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TSE:KBL
This summary was created by AI, based on 8 opinions in the last 12 months.
K-Bro Linen Inc. is recognized as a small-cap stock that operates primarily in the laundry sector for healthcare and hospitality, emphasizing its stable business model and long-term contracts. The company has made a significant transformational acquisition in the UK, which has been positively received despite some near-term volatility in its stock price. Analysts generally note that K-Bro exhibits strong management capabilities and is expected to show solid EPS growth, making it a defensive business with steady cash flows. The stock is appreciated for its consistent dividend yield, and while it may not offer explosive growth, it provides a reliable investment avenue with attractive synergies yet to be fully realized from recent acquisitions.
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.