K-Bro LinenTSX:KBL +0.81%91 Interest Coverage is 1.57 as of Mar. 2026, which is 61% below its 10-year median of 4.06. 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 812 Business Services companies, K-Bro Linen ranks worse than 81.9% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. K-Bro Linen's
Operating Income
for the
three
months ended in Mar. 2026 was C$7.0 Mil. K-Bro Linen's Interest Expense for the
three
months ended in Mar. 2026 was C$-4.4 Mil.
K-Bro Linen's interest coverage for the quarter that ended in Mar. 2026 was 1.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for K-Bro Linen's Interest Coverage or its related term are showing as below:
TSX:KBL'
s Interest Coverage Range Over the Past 10 Years
Min: 2.48 Med: 4.06 Max: 46.27
Current: 2.48
TSX:KBL's Interest Coverage is ranked worse than 81.9% of 812
companies
in the Business Services industry
Industry Median: 12.98
vs TSX:KBL: 2.48
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
K-Bro Linen Interest Coverage Related Terms
K-Bro Linen Interest Coverage Historical Data
* Premium members only.
The historical data trend for K-Bro Linen's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
TSX:KBL vs CTAS, CPRT, ULS: Interest Coverage Comparison
For the Specialty Business Services subindustry, K-Bro Linen's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, K-Bro Linen's Interest Coverage distribution charts can be found below:
* The bar in red indicates where K-Bro Linen's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
K-Bro Linen (TSX:KBL) has a Interest Coverage of 1.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on K-Bro Linen and its competitors. This is 61% below median its historical median of 4.06. Over the past decade, K-Bro Linen's Interest Coverage has ranged from 2.48 to 46.27. According to the industry distribution chart, K-Bro Linen ranks #665 out of 812 companies in the Business Services industry, placing it in the top 81.9%.
Is K-Bro Linen's Interest Coverage too high?
K-Bro Linen's current Interest Coverage of 1.57 is 61% below median its 10-year median of 4.06. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 46.27. The Business Services industry median Interest Coverage is 12.98. K-Bro Linen's value of 1.57 is 87.9% below this industry median. Based on the distribution chart, K-Bro Linen ranks #665 out of 812 companies in the Business Services industry, which is in the bottom quartile 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 Interest Coverage compare to CTAS and CPRT?
According to the Business Services industry distribution chart, K-Bro Linen ranks #665 out of 812 companies for Interest Coverage. This places K-Bro Linen in the lower half of its industry. The industry median Interest Coverage is 12.98. K-Bro Linen's value of 1.57 is 87.9% below this benchmark. Historically, K-Bro Linen's own Interest Coverage has ranged from 2.48 to 46.27 over the past decade. While the company's 10-year median is 4.06 vs. the industry median of 12.98, K-Bro Linen has consistently been below 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 Interest Coverage for a Business Services company?
The median Interest Coverage among Business Services companies is 12.98, based on 812 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. K-Bro Linen's current Interest Coverage of 1.57 is 87.9% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on K-Bro Linen and its competitors. For the Business Services industry, the median Interest Coverage is 12.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K-Bro Linen's current Interest Coverage is 1.57, which is 61% below median its own 10-year median of 4.06. 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$43.40 — trading 9.6% below its estimated fair value. The current Interest Coverage is 1.57, which is 61% below median its 10-year median of 4.06 and 87.9% below the Business Services industry median of 12.98. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For K-Bro Linen (TSX:KBL), the current Interest Coverage is 1.57 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$43.40 is trading 9.6% below its estimated GF Value™ of C$48.01.
GuruFocus considers K-Bro Linen to be Modestly Undervalued.
Key valuation signals for TSX:KBL:
Interest Coverage: 1.57 (61% below median its 10-year median of 4.06)
GF Value™: C$48.01 vs. price of C$43.40 (9.6% below fair value)
Industry Position: 87.9% below the Business Services median (#665 of 812)
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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