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Kip McGrath Education Centres Limited (KME) Fair Value & Analysis

Consumer Defensive · AU · Market cap A$27.7M

KM Kip McGrath Education Centres Limited KME · AU
PriceA$0.4200
Fair ValueA$2.80
Upside+566.7%
Quality95/100
Evidence: Low Range A$1.65 – A$3.48

Fair value as of: Jun 25, 2026

From 13 valuation models · updated 4 days ago

Share price −15.3% over the past month.

Price vs Fair Value (12 months)

A$0.5441 A$0.3753 Fair Value A$2.80 Jun 2025 Jun 2026

12‑month range A$0.3753 – A$0.5441 · fair‑value band A$1.65 – A$3.48 · the A$0.4200 price screens below the A$2.80 fair value. As of Jun 25, 2026.

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Analysis

Kip McGrath Education Centres Limited (KME) currently trades at A$0.4200, while our model-based Fair Value estimate is A$2.80 — implying the stock looks roughly 566.7% undervalued today. We read business quality at 95/100 (high quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low) — always confirm before acting.

Over the trailing twelve months, Kip McGrath Education Centres Limited generated revenue of A$31.7M at a net margin of -13.2%. Revenue grew 1.6% year over year. It earns a return on equity of 11.4%. The balance sheet holds a net cash position of A$3.8M. Fundamentals as of Jun 25, 2026

Key figures & financial health

Revenue (TTM) A$31.7M
Revenue growth (YoY) +1.6%
Net margin -13.2%
Return on equity 11.4%
Free cash flow A$5.9M FY2025
P/E ratio 8.8
More key figures
Operating margin 14.7%
EPS (TTM) A$0.0600
Dividend yield 2.8%
EPS growth (YoY) +188%
Net cash A$3.8M FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 25, 2026. TTM = trailing twelve months.

About the company

Kip McGrath Education Centres Limited provides tutoring services in Australasia, Europe, the United States, and internationally. The company provides tutoring services for english and maths skills to primary and secondary students; and in-person and online tutoring services. It sells and services to franchise networks in the education field. Kip McGrath Education Centres Limited was founded in 1976 and is headquartered in Sydney, Australia..

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kip McGrath Education Centres Limited reported revenue of A$31.4M in FY2025 versus A$19.2M in FY2021, a compound +13.0%/yr. Reported net income was −A$5.3M in FY2025.

Revenue +13.0%/yr
FY21 A$19.2M
FY22 A$24.6M
FY23 A$26.6M
FY24 A$28.9M
FY25 A$31.4M
Net income
FY21 A$1.7M
FY22 A$1.9M
FY23 A$1.9M
FY24 A$1.3M
FY25 −A$5.3M

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Similar stocks

6 more Education & Training Services stocks, each showing price versus our Fair Value estimate (as of Jun 25, 2026).

Stock Price Fair Value vs Fair Value
New Oriental Education & Technology Group EDUN 966.48 MXN 51.39 MXN -95%
TAL Education Group T1AL34 R$4.84 R$0.5800 -88%
Graham Holdings GHC $1,116 $960.79 -14%
Laureate Education, Inc LAUR $37.19 $41.45 +11%
Covista Inc CVSA $130.25 $150.42 +15%
Stride, Inc LRN $99.84 $139.45 +40%

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Frequently asked questions

Is Kip McGrath Education Centres Limited (KME) undervalued?
As of Jun 25, 2026, our model estimates a fair value of A$2.80 versus a price of A$0.4200 — about +567% (undervalued). Model-based estimate, not financial advice.
What is the fair value of KME?
Our 21-model fair value for Kip McGrath Education Centres Limited is A$2.80 (as of Jun 25, 2026), built from audited fundamentals. The current price is A$0.4200.
What is the quality score of KME?
Kip McGrath Education Centres Limited has a Quality Score of 95/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Kip McGrath Education Centres Limited (KME)?
Kip McGrath Education Centres Limited reported trailing-twelve-month revenue of about A$31.7M (latest available figure, as of Jun 25, 2026).
What is the net profit margin of KME?
The net profit margin of Kip McGrath Education Centres Limited is about -13.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Kip McGrath Education Centres Limited pay a dividend?
Kip McGrath Education Centres Limited currently shows a dividend yield of about 2.83% relative to its recent price (as of Jun 25, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.