KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
NYSE:KLC - US49456W1053 - Common Stock
7.19 USD
+0.05 (+0.7%)
7.19 USD
0 (0%)
KLC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. There are concerns on the financial health of KLC while its profitability can be described as average. KLC has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year KLC was profitable.
KLC had a positive operating cash flow in the past year.
In multiple years KLC reported negative net income over the last 5 years.
Each year in the past 5 years KLC had a positive operating cash flow.
1.2 Ratios
KLC has a Return On Assets (-1.58%) which is comparable to the rest of the industry.
KLC's Return On Equity of -6.48% is in line compared to the rest of the industry. KLC outperforms 49.30% of its industry peers.
With a Return On Invested Capital value of 2.13%, KLC perfoms like the industry average, outperforming 57.75% of the companies in the same industry.
KLC had an Average Return On Invested Capital over the past 3 years of 6.36%. This is below the industry average of 10.23%.
The last Return On Invested Capital (2.13%) for KLC is well below the 3 year average (6.36%), which needs to be investigated, but indicates that KLC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -6.48% | ||
| ROIC | 2.13% |
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 of 3.39%. This is comparable to the rest of the industry: KLC outperforms 56.34% of its industry peers.
In the last couple of years the Operating Margin of KLC has declined.
KLC has a Gross Margin of 22.94%. This is in the lower half of the industry: KLC underperforms 78.87% of its industry peers.
KLC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 22.94% |
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
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 more shares outstanding
KLC has less shares outstanding than it did 5 years ago.
KLC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that KLC is in the distress zone and has some risk of bankruptcy.
KLC has a Altman-Z score of 0.95. This is comparable to the rest of the industry: KLC outperforms 46.48% of its industry peers.
KLC has a debt to FCF ratio of 22.03. This is a negative value and a sign of low solvency as KLC would need 22.03 years to pay back of all of its debts.
KLC has a Debt to FCF ratio (22.03) which is comparable to the rest of the industry.
KLC has a Debt/Equity ratio of 0.99. This is a neutral value indicating KLC is somewhat dependend on debt financing.
The Debt to Equity ratio of KLC (0.99) is worse than 64.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.19
WACC11.15%
2.3 Liquidity
A Current Ratio of 0.66 indicates that KLC may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.66, KLC is doing worse than 73.24% of the companies in the same industry.
KLC has a Quick Ratio of 0.66. This is a bad value and indicates that KLC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.66, KLC is doing worse than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
KLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -207.49%.
Looking at the last year, KLC shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
KLC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.26% yearly.
EPS 1Y (TTM)-207.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%340%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%4.26%
3.2 Future
The Earnings Per Share is expected to grow by 46.35% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.76% on average over the next years.
EPS Next Y136.65%
EPS Next 2Y64.59%
EPS Next 3Y46.35%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.33%
Revenue Next 3Y3.76%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.19, the valuation of KLC can be described as correct.
84.51% of the companies in the same industry are more expensive than KLC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.08, KLC is valued rather cheaply.
A Price/Forward Earnings ratio of 8.08 indicates a reasonable valuation of KLC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 95.77% of the companies listed in the same industry.
KLC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 8.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 80.28% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLC indicates a somewhat cheap valuation: KLC is cheaper than 70.42% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
KLC's 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 46.35% in the coming years.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y64.59%
EPS Next 3Y46.35%
5. Dividend
5.1 Amount
No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.19
+0.05 (+0.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners28.42%
Inst Owner Change-0.98%
Ins Owners1.3%
Ins Owner Change2.14%
Market Cap849.28M
Analysts80
Price Target13.26 (84.42%)
Short Float %6.25%
Short Ratio2.8
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)1
Avg EPS beat(2)11.28%
Min EPS beat(2)-14.83%
Max EPS beat(2)37.39%
EPS beat(4)3
Avg EPS beat(4)109.95%
Min EPS beat(4)-14.83%
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)-2.3%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.84%
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)-38.93%
PT rev (3m)-46.15%
EPS NQ rev (1m)-12.07%
EPS NQ rev (3m)-18.24%
EPS NY rev (1m)-1.97%
EPS NY rev (3m)-3.14%
Revenue NQ rev (1m)-1.58%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)-0.89%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.19 | ||
| Fwd PE | 8.08 | ||
| P/S | 0.32 | ||
| P/FCF | 20.11 | ||
| P/OCF | 4.74 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.81 |
EPS(TTM)0.59
EY8.21%
EPS(NY)0.89
Fwd EY12.38%
FCF(TTM)0.36
FCFY4.97%
OCF(TTM)1.52
OCFY21.11%
SpS22.75
BVpS7.82
TBVpS-5.37
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -6.48% | ||
| ROCE | 2.7% | ||
| ROIC | 2.13% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 4.25% | ||
| OM | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 22.94% | ||
| FCFM | 1.57% |
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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 113.4% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 1.1 | ||
| Cash Conversion | 84.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.95 |
F-Score5
WACC11.15%
ROIC/WACC0.19
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%340%
EPS Next Y136.65%
EPS Next 2Y64.59%
EPS Next 3Y46.35%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%4.26%
Revenue Next Year3.61%
Revenue Next 2Y3.33%
Revenue Next 3Y3.76%
Revenue Next 5YN/A
EBIT growth 1Y-68.89%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year73.9%
EBIT Next 3Y27.87%
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%