BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
USA - NYSE:BFAM - US1091941005 - Common Stock
108.52 USD
+1.24 (+1.16%)
108.52 USD
0 (0%)
Taking everything into account, BFAM scores 4 out of 10 in our fundamental rating. BFAM was compared to 75 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
BFAM had positive earnings in the past year.
BFAM had a positive operating cash flow in the past year.
In the past 5 years BFAM has always been profitable.
In the past 5 years BFAM always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.51%, BFAM is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
BFAM has a better Return On Equity (12.64%) than 73.33% of its industry peers.
BFAM's Return On Invested Capital of 5.97% is fine compared to the rest of the industry. BFAM outperforms 72.00% 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 9.88%.
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
With a decent Profit Margin value of 6.34%, BFAM is doing good in the industry, outperforming 64.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BFAM has declined.
With a decent Operating Margin value of 10.25%, BFAM is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BFAM has declined.
BFAM has a Gross Margin of 23.67%. This is in the lower half of the industry: BFAM underperforms 76.00% 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
BFAM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BFAM has been reduced compared to 1 year ago.
BFAM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BFAM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.60 indicates that BFAM is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.60, BFAM is in the better half of the industry, outperforming 65.33% 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.
Looking at the Debt to FCF ratio, with a value of 3.70, BFAM is in the better half of the industry, outperforming 73.33% 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.
Looking at the Debt to Equity ratio, with a value of 0.64, BFAM is in line with its industry, outperforming 41.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.72
WACC8.34%
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 80.00% of the companies in the same industry.
A Quick Ratio of 0.56 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a Quick ratio of 0.56. This is in the lower half of the industry: BFAM underperforms 76.00% 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.
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 9.24%.
BFAM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.43% yearly.
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
BFAM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.45% yearly.
The Revenue is expected to grow by 7.65% on average over the next years.
EPS Next Y24.6%
EPS Next 2Y20.23%
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
A Price/Earnings ratio of 27.61 indicates a quite expensive valuation of BFAM.
BFAM's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.32. BFAM is around the same levels.
With a Price/Forward Earnings ratio of 21.57, 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 62.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.89. BFAM is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 21.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BFAM.
64.00% 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 | 25.42 | ||
| EV/EBITDA | 17.9 |
4.3 Compensation for Growth
The 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)1.12
PEG (5Y)N/A
EPS Next 2Y20.23%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
BFAM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
108.52
+1.24 (+1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryDiversified Consumer Services
Earnings (Last)
Earnings (Next)
Inst Owners104.39%
Inst Owner Change-0.62%
Ins Owners1.04%
Ins Owner Change-4.86%
Market Cap6.17B
Analysts75
Price Target137 (26.24%)
Short Float %1.46%
Short Ratio1.41
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)-2.08%
PT rev (3m)-3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.13%
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)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.61 | ||
| Fwd PE | 21.57 | ||
| P/S | 2.21 | ||
| P/FCF | 25.42 | ||
| P/OCF | 18.58 | ||
| P/B | 4.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.9 |
EPS(TTM)3.93
EY3.62%
EPS(NY)5.03
Fwd EY4.64%
FCF(TTM)4.27
FCFY3.93%
OCF(TTM)5.84
OCFY5.38%
SpS49.07
BVpS24.6
TBVpS-10.93
PEG (NY)1.12
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 | 2.6 |
F-Score9
WACC8.34%
ROIC/WACC0.72
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 2Y20.23%
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%