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BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis

NYSE:BFAM - New York Stock Exchange, Inc. - US1091941005 - Common Stock - Currency: USD

123.95  -3 (-2.36%)

Fundamental Rating

4

Overall BFAM gets a fundamental rating of 4 out of 10. We evaluated BFAM against 72 industry peers in the Diversified Consumer Services industry. BFAM has only an average score on both its financial health and profitability. BFAM is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

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.
BFAM Yearly Net Income VS EBIT VS OCF VS FCFBFAM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

1.2 Ratios

The Return On Assets of BFAM (4.22%) is better than 68.06% of its industry peers.
BFAM has a better Return On Equity (12.18%) than 72.22% of its industry peers.
BFAM has a Return On Invested Capital of 5.80%. This is in the better half of the industry: BFAM outperforms 69.44% 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 10.94%.
The last Return On Invested Capital (5.80%) for BFAM is above the 3 year average (4.20%), which is a sign of increasing profitability.
Industry RankSector 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%
BFAM Yearly ROA, ROE, ROICBFAM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

BFAM has a better Profit Margin (5.91%) than 65.28% of its industry peers.
BFAM's Profit Margin has declined in the last couple of years.
BFAM has a better Operating Margin (9.86%) than 70.83% of its industry peers.
In the last couple of years the Operating Margin of BFAM has declined.
BFAM has a Gross Margin of 23.46%. This is in the lower half of the industry: BFAM underperforms 76.39% of its industry peers.
BFAM's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
BFAM Yearly Profit, Operating, Gross MarginsBFAM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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4

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.
Compared to 5 years ago, BFAM has less shares outstanding
BFAM has a better debt/assets ratio than last year.
BFAM Yearly Shares OutstandingBFAM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
BFAM Yearly Total Debt VS Total AssetsBFAM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.89 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 (2.89) than 66.67% of its industry peers.
BFAM has a debt to FCF ratio of 4.19. This is a neutral value as BFAM would need 4.19 years to pay back of all of its debts.
BFAM's Debt to FCF ratio of 4.19 is fine compared to the rest of the industry. BFAM outperforms 72.22% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that BFAM is somewhat dependend on debt financing.
BFAM's Debt to Equity ratio of 0.66 is on the low side compared to the rest of the industry. BFAM is outperformed by 63.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 4.19
Altman-Z 2.89
ROIC/WACC0.67
WACC8.68%
BFAM Yearly LT Debt VS Equity VS FCFBFAM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 0.60 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a worse Current ratio (0.60) than 73.61% of its industry peers.
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.
Looking at the Quick ratio, with a value of 0.60, BFAM is doing worse than 72.22% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.6
Quick Ratio 0.6
BFAM Yearly Current Assets VS Current LiabilitesBFAM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 30.77% over the past year.
Measured over the past years, BFAM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.06% on average per year.
BFAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.71%.
The Revenue has been growing slightly by 5.43% on average over the past years.
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

BFAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.64% yearly.
Based on estimates for the next years, BFAM will show a small growth in Revenue. The Revenue will grow by 7.45% on average per year.
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

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.
BFAM Yearly Revenue VS EstimatesBFAM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
BFAM Yearly EPS VS EstimatesBFAM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4 5

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.14, BFAM can be considered very expensive at the moment.
BFAM's Price/Earnings is on the same level as the industry average.
BFAM's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.55.
The Price/Forward Earnings ratio is 25.28, which means the current valuation is very expensive for BFAM.
BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.30. BFAM is around the same levels.
Industry RankSector Rank
PE 33.14
Fwd PE 25.28
BFAM Price Earnings VS Forward Price EarningsBFAM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
Based on the Price/Free Cash Flow ratio, BFAM is valued a bit cheaper than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 33.13
EV/EBITDA 22.3
BFAM Per share dataBFAM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30 40

4.3 Compensation for Growth

The 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)1.62
PEG (5Y)N/A
EPS Next 2Y18.7%
EPS Next 3Y17.64%

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0

5. Dividend

5.1 Amount

No dividends for BFAM!.
Industry RankSector Rank
Dividend Yield N/A

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BRIGHT HORIZONS FAMILY SOLUT

NYSE:BFAM (6/9/2025, 11:53:21 AM)

123.95

-3 (-2.36%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)05-05 2025-05-05/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners103.02%
Inst Owner Change1.35%
Ins Owners1.04%
Ins Owner Change-0.03%
Market Cap7.10B
Analysts77.5
Price Target141.72 (14.34%)
Short Float %1.55%
Short Ratio1.77
Dividend
Industry RankSector 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 RankSector Rank
PE 33.14
Fwd PE 25.28
P/S 2.6
P/FCF 33.13
P/OCF 23.09
P/B 5.36
P/tB N/A
EV/EBITDA 22.3
EPS(TTM)3.74
EY3.02%
EPS(NY)4.9
Fwd EY3.96%
FCF(TTM)3.74
FCFY3.02%
OCF(TTM)5.37
OCFY4.33%
SpS47.67
BVpS23.13
TBVpS-11.38
PEG (NY)1.62
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 2.89
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%