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 $237.0M against $112.9M — 2.1× the size. KinderCare Learning Companies, Inc. has negative trailing earnings, so its P/E is not meaningful; Legacy Education Inc. trades at 12.1×. Legacy Education Inc. grew revenue faster over the last twelve months: 24.8% against 1.79%. Legacy Education Inc. has the higher net margin (11.4% vs −17.2%) and the higher return on invested capital (24.4% 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 12.12 12.09
P/S 0.09 1.39 0.80
P/B 0.51 2.11 1.39
Price to free cash flow 2.93 41.59 7.31
EV/EBITDA n/m 7.15 6.36
EV/Sales 0.36 1.11 0.58
Earnings yield (199.00%) 8.25% 3.29%
Free cash flow yield 34.14% 2.40% 3.03%

Profitability

Metric KLC LGCY Education & Training Services median
Gross margin 19.17% 46.39% 55.03%
Operating margin (14.89%) 14.75% 0.00%
Net margin (17.23%) 11.42% 1.77%
Free cash flow margin 2.97% 3.35% 0.00%
Return on equity (67.78%) 19.49% 0.00%
Return on assets (13.10%) 12.37% 0.00%
Return on invested capital (20.89%) 24.41% 0.00%

Growth

Metric KLC LGCY Education & Training Services median
Revenue growth (TTM) 1.79% 24.76% 5.84%
EPS growth (last fiscal year) 1.04% 11.86% 14.71%
Revenue growth, 5-year CAGR — — 4.24%
Net income growth, 5-year CAGR — — 0.00%

Health

Metric KLC LGCY Education & Training Services median
Debt to equity 1.99 0.00 0.05
Current ratio 0.75 3.70 1.37
Net debt to EBITDA 7.22 (1.81) (0.04)

Dividend

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

Size

Metric KLC LGCY Education & Training Services median
Market cap 237.04m 112.91m 59.54m

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