K-Bro LinenTSX:KBL -0.46%91 Gross Margin % is 84.66% as of Mar. 2026, which is 1% below its 10-year median of 85.65. GuruFocus rates TSX:KBL with a GF Score™ of 91/100 and a GF Value™ of C$48.01 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,007 Business Services companies, K-Bro Linen ranks better than 90.17% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. K-Bro Linen's Gross Profit for the
three
months ended in Mar. 2026 was C$117.8 Mil. K-Bro Linen's Revenue for the
three
months ended in Mar. 2026 was C$139.1 Mil. Therefore, K-Bro Linen's Gross Margin % for the quarter that ended in Mar. 2026 was 84.66%.
The historical rank and industry rank for K-Bro Linen's Gross Margin % or its related term are showing as below:
TSX:KBL'
s Gross Margin % Range Over the Past 10 Years
Min: 83.48 Med: 85.65 Max: 86.61
Current: 85.35
During the past 13 years, the highestGross Margin % of K-Bro Linen was 86.61%. The lowest was 83.48%. And the median was 85.65%.
TSX:KBL's Gross Margin % is ranked better than 90.17% of 1007
companies
in the Business Services industry
Industry Median: 34.5
vs TSX:KBL: 85.35
K-Bro Linen had a gross margin of 84.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for K-Bro Linen was 0.70% per year.
K-Bro Linen (TSX:KBL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
K-Bro Linen had a gross margin of 84.66% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
K-Bro Linen Gross Margin % Related Terms
K-Bro Linen Gross Margin % Historical Data
* Premium members only.
The historical data trend for K-Bro Linen's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:KBL vs CTAS, CPRT, ULS: Gross Margin % Comparison
For the Specialty Business Services subindustry, K-Bro Linen's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
K-Bro Linen Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, K-Bro Linen's Gross Margin % distribution charts can be found below:
* The bar in red indicates where K-Bro Linen's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
K-Bro Linen (TSX:KBL) has a Gross Margin % of 84.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on K-Bro Linen and its competitors. This is near median its historical median of 85.65. Over the past decade, K-Bro Linen's Gross Margin % has ranged from 83.48 to 86.61. According to the industry distribution chart, K-Bro Linen ranks #99 out of 1007 companies in the Business Services industry, placing it in the top 9.8%.
Is K-Bro Linen's Gross Margin % too high?
K-Bro Linen's current Gross Margin % of 84.66% is near median its 10-year median of 85.65. Over the past 10 years, this metric has ranged from a low of 83.48 to a high of 86.61. The Business Services industry median Gross Margin % is 34.50. K-Bro Linen's value of 84.66% is 145.4% above this industry median. Based on the distribution chart, K-Bro Linen ranks #99 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, K-Bro Linen has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does K-Bro Linen's Gross Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, K-Bro Linen ranks #99 out of 1007 companies for Gross Margin %. This places K-Bro Linen in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. K-Bro Linen's value of 84.66% is 145.4% above this benchmark. Historically, K-Bro Linen's own Gross Margin % has ranged from 83.48 to 86.61 over the past decade. While the company's 10-year median is 85.65 vs. the industry median of 34.50, K-Bro Linen has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. K-Bro Linen's current Gross Margin % of 84.66% is 145.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on K-Bro Linen and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K-Bro Linen's current Gross Margin % is 84.66%, which is near median its own 10-year median of 85.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is K-Bro Linen stock overvalued right now?
Based on GuruFocus' analysis, K-Bro Linen (TSX:KBL) is currently considered Modestly Undervalued. The stock's GF Value™ is C$48.01, compared to a current price of C$43.20 — trading 10% below its estimated fair value. The current Gross Margin % is 84.66%, which is near median its 10-year median of 85.65 and 145.4% above the Business Services industry median of 34.50. K-Bro Linen's overall GF Score™ is 91/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For K-Bro Linen (TSX:KBL), the current Gross Margin % is 84.66% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is K-Bro Linen (TSX:KBL) Overvalued in 2026?
Based on GuruFocus' analysis, K-Bro Linen stock appears to be undervalued.
The current stock price of C$43.20 is trading 10% below its estimated GF Value™ of C$48.01.
GuruFocus considers K-Bro Linen to be Modestly Undervalued.
Key valuation signals for TSX:KBL:
Gross Margin %: 84.66% (near median its 10-year median of 85.65)
GF Value™: C$48.01 vs. price of C$43.20 (10% below fair value)
Industry Position: 145.4% above the Business Services median (#99 of 1007)
No single metric tells the full story. See the TSX:KBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
K-Bro Linen Inc is a healthcare and hospitality laundry and linen processor in Canada. It operates in cities across Canada, and has two distribution centers, providing management services and laundry processing of hospitality, healthcare, and specialty linens. The company provides vital products and services that help people heal, travel, live, and play. It helps hospitals and extended care centers care for the young, old, and vulnerable in environmentally responsible ways. It operates through two divisions, which are the Canadian segment, which provides laundry and linen services to the healthcare and hospitality sectors in Canada. and the United Kingdom Segment, which provides laundry and linen services to the healthcare and hospitality sectors in United Kingdom.
91GF Score
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