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KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis

NYSE:KLC - New York Stock Exchange, Inc. - US49456W1053 - Common Stock

20.1  +0.1 (+0.5%)

After market: 20.1 0 (0%)

Fundamental Rating

3

Taking everything into account, KLC scores 3 out of 10 in our fundamental rating. KLC was compared to 71 industry peers in the Diversified Consumer Services industry. KLC has a medium profitability rating, but doesn't score so well on its financial health evaluation. KLC has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year KLC was profitable.
The reported net income has been mixed in the past 5 years: KLC reported negative net income in multiple years.
KLC had a positive operating cash flow in each of the past 5 years.
KLC Yearly Net Income VS EBIT VS OCF VS FCFKLC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 0 100M -100M 200M 300M 400M

1.2 Ratios

With a Return On Assets value of 1.49%, KLC perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
KLC has a Return On Equity of 23.59%. This is amongst the best in the industry. KLC outperforms 87.30% of its industry peers.
With a decent Return On Invested Capital value of 5.56%, KLC is doing good in the industry, outperforming 65.08% of the companies in the same industry.
KLC had an Average Return On Invested Capital over the past 3 years of 7.37%. This is below the industry average of 11.87%.
Industry RankSector Rank
ROA 1.49%
ROE 23.59%
ROIC 5.56%
ROA(3y)3.78%
ROA(5y)1.3%
ROE(3y)36.19%
ROE(5y)0.27%
ROIC(3y)7.37%
ROIC(5y)N/A
KLC Yearly ROA, ROE, ROICKLC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 0 50 -50

1.3 Margins

KLC has a Profit Margin of 2.11%. This is comparable to the rest of the industry: KLC outperforms 55.56% of its industry peers.
KLC has a better Operating Margin (8.76%) than 66.67% of its industry peers.
KLC's Operating Margin has improved in the last couple of years.
The Gross Margin of KLC (24.61%) is worse than 82.54% of its industry peers.
In the last couple of years the Gross Margin of KLC has grown nicely.
Industry RankSector Rank
OM 8.76%
PM (TTM) 2.11%
GM 24.61%
OM growth 3YN/A
OM growth 5Y25.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.2%
GM growth 5Y5.45%
KLC Yearly Profit, Operating, Gross MarginsKLC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 0 10 20 30

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1

2. Health

2.1 Basic Checks

KLC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KLC has about the same amount of shares outstanding.
Compared to 1 year ago, KLC has an improved debt to assets ratio.
KLC Yearly Shares OutstandingKLC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 200M 400M 600M
KLC Yearly Total Debt VS Total AssetsKLC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.31, we must say that KLC is in the distress zone and has some risk of bankruptcy.
KLC has a Altman-Z score (1.31) which is comparable to the rest of the industry.
A Debt/Equity ratio of 6.37 is on the high side and indicates that KLC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 6.37, KLC is doing worse than 85.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 6.37
Debt/FCF N/A
Altman-Z 1.31
ROIC/WACC0.43
WACC12.82%
KLC Yearly LT Debt VS Equity VS FCFKLC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

A Current Ratio of 0.60 indicates that KLC may have some problems paying its short term obligations.
KLC's Current ratio of 0.60 is on the low side compared to the rest of the industry. KLC is outperformed by 82.54% of its industry peers.
A Quick Ratio of 0.60 indicates that KLC may have some problems paying its short term obligations.
KLC has a worse Quick ratio (0.60) than 79.37% of its industry peers.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.6
KLC Yearly Current Assets VS Current LiabilitesKLC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 100M 200M 300M 400M

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3

3. Growth

3.1 Past

KLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -53.21%.
The Revenue has grown by 15.90% in the past year. This is quite good.
KLC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.43% yearly.
EPS 1Y (TTM)-53.21%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
Revenue 1Y (TTM)15.9%
Revenue growth 3Y22.47%
Revenue growth 5Y8.43%
Sales Q2Q%N/A

3.2 Future

The Earnings Per Share is expected to grow by 4.04% on average over the next years.
The Revenue is expected to grow by 6.57% on average over the next years.
EPS Next Y-63.78%
EPS Next 2Y-7.94%
EPS Next 3Y4.04%
EPS Next 5YN/A
Revenue Next Year7.04%
Revenue Next 2Y7.26%
Revenue Next 3Y6.57%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
KLC Yearly Revenue VS EstimatesKLC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
KLC Yearly EPS VS EstimatesKLC Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 38.65, the valuation of KLC can be described as expensive.
KLC's Price/Earnings is on the same level as the industry average.
KLC's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.96.
The Price/Forward Earnings ratio is 26.45, which means the current valuation is very expensive for KLC.
The rest of the industry has a similar Price/Forward Earnings ratio as KLC.
The average S&P500 Price/Forward Earnings ratio is at 24.11. KLC is around the same levels.
Industry RankSector Rank
PE 38.65
Fwd PE 26.45
KLC Price Earnings VS Forward Price EarningsKLC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than 74.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11
KLC Per share dataKLC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-7.94%
EPS Next 3Y4.04%

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0

5. Dividend

5.1 Amount

KLC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KINDERCARE LEARNING COS INC

NYSE:KLC (1/17/2025, 8:11:17 PM)

After market: 20.1 0 (0%)

20.1

+0.1 (+0.5%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-20 2024-11-20/amc
Earnings (Next)N/A N/A
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner Change0%
Market Cap2.37B
Analysts80
Price Target33.66 (67.46%)
Short Float %10.18%
Short Ratio4.87
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)161.84%
Min EPS beat(2)-23.84%
Max EPS beat(2)347.53%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.17%
Min Revenue beat(2)-3.64%
Max Revenue beat(2)-0.7%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.8%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 38.65
Fwd PE 26.45
P/S 0.9
P/FCF N/A
P/OCF N/A
P/B 10.07
P/tB N/A
EV/EBITDA 11
EPS(TTM)0.52
EY2.59%
EPS(NY)0.76
Fwd EY3.78%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.33
BVpS2
TBVpS-11.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.49%
ROE 23.59%
ROCE 7.17%
ROIC 5.56%
ROICexc 5.81%
ROICexgc 11.71%
OM 8.76%
PM (TTM) 2.11%
GM 24.61%
FCFM N/A
ROA(3y)3.78%
ROA(5y)1.3%
ROE(3y)36.19%
ROE(5y)0.27%
ROIC(3y)7.37%
ROIC(5y)N/A
ROICexc(3y)7.71%
ROICexc(5y)N/A
ROICexgc(3y)15.28%
ROICexgc(5y)N/A
ROCE(3y)9.5%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5Y25.35%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y19.2%
GM growth 5Y5.45%
F-ScoreN/A
Asset Turnover0.71
Health
Industry RankSector Rank
Debt/Equity 6.37
Debt/FCF N/A
Debt/EBITDA 4.41
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.6
Quick Ratio 0.6
Altman-Z 1.31
F-ScoreN/A
WACC12.82%
ROIC/WACC0.43
Cap/Depr(3y)119.05%
Cap/Depr(5y)101.41%
Cap/Sales(3y)5.09%
Cap/Sales(5y)4.77%
Profit Quality(3y)131.35%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-53.21%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%N/A
EPS Next Y-63.78%
EPS Next 2Y-7.94%
EPS Next 3Y4.04%
EPS Next 5YN/A
Revenue 1Y (TTM)15.9%
Revenue growth 3Y22.47%
Revenue growth 5Y8.43%
Sales Q2Q%N/A
Revenue Next Year7.04%
Revenue Next 2Y7.26%
Revenue Next 3Y6.57%
Revenue Next 5YN/A
EBIT growth 1Y-28.66%
EBIT growth 3YN/A
EBIT growth 5Y35.92%
EBIT Next Year2.1%
EBIT Next 3Y7.49%
EBIT Next 5YN/A
FCF growth 1Y-13.69%
FCF growth 3YN/A
FCF growth 5Y128.46%
OCF growth 1Y-11.14%
OCF growth 3Y181.61%
OCF growth 5Y27.26%