Latest news with #K-BroLinen
Business Insider
a day ago
- Business
- Business Insider
TD Securities Sticks to Their Buy Rating for K-Bro Linen (KBL)
In a report released today, Derek Lessard from TD Securities maintained a Buy rating on K-Bro Linen (KBL – Research Report), with a price target of C$50.00. The company's shares opened today at C$36.05. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Lessard covers the Consumer Cyclical sector, focusing on stocks such as Boyd Group Services, Pizza Pizza Royalty, and Dorel Class B. According to TipRanks, Lessard has an average return of 0.4% and a 48.89% success rate on recommended stocks. Currently, the analyst consensus on K-Bro Linen is a Strong Buy with an average price target of C$48.80.
Yahoo
25-05-2025
- Business
- Yahoo
K-Bro Linen Inc. (TSE:KBL) Passed Our Checks, And It's About To Pay A CA$0.10 Dividend
Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that K-Bro Linen Inc. (TSE:KBL) is about to go ex-dividend in just 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase K-Bro Linen's shares on or after the 30th of May will not receive the dividend, which will be paid on the 13th of June. The company's next dividend payment will be CA$0.10 per share, and in the last 12 months, the company paid a total of CA$1.20 per share. Looking at the last 12 months of distributions, K-Bro Linen has a trailing yield of approximately 3.4% on its current stock price of CA$34.865. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether K-Bro Linen has been able to grow its dividends, or if the dividend might be cut. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. K-Bro Linen paid out more than half (71%) of its earnings last year, which is a regular payout ratio for most companies. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Thankfully its dividend payments took up just 37% of the free cash flow it generated, which is a comfortable payout ratio. It's positive to see that K-Bro Linen's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. View our latest analysis for K-Bro Linen Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For this reason, we're glad to see K-Bro Linen's earnings per share have risen 10% per annum over the last five years. K-Bro Linen has an average payout ratio which suggests a balance between growing earnings and rewarding shareholders. Given the quick rate of earnings per share growth and current level of payout, there may be a chance of further dividend increases in the future. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. K-Bro Linen's dividend payments are broadly unchanged compared to where they were 10 years ago. From a dividend perspective, should investors buy or avoid K-Bro Linen? K-Bro Linen's growing earnings per share and conservative payout ratios make for a decent combination. We also like that it paid out a lower percentage of its cash flow. It's a promising combination that should mark this company worthy of closer attention. In light of that, while K-Bro Linen has an appealing dividend, it's worth knowing the risks involved with this stock. To help with this, we've discovered 1 warning sign for K-Bro Linen that you should be aware of before investing in their shares. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
K-Bro Linen (TSE:KBL) Is Doing The Right Things To Multiply Its Share Price
If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a growing return on capital employed (ROCE) and then alongside that, an ever-increasing base of capital employed. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. Speaking of which, we noticed some great changes in K-Bro Linen's (TSE:KBL) returns on capital, so let's have a look. For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. To calculate this metric for K-Bro Linen, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.087 = CA$34m ÷ (CA$452m - CA$60m) (Based on the trailing twelve months to September 2024). Thus, K-Bro Linen has an ROCE of 8.7%. On its own that's a low return, but compared to the average of 6.2% generated by the Commercial Services industry, it's much better. View our latest analysis for K-Bro Linen Above you can see how the current ROCE for K-Bro Linen compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering K-Bro Linen for free. While in absolute terms it isn't a high ROCE, it's promising to see that it has been moving in the right direction. The data shows that returns on capital have increased substantially over the last five years to 8.7%. Basically the business is earning more per dollar of capital invested and in addition to that, 26% more capital is being employed now too. So we're very much inspired by what we're seeing at K-Bro Linen thanks to its ability to profitably reinvest capital. In summary, it's great to see that K-Bro Linen can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And given the stock has remained rather flat over the last five years, there might be an opportunity here if other metrics are strong. With that in mind, we believe the promising trends warrant this stock for further investigation. K-Bro Linen does have some risks though, and we've spotted 2 warning signs for K-Bro Linen that you might be interested in. While K-Bro Linen isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
