
TSE:KBL
This summary was created by AI, based on 9 opinions in the last 12 months.
K-Bro Linen Inc (KBL-T) is noted for its stable business model primarily serving the healthcare and hospitality sectors, making it a defensive investment. The company recently made a transformational acquisition in the UK, which is expected to generate synergies in the coming years and contribute to revenue growth. Analysts highlight the competence and discipline of K-Bro's management, as well as the steady cash flow from long-term contracts with hospitals, suggesting that the stock can weather market volatility. With a current yield of around 3.5% and expectations for a steady EPS growth of approximately 20% this year, K-Bro Linen appears to be a reliable investment in a market where unforeseen disruptions are becoming more common. Overall, while not likely to deliver rapid growth, the company is seen as a solid addition to diversified portfolios seeking steady returns.
Laundry and linens. About 70% of their business comes from servicing hospitals and 30% from hotels. Recently announced a new growth initiative in Saskatchewan where they will have to build a new central Laundromat to facilitate some of the laundry from the provinces. Analysts’ estimates may have factored in further acquisitions. There are other areas of growth for this company including the Maritime provinces.
(A top pick June 21/13. Up 7.61%.) Linen service company. They won a new 10 year contract in Saskatchewan. Nice and steady. Good income. Doesn’t expect more than 7% stock increase. Slow and steady. If the market and the economy are going to roll over, you are going to want to own it. 3.3% dividend yield.