43.5	38.8
Long-term debt	293	167	112	89.2	85.7	78.4
Minority interest	–	–	–	–	–	–
Other liabilities	33.3	23.7	21.3	16.5	16.9	17.2
Total liabilities	431	249	190	149	146	134
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	285	206	206	208	207	205
Additional paid-in capital	3.1	2.4	2.3	2.3	2.3	2.3
Retained earnings (accumulated deficit)	−22.3	−25.9	−34.1	−32.2	−23.2	−19.1
Treasury stock	–	–	–	–	–	–
Other equity	8.2	6.9	−0.2	−2.0	0.6	1.4
Total equity	274	189	174	177	186	190
Total liabilities & shareholders' equity	704	438	365	326	333	324

Cash flow statement in millions of CAD, fiscal years

Cash flow statement, K-Bro Linen Inc, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	18.0	18.7	17.6	3.9	8.7	3.8
Depreciation, depletion & amortization	49.7	33.7	27.3	26.1	26.9	27.9
Deferred taxes	1.6	1.6	1.3	0.1	0.1	1.4
Non-cash items	1.5	0.4	1.0	1.7	1.9	6.9
Changes in working capital	−8.1	−4.4	−6.1	−5.6	−5.7	2.5
Cash from operations	62.7	50.0	41.0	26.1	31.9	42.4
Investing activities
Capital expenditures	−15.4	−19.3	−12.0	−11.5	−10.5	−4.4
Other investing cash flows	−193	−53.9	−22.3	0	0	0
Cash from investing	−208	−73.2	−34.3	−11.4	−10.5	−4.4
Financing activities
Financing cash flow items	−0.8	–	–	–	–	–
Cash dividends paid	−14.1	−12.7	−12.9	−12.9	−12.8	−12.8
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	174	38.9	9.2	−0.2	−9.9	−28.1
Cash from financing	159	26.2	−3.7	−13.1	−22.7	−40.8
Foreign exchange effects	0	0.6	0.2	−0.1	0	0
Net change in cash	13.9	3.6	3.2	1.5	−1.3	−2.9
Free cash flow	47.3	30.6	29.0	14.7	21.4	38.0

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.