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KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis

NYSE:KLC - New York Stock Exchange, Inc. - US49456W1053 - Common Stock - Currency: USD

12.27  -0.33 (-2.62%)

After market: 12.27 0 (0%)

Fundamental Rating

3

KLC gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 72 industry peers in the Diversified Consumer Services industry. Both the profitability and financial health of KLC have multiple concerns. KLC has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year KLC was profitable.
The reported net income has been mixed in the past 5 years: KLC reported negative net income in multiple years.
Each year in the past 5 years KLC had a positive operating cash flow.
KLC Yearly Net Income VS EBIT VS OCF VS FCFKLC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M 300M 400M

1.2 Ratios

KLC has a Return On Assets (-1.88%) which is comparable to the rest of the industry.
KLC has a Return On Equity of -7.90%. This is comparable to the rest of the industry: KLC outperforms 54.17% of its industry peers.
KLC has a Return On Invested Capital (2.48%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KLC is below the industry average of 11.25%.
Industry RankSector Rank
ROA -1.88%
ROE -7.9%
ROIC 2.48%
ROA(3y)2.08%
ROA(5y)0.96%
ROE(3y)21.08%
ROE(5y)0.56%
ROIC(3y)6.36%
ROIC(5y)N/A
KLC Yearly ROA, ROE, ROICKLC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 0 50 -50

1.3 Margins

KLC has a Operating Margin of 3.82%. This is comparable to the rest of the industry: KLC outperforms 59.72% of its industry peers.
In the last couple of years the Operating Margin of KLC has declined.
The Gross Margin of KLC (23.37%) is worse than 76.39% of its industry peers.
In the last couple of years the Gross Margin of KLC has grown nicely.
Industry RankSector Rank
OM 3.82%
PM (TTM) N/A
GM 23.37%
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%
KLC Yearly Profit, Operating, Gross MarginsKLC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

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1

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
The number of shares outstanding for KLC has been reduced compared to 5 years ago.
Compared to 1 year ago, KLC has an improved debt to assets ratio.
KLC Yearly Shares OutstandingKLC Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 2024 200M 400M 600M
KLC Yearly Total Debt VS Total AssetsKLC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

KLC has an Altman-Z score of 1.08. This is a bad value and indicates that KLC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.08, KLC is in line with its industry, outperforming 55.56% of the companies in the same industry.
KLC has a Debt/Equity ratio of 1.04. This is a high value indicating a heavy dependency on external financing.
KLC has a worse Debt to Equity ratio (1.04) than 65.28% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF N/A
Altman-Z 1.08
ROIC/WACC0.25
WACC9.98%
KLC Yearly LT Debt VS Equity VS FCFKLC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

A Current Ratio of 0.61 indicates that KLC may have some problems paying its short term obligations.
The Current ratio of KLC (0.61) is worse than 69.44% of its industry peers.
KLC has a Quick Ratio of 0.61. 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 Quick ratio of 0.61 is on the low side compared to the rest of the industry. KLC is outperformed by 68.06% of its industry peers.
Industry RankSector Rank
Current Ratio 0.61
Quick Ratio 0.61
KLC Yearly Current Assets VS Current LiabilitesKLC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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3

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.
The Revenue has been growing slightly by 7.26% on average over the past years.
EPS 1Y (TTM)-207.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1268.63%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%2.07%

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 52.54% on average per year.
Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
EPS Next Y144.33%
EPS Next 2Y69.84%
EPS Next 3Y52.54%
EPS Next 5YN/A
Revenue Next Year4.54%
Revenue Next 2Y4.55%
Revenue Next 3Y4.59%
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.
KLC Yearly Revenue VS EstimatesKLC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
KLC Yearly EPS VS EstimatesKLC Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0.2 0.4 0.6 0.8 1

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5

4. Valuation

4.1 Price/Earnings Ratio

KLC is valuated quite expensively with a Price/Earnings ratio of 29.21.
Compared to the rest of the industry, the Price/Earnings ratio of KLC is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.25, KLC is valued at the same level.
With a Price/Forward Earnings ratio of 12.94, KLC is valued correctly.
KLC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 81.94% of the companies in the same industry.
KLC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.21
Fwd PE 12.94
KLC Price Earnings VS Forward Price EarningsKLC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 10.4
KLC Per share dataKLC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 -5 10 15 20

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 52.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y69.84%
EPS Next 3Y52.54%

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0

5. Dividend

5.1 Amount

KLC does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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KINDERCARE LEARNING COS INC

NYSE:KLC (5/30/2025, 7:00:00 PM)

After market: 12.27 0 (0%)

12.27

-0.33 (-2.62%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-13 2025-05-13/amc
Earnings (Next)N/A N/A
Inst Owners31.17%
Inst Owner Change0.05%
Ins Owners1.21%
Ins Owner Change2.25%
Market Cap1.45B
Analysts80
Price Target24.63 (100.73%)
Short Float %7.24%
Short Ratio2.86
Dividend
Industry RankSector 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)2
Avg EPS beat(2)53.56%
Min EPS beat(2)37.39%
Max EPS beat(2)69.73%
EPS beat(4)3
Avg EPS beat(4)107.7%
Min EPS beat(4)-23.84%
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)-1.9%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-0.95%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.64%
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)-11.05%
PT rev (3m)-23.96%
EPS NQ rev (1m)-7.24%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0.86%
EPS NY rev (3m)6.18%
Revenue NQ rev (1m)-0.78%
Revenue NQ rev (3m)-2.31%
Revenue NY rev (1m)-0.92%
Revenue NY rev (3m)-2.63%
Valuation
Industry RankSector Rank
PE 29.21
Fwd PE 12.94
P/S 0.54
P/FCF N/A
P/OCF N/A
P/B 1.64
P/tB N/A
EV/EBITDA 10.4
EPS(TTM)0.42
EY3.42%
EPS(NY)0.95
Fwd EY7.73%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS22.68
BVpS7.5
TBVpS-5.67
PEG (NY)0.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -1.88%
ROE -7.9%
ROCE 3.15%
ROIC 2.48%
ROICexc 2.59%
ROICexgc 5.16%
OM 3.82%
PM (TTM) N/A
GM 23.37%
FCFM N/A
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-ScoreN/A
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 1.04
Debt/FCF N/A
Debt/EBITDA 4.19
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.61
Quick Ratio 0.61
Altman-Z 1.08
F-ScoreN/A
WACC9.98%
ROIC/WACC0.25
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%1268.63%
EPS Next Y144.33%
EPS Next 2Y69.84%
EPS Next 3Y52.54%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%2.07%
Revenue Next Year4.54%
Revenue Next 2Y4.55%
Revenue Next 3Y4.59%
Revenue Next 5YN/A
EBIT growth 1Y-68.89%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year73.7%
EBIT Next 3Y27.78%
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%