BRIGHT HORIZONS FAMILY SOLUT (BFAM) Stock Fundamental Analysis
NYSE:BFAM - US1091941005 - Common Stock
116.82 USD
+0.49 (+0.42%)
116.82 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BFAM. BFAM was compared to 73 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.
BFAM had a positive operating cash flow in the past year.
BFAM had positive earnings in each of the past 5 years.
BFAM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BFAM has a better Return On Assets (4.51%) than 66.67% of its industry peers.
BFAM's Return On Equity of 12.64% is fine compared to the rest of the industry. BFAM outperforms 72.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.97%, BFAM is in the better half of the industry, outperforming 70.83% 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 9.88%.
The last Return On Invested Capital (5.97%) for BFAM is above the 3 year average (4.20%), which is a sign of increasing profitability.
| 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 62.50% 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 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of BFAM has declined.
With a Gross Margin value of 23.67%, BFAM is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of BFAM has declined.
| 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.
The number of shares outstanding for BFAM has been reduced compared to 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 2.72 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 2.72, BFAM is in the better half of the industry, outperforming 66.67% 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 72.22% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 3.7 | ||
| Altman-Z | 2.72 |
ROIC/WACC0.7
WACC8.55%
2.3 Liquidity
A Current Ratio of 0.56 indicates that BFAM may have some problems paying its short term obligations.
BFAM has a worse Current ratio (0.56) than 81.94% of its industry peers.
A Quick Ratio of 0.56 indicates that BFAM may have some problems paying 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 77.78% 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.
Looking at the last year, BFAM shows a quite strong growth in Revenue. The Revenue has grown by 9.24% in the last year.
Measured over the past years, BFAM shows a small growth in Revenue. The Revenue has been growing by 5.43% on average per year.
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.
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.
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 29.73, BFAM can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of BFAM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.06, BFAM is valued at the same level.
With a Price/Forward Earnings ratio of 23.22, BFAM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BFAM is valued a bit cheaper than 61.11% of the companies in the same industry.
BFAM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 23.22 |
4.2 Price Multiples
BFAM's Enterprise Value to EBITDA is on the same level as the industry average.
62.50% 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 | 27.37 | ||
| EV/EBITDA | 19.27 |
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)1.21
PEG (5Y)N/A
EPS Next 2Y20.23%
EPS Next 3Y18.45%
5. Dividend
5.1 Amount
No dividends for BFAM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
116.82
+0.49 (+0.42%)
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-0.47%
Market Cap6.64B
Analysts75
Price Target139.91 (19.77%)
Short Float %1.31%
Short Ratio1.21
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)-0.4%
PT rev (3m)-1.04%
EPS NQ rev (1m)6.32%
EPS NQ rev (3m)1.83%
EPS NY rev (1m)3.31%
EPS NY rev (3m)3.42%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 23.22 | ||
| P/S | 2.38 | ||
| P/FCF | 27.37 | ||
| P/OCF | 20.01 | ||
| P/B | 4.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.27 |
EPS(TTM)3.93
EY3.36%
EPS(NY)5.03
Fwd EY4.31%
FCF(TTM)4.27
FCFY3.65%
OCF(TTM)5.84
OCFY5%
SpS49.07
BVpS24.6
TBVpS-10.93
PEG (NY)1.21
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 | 2.72 |
F-Score9
WACC8.55%
ROIC/WACC0.7
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%