BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - NYSE:BFAM - US1091941005 - Common Stock
101.62 USD
+1.07 (+1.06%)
101.62 USD
0 (0%)
BFAM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 77 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 not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
BFAM had positive earnings in the past year.
In the past year BFAM had a positive cash flow from operations.
BFAM had positive earnings in each of the past 5 years.
In the past 5 years BFAM always reported a positive cash flow from operatings.
1.2 Ratios
BFAM has a Return On Assets of 4.51%. This is in the better half of the industry: BFAM outperforms 68.83% of its industry peers.
The Return On Equity of BFAM (12.64%) is better than 74.03% of its industry peers.
The Return On Invested Capital of BFAM (5.97%) is better than 72.73% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BFAM is significantly below the industry average of 9.48%.
The 3 year average ROIC (4.20%) for BFAM is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.64% | ||
| ROIC | 5.97% |
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
The Profit Margin of BFAM (6.34%) is better than 64.94% of its industry peers.
In the last couple of years the Profit Margin of BFAM has declined.
BFAM's Operating Margin of 10.25% is fine compared to the rest of the industry. BFAM outperforms 68.83% of its industry peers.
BFAM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.67%, BFAM is doing worse than 76.62% of the companies in the same industry.
In the last couple of years the Gross Margin of BFAM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 6.34% | ||
| GM | 23.67% |
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
BFAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BFAM has less shares outstanding
Compared to 5 years ago, BFAM has less shares outstanding
BFAM has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 indicates that BFAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
BFAM has a better Altman-Z score (2.51) than 66.23% of its industry peers.
The Debt to FCF ratio of BFAM is 3.70, which is a good value as it means it would take BFAM, 3.70 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.70, BFAM is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
BFAM has a Debt/Equity ratio of 0.64. This is a neutral value indicating BFAM is somewhat dependend on debt financing.
BFAM has a Debt to Equity ratio of 0.64. This is comparable to the rest of the industry: BFAM outperforms 41.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.73
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.56 indicates that BFAM may have some problems paying its short term obligations.
BFAM's Current ratio of 0.56 is on the low side compared to the rest of the industry. BFAM is outperformed by 80.52% of its industry peers.
A Quick Ratio of 0.56 indicates that BFAM may have some problems paying its short term obligations.
With a Quick ratio value of 0.56, BFAM is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.77% over the past year.
The Earnings Per Share has been decreasing by -1.06% on average over the past years.
The Revenue has grown by 9.24% in the past year. This is quite good.
BFAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
EPS 1Y (TTM)26.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%21.59%
Revenue 1Y (TTM)9.24%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
3.2 Future
Based on estimates for the next years, BFAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.45% on average per year.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y24.6%
EPS Next 2Y20.06%
EPS Next 3Y18.45%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y7.74%
Revenue Next 3Y7.65%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 25.86, the valuation of BFAM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as BFAM.
BFAM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.26, which indicates a rather expensive current valuation of BFAM.
BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 63.64% of the companies in the same industry.
BFAM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 20.26 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA ratio is in line with the industry average.
66.23% of the companies in the same industry are more expensive than BFAM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.81 | ||
| EV/EBITDA | 16.88 |
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 18.45% in the coming years.
PEG (NY)1.05
PEG (5Y)N/A
EPS Next 2Y20.06%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.62
+1.07 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change0.23%
Ins Owners1.03%
Ins Owner Change-4.87%
Market Cap5.78B
Analysts75
Price Target137 (34.82%)
Short Float %1.52%
Short Ratio1.3
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)10.49%
Min EPS beat(2)3.82%
Max EPS beat(2)17.16%
EPS beat(4)4
Avg EPS beat(4)7.34%
Min EPS beat(4)2.44%
Max EPS beat(4)17.16%
EPS beat(8)8
Avg EPS beat(8)9.2%
EPS beat(12)11
Avg EPS beat(12)8.49%
EPS beat(16)13
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)-0.98%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)0%
PT rev (3m)-2.48%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)6.22%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 20.26 | ||
| P/S | 2.07 | ||
| P/FCF | 23.81 | ||
| P/OCF | 17.4 | ||
| P/B | 4.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)3.93
EY3.87%
EPS(NY)5.02
Fwd EY4.94%
FCF(TTM)4.27
FCFY4.2%
OCF(TTM)5.84
OCFY5.75%
SpS49.07
BVpS24.6
TBVpS-10.93
PEG (NY)1.05
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.64% | ||
| ROCE | 9.28% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 19.34% | ||
| OM | 10.25% | ||
| PM (TTM) | 6.34% | ||
| GM | 23.67% | ||
| FCFM | 8.7% |
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 | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 99.9% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.46 | ||
| Cash Conversion | 88.47% | ||
| Profit Quality | 137.26% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.51 |
F-Score9
WACC8.16%
ROIC/WACC0.73
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)26.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%21.59%
EPS Next Y24.6%
EPS Next 2Y20.06%
EPS Next 3Y18.45%
EPS Next 5YN/A
Revenue 1Y (TTM)9.24%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
Revenue Next Year8.37%
Revenue Next 2Y7.74%
Revenue Next 3Y7.65%
Revenue Next 5YN/A
EBIT growth 1Y40.15%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year73.11%
EBIT Next 3Y29.57%
EBIT Next 5YN/A
FCF growth 1Y53.44%
FCF growth 3Y13.6%
FCF growth 5Y1.9%
OCF growth 1Y36.83%
OCF growth 3Y14.08%
OCF growth 5Y0.42%