KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - NYSE:KLC - US49456W1053 - Common Stock
6 USD
+0.16 (+2.74%)
6.01 USD
+0.01 (+0.17%)
Overall KLC gets a fundamental rating of 4 out of 10. We evaluated KLC against 77 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 is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KLC was profitable.
In the past year KLC had a positive cash flow from operations.
In multiple years KLC reported negative net income over the last 5 years.
In the past 5 years KLC always reported a positive cash flow from operatings.
1.2 Ratios
KLC has a Return On Assets of -1.58%. This is comparable to the rest of the industry: KLC outperforms 50.65% of its industry peers.
KLC has a Return On Equity of -6.48%. This is comparable to the rest of the industry: KLC outperforms 53.25% of its industry peers.
The Return On Invested Capital of KLC (2.13%) is comparable to the rest of the industry.
KLC had an Average Return On Invested Capital over the past 3 years of 6.36%. This is below the industry average of 9.48%.
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
Looking at the Operating Margin, with a value of 3.39%, KLC is in line with its industry, outperforming 54.55% of the companies in the same industry.
KLC's Operating Margin has declined in the last couple of years.
KLC has a Gross Margin of 22.94%. This is in the lower half of the industry: KLC underperforms 77.92% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KLC is destroying value.
KLC has more shares outstanding than it did 1 year ago.
The number of shares outstanding for KLC has been reduced compared to 5 years ago.
KLC has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that KLC is in the distress zone and has some risk of bankruptcy.
KLC has a Altman-Z score (0.92) which is in line with 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.
The Debt to FCF ratio of KLC (22.03) is better than 62.34% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.21
WACC10.3%
2.3 Liquidity
KLC has a Current 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.
KLC has a Current ratio of 0.66. This is in the lower half of the industry: KLC underperforms 74.03% of its industry peers.
A Quick Ratio of 0.66 indicates that KLC may have some problems paying its short term obligations.
KLC's Quick ratio of 0.66 is on the low side compared to the rest of the industry. KLC is outperformed by 74.03% of its industry peers.
| 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%.
The Revenue has been growing slightly by 6.09% in the past 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%340%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%4.26%
3.2 Future
KLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.35% yearly.
Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
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
The Price/Earnings ratio is 10.17, which indicates a very decent valuation of KLC.
KLC's Price/Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 89.61% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.67. KLC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 6.74, the valuation of KLC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 97.40% of the companies listed in the same industry.
KLC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KLC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KLC is valued a bit cheaper than 79.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 7.08 |
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)0.07
PEG (5Y)N/A
EPS Next 2Y64.59%
EPS Next 3Y46.35%
5. Dividend
5.1 Amount
KLC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6
+0.16 (+2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners27.11%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change-0.58%
Market Cap708.72M
Revenue(TTM)2.69B
Net Income(TTM)-59879000
Analysts76.67
Price Target13.26 (121%)
Short Float %6.7%
Short Ratio2.33
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)0%
PT rev (3m)-38.93%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-11.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.26 | ||
| P/FCF | 16.79 | ||
| P/OCF | 3.95 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.08 |
EPS(TTM)0.59
EY9.83%
EPS(NY)0.89
Fwd EY14.84%
FCF(TTM)0.36
FCFY5.96%
OCF(TTM)1.52
OCFY25.3%
SpS22.75
BVpS7.82
TBVpS-5.37
PEG (NY)0.07
PEG (5Y)N/A
Graham Number10.19
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
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-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 | 0.92 |
F-Score5
WACC10.3%
ROIC/WACC0.21
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 Year69.28%
EBIT Next 3Y24.96%
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%