TSE:KBL

K-Bro Linen Inc (KBL.TO)

46.13
+0.20 (0.44%)
as of Jul 15, 2026, 8:00:00 pm Market Open.
103 watching
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Investor Insights
star iconJul 15, 2026, 12:00 am

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.

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Consensus
Positive
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Valuation
Fair Value
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Similar
Cintas, CTAS
COMMENT

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.

PAST TOP PICK

(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.

TOP PICK

Linen processor and distributor. Most of the customers are governments and institutions. Customers sign 10 year contracts so it has the most steady cash flow that you can possibly imagine. Dividend has been growing slowly over the years. 3.46% yield.

PAST TOP PICK
(A Top Pick March 2/11. Up 13.6%.) Provides laundry services to hospitals and hotels, mostly hospitals. Low debt on the balance sheet. Expects a dividend increase later this year. Extremely well managed.
TOP PICK
About 80% of business is supplying linens to hospitals and 20% to hotels. Active in 6 provinces. About 50% payout ratio. Low debt. Have ability to make further acquisitions. 5.5% yield.
HOLD
Launders linen for hotels, hospitals, etc. Have some very good contracts in the Western cities. Has done very well. Will have to convert and there will be an adjustment in the distribution. 6.6% distribution.
PAST TOP PICK
(Top Pick Jan 16/09, Up 47%) Great little company. Low payout ratio, can convert to corp. and continue to pay distribution.
STRONG BUY
Linen cleaning. Long-term hotels/hospital contracts. Stable company with a strong balance sheet. Under 50% payout ratio. 8.2% yield.
PAST TOP PICK
(A Top Pick Nov 20/08. Up 42.13%.) Still likes.
PAST TOP PICK
(A Top Pick May 14/08. Up 8.98%.) Linens with hospital/hotel long-term contracts. Margins were dropping because of higher Alberta labour costs. Turning around and margins are expanding. Low payout ratio. Alberta is building out infrastructure giving this company good chance for contracts with new hospitals. No problem changing to a corp in 2011.
PAST TOP PICK
(A Top Pick May 14/08. Down 1.4%.) Linen cleaning. Mostly hospitals with about 20% from hotels. Good management. Benefiting from lower wages and natural gas prices in Alberta. Low payout ratio and low debt. Still a Buy.
TOP PICK
About 80% of laundry business is hospitals and 20% is hotels. Labour and natural gas prices are coming down. Possible expansion into Quebec. Low payout ratio. 11% yield should be sustainable.
TOP PICK
Alberta focused. Provides linen service to hospitals on long-term contracts. About 20% of their business is in the hospitality sector. Alberta is building about 4 or 5 new hospitals. Last quarter was very strong with a 52% payout ratio. Very cheap.
TOP PICK
Cleaning hospital linen and to a smaller extent hotels. Very good company. In 6 cities now. Had an excellent quarter. Starting to benefit from some labour savings in Alberta. Trades at about 6.7X EBITDA, which is cheap. Long-term contracts.
TOP PICK
Linen services for hospitals and hotels. Toronto, Alberta and Vancouver and recently expanded into Quebec. New volume is expanding in Calgary due to new hospitals. Long-term contracts. Excellent management.
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