KinderCare Learning Companies, Inc. (KLC) vs Legacy Education Inc. (LGCY)

KinderCare Learning Companies, Inc. and Legacy Education Inc. are both Education & Training Services companies. KinderCare Learning Companies, Inc. is the larger, with a market value of $260.7M against $120.8M — 2.2× the size. KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 13.9×. Legacy Education Inc. grew revenue faster over the last twelve months: 32.1% against 1.79%. Legacy Education Inc. has the higher net margin (10.9% vs −17.2%) and the higher return on invested capital (24.5% vs −20.9%). Across the 18 metrics below, Legacy Education Inc. leads on 13 and KinderCare Learning Companies, Inc. on 5.

Valuation

Metric KLC LGCY Education & Training Services median
P/E n/m 13.90 11.19
P/S 0.09 1.53 0.92
P/B 0.54 2.41 1.63
Price to free cash flow 3.11 25.11 9.62
EV/EBITDA n/m 8.35 7.02
EV/Sales 0.37 1.26 0.82
Earnings yield (187.74%) 7.20% 3.17%
Free cash flow yield 32.21% 3.98% 2.30%

Profitability

Metric KLC LGCY Education & Training Services median
Gross margin 19.17% 47.24% 54.64%
Operating margin (14.89%) 14.36% 0.00%
Net margin (17.23%) 10.89% 3.29%
Free cash flow margin 2.97% 6.10% 0.00%
Return on equity (67.78%) 19.11% 0.00%
Return on assets (13.10%) 11.91% 0.00%
Return on invested capital (20.89%) 24.48% 0.00%

Growth

Metric KLC LGCY Education & Training Services median
Revenue growth (TTM) 1.79% 32.10% 6.97%
EPS growth (last fiscal year) 1.04% 11.32% —
Revenue growth, 5-year CAGR — — 4.27%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric KLC LGCY Education & Training Services median
Debt to equity 1.99 0.01 0.08
Current ratio 0.75 3.36 1.33
Net debt to EBITDA 7.22 (1.80) (0.15)

Dividend

Metric KLC LGCY Education & Training Services median
Dividend yield — — 1.13%
Payout ratio — — 0.00

Size

Metric KLC LGCY Education & Training Services median
Market cap 260.74m 120.81m 68.93m

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