BRIGHT HORIZONS FAMILY SOLUT (BFAM)
US1091941005 - Common Stock
Taking everything into account, BFAM scores 4 out of 10 in our fundamental rating. BFAM was compared to 67 industry peers in the Diversified Consumer Services industry. BFAM has a medium profitability rating, but doesn't score so well on its financial health evaluation. BFAM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BFAM had positive earnings in the past year.
BFAM had a positive operating cash flow in the past year.
BFAM had positive earnings in each of the past 5 years.
BFAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.19%, BFAM is doing good in the industry, outperforming 64.06% of the companies in the same industry.
With a decent Return On Equity value of 6.74%, BFAM is doing good in the industry, outperforming 68.75% of the companies in the same industry.
BFAM's Return On Invested Capital of 3.89% is fine compared to the rest of the industry. BFAM outperforms 60.94% of its industry peers.
BFAM had an Average Return On Invested Capital over the past 3 years of 3.37%. This is significantly below the industry average of 14.79%.
The 3 year average ROIC (3.37%) for BFAM is below the current ROIC(3.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.74% | ||
| ROIC | 3.89% |
ROA(3y)1.98%
ROA(5y)2.42%
ROE(3y)6.5%
ROE(5y)8.03%
ROIC(3y)3.37%
ROIC(5y)3.52%
1.3 Margins
BFAM has a Profit Margin of 3.33%. This is in the better half of the industry: BFAM outperforms 62.50% of its industry peers.
BFAM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.26%, BFAM is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BFAM has declined.
BFAM's Gross Margin of 21.92% is on the low side compared to the rest of the industry. BFAM is outperformed by 82.81% of its industry peers.
In the last couple of years the Gross Margin of BFAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.26% | ||
| PM (TTM) | 3.33% | ||
| GM | 21.92% |
OM growth 3Y23.76%
OM growth 5Y-10.83%
PM growth 3Y19.92%
PM growth 5Y-18.08%
GM growth 3Y2.81%
GM growth 5Y-2.43%
2. Health
2.1 Basic Checks
BFAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BFAM has been increased compared to 1 year ago.
The number of shares outstanding for BFAM has been increased compared to 5 years ago.
Compared to 1 year ago, BFAM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.36 indicates that BFAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BFAM (2.36) is better than 71.88% of its industry peers.
The Debt to FCF ratio of BFAM is 4.48, which is a neutral value as it means it would take BFAM, 4.48 years of fcf income to pay off all of its debts.
BFAM has a better Debt to FCF ratio (4.48) than 68.75% of its industry peers.
BFAM has a Debt/Equity ratio of 0.76. This is a neutral value indicating BFAM is somewhat dependend on debt financing.
The Debt to Equity ratio of BFAM (0.76) is worse than 70.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.45
WACC8.58%
2.3 Liquidity
A Current Ratio of 0.51 indicates that BFAM may have some problems paying its short term obligations.
With a Current ratio value of 0.51, BFAM is not doing good in the industry: 85.94% of the companies in the same industry are doing better.
BFAM has a Quick Ratio of 0.51. This is a bad value and indicates that BFAM is not financially healthy enough and could expect problems in meeting its short term obligations.
BFAM's Quick ratio of 0.51 is on the low side compared to the rest of the industry. BFAM is outperformed by 85.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.75% over the past year.
The Earnings Per Share has been decreasing by -2.48% on average over the past years.
The Revenue has grown by 17.68% in the past year. This is quite good.
The Revenue has been growing slightly by 4.91% on average over the past years.
EPS 1Y (TTM)8.75%
EPS 3Y22.1%
EPS 5Y-2.48%
EPS Q2Q%4.08%
Revenue 1Y (TTM)17.68%
Revenue growth 3Y16.87%
Revenue growth 5Y4.91%
Sales Q2Q%12.48%
3.2 Future
The Earnings Per Share is expected to grow by 18.46% on average over the next years. This is quite good.
BFAM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.49% yearly.
EPS Next Y12.75%
EPS Next 2Y19.09%
EPS Next 3Y18.46%
EPS Next 5YN/A
Revenue Next Year11.42%
Revenue Next 2Y10.14%
Revenue Next 3Y9.49%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.76, BFAM can be considered very expensive at the moment.
BFAM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.05. BFAM is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 26.10, BFAM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFAM is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.07, BFAM is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 26.1 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BFAM is on the same level as its industry peers.
BFAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.48 | ||
| EV/EBITDA | 23.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BFAM does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as BFAM's earnings are expected to grow with 18.46% in the coming years.
PEG (NY)2.88
PEG (5Y)N/A
EPS Next 2Y19.09%
EPS Next 3Y18.46%
5. Dividend
5.1 Amount
No dividends for BFAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BRIGHT HORIZONS FAMILY SOLUT
NYSE:BFAM (5/31/2024, 7:25:34 PM)
After market: 105.12 0 (0%)105.12
+0.87 (+0.83%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 26.1 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 6.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.26% | ||
| PM (TTM) | 3.33% | ||
| GM | 21.92% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.75%
EPS 3Y22.1%
EPS 5Y
EPS Q2Q%
EPS Next Y12.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.68%
Revenue growth 3Y16.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y