Latest Ratios: P/E Ratio -5.4x · EV/EBITDA 9.7x · ROE -13.9%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $603M | $492M | $1.7B | — | — | — | — | — |
| Enterprise Value | $3.0B | $2.9B | $4.0B | — | — | — | — | — |
| P/E Ratio → | -5.36 | — | — | — | — | — | — | — |
| P/S Ratio | 0.22 | 0.18 | 0.64 | — | — | — | — | — |
| P/B Ratio | 0.80 | 0.65 | 1.98 | — | — | — | — | — |
| P/FCF | 5.47 | 4.46 | — | — | — | — | — | — |
| P/OCF | 2.53 | 2.06 | 14.80 | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.06 | 1.52 | — | — | — | — | — |
| EV / EBITDA | 9.73 | 9.37 | 20.54 | — | — | — | — | — |
| EV / EBIT | 16.28 | 15.68 | 43.82 | — | — | — | — | — |
| EV / FCF | — | 26.16 | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 17.6% | 17.6% | 23.7% | 27.3% | 20.5% | 20.4% | 12.1% | 21.6% |
| Operating Margin | 6.7% | 6.7% | 3.0% | 11.0% | 18.0% | 11.7% | -5.2% | 3.4% |
| Net Profit Margin | -4.1% | -4.1% | -3.5% | 4.1% | 10.1% | 4.9% | -9.5% | -1.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -13.9% | -13.9% | -13.5% | 22.4% | 66.1% | 45.1% | -69.1% | -12.2% |
| ROA | -3.1% | -3.1% | -2.5% | 2.8% | 6.1% | 2.6% | -3.9% | -0.9% |
| ROIC | 4.4% | 4.4% | 1.9% | 6.7% | 9.5% | 5.4% | -1.8% | 1.6% |
| ROCE | 5.7% | 5.7% | 2.5% | 8.5% | 12.3% | 7.1% | -2.4% | 2.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.34 | 3.34 | 2.77 | 5.31 | 7.01 | 11.29 | 20.91 | 11.53 |
| Debt / EBITDA | 8.20 | 8.20 | 12.15 | 7.01 | 5.98 | 9.79 | 181.47 | 16.98 |
| Net Debt / Equity | — | 3.17 | 2.70 | 5.00 | 6.75 | 10.60 | 20.52 | 11.36 |
| Net Debt / EBITDA | 7.77 | 7.77 | 11.83 | 6.60 | 5.76 | 9.19 | 178.08 | 16.73 |
| Debt / FCF | — | 21.70 | — | 14.54 | 13.62 | 23.28 | — | 117.93 |
| Interest Coverage | 2.19 | 2.19 | 0.54 | 1.85 | 0.87 | 0.61 | -0.93 | 0.85 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.74 | 0.74 | 0.52 | 0.66 | 0.57 | 0.80 | 0.41 | 0.36 |
| Quick Ratio | 0.74 | 0.74 | 0.52 | 0.66 | 0.57 | 0.80 | 0.41 | 0.36 |
| Cash Ratio | 0.27 | 0.27 | 0.15 | 0.37 | 0.26 | 0.47 | 0.16 | 0.12 |
| Asset Turnover | — | 0.73 | 0.73 | 0.69 | 0.59 | 0.52 | 0.42 | 0.57 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 22.42 | 16.09 | 13.84 | 15.89 | 19.27 | 16.33 | 13.01 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | 18.7% | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | 18.3% | 22.4% | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 18.7% | — | — | — | — | — |
| Shares Outstanding | — | $118M | $96M | $114M | $114M | $114M | $114M | $114M |
Labor-driven margin compression
Based on recent market data, KLC trades at a negative trailing P/E of -4.44, while its forward P/E of 6.31 suggests that investors are pricing in a significant recovery in profitability that remains unproven given the company's historical volatility and current lack of consistent GAAP earnings.
The wide disparity between trailing and forward multiples indicates that the market is heavily discounting current operational struggles in favor of a potential turnaround. Compared to peers like Bright Horizons, which commands a premium valuation, KLC's lower multiples suggest the market views its business model as structurally riskier or less scalable.
As reported in financial statements, KLC's ROIC has struggled to maintain positive momentum, hovering near 0.6% to 0.8% in recent quarters, which indicates that the company is failing to generate returns on invested capital that exceed its likely cost of capital in the current environment.
The persistent decay in ROIC suggests that the massive capital investment required to maintain 1,490 centers is not yielding sufficient incremental profit. This trend warrants investigation into whether the company's expansion strategy is value-destructive rather than compounding, especially when compared to the higher return profiles of education peers.
According to quarterly filings, KLC's asset turnover remains stagnant at approximately 0.18 to 0.19, reflecting a business model that is highly capital-intensive and struggles to extract greater revenue efficiency from its extensive physical footprint of childcare centers across the United States.
The low asset turnover ratio highlights the difficulty of optimizing revenue in a service-based model constrained by mandatory labor ratios. Investors should monitor whether management can improve these metrics through better center utilization or if the current turnover level is a structural ceiling inherent to the industry.
Based on reported figures, KLC's debt-to-equity ratio has shown extreme volatility, peaking at 12.62 in 2024Q3, which suggests that the company's reliance on external financing to support its operations creates a precarious balance sheet that is highly sensitive to interest rate fluctuations and refinancing risks.
The interest coverage ratio, which has dipped as low as 1.04, indicates that the company has very little margin for error in meeting its debt obligations. This leverage profile appears significantly more strained than that of its peers, potentially limiting the company's ability to invest in growth or weather economic downturns.
As evidenced by industry analysis, the market frequently misapplies standard 'Consumer Defensive' valuation multiples to KLC, failing to account for the fact that its high fixed-cost structure and labor-intensive operations make it more akin to a cyclical service provider than a stable, low-beta consumer staple.
Investors often overlook that KLC cannot easily pass on costs or automate labor, meaning that revenue growth does not translate linearly to margin expansion. Using P/E or EV/EBITDA without adjusting for the 'labor floor' and lease-adjusted leverage obscures the true risk profile of the business model.
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Quick answers to the most common questions about buying KLC stock.
KinderCare Learning Companies, Inc.'s current P/E ratio is -5.4x. This places it at the 50th percentile of its historical range.
KinderCare Learning Companies, Inc.'s current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
KinderCare Learning Companies, Inc.'s return on equity (ROE) is -13.9%. The historical average is 3.5%.
Based on historical data, KinderCare Learning Companies, Inc. is trading at a P/E of -5.4x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
KinderCare Learning Companies, Inc. has 17.6% gross margin and 6.7% operating margin.
KinderCare Learning Companies, Inc.'s Debt/EBITDA ratio is 8.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.