
TSE:KBL
This summary was created by AI, based on 9 opinions in the last 12 months.
K-Bro Linen Inc. (KBL-T) is a small-cap stock operating primarily in the laundry service sector for healthcare, particularly hospitals, and hospitality. The company has made a significant transformational acquisition in the UK, which is expected to generate synergies over the coming years. Experts have highlighted the stability of the business, characterized by long-term contracts and consistent cash flow, making it a good defensive choice despite its small size and inherent volatility associated with small caps. Analysts project stable growth due to increasing demand in healthcare and hospitality sectors, further strengthened by a competent management team focused on operational efficiency. While it may not offer explosive growth, the stock is viewed as a reliable investment option with a decent dividend yield around 3.34% to 3.5%.
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.