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 70 industry peers in the Diversified Consumer Services industry. BFAM has only an average score on both its financial health and profitability. While showing a medium growth rate, BFAM is valued expensive at the moment.
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.
In the past 5 years BFAM has always been profitable.
Each year in the past 5 years BFAM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 4.22%, BFAM is doing good in the industry, outperforming 67.14% of the companies in the same industry.
BFAM's Return On Equity of 12.18% is fine compared to the rest of the industry. BFAM outperforms 71.43% of its industry peers.
The Return On Invested Capital of BFAM (5.80%) is better than 68.57% of its industry peers.
BFAM had an Average Return On Invested Capital over the past 3 years of 4.20%. This 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 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
Looking at the Profit Margin, with a value of 5.91%, BFAM is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of BFAM has declined.
With a decent Operating Margin value of 9.86%, BFAM is doing good in the industry, outperforming 70.00% of the companies in the same industry.
BFAM's Operating Margin has declined in the last couple of years.
BFAM has a worse Gross Margin (23.46%) than 77.14% of its industry peers.
In the last couple of years the Gross Margin of BFAM has declined.
| 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
BFAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for BFAM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.82 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 (2.82) than 67.14% of its industry peers.
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.
BFAM has a better Debt to FCF ratio (4.19) than 71.43% of its industry peers.
A Debt/Equity ratio of 0.66 indicates that BFAM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.66, BFAM is doing worse than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.82 |
ROIC/WACC0.67
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a Current ratio of 0.60. This is in the lower half of the industry: BFAM underperforms 72.86% of its industry peers.
A Quick Ratio of 0.60 indicates that BFAM may have some problems paying its short term obligations.
The Quick ratio of BFAM (0.60) is worse than 71.43% of its industry peers.
| 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%.
BFAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
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
Based on estimates for the next years, BFAM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.64% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.81, which means the current valuation is very expensive for BFAM.
BFAM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.32. BFAM is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 25.03, the valuation of BFAM can be described as expensive.
61.43% of the companies in the same industry are more expensive than BFAM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BFAM to the average of the S&P500 Index (22.19), we can say BFAM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 25.03 |
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 the industry average as 62.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.8 | ||
| EV/EBITDA | 21.51 |
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)1.6
PEG (5Y)N/A
EPS Next 2Y18.7%
EPS Next 3Y17.64%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BFAM (6/18/2025, 2:33:45 PM)
122.72
+0.74 (+0.61%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.05%
Inst Owner Change1.35%
Ins Owners1.04%
Ins Owner Change-0.03%
Market Cap7.03B
Analysts77.5
Price Target141.72 (15.48%)
Short Float %1.73%
Short Ratio2.01
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)0.03%
EPS NQ rev (3m)3.34%
EPS NY rev (1m)0%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 25.03 | ||
| P/S | 2.57 | ||
| P/FCF | 32.8 | ||
| P/OCF | 22.86 | ||
| P/B | 5.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.51 |
EPS(TTM)3.74
EY3.05%
EPS(NY)4.9
Fwd EY4%
FCF(TTM)3.74
FCFY3.05%
OCF(TTM)5.37
OCFY4.37%
SpS47.67
BVpS23.13
TBVpS-11.38
PEG (NY)1.6
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 | 2.82 |
F-Score9
WACC8.62%
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%