Franklin Covey Company (FC) vs KinderCare Learning Companies, Inc. (KLC)

Franklin Covey Company and KinderCare Learning Companies, Inc. are both Education & Training Services companies. KinderCare Learning Companies, Inc. is the larger, with a market value of $237.0M against $182.5M — 1.3× the size. KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 89.2×. KinderCare Learning Companies, Inc. grew revenue faster over the last twelve months: 1.79% against −6.14%. Franklin Covey Company has the higher net margin (0.83% vs −17.2%) and the higher return on invested capital (13.0% vs −20.9%). Across the 18 metrics below, Franklin Covey Company leads on 10 and KinderCare Learning Companies, Inc. on 8.

Valuation

Metric FC KLC Education & Training Services median
P/E 89.22 n/m 12.09
P/S 0.69 0.09 0.80
P/B 4.21 0.51 1.39
Price to free cash flow 16.83 2.93 7.31
EV/EBITDA 8.52 n/m 6.36
EV/Sales 0.65 0.36 0.58
Earnings yield 1.12% (199.00%) 3.29%
Free cash flow yield 5.94% 34.14% 3.03%

Profitability

Metric FC KLC Education & Training Services median
Gross margin 75.18% 19.17% 55.03%
Operating margin 2.45% (14.89%) 0.00%
Net margin 0.83% (17.23%) 1.77%
Free cash flow margin 4.09% 2.97% 0.00%
Return on equity 4.03% (67.78%) 0.00%
Return on assets 1.05% (13.10%) 0.00%
Return on invested capital 12.98% (20.89%) 0.00%

Growth

Metric FC KLC Education & Training Services median
Revenue growth (TTM) (6.14%) 1.79% 5.84%
EPS growth (last fiscal year) (86.21%) 1.04% 14.71%
Revenue growth, 5-year CAGR 6.12% — 4.24%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric FC KLC Education & Training Services median
Debt to equity 0.00 1.99 0.05
Current ratio 0.66 0.75 1.37
Net debt to EBITDA (1.65) 7.22 (0.04)

Dividend

Metric FC KLC Education & Training Services median
Dividend yield — — 2.64%
Payout ratio — — 0.26

Size

Metric FC KLC Education & Training Services median
Market cap 182.51m 237.04m 59.54m

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