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

Franklin Covey Company and KinderCare Learning Companies, Inc. are both Education & Training Services companies. Franklin Covey Company and KinderCare Learning Companies, Inc. are of similar size ($216.9M and $205.1M). KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Franklin Covey Company trades at 99.7×. 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 99.72 n/m 13.22
P/S 0.77 0.08 0.99
P/B 4.71 0.45 1.62
Price to free cash flow 18.81 2.59 10.06
EV/EBITDA 9.58 n/m 8.56
EV/Sales 0.73 0.35 0.78
Earnings yield 1.00% (224.86%) 3.17%
Free cash flow yield 5.32% 38.57% 2.81%

Profitability

Metric FC KLC Education & Training Services median
Gross margin 75.18% 19.17% 54.64%
Operating margin 2.45% (14.89%) 0.00%
Net margin 0.83% (17.23%) 2.98%
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% 6.97%
EPS growth (last fiscal year) (86.21%) 1.04% 15.68%
Revenue growth, 5-year CAGR 6.12% — 4.27%
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 1.33
Net debt to EBITDA (1.65) 7.22 (0.15)

Dividend

Metric FC KLC Education & Training Services median
Dividend yield — — 1.84%
Payout ratio — — 0.23

Size

Metric FC KLC Education & Training Services median
Market cap 205.09m 216.89m 68.84m

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