BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
NYSE:BFAM • US1091941005
74.52 USD
-0.64 (-0.85%)
At close: Feb 27, 2026
74.52 USD
0 (0%)
After Hours: 2/27/2026, 8:04:00 PM
Overall BFAM gets a fundamental rating of 5 out of 10. We evaluated BFAM against 75 industry peers in the Diversified Consumer Services industry. BFAM scores excellent on profitability, but there are concerns on its financial health. BFAM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year BFAM was profitable.
- BFAM had a positive operating cash flow in the past year.
- Each year in the past 5 years BFAM has 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 4.96%, BFAM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- BFAM has a better Return On Equity (14.42%) than 70.67% of its industry peers.
- BFAM's Return On Invested Capital of 7.81% is fine compared to the rest of the industry. BFAM outperforms 72.00% 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 11.18%.
- The last Return On Invested Capital (7.81%) for BFAM is above the 3 year average (5.82%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 14.42% | ||
| ROIC | 7.81% |
ROA(3y)3.5%
ROA(5y)2.91%
ROE(3y)10.5%
ROE(5y)8.98%
ROIC(3y)5.82%
ROIC(5y)4.85%
1.3 Margins
- With a decent Profit Margin value of 6.58%, BFAM is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- BFAM's Profit Margin has improved in the last couple of years.
- With a decent Operating Margin value of 10.93%, BFAM is doing good in the industry, outperforming 70.67% of the companies in the same industry.
- BFAM's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 23.77%, BFAM is not doing good in the industry: 74.67% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of BFAM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.93% | ||
| PM (TTM) | 6.58% | ||
| GM | 23.77% |
OM growth 3Y9.98%
OM growth 5Y23.59%
PM growth 3Y18.32%
PM growth 5Y29.96%
GM growth 3Y0.1%
GM growth 5Y3.27%
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
- 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
- The Debt to FCF ratio of BFAM is 3.65, which is a good value as it means it would take BFAM, 3.65 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.65, BFAM is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
- BFAM has a Debt/Equity ratio of 0.56. This is a neutral value indicating BFAM is somewhat dependend on debt financing.
- BFAM has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: BFAM outperforms 42.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | N/A |
ROIC/WACC0.99
WACC7.86%
2.3 Liquidity
- BFAM has a Current Ratio of 0.52. 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 0.52, BFAM is not doing good in the industry: 82.67% of the companies in the same industry are doing better.
- BFAM has a Quick Ratio of 0.52. This is a bad value and indicates that BFAM is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BFAM (0.52) is worse than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 31.03% over the past year.
- Measured over the past years, BFAM shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.93% on average per year.
- The Revenue has grown by 9.22% in the past year. This is quite good.
- BFAM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.13% yearly.
EPS 1Y (TTM)31.03%
EPS 3Y20.44%
EPS 5Y23.93%
EPS Q2Q%17.35%
Revenue 1Y (TTM)9.22%
Revenue growth 3Y13.24%
Revenue growth 5Y14.13%
Sales Q2Q%8.83%
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 12.05% on average per year.
- BFAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.15% yearly.
EPS Next Y14.08%
EPS Next 2Y14.17%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue Next Year6.43%
Revenue Next 2Y6.31%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 16.34, which indicates a correct valuation of BFAM.
- Compared to the rest of the industry, the Price/Earnings ratio of BFAM indicates a somewhat cheap valuation: BFAM is cheaper than 68.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of BFAM to the average of the S&P500 Index (27.07), we can say BFAM is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 14.32, the valuation of BFAM can be described as correct.
- BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 73.33% of the companies in the same industry.
- BFAM is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.32 |
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.
- 70.67% 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 | 16.25 | ||
| EV/EBITDA | 12.13 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of BFAM may justify a higher PE ratio.
- BFAM's earnings are expected to grow with 12.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)0.68
EPS Next 2Y14.17%
EPS Next 3Y12.05%
5. Dividend
5.1 Amount
- No dividends for BFAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
74.52
-0.64 (-0.85%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)02-12 2026-02-12/amc
Earnings (Next)05-04 2026-05-04/amc
Inst Owners107.07%
Inst Owner Change-3.99%
Ins Owners1.04%
Ins Owner Change-0.78%
Market Cap4.21B
Revenue(TTM)2.93B
Net Income(TTM)193.12M
Analysts75
Price Target98.19 (31.76%)
Short Float %2.8%
Short Ratio2.07
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)8.53%
Min EPS beat(2)0.51%
Max EPS beat(2)16.56%
EPS beat(4)4
Avg EPS beat(4)9.51%
Min EPS beat(4)0.51%
Max EPS beat(4)17.16%
EPS beat(8)8
Avg EPS beat(8)9.24%
EPS beat(12)12
Avg EPS beat(12)9.84%
EPS beat(16)14
Avg EPS beat(16)8.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.15%
Min Revenue beat(2)-1.11%
Max Revenue beat(2)0.82%
Revenue beat(4)1
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)0.82%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)6
Avg Revenue beat(16)-0.72%
PT rev (1m)-24.88%
PT rev (3m)-25.23%
EPS NQ rev (1m)-10.95%
EPS NQ rev (3m)-11.06%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.02%
Revenue NQ rev (1m)0.14%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.34 | ||
| Fwd PE | 14.32 | ||
| P/S | 1.44 | ||
| P/FCF | 16.25 | ||
| P/OCF | 12.02 | ||
| P/B | 3.15 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.13 |
EPS(TTM)4.56
EY6.12%
EPS(NY)5.2
Fwd EY6.98%
FCF(TTM)4.59
FCFY6.16%
OCF(TTM)6.2
OCFY8.32%
SpS51.88
BVpS23.68
TBVpS-12
PEG (NY)1.16
PEG (5Y)0.68
Graham Number49.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.96% | ||
| ROE | 14.42% | ||
| ROCE | 10.97% | ||
| ROIC | 7.81% | ||
| ROICexc | 8.2% | ||
| ROICexgc | 29.81% | ||
| OM | 10.93% | ||
| PM (TTM) | 6.58% | ||
| GM | 23.77% | ||
| FCFM | 8.84% |
ROA(3y)3.5%
ROA(5y)2.91%
ROE(3y)10.5%
ROE(5y)8.98%
ROIC(3y)5.82%
ROIC(5y)4.85%
ROICexc(3y)6.07%
ROICexc(5y)5.08%
ROICexgc(3y)19.88%
ROICexgc(5y)15.95%
ROCE(3y)8.17%
ROCE(5y)6.85%
ROICexgc growth 3Y39.19%
ROICexgc growth 5Y51.78%
ROICexc growth 3Y28.29%
ROICexc growth 5Y41.33%
OM growth 3Y9.98%
OM growth 5Y23.59%
PM growth 3Y18.32%
PM growth 5Y29.96%
GM growth 3Y0.1%
GM growth 5Y3.27%
F-Score8
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 97.77% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.72% | ||
| Profit Quality | 134.33% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | N/A |
F-Score8
WACC7.86%
ROIC/WACC0.99
Cap/Depr(3y)93.13%
Cap/Depr(5y)80.86%
Cap/Sales(3y)3.5%
Cap/Sales(5y)3.52%
Profit Quality(3y)176.21%
Profit Quality(5y)181.76%
High Growth Momentum
Growth
EPS 1Y (TTM)31.03%
EPS 3Y20.44%
EPS 5Y23.93%
EPS Q2Q%17.35%
EPS Next Y14.08%
EPS Next 2Y14.17%
EPS Next 3Y12.05%
EPS Next 5YN/A
Revenue 1Y (TTM)9.22%
Revenue growth 3Y13.24%
Revenue growth 5Y14.13%
Sales Q2Q%8.83%
Revenue Next Year6.43%
Revenue Next 2Y6.31%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y29.98%
EBIT growth 3Y24.53%
EBIT growth 5Y41.05%
EBIT Next Year42.97%
EBIT Next 3Y18.77%
EBIT Next 5YN/A
FCF growth 1Y8.02%
FCF growth 3Y30.06%
FCF growth 5Y15.74%
OCF growth 1Y3.93%
OCF growth 3Y22.99%
OCF growth 5Y10.84%
BRIGHT HORIZONS FAMILY SOLUT / BFAM FAQ
Can you provide the ChartMill fundamental rating for BRIGHT HORIZONS FAMILY SOLUT?
ChartMill assigns a fundamental rating of 5 / 10 to BFAM.
What is the valuation status of BRIGHT HORIZONS FAMILY SOLUT (BFAM) stock?
ChartMill assigns a valuation rating of 5 / 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 7 / 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 14.08% in the next year.