We assign a fundamental rating of 4 out of 10 to KLC. KLC was compared to 76 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 quite cheap, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

KLC had positive earnings in the past year.
KLC had a positive operating cash flow in the past year.
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.

1.2 Ratios

The Return On Assets of KLC (-1.78%) is comparable to the rest of the industry.
KLC's Return On Equity of -7.44% is in line compared to the rest of the industry. KLC outperforms 46.05% of its industry peers.
KLC has a Return On Invested Capital of 1.50%. This is comparable to the rest of the industry: KLC outperforms 52.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KLC is below the industry average of 10.17%.
The last Return On Invested Capital (1.50%) 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	-1.78%
ROE	-7.44%
ROIC	1.5%

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's Operating Margin of 2.42% is in line compared to the rest of the industry. KLC outperforms 51.32% of its industry peers.
KLC's Operating Margin has declined in the last couple of years.
The Gross Margin of KLC (22.27%) is worse than 75.00% of its industry peers.
In the last couple of years the Gross Margin of KLC has grown nicely.

		Industry Rank	Sector Rank
OM	2.42%
PM (TTM)	N/A
GM	22.27%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
KLC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, KLC has less shares outstanding
KLC has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.85, we must say that KLC is in the distress zone and has some risk of bankruptcy.
KLC has a Altman-Z score (0.85) which is in line with its industry peers.
KLC has a debt to FCF ratio of 15.60. This is a negative value and a sign of low solvency as KLC would need 15.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.60, KLC is in the better half of the industry, outperforming 61.84% of the companies in the same industry.
KLC has a Debt/Equity ratio of 0.99. This is a neutral value indicating KLC is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.99, KLC is not doing good in the industry: 61.84% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	0.99
Debt/FCF	15.6
Altman-Z	0.85

ROIC/WACC0.14

WACC10.54%

2.3 Liquidity

A Current Ratio of 0.71 indicates that KLC may have some problems paying its short term obligations.
KLC has a Current ratio of 0.71. This is in the lower half of the industry: KLC underperforms 73.68% of its industry peers.
A Quick Ratio of 0.71 indicates that KLC may have some problems paying its short term obligations.
KLC has a worse Quick ratio (0.71) than 71.05% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.71
Quick Ratio	0.71

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for KLC have decreased strongly by -221.01% in the last year.
Looking at the last year, KLC shows a small growth in Revenue. The Revenue has grown by 2.20% in the last year.
The Revenue has been growing slightly by 7.26% on average over the past years.

EPS 1Y (TTM)-221.01%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%160%

Revenue 1Y (TTM)2.2%

Revenue growth 3Y13.78%

Revenue growth 5Y7.26%

Sales Q2Q%0.8%

3.2 Future

The Earnings Per Share is expected to grow by 30.08% on average over the next years. This is a very strong growth
KLC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.36% yearly.

EPS Next Y105.53%

EPS Next 2Y39.29%

EPS Next 3Y30.08%

EPS Next 5YN/A

Revenue Next Year2.57%

Revenue Next 2Y1.61%

Revenue Next 3Y2.36%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.97, the valuation of KLC can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 89.47% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KLC to the average of the S&P500 Index (28.30), we can say KLC is valued rather cheaply.
A Price/Forward Earnings ratio of 7.32 indicates a rather cheap valuation of KLC.
Based on the Price/Forward Earnings ratio, KLC is valued cheaply inside the industry as 94.74% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 25.57. KLC is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	6.97
Fwd PE	7.32

4.2 Price Multiples

77.63% of the companies in the same industry are more expensive than KLC, based on the Enterprise Value to EBITDA ratio.
93.42% of the companies in the same industry are more expensive than KLC, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	9.24
EV/EBITDA	7.02

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 30.08% in the coming years.