BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFAM - US1091941005 - Common Stock
97.01 USD
+0.12 (+0.12%)
97.01 USD
0 (0%)
Taking everything into account, BFAM scores 4 out of 10 in our fundamental rating. BFAM was compared to 76 industry peers in the Diversified Consumer Services industry. BFAM has only an average score on both its financial health and profitability. BFAM has a correct valuation and a medium 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.
- In the past 5 years BFAM has always been profitable.
- BFAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- BFAM's Return On Assets of 5.16% is fine compared to the rest of the industry. BFAM outperforms 65.79% of its industry peers.
- With a decent Return On Equity value of 14.05%, BFAM is doing good in the industry, outperforming 68.42% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.69%, BFAM is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BFAM is significantly below the industry average of 10.30%.
- The last Return On Invested Capital (6.69%) for BFAM is above the 3 year average (4.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 14.05% | ||
| ROIC | 6.69% |
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 6.98%, BFAM is in the better half of the industry, outperforming 64.47% of the companies in the same industry.
- BFAM's Profit Margin has declined in the last couple of years.
- BFAM has a better Operating Margin (11.25%) than 69.74% of its industry peers.
- In the last couple of years the Operating Margin of BFAM has declined.
- BFAM has a Gross Margin of 24.21%. This is in the lower half of the industry: BFAM underperforms 71.05% of its industry peers.
- BFAM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.25% | ||
| PM (TTM) | 6.98% | ||
| GM | 24.21% |
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.
- The number of shares outstanding for BFAM has been reduced compared to 1 year ago.
- 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 2.57 indicates that BFAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 2.57, BFAM is doing good in the industry, outperforming 67.11% of the companies in the same industry.
- BFAM has a debt to FCF ratio of 3.94. This is a good value and a sign of high solvency as BFAM would need 3.94 years to pay back of all of its debts.
- BFAM has a better Debt to FCF ratio (3.94) than 72.37% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that BFAM is somewhat dependend on debt financing.
- BFAM has a worse Debt to Equity ratio (0.64) than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.81
WACC8.25%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that BFAM may have some problems paying its short term obligations.
- BFAM's Current ratio of 0.54 is on the low side compared to the rest of the industry. BFAM is outperformed by 81.58% of its industry peers.
- A Quick Ratio of 0.54 indicates that BFAM may have some problems paying its short term obligations.
- With a Quick ratio value of 0.54, BFAM is not doing good in the industry: 77.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- BFAM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.83%, which is quite impressive.
- 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.
- The Revenue has grown by 9.38% 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)31.83%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%41.44%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%11.64%
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 16.52% on average per year.
- Based on estimates for the next years, BFAM will show a small growth in Revenue. The Revenue will grow by 6.86% on average per year.
EPS Next Y32.61%
EPS Next 2Y22.25%
EPS Next 3Y19.54%
EPS Next 5Y16.52%
Revenue Next Year9.1%
Revenue Next 2Y7.94%
Revenue Next 3Y7.61%
Revenue Next 5Y6.86%
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
- With a Price/Earnings ratio of 22.10, BFAM is valued on the expensive side.
- The rest of the industry has a similar Price/Earnings ratio as BFAM.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, BFAM is valued at the same level.
- Based on the Price/Forward Earnings ratio of 18.65, the valuation of BFAM can be described as rather expensive.
- BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 64.47% of the companies in the same industry.
- BFAM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.65 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BFAM.
- BFAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.6 | ||
| EV/EBITDA | 14.75 |
4.3 Compensation for Growth
- BFAM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- BFAM's earnings are expected to grow with 19.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y22.25%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
- No dividends for BFAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
97.01
+0.12 (+0.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners107.07%
Inst Owner Change-0.04%
Ins Owners1.04%
Ins Owner Change-1.56%
Market Cap5.49B
Revenue(TTM)2.87B
Net Income(TTM)200.50M
Analysts76
Price Target130.71 (34.74%)
Short Float %2.79%
Short Ratio1.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)10.19%
Min EPS beat(2)3.82%
Max EPS beat(2)16.56%
EPS beat(4)4
Avg EPS beat(4)10.87%
Min EPS beat(4)3.82%
Max EPS beat(4)17.16%
EPS beat(8)8
Avg EPS beat(8)10.53%
EPS beat(12)11
Avg EPS beat(12)9.77%
EPS beat(16)14
Avg EPS beat(16)8.12%
Revenue beat(2)1
Avg Revenue beat(2)-0.08%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.95%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.82%
Revenue beat(8)2
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)6
Avg Revenue beat(16)-0.81%
PT rev (1m)-0.47%
PT rev (3m)-4.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)0%
EPS NY rev (3m)6.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.65 | ||
| P/S | 1.91 | ||
| P/FCF | 23.6 | ||
| P/OCF | 16.96 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.75 |
EPS(TTM)4.39
EY4.53%
EPS(NY)5.2
Fwd EY5.36%
FCF(TTM)4.11
FCFY4.24%
OCF(TTM)5.72
OCFY5.9%
SpS50.82
BVpS25.24
TBVpS-10.37
PEG (NY)0.68
PEG (5Y)N/A
Graham Number49.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 14.05% | ||
| ROCE | 10.62% | ||
| ROIC | 6.69% | ||
| ROICexc | 6.94% | ||
| ROICexgc | 19.86% | ||
| OM | 11.25% | ||
| PM (TTM) | 6.98% | ||
| GM | 24.21% | ||
| FCFM | 8.09% |
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%
ROICexgc growth 3Y25.15%
ROICexgc 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-Score8
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.94 | ||
| Debt/EBITDA | 2.21 | ||
| Cap/Depr | 99.99% | ||
| Cap/Sales | 3.17% | ||
| Interest Coverage | 5.44 | ||
| Cash Conversion | 78.08% | ||
| Profit Quality | 115.95% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 2.57 |
F-Score8
WACC8.25%
ROIC/WACC0.81
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)31.83%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%41.44%
EPS Next Y32.61%
EPS Next 2Y22.25%
EPS Next 3Y19.54%
EPS Next 5Y16.52%
Revenue 1Y (TTM)9.38%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%11.64%
Revenue Next Year9.1%
Revenue Next 2Y7.94%
Revenue Next 3Y7.61%
Revenue Next 5Y6.86%
EBIT growth 1Y42.65%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year80.79%
EBIT Next 3Y30.63%
EBIT Next 5Y24.03%
FCF growth 1Y71.44%
FCF growth 3Y13.6%
FCF growth 5Y1.9%
OCF growth 1Y48.03%
OCF growth 3Y14.08%
OCF growth 5Y0.42%
BRIGHT HORIZONS FAMILY SOLUT / BFAM FAQ
Can you provide the ChartMill fundamental rating for BRIGHT HORIZONS FAMILY SOLUT?
ChartMill assigns a fundamental rating of 4 / 10 to BFAM.
What is the valuation status of BRIGHT HORIZONS FAMILY SOLUT (BFAM) stock?
ChartMill assigns a valuation rating of 4 / 10 to BRIGHT HORIZONS FAMILY SOLUT (BFAM). This can be considered as Fairly Valued.
What is the profitability of BFAM stock?
BRIGHT HORIZONS FAMILY SOLUT (BFAM) has a profitability rating of 5 / 10.
What is the earnings growth outlook for BRIGHT HORIZONS FAMILY SOLUT?
The Earnings per Share (EPS) of BRIGHT HORIZONS FAMILY SOLUT (BFAM) is expected to grow by 32.61% in the next year.