BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
NYSE:BFAM - New York Stock Exchange, Inc. - US1091941005 - Common Stock - Currency: USD
Overall BFAM gets a fundamental rating of 4 out of 10. We evaluated BFAM against 72 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of BFAM get a neutral evaluation. Nothing too spectacular is happening here. BFAM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BFAM was profitable.
In the past year BFAM had a positive cash flow from operations.
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
BFAM's Return On Assets of 4.22% is fine compared to the rest of the industry. BFAM outperforms 68.06% of its industry peers.
With a decent Return On Equity value of 12.18%, BFAM is doing good in the industry, outperforming 72.22% of the companies in the same industry.
BFAM's Return On Invested Capital of 5.80% is fine compared to the rest of the industry. BFAM outperforms 69.44% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BFAM is significantly below the industry average of 10.94%.
The 3 year average ROIC (4.20%) for BFAM is below the current ROIC(5.80%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 12.18% | ||
| ROIC | 5.8% |
ROA(3y)2.55%
ROA(5y)2.06%
ROE(3y)8.17%
ROE(5y)6.51%
ROIC(3y)4.2%
ROIC(5y)3.33%
1.3 Margins
With a decent Profit Margin value of 5.91%, BFAM is doing good in the industry, outperforming 65.28% of the companies in the same industry.
In the last couple of years the Profit Margin of BFAM has declined.
BFAM's Operating Margin of 9.86% is fine compared to the rest of the industry. BFAM outperforms 70.83% of its industry peers.
BFAM's Operating Margin has declined in the last couple of years.
BFAM's Gross Margin of 23.46% is on the low side compared to the rest of the industry. BFAM is outperformed by 76.39% of its industry peers.
BFAM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.86% | ||
| PM (TTM) | 5.91% | ||
| GM | 23.46% |
OM growth 3Y8.14%
OM growth 5Y-6.38%
PM growth 3Y9.28%
PM growth 5Y-9.82%
GM growth 3Y-0.82%
GM growth 5Y-1.88%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BFAM is destroying value.
BFAM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BFAM has been reduced compared to 5 years ago.
BFAM has a better debt/assets ratio than last year.
2.2 Solvency
BFAM has an Altman-Z score of 2.87. This is not the best score and indicates that BFAM is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.87, BFAM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of BFAM is 4.19, which is a neutral value as it means it would take BFAM, 4.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.19, BFAM is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
A Debt/Equity ratio of 0.66 indicates that BFAM is somewhat dependend on debt financing.
BFAM has a worse Debt to Equity ratio (0.66) than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.67
WACC8.68%
2.3 Liquidity
BFAM has a Current Ratio of 0.60. This is a bad value and indicates that BFAM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.60, BFAM is not doing good in the industry: 73.61% of the companies in the same industry are doing better.
BFAM has a Quick Ratio of 0.60. This is a bad value and indicates that BFAM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.60, BFAM is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
BFAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.77%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.06% on average over the past years.
BFAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.71%.
Measured over the past years, BFAM shows a small growth in Revenue. The Revenue has been growing by 5.43% on average per year.
EPS 1Y (TTM)30.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%50.98%
Revenue 1Y (TTM)9.71%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%6.88%
3.2 Future
The Earnings Per Share is expected to grow by 17.64% on average over the next years. This is quite good.
BFAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.45% yearly.
EPS Next Y20.48%
EPS Next 2Y18.7%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue Next Year7.6%
Revenue Next 2Y7.38%
Revenue Next 3Y7.45%
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 33.49, BFAM can be considered very expensive at the moment.
BFAM's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.53, BFAM is valued a bit more expensive.
The Price/Forward Earnings ratio is 25.54, which means the current valuation is very expensive for BFAM.
Based on the Price/Forward Earnings ratio, BFAM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.27. BFAM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.49 | ||
| Fwd PE | 25.54 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BFAM is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.48 | ||
| EV/EBITDA | 22.02 |
4.3 Compensation for Growth
BFAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BFAM's earnings are expected to grow with 17.64% in the coming years.
PEG (NY)1.64
PEG (5Y)N/A
EPS Next 2Y18.7%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
No dividends for BFAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BFAM (6/10/2025, 11:07:48 AM)
125.25
+0.1 (+0.08%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners103.02%
Inst Owner Change1.35%
Ins Owners1.04%
Ins Owner Change-0.03%
Market Cap7.17B
Analysts77.5
Price Target141.72 (13.15%)
Short Float %1.55%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.56%
Min EPS beat(2)5.96%
Max EPS beat(2)17.16%
EPS beat(4)4
Avg EPS beat(4)10.94%
Min EPS beat(4)2.44%
Max EPS beat(4)18.2%
EPS beat(8)8
Avg EPS beat(8)9.31%
EPS beat(12)10
Avg EPS beat(12)8.15%
EPS beat(16)13
Avg EPS beat(16)9.19%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-1.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.5%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)-1.04%
Revenue beat(8)3
Avg Revenue beat(8)-0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.31%
PT rev (1m)0.24%
PT rev (3m)1%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)1.3%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.49 | ||
| Fwd PE | 25.54 | ||
| P/S | 2.63 | ||
| P/FCF | 33.48 | ||
| P/OCF | 23.33 | ||
| P/B | 5.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.02 |
EPS(TTM)3.74
EY2.99%
EPS(NY)4.9
Fwd EY3.91%
FCF(TTM)3.74
FCFY2.99%
OCF(TTM)5.37
OCFY4.29%
SpS47.67
BVpS23.13
TBVpS-11.38
PEG (NY)1.64
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.22% | ||
| ROE | 12.18% | ||
| ROCE | 8.73% | ||
| ROIC | 5.8% | ||
| ROICexc | 6.02% | ||
| ROICexgc | 18.03% | ||
| OM | 9.86% | ||
| PM (TTM) | 5.91% | ||
| GM | 23.46% | ||
| FCFM | 7.85% |
ROA(3y)2.55%
ROA(5y)2.06%
ROE(3y)8.17%
ROE(5y)6.51%
ROIC(3y)4.2%
ROIC(5y)3.33%
ROICexc(3y)4.34%
ROICexc(5y)3.5%
ROICexgc(3y)12.8%
ROICexgc(5y)10.08%
ROCE(3y)6.38%
ROCE(5y)5.04%
ROICexcg growth 3Y25.15%
ROICexcg growth 5Y0.54%
ROICexc growth 3Y21.52%
ROICexc growth 5Y-2.3%
OM growth 3Y8.14%
OM growth 5Y-6.38%
PM growth 3Y9.28%
PM growth 5Y-9.82%
GM growth 3Y-0.82%
GM growth 5Y-1.88%
F-Score9
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.19 | ||
| Debt/EBITDA | 2.42 | ||
| Cap/Depr | 101.1% | ||
| Cap/Sales | 3.41% | ||
| Interest Coverage | 3.91 | ||
| Cash Conversion | 85.11% | ||
| Profit Quality | 132.82% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 2.87 |
F-Score9
WACC8.68%
ROIC/WACC0.67
Cap/Depr(3y)82.72%
Cap/Depr(5y)76.47%
Cap/Sales(3y)3.63%
Cap/Sales(5y)4.02%
Profit Quality(3y)180.37%
Profit Quality(5y)247.75%
High Growth Momentum
Growth
EPS 1Y (TTM)30.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%50.98%
EPS Next Y20.48%
EPS Next 2Y18.7%
EPS Next 3Y17.64%
EPS Next 5YN/A
Revenue 1Y (TTM)9.71%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%6.88%
Revenue Next Year7.6%
Revenue Next 2Y7.38%
Revenue Next 3Y7.45%
Revenue Next 5YN/A
EBIT growth 1Y49.02%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year69.51%
EBIT Next 3Y28.37%
EBIT Next 5YN/A
FCF growth 1Y80.12%
FCF growth 3Y13.6%
FCF growth 5Y1.9%
OCF growth 1Y55.85%
OCF growth 3Y14.08%
OCF growth 5Y0.42%