BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFAM - US1091941005 - Common Stock
101.4 USD
-0.73 (-0.71%)
101.4 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BFAM. BFAM was compared to 76 industry peers in the Diversified Consumer Services industry. BFAM has an average financial health and profitability rating. 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.
BFAM had a positive operating cash flow in the past year.
BFAM had positive earnings in each of the past 5 years.
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 5.16%, BFAM is doing good in the industry, outperforming 65.79% of the companies in the same industry.
The Return On Equity of BFAM (14.05%) is better than 68.42% of its industry peers.
The Return On Invested Capital of BFAM (6.69%) is better than 68.42% 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 10.55%.
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
BFAM has a better Profit Margin (6.98%) than 64.47% of its industry peers.
BFAM's Profit Margin has declined in the last couple of years.
BFAM has a Operating Margin of 11.25%. This is in the better half of the industry: BFAM outperforms 69.74% of its industry peers.
BFAM's Operating Margin has declined in the last couple of years.
The Gross Margin of BFAM (24.21%) is worse than 71.05% of its industry peers.
In the last couple of years the Gross Margin of BFAM has declined.
| 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
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
The debt/assets ratio for BFAM has been reduced compared to a year ago.
2.2 Solvency
BFAM has an Altman-Z score of 2.63. This is not the best score and indicates that BFAM is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BFAM (2.63) is better than 69.74% of its industry peers.
The Debt to FCF ratio of BFAM is 3.94, which is a good value as it means it would take BFAM, 3.94 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.94, BFAM is doing good in the industry, outperforming 72.37% 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.
The Debt to Equity ratio of BFAM (0.64) is worse than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.81
WACC8.3%
2.3 Liquidity
BFAM has a Current Ratio of 0.54. 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 Current ratio of BFAM (0.54) is worse than 81.58% of its industry peers.
BFAM has a Quick Ratio of 0.54. 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 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
The Earnings Per Share has grown by an impressive 31.83% 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 9.38% in the past year. This is quite good.
The Revenue has been growing slightly by 5.43% on average over the past years.
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
The Earnings Per Share is expected to grow by 16.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.86% on average over the next years.
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.
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
The Price/Earnings ratio is 23.10, which indicates a rather expensive current valuation of BFAM.
The rest of the industry has a similar Price/Earnings ratio as BFAM.
BFAM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.51.
BFAM is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 61.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, BFAM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 24.67 | ||
| EV/EBITDA | 15.36 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as BFAM's earnings are expected to grow with 19.54% in the coming years.
PEG (NY)0.71
PEG (5Y)N/A
EPS Next 2Y22.25%
EPS Next 3Y19.54%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
101.4
-0.73 (-0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners106.89%
Inst Owner Change-2.94%
Ins Owners1.04%
Ins Owner Change-1.75%
Market Cap5.73B
Revenue(TTM)2.87B
Net Income(TTM)200.50M
Analysts75
Price Target130.71 (28.91%)
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)0.69%
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 | 23.1 | ||
| Fwd PE | 19.5 | ||
| P/S | 2 | ||
| P/FCF | 24.67 | ||
| P/OCF | 17.73 | ||
| P/B | 4.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.36 |
EPS(TTM)4.39
EY4.33%
EPS(NY)5.2
Fwd EY5.13%
FCF(TTM)4.11
FCFY4.05%
OCF(TTM)5.72
OCFY5.64%
SpS50.82
BVpS25.24
TBVpS-10.37
PEG (NY)0.71
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 | 2.63 |
F-Score8
WACC8.3%
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.