BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BFAM - US1091941005 - Common Stock
105.67 USD
+1.41 (+1.35%)
We assign a fundamental rating of 4 out of 10 to BFAM. BFAM was compared to 77 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.
BFAM had a positive operating cash flow in the past year.
In the past 5 years BFAM has always been profitable.
Each year in the past 5 years BFAM had a positive operating cash flow.
1.2 Ratios
BFAM has a Return On Assets of 5.16%. This is in the better half of the industry: BFAM outperforms 67.53% of its industry peers.
With a decent Return On Equity value of 14.05%, BFAM is doing good in the industry, outperforming 72.73% of the companies in the same industry.
BFAM's Return On Invested Capital of 6.69% is fine compared to the rest of the industry. BFAM outperforms 71.43% of its industry peers.
BFAM had an Average Return On Invested Capital over the past 3 years of 4.20%. This is significantly below the industry average of 9.42%.
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
With a decent Profit Margin value of 6.98%, BFAM is doing good in the industry, outperforming 64.94% of the companies in the same industry.
BFAM's Profit Margin has declined in the last couple of years.
BFAM's Operating Margin of 11.25% is fine compared to the rest of the industry. BFAM outperforms 68.83% of its industry peers.
BFAM's Operating Margin has declined in the last couple of years.
BFAM's Gross Margin of 24.21% is on the low side compared to the rest of the industry. BFAM is outperformed by 75.32% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BFAM 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.
Compared to 1 year ago, BFAM has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.67 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 2.67, BFAM is doing good in the industry, outperforming 68.83% 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.
With a decent Debt to FCF ratio value of 3.94, BFAM is doing good in the industry, outperforming 71.43% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that BFAM is somewhat dependend on debt financing.
BFAM has a Debt to Equity ratio (0.64) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.94 | ||
| Altman-Z | 2.67 |
ROIC/WACC0.81
WACC8.23%
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.
BFAM has a Current ratio of 0.54. This is amonst the worse of the industry: BFAM underperforms 85.71% of its industry peers.
A Quick Ratio of 0.54 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a Quick ratio of 0.54. This is in the lower half of the industry: BFAM underperforms 79.22% of its industry peers.
| 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.
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.
BFAM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.38%.
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
BFAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.52% yearly.
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 Y31.69%
EPS Next 2Y22.28%
EPS Next 3Y19.92%
EPS Next 5Y16.52%
Revenue Next Year9.1%
Revenue Next 2Y8.01%
Revenue Next 3Y7.77%
Revenue Next 5Y6.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 24.07, which indicates a rather expensive current valuation of BFAM.
BFAM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.37. BFAM is around the same levels.
Based on the Price/Forward Earnings ratio of 20.31, the valuation of BFAM can be described as rather expensive.
BFAM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BFAM to the average of the S&P500 Index (36.20), we can say BFAM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 20.31 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA ratio is in line with the industry average.
62.34% 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 | 25.7 | ||
| EV/EBITDA | 15.76 |
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.
A more expensive valuation may be justified as BFAM's earnings are expected to grow with 19.92% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y22.28%
EPS Next 3Y19.92%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BFAM (12/4/2025, 1:50:52 PM)
105.67
+1.41 (+1.35%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners105.53%
Inst Owner Change-2.95%
Ins Owners1.03%
Ins Owner Change-0.46%
Market Cap5.98B
Revenue(TTM)2.87B
Net Income(TTM)200.50M
Analysts75
Price Target131.32 (24.27%)
Short Float %3.01%
Short Ratio2.15
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)10.19%
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)-4.14%
PT rev (3m)-6.14%
EPS NQ rev (1m)2.44%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)5.67%
EPS NY rev (3m)5.7%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)0.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.07 | ||
| Fwd PE | 20.31 | ||
| P/S | 2.08 | ||
| P/FCF | 25.7 | ||
| P/OCF | 18.48 | ||
| P/B | 4.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.76 |
EPS(TTM)4.39
EY4.15%
EPS(NY)5.2
Fwd EY4.92%
FCF(TTM)4.11
FCFY3.89%
OCF(TTM)5.72
OCFY5.41%
SpS50.82
BVpS25.24
TBVpS-10.37
PEG (NY)0.76
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 | 2.67 |
F-Score8
WACC8.23%
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 Y31.69%
EPS Next 2Y22.28%
EPS Next 3Y19.92%
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 2Y8.01%
Revenue Next 3Y7.77%
Revenue Next 5Y6.86%
EBIT growth 1Y42.65%
EBIT growth 3Y24.62%
EBIT growth 5Y-1.3%
EBIT Next Year73.11%
EBIT Next 3Y29.57%
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.
Can you provide the valuation status for BRIGHT HORIZONS FAMILY SOLUT?
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 are the PE and PB ratios of BRIGHT HORIZONS FAMILY SOLUT (BFAM) stock?
The Price/Earnings (PE) ratio for BRIGHT HORIZONS FAMILY SOLUT (BFAM) is 24.07 and the Price/Book (PB) ratio is 4.19.
Can you provide the expected EPS growth for BFAM stock?
The Earnings per Share (EPS) of BRIGHT HORIZONS FAMILY SOLUT (BFAM) is expected to grow by 31.69% in the next year.