KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
NYSE:KLC - New York Stock Exchange, Inc. - US49456W1053 - Common Stock - Currency: USD
Taking everything into account, KLC scores 3 out of 10 in our fundamental rating. KLC was compared to 72 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of KLC have multiple concerns. KLC has a valuation in line with the averages, but it does not seem to be growing.
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.
1.2 Ratios
KLC has a Return On Assets of -1.88%. This is comparable to the rest of the industry: KLC outperforms 50.00% of its industry peers.
KLC has a Return On Equity (-7.90%) which is comparable to the rest of the industry.
KLC's Return On Invested Capital of 2.48% is in line compared to the rest of the industry. KLC outperforms 59.72% of its industry peers.
KLC had an Average Return On Invested Capital over the past 3 years of 6.36%. This is below the industry average of 10.64%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -7.9% | ||
| ROIC | 2.48% |
ROA(3y)2.08%
ROA(5y)0.96%
ROE(3y)21.08%
ROE(5y)0.56%
ROIC(3y)6.36%
ROIC(5y)N/A
1.3 Margins
KLC has a Operating Margin (3.82%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KLC has declined.
Looking at the Gross Margin, with a value of 23.37%, KLC is doing worse than 79.17% of the companies in the same industry.
In the last couple of years the Gross Margin of KLC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.82% | ||
| PM (TTM) | N/A | ||
| GM | 23.37% |
OM growth 3Y-34.76%
OM growth 5Y-6.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.12%
GM growth 5Y2.69%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KLC is destroying value.
The number of shares outstanding for KLC has been increased compared to 1 year ago.
The number of shares outstanding for KLC has been reduced compared to 5 years ago.
The debt/assets ratio for KLC has been reduced compared to a year ago.
2.2 Solvency
KLC has an Altman-Z score of 1.03. This is a bad value and indicates that KLC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.03, KLC is in line with its industry, outperforming 55.56% of the companies in the same industry.
KLC has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.04, KLC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.03 |
ROIC/WACC0.24
WACC10.23%
2.3 Liquidity
A Current Ratio of 0.61 indicates that KLC may have some problems paying its short term obligations.
The Current ratio of KLC (0.61) is worse than 70.83% of its industry peers.
KLC has a Quick Ratio of 0.61. This is a bad value and indicates that KLC is not financially healthy enough and could expect problems in meeting its short term obligations.
KLC has a Quick ratio of 0.61. This is in the lower half of the industry: KLC underperforms 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The earnings per share for KLC have decreased strongly by -207.49% in the last year.
Looking at the last year, KLC shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
Measured over the past years, KLC shows a small growth in Revenue. The Revenue has been growing by 7.26% on average per year.
EPS 1Y (TTM)-207.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1268.63%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%2.07%
3.2 Future
KLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.21% yearly.
Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y141.41%
EPS Next 2Y69.35%
EPS Next 3Y51.21%
EPS Next 5YN/A
Revenue Next Year4.54%
Revenue Next 2Y4.24%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.05, the valuation of KLC can be described as expensive.
KLC's Price/Earnings ratio is a bit cheaper when compared to the industry. KLC is cheaper than 63.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of KLC to the average of the S&P500 Index (27.69), we can say KLC is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 11.16, the valuation of KLC can be described as reasonable.
Based on the Price/Forward Earnings ratio, KLC is valued cheaply inside the industry as 88.89% of the companies are valued more expensively.
KLC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.36, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 11.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than 73.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.12 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KLC's earnings are expected to grow with 51.21% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y69.35%
EPS Next 3Y51.21%
5. Dividend
5.1 Amount
No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.52
+0.31 (+3.04%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners28.84%
Inst Owner Change-0.08%
Ins Owners1.25%
Ins Owner Change2.14%
Market Cap1.24B
Analysts80
Price Target21.71 (106.37%)
Short Float %7%
Short Ratio3.77
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)53.56%
Min EPS beat(2)37.39%
Max EPS beat(2)69.73%
EPS beat(4)3
Avg EPS beat(4)107.7%
Min EPS beat(4)-23.84%
Max EPS beat(4)347.53%
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)-1.9%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
Max Revenue beat(4)-0.7%
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)-1.97%
PT rev (3m)-21.58%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-11.27%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.05 | ||
| Fwd PE | 11.16 | ||
| P/S | 0.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.12 |
EPS(TTM)0.42
EY3.99%
EPS(NY)0.94
Fwd EY8.96%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.68
BVpS7.5
TBVpS-5.67
PEG (NY)0.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -7.9% | ||
| ROCE | 3.15% | ||
| ROIC | 2.48% | ||
| ROICexc | 2.59% | ||
| ROICexgc | 5.16% | ||
| OM | 3.82% | ||
| PM (TTM) | N/A | ||
| GM | 23.37% | ||
| FCFM | N/A |
ROA(3y)2.08%
ROA(5y)0.96%
ROE(3y)21.08%
ROE(5y)0.56%
ROIC(3y)6.36%
ROIC(5y)N/A
ROICexc(3y)6.6%
ROICexc(5y)N/A
ROICexgc(3y)13.12%
ROICexgc(5y)N/A
ROCE(3y)8.06%
ROCE(5y)N/A
ROICexcg growth 3Y-27.89%
ROICexcg growth 5Y-1.24%
ROICexc growth 3Y-27.85%
ROICexc growth 5Y-1.07%
OM growth 3Y-34.76%
OM growth 5Y-6.23%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.12%
GM growth 5Y2.69%
F-ScoreN/A
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.04 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.19 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.03 |
F-ScoreN/A
WACC10.23%
ROIC/WACC0.24
Cap/Depr(3y)129.46%
Cap/Depr(5y)104.9%
Cap/Sales(3y)5.52%
Cap/Sales(5y)4.75%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-207.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1268.63%
EPS Next Y141.41%
EPS Next 2Y69.35%
EPS Next 3Y51.21%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%2.07%
Revenue Next Year4.54%
Revenue Next 2Y4.24%
Revenue Next 3Y4.55%
Revenue Next 5YN/A
EBIT growth 1Y-68.89%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year73.7%
EBIT Next 3Y27.78%
EBIT Next 5YN/A
FCF growth 1Y-109.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-61.82%
OCF growth 3Y-14.17%
OCF growth 5Y-0.25%