KINDERCARE LEARNING COS INC (KLC) Fundamental Analysis & Valuation
NYSE:KLC • US49456W1053
3.9 USD
+0.12 (+3.17%)
At close: Mar 5, 2026
3.9 USD
0 (0%)
After Hours: 3/5/2026, 8:04:00 PM
This KLC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 4 out of 10 to KLC. KLC was compared to 75 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 valued quite cheap, but it does not seem to be growing.
1. KLC Profitability Analysis
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
- The Return On Assets of KLC (-1.78%) is comparable to the rest of the industry.
- KLC's Return On Equity of -7.44% is in line compared to the rest of the industry. KLC outperforms 49.33% of its industry peers.
- With a Return On Invested Capital value of 1.50%, KLC perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KLC is below the industry average of 11.21%.
- 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
- KLC's Operating Margin of 2.42% is in line compared to the rest of the industry. KLC outperforms 53.33% of its industry peers.
- 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 77.33% 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. KLC Health Analysis
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
- Based on the Altman-Z score of 0.83, we must say that KLC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.83, KLC is in line with its industry, outperforming 53.33% of the companies in the same industry.
- The Debt to FCF ratio of KLC is 15.60, which is on the high side as it means it would take KLC, 15.60 years of fcf income to pay off 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.
- With a Debt to Equity ratio value of 0.99, KLC is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 15.6 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.14
WACC11.06%
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.
- Looking at the Current ratio, with a value of 0.71, KLC is doing worse than 70.67% of the companies in the same industry.
- A Quick Ratio of 0.71 indicates that KLC may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.71, KLC is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. KLC Growth Analysis
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
- Based on estimates for the next years, KLC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.08% on average per year.
- KLC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.36% yearly.
EPS Next Y105.53%
EPS Next 2Y39.42%
EPS Next 3Y30.08%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y1.61%
Revenue Next 3Y2.36%
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. KLC Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 5.82, the valuation of KLC can be described as very cheap.
- KLC's Price/Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 94.67% of the companies in the same industry.
- When comparing the Price/Earnings ratio of KLC to the average of the S&P500 Index (26.74), we can say KLC is valued rather cheaply.
- KLC is valuated cheaply with a Price/Forward Earnings ratio of 6.10.
- Based on the Price/Forward Earnings ratio, KLC is valued cheaper than 97.33% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.82. KLC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 6.1 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KLC is valued a bit cheaper than the industry average as 78.67% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KLC indicates a rather cheap valuation: KLC is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | 6.51 |
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 30.08% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y39.42%
EPS Next 3Y30.08%
5. KLC Dividend Analysis
5.1 Amount
- No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
KLC Fundamentals: All Metrics, Ratios and Statistics
3.9
+0.12 (+3.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)11-12 2025-11-12/amc
Earnings (Next)03-12 2026-03-12
Inst Owners25.64%
Inst Owner Change1.12%
Ins Owners1.41%
Ins Owner Change-0.43%
Market Cap461.45M
Revenue(TTM)2.69B
Net Income(TTM)-69.29M
Analysts71.67
Price Target6.08 (55.9%)
Short Float %11.2%
Short Ratio4.56
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)0%
PT rev (3m)-10.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-12.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 6.1 | ||
| P/S | 0.17 | ||
| P/FCF | 7.72 | ||
| P/OCF | 2.39 | ||
| P/B | 0.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.51 |
EPS(TTM)0.67
EY17.18%
EPS(NY)0.64
Fwd EY16.38%
FCF(TTM)0.51
FCFY12.96%
OCF(TTM)1.63
OCFY41.92%
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 | 0.83 |
F-Score4
WACC11.06%
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 Y105.53%
EPS Next 2Y39.42%
EPS Next 3Y30.08%
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 2Y1.61%
Revenue Next 3Y2.36%
Revenue Next 5YN/A
EBIT growth 1Y-71.83%
EBIT growth 3Y-25.77%
EBIT growth 5Y0.58%
EBIT Next Year59.26%
EBIT Next 3Y19.11%
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 of KINDERCARE LEARNING COS INC (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.
What are the PE and PB ratios of KINDERCARE LEARNING COS INC (KLC) stock?
The Price/Earnings (PE) ratio for KINDERCARE LEARNING COS INC (KLC) is 5.82 and the Price/Book (PB) ratio is 0.5.
What is the financial health of KINDERCARE LEARNING COS INC (KLC) stock?
The financial health rating of KINDERCARE LEARNING COS INC (KLC) is 2 / 10.