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KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis

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

19.7  -1.15 (-5.52%)

After market: 19.7 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 is valued expensive and it does not seem to be growing.


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.
In the past 5 years KLC always reported a positive cash flow from operatings.
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

KLC's Return On Assets of 1.49% is in line compared to the rest of the industry. KLC outperforms 54.69% of its industry peers.
KLC has a Return On Equity of 23.59%. This is amongst the best in the industry. KLC outperforms 87.50% of its industry peers.
KLC's Return On Invested Capital of 5.56% is fine compared to the rest of the industry. KLC outperforms 65.63% of its industry peers.
KLC had an Average Return On Invested Capital over the past 3 years of 7.37%. This is below the industry average of 12.02%.
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 (2.11%) which is comparable to the rest of the industry.
KLC's Operating Margin of 8.76% is fine compared to the rest of the industry. KLC outperforms 64.06% of its industry peers.
In the last couple of years the Operating Margin of KLC has grown nicely.
KLC's Gross Margin of 24.61% is on the low side compared to the rest of the industry. KLC is outperformed by 82.81% of its industry peers.
KLC's Gross Margin has improved in the last couple of years.
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KLC 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

KLC has an Altman-Z score of 1.33. This is a bad value and indicates that KLC is not financially healthy and even has some risk of bankruptcy.
KLC has a Altman-Z score of 1.33. This is in the better half of the industry: KLC outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 6.37 is on the high side and indicates that KLC has dependencies on debt financing.
KLC has a worse Debt to Equity ratio (6.37) than 84.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 6.37
Debt/FCF N/A
Altman-Z 1.33
ROIC/WACC0.49
WACC11.42%
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

KLC has a Current Ratio of 0.60. This is a bad value and indicates that KLC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of KLC (0.60) is worse than 79.69% of its industry peers.
A Quick Ratio of 0.60 indicates that KLC may have some problems paying its short term obligations.
With a Quick ratio value of 0.60, KLC is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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.
Measured over the past years, KLC shows a quite strong growth in Revenue. The Revenue has been growing by 8.43% on average per year.
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 3.83% on average over the next years.
KLC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.53% yearly.
EPS Next Y-63.35%
EPS Next 2Y-8.17%
EPS Next 3Y3.83%
EPS Next 5YN/A
Revenue Next Year7.08%
Revenue Next 2Y7.22%
Revenue Next 3Y6.53%
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

With a Price/Earnings ratio of 37.88, KLC can be considered very expensive at the moment.
KLC's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of KLC to the average of the S&P500 Index (29.63), we can say KLC is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 26.05, the valuation of KLC can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as KLC.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, KLC is valued at the same level.
Industry RankSector Rank
PE 37.88
Fwd PE 26.05
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLC indicates a somewhat cheap valuation: KLC is cheaper than 70.31% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 11.3
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-8.17%
EPS Next 3Y3.83%

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0

5. Dividend

5.1 Amount

No dividends for KLC!.
Industry RankSector Rank
Dividend Yield N/A

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KINDERCARE LEARNING COS INC

NYSE:KLC (2/21/2025, 8:04:00 PM)

After market: 19.7 0 (0%)

19.7

-1.15 (-5.52%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-20 2024-11-20/amc
Earnings (Next)03-20 2025-03-20
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner Change0%
Market Cap2.32B
Analysts80
Price Target32.39 (64.42%)
Short Float %8.15%
Short Ratio3.65
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)-3.79%
PT rev (3m)N/A
EPS NQ rev (1m)10.53%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.17%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 37.88
Fwd PE 26.05
P/S 0.88
P/FCF N/A
P/OCF N/A
P/B 9.87
P/tB N/A
EV/EBITDA 11.3
EPS(TTM)0.52
EY2.64%
EPS(NY)0.76
Fwd EY3.84%
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 1.33
F-ScoreN/A
WACC11.42%
ROIC/WACC0.49
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-63.35%
EPS Next 2Y-8.17%
EPS Next 3Y3.83%
EPS Next 5YN/A
Revenue 1Y (TTM)15.9%
Revenue growth 3Y22.47%
Revenue growth 5Y8.43%
Sales Q2Q%N/A
Revenue Next Year7.08%
Revenue Next 2Y7.22%
Revenue Next 3Y6.53%
Revenue Next 5YN/A
EBIT growth 1Y-28.66%
EBIT growth 3YN/A
EBIT growth 5Y35.92%
EBIT Next Year2.24%
EBIT Next 3Y7.43%
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%