K-Bro Linen Inc (TSE: KBL)
Intro The Corona crisis has led and will likely lead further to some pretty decent buying opportunities with a beneficial risk/reward relation. Today, I will present you a company I have already been following for some years yet always considered it too expensive – a fact that has changed now with the drop in its share price. K-Bro Linen is the largest provider of laundry and linen services in Canada, and one of the largest in the UK. According to its own website, K-Bro has an international reputation for excellence and dependability in providing the most highly efficient, environmentally conscious and cost-effective laundry and linen services. The contracts with is clients are typically multi year contracts and provide not only visibility but also stable and recurring revenues. Sounds boring, right? That’s exactly how long-term investing works. K-Bro’s business can be divided into two parts: services for healthcare and hospitality. Of its total revenue of C$252 million in 2019...