KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KLC - US49456W1053 - Common Stock
4.41 USD
+0.06 (+1.38%)
Overall KLC gets a fundamental rating of 4 out of 10. We evaluated KLC against 76 industry peers in the Diversified Consumer Services industry. While KLC is still in line with the averages on profitability rating, there are concerns on its financial health. KLC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- KLC had positive earnings in the past year.
- In the past year KLC had a positive cash flow from operations.
- 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 (-1.78%) which is in line with its industry peers.
- KLC has a Return On Equity of -7.44%. This is comparable to the rest of the industry: KLC outperforms 46.05% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 1.50%, KLC is in line with its industry, outperforming 52.63% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for KLC is below the industry average of 10.30%.
- The 3 year average ROIC (6.36%) for KLC is well above the current ROIC(1.50%). The reason for the recent decline needs to be investigated.
| 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 has a Operating Margin (2.42%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of KLC has declined.
- KLC's Gross Margin of 22.27% is on the low side compared to the rest of the industry. KLC is outperformed by 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%
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.
- The number of shares outstanding for KLC has been increased compared to 1 year ago.
- Compared to 5 years ago, KLC has less shares outstanding
- The debt/assets ratio for KLC has been reduced compared to a year ago.
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 comparable to the rest of the industry.
- 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.
- KLC has a better Debt to FCF ratio (15.60) than 60.53% of its industry peers.
- 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 61.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 15.6 | ||
| Altman-Z | 0.85 |
ROIC/WACC0.14
WACC10.75%
2.3 Liquidity
- A Current Ratio of 0.71 indicates that KLC may have some problems paying its short term obligations.
- The Current ratio of KLC (0.71) is worse than 73.68% of its industry peers.
- KLC has a Quick Ratio of 0.71. 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 0.71. This is in the lower half of the industry: KLC underperforms 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
- The earnings per share for KLC have decreased strongly by -221.01% in the last year.
- KLC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.20%.
- 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)-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
- Based on estimates for the next years, KLC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.08% on average per year.
- Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 2.42% on average per year.
EPS Next Y105.53%
EPS Next 2Y39.29%
EPS Next 3Y30.08%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y1.68%
Revenue Next 3Y2.42%
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
- With a Price/Earnings ratio of 6.58, the valuation of KLC can be described as very cheap.
- Based on the Price/Earnings ratio, KLC is valued cheaper than 92.11% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.54. KLC is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 6.92 indicates a rather cheap valuation of KLC.
- KLC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 97.37% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KLC to the average of the S&P500 Index (24.31), we can say KLC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than the industry average as 78.95% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 96.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.73 | ||
| EV/EBITDA | 6.8 |
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.
- KLC's earnings are expected to grow with 30.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y39.29%
EPS Next 3Y30.08%
5. Dividend
5.1 Amount
- No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:KLC (1/16/2026, 2:02:43 PM)
4.41
+0.06 (+1.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)03-18 2026-03-18
Inst Owners25.64%
Inst Owner Change0.01%
Ins Owners1.41%
Ins Owner Change-0.53%
Market Cap521.79M
Revenue(TTM)2.69B
Net Income(TTM)-69.29M
Analysts71.67
Price Target6.08 (37.87%)
Short Float %9.31%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0
Avg EPS beat(2)-7.96%
Min EPS beat(2)-14.83%
Max EPS beat(2)-1.09%
EPS beat(4)2
Avg EPS beat(4)22.8%
Min EPS beat(4)-14.83%
Max EPS beat(4)69.73%
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)-1.8%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.85%
Min Revenue beat(4)-2.84%
Max Revenue beat(4)-0.95%
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)-54.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.12%
EPS NY rev (1m)-2.37%
EPS NY rev (3m)-13.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.58 | ||
| Fwd PE | 6.92 | ||
| P/S | 0.19 | ||
| P/FCF | 8.73 | ||
| P/OCF | 2.7 | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.8 |
EPS(TTM)0.67
EY15.19%
EPS(NY)0.64
Fwd EY14.46%
FCF(TTM)0.51
FCFY11.46%
OCF(TTM)1.63
OCFY37.07%
SpS22.75
BVpS7.87
TBVpS-5.32
PEG (NY)0.06
PEG (5Y)N/A
Graham Number10.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.78% | ||
| ROE | -7.44% | ||
| ROCE | 1.9% | ||
| ROIC | 1.5% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 3.06% | ||
| OM | 2.42% | ||
| PM (TTM) | N/A | ||
| GM | 22.27% | ||
| FCFM | 2.22% |
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
ROICexgc growth 3Y-27.89%
ROICexgc 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-Score4
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 15.6 | ||
| Debt/EBITDA | 4.93 | ||
| Cap/Depr | 109.28% | ||
| Cap/Sales | 4.96% | ||
| Interest Coverage | 0.65 | ||
| Cash Conversion | 103.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 0.85 |
F-Score4
WACC10.75%
ROIC/WACC0.14
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)-221.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%160%
EPS Next Y105.53%
EPS Next 2Y39.29%
EPS Next 3Y30.08%
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%0.8%
Revenue Next Year2.57%
Revenue Next 2Y1.68%
Revenue Next 3Y2.42%
Revenue Next 5YN/A
EBIT growth 1Y-71.83%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year59.26%
EBIT Next 3Y19.12%
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%
KINDERCARE LEARNING COS INC / KLC FAQ
Can you provide the ChartMill fundamental rating for KINDERCARE LEARNING COS INC?
ChartMill assigns a fundamental rating of 4 / 10 to KLC.
What is the valuation status of KINDERCARE LEARNING COS INC (KLC) stock?
ChartMill assigns a valuation rating of 9 / 10 to KINDERCARE LEARNING COS INC (KLC). This can be considered as Undervalued.
How profitable is KINDERCARE LEARNING COS INC (KLC) stock?
KINDERCARE LEARNING COS INC (KLC) has a profitability rating of 4 / 10.
What are the PE and PB ratios of KINDERCARE LEARNING COS INC (KLC) stock?
The Price/Earnings (PE) ratio for KINDERCARE LEARNING COS INC (KLC) is 6.58 and the Price/Book (PB) ratio is 0.56.
What is the financial health of KINDERCARE LEARNING COS INC (KLC) stock?
The financial health rating of KINDERCARE LEARNING COS INC (KLC) is 2 / 10.