KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - NYSE:KLC - US49456W1053 - Common Stock
6.95 USD
-0.29 (-4.01%)
7.08 USD
+0.13 (+1.87%)
Taking everything into account, KLC scores 4 out of 10 in our fundamental rating. KLC was compared to 74 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 has a bad growth rate and is valued cheaply.
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.
KLC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLC has a Return On Assets (-1.58%) which is in line with its industry peers.
KLC has a Return On Equity of -6.48%. This is comparable to the rest of the industry: KLC outperforms 52.00% of its industry peers.
KLC has a Return On Invested Capital of 2.13%. This is comparable to the rest of the industry: KLC outperforms 57.33% 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 9.88%.
The 3 year average ROIC (6.36%) for KLC is well above the current ROIC(2.13%). The reason for the recent decline needs to be investigated.
| 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 (3.39%) 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 22.94%, KLC is doing worse than 78.67% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KLC is destroying value.
KLC has more shares outstanding than it did 1 year ago.
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.
With a Altman-Z score value of 0.95, KLC perfoms like the industry average, outperforming 49.33% of the companies in the same industry.
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's Debt to FCF ratio of 22.03 is in line compared to the rest of the industry. KLC outperforms 60.00% 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.
KLC's Debt to Equity ratio of 0.99 is on the low side compared to the rest of the industry. KLC is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.2
WACC10.4%
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's Current ratio of 0.66 is on the low side compared to the rest of the industry. KLC is outperformed by 73.33% of its industry peers.
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.
The Quick ratio of KLC (0.66) is worse than 73.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
The earnings per share for KLC have decreased strongly by -207.49% in the last year.
The Revenue has been growing slightly by 6.09% in the past 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
KLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.35% yearly.
KLC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
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
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
With a Price/Earnings ratio of 11.78, the valuation of KLC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 86.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, KLC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.81, 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 97.33% of the companies listed in the same industry.
KLC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
KLC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KLC is cheaper than 82.67% of the companies 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 72.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.44 | ||
| EV/EBITDA | 7.7 |
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 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
KLC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.95
-0.29 (-4.01%)
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 Change-0.58%
Market Cap820.93M
Analysts76.67
Price Target13.26 (90.79%)
Short Float %6.61%
Short Ratio2.48
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)-35.92%
PT rev (3m)-38.93%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-12.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-2%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-1.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.78 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.31 | ||
| P/FCF | 19.44 | ||
| P/OCF | 4.58 | ||
| P/B | 0.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.7 |
EPS(TTM)0.59
EY8.49%
EPS(NY)0.89
Fwd EY12.81%
FCF(TTM)0.36
FCFY5.14%
OCF(TTM)1.52
OCFY21.84%
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
WACC10.4%
ROIC/WACC0.2
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%