Kip McGrath Education CentresASX:KME 61 5-Year Yield-on-Cost % is 0.72 as of Jul. 12, 2026, which is 3% below its 10-year median of 0.74. GuruFocus rates ASX:KME with a GF Score™ of 61/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 121 Education companies, Kip McGrath Education Centres ranks worse than 91.74% on this metric.
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Kip McGrath Education Centres 5-Year Yield-on-Cost % Related Terms
ASX:KME vs EDU, TAL, LAUR: 5-Year Yield-on-Cost % Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Kip McGrath Education Centres (ASX:KME) has a 5-Year Yield-on-Cost % of 0.72 as of Jul. 12, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Kip McGrath Education Centres and its competitors. This is near median its historical median of 0.74. Over the past decade, Kip McGrath Education Centres' 5-Year Yield-on-Cost % has ranged from 0.19 to 1.68. According to the industry distribution chart, Kip McGrath Education Centres ranks #111 out of 121 companies in the Education industry, placing it in the top 91.7%.
Is Kip McGrath Education Centres' 5-Year Yield-on-Cost % too high?
Kip McGrath Education Centres' current 5-Year Yield-on-Cost % of 0.72 is near median its 10-year median of 0.74. Over the past 10 years, this metric has ranged from a low of 0.19 to a high of 1.68. The Education industry median 5-Year Yield-on-Cost % is 4.41. Kip McGrath Education Centres' value of 0.72 is 83.7% below this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #111 out of 121 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Kip McGrath Education Centres has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' 5-Year Yield-on-Cost % compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #111 out of 121 companies for 5-Year Yield-on-Cost %. This places Kip McGrath Education Centres in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.41. Kip McGrath Education Centres' value of 0.72 is 83.7% below this benchmark. Historically, Kip McGrath Education Centres' own 5-Year Yield-on-Cost % has ranged from 0.19 to 1.68 over the past decade. While the company's 10-year median is 0.74 vs. the industry median of 4.41, Kip McGrath Education Centres 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 5-Year Yield-on-Cost % for an Education company?
The median 5-Year Yield-on-Cost % among Education companies is 4.41, based on 121 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kip McGrath Education Centres's current 5-Year Yield-on-Cost % of 0.72 is 83.7% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Kip McGrath Education Centres and its competitors. For the Education industry, the median 5-Year Yield-on-Cost % is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current 5-Year Yield-on-Cost % is 0.72, which is near median its own 10-year median of 0.74. 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 Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.49 — trading 10.9% below its estimated fair value. The current 5-Year Yield-on-Cost % is 0.72, which is near median its 10-year median of 0.74 and 83.7% below the Education industry median of 4.41. Kip McGrath Education Centres' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current 5-Year Yield-on-Cost % is 0.72 as of Jul. 12, 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 undervalued.
The current stock price of A$0.49 is trading 10.9% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
5-Year Yield-on-Cost %: 0.72 (near median its 10-year median of 0.74)
GF Value™: A$0.55 vs. price of A$0.49 (10.9% below fair value)
Industry Position: 83.7% below the Education median (#111 of 121)
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
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.
61GF Score
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