Is KLC halal?
KinderCare Learning Companies,
Not halal
KinderCare Learning Companies, did not pass AAOIFI screening. The failed check is shown below.
Checked: 13 October 2026
Exchange
NYSE
Price
1.77
Day
-3.28%
Market cap
$219.3M
Industry
Education & Training Services
Sector
Consumer Defensive
What the company does
KinderCare Learning Companies is the largest private early-childhood education and daycare chain in the US (1,500+ centers), plus before/after-school programs. Revenue comes from parent tuition and government subsidies.
What was checked
The AAOIFI standard has four steps: business activity first, then three financial ratios. Fail one and the stock is not halal.
Business activity
No prohibited activity
Interest-bearing debt / market cap
limit 30%
Interest-bearing debt $926.76M ÷ 36-month average market cap $960.07M = 96.5%
96.5%
Fail
Cash & investments / market cap
limit 30%
Cash + interest-bearing securities $173.71M ÷ 36-month average market cap $960.07M = 18.1%
18.1%
Pass
Non-compliant income / total revenue
limit 5%
Interest income $4.83M ÷ annual revenue $2.73B (2025) = 0.2%
0.2%
Pass
Figures from the company's filings (2026-06-30), USD. Market cap is a 36-month average (the S&P Shariah index approach), so a one-day price move does not flip the verdict. Today's market cap: $219.26M.
For information (AAOIFI 3/1 note): cash + receivables are 8.6% of total assets (2026-06-30). AAOIFI recommends tangible assets of at least one third — this figure does not affect the verdict, and other major screeners do not apply it either.
In the lists
- In the S&P 500
- Not in the S&P 500
- Held by funds
- Not held by any tracked fund
Halal stocks in the same industry
The largest halal stocks in Education & Training Services — for comparison.
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- Halal investingBlogWhy a company's cash affects whether its stock is halalLots of cash sounds like a good sign — but halal screening checks it separately. What counts, what doesn't, and where we are stricter than AAOIFI.
- Halal investingBlogAAOIFI Shariah Standard No. 21 in plain languageThe most widely used standard for halal stock screening: the two-step test, the three ratios and how it differs from other methods.
Halal is the first question. The second: when to enter?
Our scanner watches 1454 halal stocks around the clock and fires a signal with entry, TP and SL when a technical setup completes. The full signal history — with outcomes — is public.
This is neither investment advice nor a fatwa. Screening is based on public financial statements and AAOIFI standard No. 21; data may lag. For a personal decision consult your own scholar.