Kip McGrath Education Centres (ASX:KME) Financial Strength: 7 (As of Jun. 2026) — Near Median

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ASX:KME Kip McGrath Education Centres Ltd ASX:KME
60 GF Score
Price A$0.72
GF Value A$0.52
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Kip McGrath Education Centres Financial Strength?

Kip McGrath Education Centres ASX:KME 60 Financial Strength is 7 as of Jun. 2026, which is at its 10-year median of 7.00. GuruFocus rates ASX:KME with a GF Score™ of 60/100 and a GF Value™ of A$0.52 (Significantly Overvalued). The stock has 5 warning signs investors should review.

Kip McGrath Education Centres has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Kip McGrath Education Centres's Interest Coverage for the quarter that ended in Jun. 2026 was 11.40. Kip McGrath Education Centres's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.07. As of today, Kip McGrath Education Centres's Altman Z-Score is 4.24.


Kip McGrath Education Centres  (ASX:KME) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Kip McGrath Education Centres has the Financial Strength Rank of 7.


Kip McGrath Education Centres Financial Strength Related Terms


ASX:KME vs EDU, TAL, LAUR: Financial Strength Comparison

For the Education & Training Services subindustry, Kip McGrath Education Centres's Financial Strength, along with its competitors' market caps and Financial Strength 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.


Kip McGrath Education Centres Financial Strength vs Education Industry

For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's Financial Strength distribution charts can be found below:

* The bar in red indicates where Kip McGrath Education Centres's Financial Strength falls into.


ASX:KME
60GF Score
Kip McGrath Education Centres Ltd ASX:KME
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Kip McGrath Education Centres Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Kip McGrath Education Centres's Interest Expense for the months ended in Jun. 2026 was A$-0.12 Mil. Its Operating Income for the months ended in Jun. 2026 was A$1.37 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was A$1.22 Mil.

Kip McGrath Education Centres's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1.368/-0.12
=11.40

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Kip McGrath Education Centres's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0.948 + 1.224) / 29.696
=0.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Kip McGrath Education Centres has a Z-score of 4.24, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.24 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 7 mean?
Kip McGrath Education Centres (ASX:KME) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Kip McGrath Education Centres and its competitors. This is near median its historical median of 7.00. Over the past decade, Kip McGrath Education Centres' Financial Strength has ranged from 5.00 to 8.00.
Is Kip McGrath Education Centres' Financial Strength too high?
Kip McGrath Education Centres' current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. Overall, Kip McGrath Education Centres has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' Financial Strength compare to EDU and TAL?
Kip McGrath Education Centres' Financial Strength of 7 can be compared against companies in the Education industry. Historically, Kip McGrath Education Centres' own Financial Strength has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Education company?
A good Financial Strength depends on the Education industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Kip McGrath Education Centres and its competitors. Kip McGrath Education Centres's current Financial Strength is 7, which is near median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.52, compared to a current price of A$0.72 — trading 38.5% above its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. Kip McGrath Education Centres' overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current Financial Strength is 7 as of Jun. 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?

Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be overvalued. The current stock price of A$0.72 is trading 38.5% above its estimated GF Value™ of A$0.52. GuruFocus considers Kip McGrath Education Centres to be Significantly Overvalued.

Key valuation signals for ASX:KME:

  • Financial Strength: 7 (near median its 10-year median of 7.00)
  • GF Value™: A$0.52 vs. price of A$0.72 (38.5% above fair value)
  • GF Score™: 60/100 with 5 warning signs

No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kip McGrath Education Centres Business Description

Address 31 Market Street, Suite 2.02, Level 2, Sydney, NSW, AUS, 2000
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
60GF Score

Get the complete analysis for ASX:KME

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.72
Price
A$0.52
GF Value