BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - NYSE:BFAM - US1091941005 - Common Stock
100.55 USD
+1.69 (+1.71%)
100.5 USD
-0.05 (-0.05%)
BFAM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 77 industry peers in the Diversified Consumer Services industry. Both the profitability and the financial health of BFAM get a neutral evaluation. Nothing too spectacular is happening here. BFAM has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year BFAM was profitable.
BFAM had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 4.51%, BFAM is doing good in the industry, outperforming 68.83% of the companies in the same industry.
The Return On Equity of BFAM (12.64%) is better than 74.03% of its industry peers.
With a decent Return On Invested Capital value of 5.97%, BFAM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BFAM is significantly below the industry average of 9.48%.
The 3 year average ROIC (4.20%) for BFAM is below the current ROIC(5.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.64% | ||
| ROIC | 5.97% |
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's Profit Margin of 6.34% is fine compared to the rest of the industry. BFAM outperforms 64.94% of its industry peers.
In the last couple of years the Profit Margin of BFAM has declined.
Looking at the Operating Margin, with a value of 10.25%, BFAM is in the better half of the industry, outperforming 68.83% of the companies in the same industry.
In the last couple of years the Operating Margin of BFAM has declined.
Looking at the Gross Margin, with a value of 23.67%, BFAM is doing worse than 76.62% of the companies in the same industry.
BFAM's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 6.34% | ||
| GM | 23.67% |
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.
Compared to 5 years ago, BFAM has less shares outstanding
Compared to 1 year ago, BFAM has an improved debt to assets ratio.
2.2 Solvency
BFAM has an Altman-Z score of 2.51. 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 (2.51) than 66.23% of its industry peers.
BFAM has a debt to FCF ratio of 3.70. This is a good value and a sign of high solvency as BFAM would need 3.70 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.70, BFAM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that BFAM is somewhat dependend on debt financing.
BFAM's Debt to Equity ratio of 0.64 is in line compared to the rest of the industry. BFAM outperforms 41.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.73
WACC8.16%
2.3 Liquidity
A Current Ratio of 0.56 indicates that BFAM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.56, BFAM is doing worse than 80.52% of the companies in the same industry.
BFAM has a Quick Ratio of 0.56. This is a bad value and indicates that BFAM is not financially healthy enough and could expect problems in meeting its short term obligations.
BFAM has a worse Quick ratio (0.56) than 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.77% 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 9.24% 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)9.24%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
3.2 Future
The Earnings Per Share is expected to grow by 18.45% on average over the next years. This is quite good.
Based on estimates for the next years, BFAM will show a small growth in Revenue. The Revenue will grow by 7.65% on average per year.
EPS Next Y24.6%
EPS Next 2Y20.06%
EPS Next 3Y18.45%
EPS Next 5YN/A
Revenue Next Year8.37%
Revenue Next 2Y7.74%
Revenue Next 3Y7.65%
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
With a Price/Earnings ratio of 25.59, BFAM can be considered very expensive at the moment.
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 27.42.
With a Price/Forward Earnings ratio of 20.05, BFAM is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BFAM indicates a somewhat cheap valuation: BFAM is cheaper than 63.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, BFAM is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 20.05 |
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.
BFAM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BFAM is cheaper than 66.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 16.88 |
4.3 Compensation for Growth
BFAM's 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 18.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)N/A
EPS Next 2Y20.06%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
100.55
+1.69 (+1.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change0.23%
Ins Owners1.03%
Ins Owner Change-4.87%
Market Cap5.72B
Analysts75
Price Target137 (36.25%)
Short Float %1.52%
Short Ratio1.3
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)10.49%
Min EPS beat(2)3.82%
Max EPS beat(2)17.16%
EPS beat(4)4
Avg EPS beat(4)7.34%
Min EPS beat(4)2.44%
Max EPS beat(4)17.16%
EPS beat(8)8
Avg EPS beat(8)9.2%
EPS beat(12)11
Avg EPS beat(12)8.49%
EPS beat(16)13
Avg EPS beat(16)7.06%
Revenue beat(2)0
Avg Revenue beat(2)-1.48%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)-0.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.41%
Min Revenue beat(4)-1.98%
Max Revenue beat(4)-0.98%
Revenue beat(8)2
Avg Revenue beat(8)-0.48%
Revenue beat(12)5
Avg Revenue beat(12)-0.04%
Revenue beat(16)5
Avg Revenue beat(16)-1.32%
PT rev (1m)0%
PT rev (3m)-2.48%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)6.22%
EPS NY rev (1m)0%
EPS NY rev (3m)3.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 20.05 | ||
| P/S | 2.05 | ||
| P/FCF | 23.56 | ||
| P/OCF | 17.22 | ||
| P/B | 4.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.88 |
EPS(TTM)3.93
EY3.91%
EPS(NY)5.02
Fwd EY4.99%
FCF(TTM)4.27
FCFY4.25%
OCF(TTM)5.84
OCFY5.81%
SpS49.07
BVpS24.6
TBVpS-10.93
PEG (NY)1.04
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.51% | ||
| ROE | 12.64% | ||
| ROCE | 9.28% | ||
| ROIC | 5.97% | ||
| ROICexc | 6.33% | ||
| ROICexgc | 19.34% | ||
| OM | 10.25% | ||
| PM (TTM) | 6.34% | ||
| GM | 23.67% | ||
| FCFM | 8.7% |
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 | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 99.9% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 4.46 | ||
| Cash Conversion | 88.47% | ||
| Profit Quality | 137.26% | ||
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 2.51 |
F-Score9
WACC8.16%
ROIC/WACC0.73
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 Y24.6%
EPS Next 2Y20.06%
EPS Next 3Y18.45%
EPS Next 5YN/A
Revenue 1Y (TTM)9.24%
Revenue growth 3Y15.24%
Revenue growth 5Y5.43%
Sales Q2Q%9.18%
Revenue Next Year8.37%
Revenue Next 2Y7.74%
Revenue Next 3Y7.65%
Revenue Next 5YN/A
EBIT growth 1Y40.15%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year73.11%
EBIT Next 3Y29.57%
EBIT Next 5YN/A
FCF growth 1Y53.44%
FCF growth 3Y13.6%
FCF growth 5Y1.9%
OCF growth 1Y36.83%
OCF growth 3Y14.08%
OCF growth 5Y0.42%