KLC Fundamental Analysis - KINDERCARE LEARNING COS INC

Fundamental Rating

Taking everything into account, KLC scores 3 out of 10 in our fundamental rating. KLC was compared to 72 industry peers in the Diversified Consumer Services industry. KLC may be in some trouble as it scores bad on both profitability and health. KLC has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year KLC was profitable.

In multiple years KLC reported negative net income over the last 5 years.

Each year in the past 5 years KLC had a positive operating cash flow.

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 (-7.90%) which is comparable to the rest of the industry.

KLC has a Return On Invested Capital (2.48%) which is in line with 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 10.66%.

		Industry Rank	Sector 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

1.3 Margins

With a Operating Margin value of 3.82%, KLC perfoms like the industry average, outperforming 56.94% of the companies in the same industry.

KLC's Operating Margin has declined in the last couple of years.

With a Gross Margin value of 23.37%, KLC is not doing good in the industry: 79.17% of the companies in the same industry are doing better.

In the last couple of years the Gross Margin of KLC has grown nicely.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The number of shares outstanding for KLC has been reduced compared to 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 1.02, we must say that KLC is in the distress zone and has some risk of bankruptcy.

With a Altman-Z score value of 1.02, KLC perfoms like the industry average, outperforming 55.56% of the companies in the same industry.

A Debt/Equity ratio of 1.04 is on the high side and indicates that KLC has dependencies on debt financing.

KLC has a worse Debt to Equity ratio (1.04) than 66.67% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	1.04
Debt/FCF	N/A
Altman-Z	1.02

ROIC/WACC0.24

WACC10.45%

2.3 Liquidity

A Current Ratio of 0.61 indicates that KLC may have some problems paying its short term obligations.

KLC has a Current ratio of 0.61. This is in the lower half of the industry: KLC underperforms 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.

With a Quick ratio value of 0.61, KLC is not doing good in the industry: 69.44% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	0.61
Quick Ratio	0.61

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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

KLC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 51.21% yearly.

The Revenue is expected to grow by 4.55% on average over the next years.

EPS Next Y141.41%

EPS Next 2Y69.35%

EPS Next 3Y51.21%

EPS Next 5YN/A

Revenue Next Year4.54%

Revenue Next 2Y4.24%

Revenue Next 3Y4.55%

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.

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4. Valuation

4.1 Price/Earnings Ratio

KLC is valuated rather expensively with a Price/Earnings ratio of 23.69.

Based on the Price/Earnings ratio, KLC is valued a bit cheaper than the industry average as 65.28% of the companies are valued more expensively.

The average S&P500 Price/Earnings ratio is at 27.91. KLC is around the same levels.

A Price/Forward Earnings ratio of 10.56 indicates a reasonable valuation of KLC.

KLC's Price/Forward Earnings ratio is rather cheap when compared to the industry. KLC is cheaper than 88.89% of the companies in the same industry.

KLC is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.11, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	23.69
Fwd PE	10.56

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KLC indicates a somewhat cheap valuation: KLC is cheaper than 73.61% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	8.98

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 51.21% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.17

PEG (5Y)N/A

EPS Next 2Y69.35%

EPS Next 3Y51.21%

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5. Dividend

5.1 Amount

No dividends for KLC!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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KINDERCARE LEARNING COS INC

NYSE:KLC (7/29/2025, 8:04:00 PM)

Premarket: 10.14 +0.19 (+1.91%)

9.95

+0.12 (+1.22%)

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 Owners28.84%

Inst Owner Change-0.08%

Ins Owners1.25%

Ins Owner Change2.14%

Market Cap1.17B

Analysts80

Price Target21.71 (118.19%)

Short Float %6.83%

Short Ratio3.9

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)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)0%

PT rev (3m)-11.83%

EPS NQ rev (1m)-0.1%

EPS NQ rev (3m)-11.27%

EPS NY rev (1m)-0.03%

EPS NY rev (3m)-0.35%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-1.2%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.92%

Valuation

		Industry Rank	Sector Rank
PE	23.69
Fwd PE	10.56
P/S	0.44
P/FCF	N/A
P/OCF	N/A
P/B	1.33
P/tB	N/A
EV/EBITDA	8.98

EPS(TTM)0.42

EY4.22%

EPS(NY)0.94

Fwd EY9.47%

FCF(TTM)N/A

FCFYN/A

OCF(TTM)N/A

OCFYN/A

SpS22.68

BVpS7.5

TBVpS-5.67

PEG (NY)0.17

PEG (5Y)N/A

Profitability

		Industry Rank	Sector 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 Rank	Sector 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	1.02

F-ScoreN/A

WACC10.45%

ROIC/WACC0.24

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 Y141.41%

EPS Next 2Y69.35%

EPS Next 3Y51.21%

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 2Y4.24%

Revenue Next 3Y4.55%

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%

KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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