BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - NYSE:BFAM - US1091941005 - Common Stock
101.96 USD
-0.54 (-0.53%)
101.96 USD
0 (0%)
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. BFAM has an average financial health and profitability rating. 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.
In the past year BFAM had a positive cash flow from operations.
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
The Return On Assets of BFAM (4.51%) is better than 68.83% of its industry peers.
BFAM has a better Return On Equity (12.64%) 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.
BFAM had an Average Return On Invested Capital over the past 3 years of 4.20%. This is significantly below the industry average of 9.48%.
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
Looking at the Profit Margin, with a value of 6.34%, BFAM is in the better half of the industry, outperforming 64.94% of the companies in the same industry.
BFAM's Profit Margin has declined in the last couple of years.
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.
BFAM has a worse Gross Margin (23.67%) than 76.62% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BFAM is destroying value.
Compared to 1 year ago, BFAM has less shares outstanding
Compared to 5 years ago, BFAM has less shares outstanding
BFAM has a better debt/assets ratio than last year.
2.2 Solvency
BFAM has an Altman-Z score of 2.53. 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.
Looking at the Altman-Z score, with a value of 2.53, BFAM is in the better half of the industry, outperforming 66.23% of the companies in the same industry.
The Debt to FCF ratio of BFAM is 3.70, which is a good value as it means it would take BFAM, 3.70 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BFAM (3.70) is better than 72.73% of its industry peers.
BFAM has a Debt/Equity ratio of 0.64. This is a neutral value indicating 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 | 3.7 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.74
WACC8.12%
2.3 Liquidity
BFAM has a Current 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's Current ratio of 0.56 is on the low side compared to the rest of the industry. BFAM is outperformed by 80.52% of its industry peers.
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's Quick ratio of 0.56 is on the low side compared to the rest of the industry. BFAM is outperformed by 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.56 | ||
| Quick Ratio | 0.56 |
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.
Looking at the last year, BFAM shows a quite strong growth in Revenue. The Revenue has grown by 9.24% in the last year.
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.
BFAM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.65% yearly.
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.
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
With a Price/Earnings ratio of 25.94, BFAM can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as BFAM.
BFAM is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.33, BFAM is valued on the expensive side.
63.64% of the companies in the same industry are more expensive than BFAM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BFAM to the average of the S&P500 Index (23.33), we can say BFAM is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 20.33 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 23.89 | ||
| EV/EBITDA | 17.17 |
4.3 Compensation for Growth
BFAM's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BFAM's earnings are expected to grow with 18.45% in the coming years.
PEG (NY)1.05
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 |
101.96
-0.54 (-0.53%)
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 Cap5.80B
Revenue(TTM)2.79B
Net Income(TTM)176.85M
Analysts75
Price Target137 (34.37%)
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 | 25.94 | ||
| Fwd PE | 20.33 | ||
| P/S | 2.08 | ||
| P/FCF | 23.89 | ||
| P/OCF | 17.46 | ||
| P/B | 4.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.17 |
EPS(TTM)3.93
EY3.85%
EPS(NY)5.02
Fwd EY4.92%
FCF(TTM)4.27
FCFY4.19%
OCF(TTM)5.84
OCFY5.73%
SpS49.07
BVpS24.6
TBVpS-10.93
PEG (NY)1.05
PEG (5Y)N/A
Graham Number46.64
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%
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-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 | 2.53 |
F-Score9
WACC8.12%
ROIC/WACC0.74
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%