KINDERCARE LEARNING COS INC (KLC) Stock Fundamental Analysis
USA - NYSE:KLC - US49456W1053 - Common Stock
6 USD
+0.16 (+2.74%)
6.01 USD
+0.01 (+0.17%)
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. KLC has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
KLC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KLC has a Return On Assets (-1.58%) which is in line with its industry peers.
KLC has a Return On Equity of -6.48%. This is comparable to the rest of the industry: KLC outperforms 53.25% of its industry peers.
KLC has a Return On Invested Capital of 2.13%. This is comparable to the rest of the industry: KLC outperforms 55.84% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KLC is below the industry average of 9.48%.
The 3 year average ROIC (6.36%) for KLC is well above the current ROIC(2.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -6.48% | ||
| ROIC | 2.13% |
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 3.39%, KLC perfoms like the industry average, outperforming 54.55% 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 22.94%, KLC is not doing good in the industry: 77.92% 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 | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 22.94% |
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.
The debt/assets ratio for KLC has been reduced compared to a year ago.
2.2 Solvency
KLC has an Altman-Z score of 0.92. This is a bad value and indicates that KLC is not financially healthy and even has some risk of bankruptcy.
KLC has a Altman-Z score (0.92) which is comparable to the rest of the industry.
The Debt to FCF ratio of KLC is 22.03, which is on the high side as it means it would take KLC, 22.03 years of fcf income to pay off all of its debts.
KLC has a better Debt to FCF ratio (22.03) than 62.34% of its industry peers.
A Debt/Equity ratio of 0.99 indicates that KLC is somewhat dependend on debt financing.
The Debt to Equity ratio of KLC (0.99) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.21
WACC10.29%
2.3 Liquidity
A Current Ratio of 0.66 indicates that KLC may have some problems paying its short term obligations.
KLC has a Current ratio of 0.66. This is in the lower half of the industry: KLC underperforms 74.03% of its industry peers.
KLC has a Quick Ratio of 0.66. 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 0.66, KLC is not doing good in the industry: 74.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
KLC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -207.49%.
Looking at the last year, KLC shows a small growth in Revenue. The Revenue has grown by 6.09% in the last 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)-207.49%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%340%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%4.26%
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 46.35% on average per year.
Based on estimates for the next years, KLC will show a small growth in Revenue. The Revenue will grow by 3.76% on average per year.
EPS Next Y136.65%
EPS Next 2Y64.59%
EPS Next 3Y46.35%
EPS Next 5YN/A
Revenue Next Year3.61%
Revenue Next 2Y3.33%
Revenue Next 3Y3.76%
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.17, which indicates a very decent valuation of KLC.
Based on the Price/Earnings ratio, KLC is valued cheaper than 89.61% of the companies in the same industry.
KLC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.83.
With a Price/Forward Earnings ratio of 6.74, the valuation of KLC can be described as very cheap.
97.40% of the companies in the same industry are more expensive than KLC, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.82, KLC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 6.74 |
4.2 Price Multiples
KLC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KLC is cheaper than 84.42% of the companies in the same industry.
79.22% of the companies in the same industry are more expensive than KLC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 7.17 |
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 46.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y64.59%
EPS Next 3Y46.35%
5. Dividend
5.1 Amount
No dividends for KLC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6
+0.16 (+2.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners27.11%
Inst Owner Change0%
Ins Owners1.29%
Ins Owner Change-0.58%
Market Cap708.72M
Revenue(TTM)2.69B
Net Income(TTM)-59879000
Analysts76.67
Price Target13.26 (121%)
Short Float %6.7%
Short Ratio2.33
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)1
Avg EPS beat(2)11.28%
Min EPS beat(2)-14.83%
Max EPS beat(2)37.39%
EPS beat(4)3
Avg EPS beat(4)109.95%
Min EPS beat(4)-14.83%
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)-2.3%
Min Revenue beat(2)-2.84%
Max Revenue beat(2)-1.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.57%
Min Revenue beat(4)-2.84%
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)-38.93%
EPS NQ rev (1m)0.96%
EPS NQ rev (3m)-11.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.97%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 6.74 | ||
| P/S | 0.26 | ||
| P/FCF | 16.79 | ||
| P/OCF | 3.95 | ||
| P/B | 0.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)0.59
EY9.83%
EPS(NY)0.89
Fwd EY14.84%
FCF(TTM)0.36
FCFY5.96%
OCF(TTM)1.52
OCFY25.3%
SpS22.75
BVpS7.82
TBVpS-5.37
PEG (NY)0.07
PEG (5Y)N/A
Graham Number10.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.58% | ||
| ROE | -6.48% | ||
| ROCE | 2.7% | ||
| ROIC | 2.13% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 4.25% | ||
| OM | 3.39% | ||
| PM (TTM) | N/A | ||
| GM | 22.94% | ||
| FCFM | 1.57% |
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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.99 | ||
| Debt/FCF | 22.03 | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 113.4% | ||
| Cap/Sales | 5.1% | ||
| Interest Coverage | 1.1 | ||
| Cash Conversion | 84.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 0.92 |
F-Score5
WACC10.29%
ROIC/WACC0.21
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%340%
EPS Next Y136.65%
EPS Next 2Y64.59%
EPS Next 3Y46.35%
EPS Next 5YN/A
Revenue 1Y (TTM)6.09%
Revenue growth 3Y13.78%
Revenue growth 5Y7.26%
Sales Q2Q%4.26%
Revenue Next Year3.61%
Revenue Next 2Y3.33%
Revenue Next 3Y3.76%
Revenue Next 5YN/A
EBIT growth 1Y-68.89%
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 8 / 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 3 / 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 136.65% in the next year.