BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
NYSE:BFAM - New York Stock Exchange, Inc. - US1091941005 - Common Stock - Currency: USD
BFAM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Diversified Consumer Services industry. BFAM has an average financial health and profitability rating. BFAM has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years BFAM has been profitable.
In the past 5 years BFAM always reported a positive cash flow from operatings.
1.2 Ratios
BFAM has a Return On Assets of 4.22%. This is in the better half of the industry: BFAM outperforms 66.20% of its industry peers.
Looking at the Return On Equity, with a value of 12.18%, BFAM is in the better half of the industry, outperforming 71.83% of the companies in the same industry.
BFAM has a better Return On Invested Capital (5.80%) than 69.01% 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 10.20%.
The 3 year average ROIC (4.20%) for BFAM is below the current ROIC(5.80%), indicating increased profibility in the last year.
| 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
The Profit Margin of BFAM (5.91%) is better than 63.38% of its industry peers.
BFAM's Profit Margin has declined in the last couple of years.
The Operating Margin of BFAM (9.86%) is better than 67.61% of its industry peers.
BFAM's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.46%, BFAM is doing worse than 77.46% of the companies in the same industry.
BFAM's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BFAM is destroying value.
BFAM has less shares outstanding than it did 1 year ago.
BFAM has less shares outstanding than it did 5 years ago.
BFAM has a better debt/assets ratio than last year.
2.2 Solvency
BFAM has an Altman-Z score of 2.79. 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.
BFAM has a better Altman-Z score (2.79) than 66.20% 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 70.42% of its industry peers.
BFAM has a Debt/Equity ratio of 0.66. This is a neutral value indicating BFAM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.66, BFAM is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.66 | ||
| Debt/FCF | 4.19 | ||
| Altman-Z | 2.79 |
ROIC/WACC0.69
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.60 indicates that BFAM may have some problems paying its short term obligations.
The Current ratio of BFAM (0.60) is worse than 76.06% of its industry peers.
A Quick Ratio of 0.60 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a worse Quick ratio (0.60) than 74.65% 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 26.77%, 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 11.07% 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)26.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%21.59%
Revenue 1Y (TTM)11.07%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
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 17.57% on average per year.
Based on estimates for the next years, BFAM will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
EPS Next Y20.6%
EPS Next 2Y18.49%
EPS Next 3Y17.57%
EPS Next 5YN/A
Revenue Next Year7.71%
Revenue Next 2Y7.36%
Revenue Next 3Y7.55%
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.
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
A Price/Earnings ratio of 30.27 indicates a quite expensive valuation of BFAM.
BFAM's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BFAM to the average of the S&P500 Index (26.93), we can say BFAM is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.35, BFAM is valued on the expensive side.
BFAM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 60.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.31, BFAM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 24.35 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BFAM indicates a somewhat cheap valuation: BFAM is cheaper than 64.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.8 | ||
| EV/EBITDA | 21.13 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BFAM's earnings are expected to grow with 17.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)N/A
EPS Next 2Y18.49%
EPS Next 3Y17.57%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
118.98
-0.6 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.39%
Inst Owner Change0.27%
Ins Owners1.04%
Ins Owner Change-1.4%
Market Cap6.81B
Analysts75
Price Target139.91 (17.59%)
Short Float %1.58%
Short Ratio1.73
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)-1.28%
PT rev (3m)-1.04%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)0.7%
EPS NY rev (1m)0%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.27 | ||
| Fwd PE | 24.35 | ||
| P/S | 2.5 | ||
| P/FCF | 31.8 | ||
| P/OCF | 22.16 | ||
| P/B | 5.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.13 |
EPS(TTM)3.93
EY3.3%
EPS(NY)4.89
Fwd EY4.11%
FCF(TTM)3.74
FCFY3.14%
OCF(TTM)5.37
OCFY4.51%
SpS47.67
BVpS23.13
TBVpS-11.38
PEG (NY)1.47
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 | 2.79 |
F-Score9
WACC8.42%
ROIC/WACC0.69
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)26.77%
EPS 3Y20.08%
EPS 5Y-1.06%
EPS Q2Q%21.59%
EPS Next Y20.6%
EPS Next 2Y18.49%
EPS Next 3Y17.57%
EPS Next 5YN/A
Revenue 1Y (TTM)11.07%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
Revenue Next Year7.71%
Revenue Next 2Y7.36%
Revenue Next 3Y7.55%
Revenue Next 5YN/A
EBIT growth 1Y49.02%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year73.11%
EBIT Next 3Y29.57%
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%