KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KLC - US49456W1053 - Common Stock
4.1061 USD
-0.14 (-3.39%)
KLC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 77 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 valued quite cheap, but it does not seem to be growing.
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.
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 (-1.78%) which is in line with its industry peers.
KLC's Return On Equity of -7.44% is in line compared to the rest of the industry. KLC outperforms 46.75% 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 51.95% 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 10.17%.
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
With a Operating Margin value of 2.42%, KLC perfoms like the industry average, outperforming 50.65% 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 22.27%. This is in the lower half of the industry: KLC underperforms 76.62% of its industry peers.
KLC's Gross Margin has improved in the last couple of years.
| 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.
KLC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KLC has been reduced compared to a year ago.
2.2 Solvency
KLC has an Altman-Z score of 0.84. This is a bad value and indicates that KLC is not financially healthy and even has some risk of bankruptcy.
KLC's Altman-Z score of 0.84 is in line compared to the rest of the industry. KLC outperforms 49.35% of 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.
KLC has a Debt to FCF ratio (15.60) which is comparable to the rest of the industry.
KLC has a Debt/Equity ratio of 0.99. This is a neutral value indicating KLC is somewhat dependend on debt financing.
KLC has a Debt to Equity ratio of 0.99. This is in the lower half of the industry: KLC underperforms 62.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 15.6 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.14
WACC10.85%
2.3 Liquidity
KLC has a Current 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.
The Current ratio of KLC (0.71) is worse than 74.03% 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.
With a Quick ratio value of 0.71, KLC is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
KLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -221.01%.
The Revenue has been growing slightly by 2.20% 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)-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
KLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.31% yearly.
Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y110.52%
EPS Next 2Y39.42%
EPS Next 3Y30.31%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y1.75%
Revenue Next 3Y2.31%
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 6.13, 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 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, KLC is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.43, the valuation of KLC can be described as very cheap.
KLC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 97.40% of the companies 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 24.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than 77.92% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KLC is valued cheaply inside the industry as 94.81% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 6.73 |
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.
KLC's earnings are expected to grow with 30.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y39.42%
EPS Next 3Y30.31%
5. Dividend
5.1 Amount
No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:KLC (12/23/2025, 10:17:47 AM)
4.1061
-0.14 (-3.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners25.78%
Inst Owner Change-1.48%
Ins Owners1.41%
Ins Owner Change-0.53%
Market Cap485.83M
Revenue(TTM)2.69B
Net Income(TTM)-69.29M
Analysts71.67
Price Target6.08 (48.07%)
Short Float %9.63%
Short Ratio2.95
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)-10.34%
PT rev (3m)-54.13%
EPS NQ rev (1m)-15.33%
EPS NQ rev (3m)-54.12%
EPS NY rev (1m)-10.6%
EPS NY rev (3m)-11.04%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.32%
Revenue NY rev (1m)-0.97%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.13 | ||
| Fwd PE | 6.43 | ||
| P/S | 0.18 | ||
| P/FCF | 8.12 | ||
| P/OCF | 2.51 | ||
| P/B | 0.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.73 |
EPS(TTM)0.67
EY16.32%
EPS(NY)0.64
Fwd EY15.56%
FCF(TTM)0.51
FCFY12.31%
OCF(TTM)1.63
OCFY39.81%
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 | 0.84 |
F-Score4
WACC10.85%
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 Y110.52%
EPS Next 2Y39.42%
EPS Next 3Y30.31%
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 2Y1.75%
Revenue Next 3Y2.31%
Revenue Next 5YN/A
EBIT growth 1Y-71.83%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year59.26%
EBIT Next 3Y18.94%
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 for 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.
How financially healthy is KINDERCARE LEARNING COS INC?
The financial health rating of KINDERCARE LEARNING COS INC (KLC) is 2 / 10.
What is the earnings growth outlook for KINDERCARE LEARNING COS INC?
The Earnings per Share (EPS) of KINDERCARE LEARNING COS INC (KLC) is expected to grow by 110.52% in the next year.