KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KLC - US49456W1053 - Common Stock
3.94 USD
+0.07 (+1.81%)
3.9104 USD
-0.03 (-0.75%)
Taking everything into account, KLC scores 4 out of 10 in our fundamental rating. KLC was compared to 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
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
Looking at the Return On Assets, with a value of -1.78%, KLC is in line with its industry, outperforming 46.75% of the companies in the same industry.
KLC's Return On Equity of -7.44% is in line compared to the rest of the industry. KLC outperforms 49.35% of its industry peers.
With a Return On Invested Capital value of 1.50%, KLC perfoms like the industry average, 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 9.62%.
The last Return On Invested Capital (1.50%) 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 | -1.78% | ||
| 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's Operating Margin of 2.42% is in line compared to the rest of the industry. KLC outperforms 50.65% of its industry peers.
In the last couple of years the Operating Margin of KLC has declined.
KLC has a worse Gross Margin (22.27%) than 79.22% 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
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.
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.
2.2 Solvency
Based on the Altman-Z score of 0.84, we must say that KLC is in the distress zone and has some risk of bankruptcy.
KLC has a Altman-Z score (0.84) 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 Debt to FCF ratio (15.60) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.99 indicates that 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 61.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 15.6 | ||
| Altman-Z | 0.84 |
ROIC/WACC0.14
WACC10.55%
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.
With a Current ratio value of 0.71, KLC is not doing good in the industry: 75.32% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that KLC may have some problems paying its short term obligations.
KLC has a worse Quick ratio (0.71) than 72.73% of its industry peers.
| 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.
KLC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.26% yearly.
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 44.06% yearly.
The Revenue is expected to grow by 3.47% on average over the next years.
EPS Next Y135.49%
EPS Next 2Y62.69%
EPS Next 3Y44.06%
EPS Next 5YN/A
Revenue Next Year3.57%
Revenue Next 2Y3.08%
Revenue Next 3Y3.47%
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
A Price/Earnings ratio of 5.88 indicates a rather cheap valuation of KLC.
Based on the Price/Earnings ratio, KLC is valued cheaper than 90.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of KLC to the average of the S&P500 Index (25.98), we can say KLC is valued rather cheaply.
The Price/Forward Earnings ratio is 4.53, which indicates a rather cheap valuation of KLC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 98.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.79. KLC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 4.53 |
4.2 Price Multiples
80.52% of the companies in the same industry are more expensive than KLC, based on the Enterprise Value to EBITDA ratio.
KLC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KLC is cheaper than 94.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 6.53 |
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 44.06% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y62.69%
EPS Next 3Y44.06%
5. Dividend
5.1 Amount
No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.94
+0.07 (+1.81%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners27.11%
Inst Owner Change-1.48%
Ins Owners1.29%
Ins Owner Change-0.16%
Market Cap465.39M
Revenue(TTM)2.69B
Net Income(TTM)-69.29M
Analysts75
Price Target6.78 (72.08%)
Short Float %7.15%
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)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)-48.85%
PT rev (3m)-48.85%
EPS NQ rev (1m)-44.76%
EPS NQ rev (3m)-44.76%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-3.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.88 | ||
| Fwd PE | 4.53 | ||
| P/S | 0.17 | ||
| P/FCF | 7.78 | ||
| P/OCF | 2.41 | ||
| P/B | 0.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.53 |
EPS(TTM)0.67
EY17.01%
EPS(NY)0.87
Fwd EY22.08%
FCF(TTM)0.51
FCFY12.85%
OCF(TTM)1.64
OCFY41.56%
SpS22.79
BVpS7.88
TBVpS-5.32
PEG (NY)0.04
PEG (5Y)N/A
Graham Number10.9
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
WACC10.55%
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 Y135.49%
EPS Next 2Y62.69%
EPS Next 3Y44.06%
EPS Next 5YN/A
Revenue 1Y (TTM)2.2%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%0.8%
Revenue Next Year3.57%
Revenue Next 2Y3.08%
Revenue Next 3Y3.47%
Revenue Next 5YN/A
EBIT growth 1Y-71.83%
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%
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 135.49% in the next year.