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Kip McGrath Education Centres Limited

KME.AX
42
Education & Training Services · Consumer Defensive
Price
A$0.48
+0.00 (+0.00%)
Market Cap
A$25.2M
Exchange
Australian Securities Exchange
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Jul 25, 2026 · filings through Dec 31, 2025

Share count rising — dilution

+4.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 54.4M (2021) → 56.9M (2025)

Kip McGrath Education Centres Limited is a global provider of English and Mathematics educational support, with operations spanning Australia, New Zealand, the United Kingdom, and numerous other international markets. The company specializes in offering targeted tutoring in both English and Maths for students at primary and secondary school levels, alongside an extensive range of online learning services. Operating primarily through a broad franchise network, Kip McGrath oversees approximately 560 learning centers. The organization was established in 1976 and is headquartered in Newcastle, Australia.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+188.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (2%)

Research and development spending

Cash Position

Cash flow positive

$8M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Kip McGrath Education Centres Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
42.1%
Healthy — 42.1% gross margin
Operating Margin
14.5%
Healthy — 14.5% operating margin
ROCE
10.3%
Below par — 10.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
-4.3%
Shrinking sales (-4.3% YoY)
EPS YoY
-295.7%
Earnings shrinking (-295.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
21.2%
Converts sales into free cash efficiently (21.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
0.12
Conservative — low debt load (0.12)
Interest Cover
21.57x
Comfortably covers interest (21.6x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend Yield
3.13%
Moderate income — 3.13% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
-12.5%
Dividend cut (-12.5% YoY) — warning sign

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