K-Bro Linen (TSX:KBL) ROC (Joel Greenblatt) %: 7.10% (As of Mar. 2026) — Near Median

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TSX:KBL K-Bro Linen Inc TSX:KBL
92 GF Score
Price C$46.32
GF Value C$48.23
Valuation Fairly Valued
! 8 Warning Signs
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What is K-Bro Linen ROC (Joel Greenblatt) %?

K-Bro Linen TSX:KBL -1.17% 92 ROC (Joel Greenblatt) % is 7.10% as of Mar. 2026, which is at its 10-year median of 7.10. GuruFocus rates TSX:KBL with a GF Score™ of 92/100 and a GF Value™ of C$48.23 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,081 Business Services companies, K-Bro Linen ranks worse than 60.5% on this metric.

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. K-Bro Linen's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 7.10%.

The historical rank and industry rank for K-Bro Linen's ROC (Joel Greenblatt) % or its related term are showing as below:

TSX:KBL' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.73   Med: 7.1   Max: 14.96
Current: 12

During the past 13 years, K-Bro Linen's highest ROC (Joel Greenblatt) % was 14.96%. The lowest was 3.73%. And the median was 7.10%.

TSX:KBL's ROC (Joel Greenblatt) % is ranked worse than
60.5% of 1081 companies
in the Business Services industry
Industry Median: 21.22 vs TSX:KBL: 12.00

K-Bro Linen's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 28.90% per year.


K-Bro Linen  (TSX:KBL) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


K-Bro Linen ROC (Joel Greenblatt) % Related Terms


K-Bro Linen ROC (Joel Greenblatt) % Historical Data

* Premium members only.

The historical data trend for K-Bro Linen's ROC (Joel Greenblatt) % 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.

K-Bro Linen ROC (Joel Greenblatt) % Chart

K-Bro Linen Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROC (Joel Greenblatt) %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.25 3.73 11.65 13.04 12.06

K-Bro Linen Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.82 12.74 17.06 9.84 7.10

TSX:KBL vs CTAS, CPRT, ULS: ROC (Joel Greenblatt) % Comparison

For the Specialty Business Services subindustry, K-Bro Linen's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Business Services Industry

For the Business Services industry and Industrials sector, K-Bro Linen's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where K-Bro Linen's ROC (Joel Greenblatt) % falls into.


TSX:KBL
92GF Score
K-Bro Linen Inc TSX:KBL
ROC (Joel Greenblatt) % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

K-Bro Linen ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(83.876 + 2.553 + 85.326) - (76.532 + 0 + 0.367)
=94.856

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(78.255 + 0 + 88.276) - (77.719 + 0 + 0.36700000000002)
=88.445

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of K-Bro Linen for the quarter that ended in Mar. 2026 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=27.864/( ( (303.128 + max(94.856, 0)) + (297.95 + max(88.445, 0)) )/ 2 )
=27.864/( ( 397.984 + 386.395 )/ 2 )
=27.864/392.1895
=7.10 %

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

* 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.

What does a ROC (Joel Greenblatt) % of 7.10% mean?
K-Bro Linen (TSX:KBL) has a ROC (Joel Greenblatt) % of 7.10% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on K-Bro Linen and its competitors. This is near median its historical median of 7.10. Over the past decade, K-Bro Linen's ROC (Joel Greenblatt) % has ranged from 3.73 to 14.96. According to the industry distribution chart, K-Bro Linen ranks #654 out of 1081 companies in the Business Services industry, placing it in the top 60.5%.
Is K-Bro Linen's ROC (Joel Greenblatt) % too high?
K-Bro Linen's current ROC (Joel Greenblatt) % of 7.10% is near median its 10-year median of 7.10. Over the past 10 years, this metric has ranged from a low of 3.73 to a high of 14.96. The Business Services industry median ROC (Joel Greenblatt) % is 21.22. K-Bro Linen's value of 7.10% is 66.5% below this industry median. Based on the distribution chart, K-Bro Linen ranks #654 out of 1081 companies in the Business Services industry, which is below the industry midpoint. Overall, K-Bro Linen has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does K-Bro Linen's ROC (Joel Greenblatt) % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, K-Bro Linen ranks #654 out of 1081 companies for ROC (Joel Greenblatt) %. This places K-Bro Linen in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 21.22. K-Bro Linen's value of 7.10% is 66.5% below this benchmark. Historically, K-Bro Linen's own ROC (Joel Greenblatt) % has ranged from 3.73 to 14.96 over the past decade. While the company's 10-year median is 7.10 vs. the industry median of 21.22, 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 ROC (Joel Greenblatt) % for a Business Services company?
The median ROC (Joel Greenblatt) % among Business Services companies is 21.22, based on 1,081 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. K-Bro Linen's current ROC (Joel Greenblatt) % of 7.10% is 66.5% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on K-Bro Linen and its competitors. For the Business Services industry, the median ROC (Joel Greenblatt) % is 21.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K-Bro Linen's current ROC (Joel Greenblatt) % is 7.10%, which is near median its own 10-year median of 7.10. 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 Fairly Valued. The stock's GF Value™ is C$48.23, compared to a current price of C$46.32 — trading 4% below its estimated fair value. The current ROC (Joel Greenblatt) % is 7.10%, which is near median its 10-year median of 7.10 and 66.5% below the Business Services industry median of 21.22. K-Bro Linen's overall GF Score™ is 92/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For K-Bro Linen (TSX:KBL), the current ROC (Joel Greenblatt) % is 7.10% 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$46.32 is trading 4% below its estimated GF Value™ of C$48.23. GuruFocus considers K-Bro Linen to be Fairly Valued.

Key valuation signals for TSX:KBL:

  • ROC (Joel Greenblatt) %: 7.10% (near median its 10-year median of 7.10)
  • GF Value™: C$48.23 vs. price of C$46.32 (4% below fair value)
  • GF Score™: 92/100 with 8 warning signs
  • Industry Position: 66.5% below the Business Services median (#654 of 1081)

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 Business Description

Other Exchanges KBRLF:USA74R:Germany
Address 14903-137 Avenue N.W., Edmonton, AB, CAN, T5V 1R9
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.
92GF Score

Get the complete analysis for TSX:KBL

ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$46.32
Price
C$48.23
GF Value