(KLC) KinderCare Learning - Overview
Sector: Consumer Defensive | Industry: Education & Training Services | Exchange: NYSE (USA) | Market Cap: 445m USD | Total Return: -67.5% in 12m
Avg Turnover: 4.12M
Qual. Beats: 0
Rev. Trend: 90.4%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.3) with thin interest coverage (1.9)
Altman Z'' -0.43 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
KinderCare Learning Companies, Inc. (KLC) is a provider of early childhood education and care services in the United States. Operating under brands such as KinderCare Learning Centers, Crème School, and Champions, the company delivers community-based instruction for infants through kindergarteners, as well as before- and after-school programs for school-age children. Its business model also includes employer-sponsored solutions, providing on-site or near-site childcare and backup care benefits for corporate partners.
The early childhood education sector is characterized by high fragmentation and significant regulatory oversight regarding staff-to-child ratios and facility safety standards. As a scaled operator, KinderCare competes by leveraging its national footprint to secure multi-site contracts with large organizations seeking standardized employee benefits. Investors may find it useful to examine ValueRay for deeper insights into the companys valuation metrics.
Founded in 1969 and headquartered in Lake Oswego, Oregon, the firm rebranded from KC Holdco, LLC in early 2022. The companys revenue streams are diversified across private-pay families, government subsidies, and corporate childcare contracts.
- Labor cost inflation and teacher retention rates impact enterprise operating margins
- Expansion of employer-sponsored childcare benefits drives high-margin corporate revenue growth
- Federal and state subsidy levels dictate enrollment affordability for low-income families
- Higher interest rates increase debt service costs for capital-intensive facility expansions
- Champions brand growth hinges on securing new public school district partnerships
| Net Income: -423.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -0.29 > 1.0 |
| NWC/Revenue: -4.53% < 20% (prev -6.94%; Δ 2.41% < -1%) |
| CFO/TA 0.05 > 3% & CFO 171.1m > Net Income -423.9m |
| Net Debt (1.48b) to EBITDA (278.1m): 5.32 < 3 |
| Current Ratio: 0.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (118.5m) vs 12m ago 0.15% < -2% |
| Gross Margin: 16.43% > 18% (prev 0.22%; Δ 1.62k% > 0.5%) |
| Asset Turnover: 76.47% > 50% (prev 71.99%; Δ 4.48% > 0%) |
| Interest Coverage Ratio: 1.86 > 6 (EBITDA TTM 278.1m / Interest Expense TTM 82.5m) |
| A: -0.04 (Total Current Assets 344.0m - Total Current Liabilities 468.0m) / Total Assets 3.44b |
| B: -0.11 (Retained Earnings -372.5m / Total Assets 3.44b) |
| C: 0.04 (EBIT TTM 153.0m / Avg Total Assets 3.58b) |
| D: -0.13 (Book Value of Equity -372.6m / Total Liabilities 2.97b) |
| Altman-Z'' = -0.43 = B |
| DSRI: 1.09 (Receivables 106.8m/95.9m, Revenue 2.74b/2.68b) |
| GMI: 1.35 (GM 16.43% / 22.25%) |
| AQI: 0.79 (AQ_t 0.35 / AQ_t-1 0.44) |
| SGI: 1.02 (Revenue 2.74b / 2.68b) |
| TATA: -0.17 (NI -423.9m - CFO 171.1m) / TA 3.44b) |
| Beneish M = -2.92 (Cap -4..+1) = A |
As of June 01, 2026, the stock is trading at USD 3.84 with a total of 954,965 shares traded.
Over the past week, the price has changed by +3.50%,
over one month by -2.29%,
over three months by +9.71% and
over the past year by -67.49%.
KinderCare Learning has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy KLC.
- StrongBuy: 3
- Buy: 4
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 4.2 | 10.4% |
P/E Forward = 5.0125
P/S = 0.1633
P/B = 0.9553
Revenue TTM = 2.74b USD
EBIT TTM = 153.0m USD
EBITDA TTM = 278.1m USD
Long Term Debt = 917.0m USD (from longTermDebt, last quarter)
Short Term Debt = 159.4m USD (from shortTermDebt, last quarter)
Debt = 1.61b USD (from shortLongTermDebtTotal, last quarter) (leases 1.60b already included)
Net Debt = 1.48b USD (calculated: Debt 1.61b - CCE 132.9m)
Enterprise Value = 1.92b USD (445.3m + Debt 1.61b - CCE 132.9m)
Interest Coverage Ratio = 1.86 (Ebit TTM 153.0m / Interest Expense TTM 82.5m)
EV/FCF = 53.06x (Enterprise Value 1.92b / FCF TTM 36.3m)
FCF Yield = 1.88% (FCF TTM 36.3m / Enterprise Value 1.92b)
FCF Margin = 1.32% (FCF TTM 36.3m / Revenue TTM 2.74b)
Net Margin = -15.48% (Net Income TTM -423.9m / Revenue TTM 2.74b)
Gross Margin = 16.43% ((Revenue TTM 2.74b - Cost of Revenue TTM 2.29b) / Revenue TTM)
Gross Margin QoQ = 13.46% (prev 15.54%)
Tobins Q-Ratio = 0.56 (Enterprise Value 1.92b / Total Assets 3.44b)
Interest Expense / Debt = 5.12% (Interest Expense 82.5m / Debt 1.61b)
Taxrate = 21.0% (US default 21%)
NOPAT = 120.9m (EBIT 153.0m * (1 - 21.00%))
Current Ratio = 0.73 (Total Current Assets 344.0m / Total Current Liabilities 468.0m)
Debt / Equity = 3.42 (Debt 1.61b / totalStockholderEquity, last quarter 471.1m)
Debt / EBITDA = 5.32 (Net Debt 1.48b / EBITDA 278.1m)
Debt / FCF = 40.78 (Net Debt 1.48b / FCF TTM 36.3m)
Total Stockholder Equity = 770.5m (last 4 quarters mean from totalStockholderEquity)
RoA = -11.84% (Net Income -423.9m / Total Assets 3.44b)
RoE = -37.09% (Net Income TTM -423.9m / Total Stockholder Equity 1.14b)
RoCE = 7.43% (EBIT 153.0m / Capital Employed (Equity 1.14b + L.T.Debt 917.0m))
RoIC = 4.03% (NOPAT 120.9m / Invested Capital 3.00b)
WACC = 5.96% (E(445.3m)/V(2.06b) * Re(12.87%) + D(1.61b)/V(2.06b) * Rd(5.12%) * (1-Tc(0.21)))
Discount Rate = 12.87% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 49.44 | Cagr: 1.59%
[DCF] Terminal Value 73.10% ; FCFF base≈41.8m ; Y1≈36.6m ; Y5≈29.6m
[DCF] Fair Price = N/A (negative equity: EV 475.3m - Net Debt 1.48b = -1.00b; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.09 | # QB: 0
Revenue Correlation: 90.35 | Revenue CAGR: 4.92% | SUE: 0.51 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.10 | Chg30d=-19.62% | Revisions=-11% | Analysts=7
EPS next Quarter (2026-09-30): EPS=0.04 | Chg30d=N/A | Revisions=+60% | Analysts=7
EPS current Year (2026-12-31): EPS=0.20 | Chg30d=+32.86% | Revisions=+50% | GrowthEPS=-72.0% | GrowthRev=-0.7%
EPS next Year (2027-12-31): EPS=0.33 | Chg30d=+11.14% | Revisions=+33% | GrowthEPS=+67.9% | GrowthRev=+2.8%
[Analyst] Revisions Ratio: +60%