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Bright Horizons Family Solutions

Executive Summary

Bright Horizons Family Solutions Inc. provides child care and early education services, back-up care services, educational advisory services, and other workplace solutions for employers and families. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.

Share Price & News

How has Bright Horizons Family Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

BHA

0.6%

DE Consumer Services

-0.7%

DE Market


1 Year Return

3.0%

BHA

38.5%

DE Consumer Services

3.9%

DE Market

Return vs Industry: BHA underperformed the German Consumer Services industry which returned 38.5% over the past year.

Return vs Market: BHA matched the German Market which returned 3.9% over the past year.


Shareholder returns

BHAIndustryMarket
7 Day3.8%0.6%-0.7%
30 Day14.3%0.7%-0.5%
90 Day34.7%19.4%-0.04%
1 Year3.0%3.0%40.9%38.5%7.1%3.9%
3 Year88.4%88.4%3.7%-1.8%3.2%-5.8%
5 Year138.8%138.8%26.3%-5.0%24.2%6.4%

Price Volatility Vs. Market

How volatile is Bright Horizons Family Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bright Horizons Family Solutions undervalued compared to its fair value and its price relative to the market?

77.26x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BHA (€136) is trading above our estimate of fair value (€78.79)

Significantly Below Fair Value: BHA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BHA is poor value based on its PE Ratio (77.3x) compared to the XE Consumer Services industry average (17.4x).

PE vs Market: BHA is poor value based on its PE Ratio (77.3x) compared to the German market (22.7x).


Price to Earnings Growth Ratio

PEG Ratio: BHA is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BHA is overvalued based on its PB Ratio (7.9x) compared to the XE Consumer Services industry average (2.7x).


Next Steps

Future Growth

How is Bright Horizons Family Solutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

64.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHA's forecast earnings growth (64.7% per year) is above the savings rate (0.2%).

Earnings vs Market: BHA's earnings (64.7% per year) are forecast to grow faster than the German market (26.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BHA's revenue (18.7% per year) is forecast to grow faster than the German market (6.1% per year).

High Growth Revenue: BHA's revenue (18.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHA's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Bright Horizons Family Solutions performed over the past 5 years?

14.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHA has high quality earnings.

Growing Profit Margin: BHA's current net profit margins (6.5%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: BHA's earnings have grown by 14.3% per year over the past 5 years.

Accelerating Growth: BHA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BHA had negative earnings growth (-30%) over the past year, making it difficult to compare to the Consumer Services industry average (39.5%).


Return on Equity

High ROE: BHA's Return on Equity (10%) is considered low.


Next Steps

Financial Health

How is Bright Horizons Family Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BHA's short term assets ($576.9M) exceed its short term liabilities ($491.5M).

Long Term Liabilities: BHA's short term assets ($576.9M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: BHA's debt to equity ratio (87.1%) is considered high.

Reducing Debt: BHA's debt to equity ratio has reduced from 123.9% to 87.1% over the past 5 years.

Debt Coverage: BHA's debt is not well covered by operating cash flow (18.3%).

Interest Coverage: BHA's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

What is Bright Horizons Family Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BHA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BHA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BHA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BHA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BHA's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Stephen Kramer (49 yo)

2.75yrs

Tenure

US$1,895,577

Compensation

Mr. Stephen Howard Kramer has been the Chief Executive Officer and Director of Bright Horizons Family Solutions, Inc. since January 1, 2018 and has been its President since January 1, 2016. Mr. Kramer serv ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD1.90M) is below average for companies of similar size in the German market ($USD3.51M).

Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Kramer
CEO, President & Director2.75yrsUS$1.90m0.15%
$ 12.0m
Elizabeth Boland
CFO & Treasurer21.33yrsUS$1.20m0.18%
$ 15.0m
John Casagrande
General Counsel & Secretary10.75yrsUS$495.87k0.0045%
$ 364.8k
Maribeth Bearfield
Chief Human Resources Officer0.75yrUS$692.37k0.019%
$ 1.6m
Mary Burke-Afonso
Chief Operating Officer of North America Center Operations4.75yrsUS$1.06m0.056%
$ 4.6m
Tammy Chuprevich
Senior Vice President of Operations20.08yrsno datano data
Michael Flanagan
Sr. Director of Investor Relationsno datano datano data
Ilene Serpa
Vice President of Communications21.75yrsno datano data
Danroy Henry
Chief Culture Officer4.33yrsUS$818.38kno data
Sandy Wells
Chief Development Officerno datano datano data
Dave Shaby
Senior Vice President of Business Operationsno datano datano data
Ann Pickens
Senior Vice President of Financial Operationsno datano datano data

7.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: BHA's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Kramer
CEO, President & Director2.75yrsUS$1.90m0.15%
$ 12.0m
Joshua Bekenstein
Independent Director34.75yrsUS$157.50k0.0017%
$ 135.5k
Mary Tocio
Independent Director18.92yrsUS$150.00k0.11%
$ 8.8m
Roger Brown
Independent Director34.75yrsUS$150.00k0.011%
$ 876.6k
David Lissy
Non Executive Chairman2.75yrsUS$1.98m0.53%
$ 43.4m
Linda Mason
Independent Director34.75yrsUS$150.00k0.042%
$ 3.5m
Marguerite Kondracke
Independent Director15.83yrsUS$160.00k0.015%
$ 1.2m
Sara Lawrence-Lightfoot
Independent Director27.75yrsUS$155.00k0%
$ 0
Jordan Hitch
Independent Director12.75yrsUS$170.00k0.0017%
$ 135.5k
Cathy Minehan
Independent Director4.58yrsUS$160.00k0%
$ 0
Lawrence Alleva
Independent Director8.08yrsUS$182.50k0.0037%
$ 302.0k
Julie Atkinson
Independent Director2.83yrsUS$153.75k0.0022%
$ 182.0k

14.3yrs

Average Tenure

64yo

Average Age

Experienced Board: BHA's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BHA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.8%.


Top Shareholders

Company Information

Bright Horizons Family Solutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bright Horizons Family Solutions Inc.
  • Ticker: BHA
  • Exchange: DB
  • Founded: 1986
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$9.562b
  • Listing Market Cap: US$8.162b
  • Shares outstanding: 60.41m
  • Website: https://www.brighthorizons.com

Number of Employees


Location

  • Bright Horizons Family Solutions Inc.
  • 200 Talcott Avenue South
  • Watertown
  • Massachusetts
  • 2472
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFAMNYSE (New York Stock Exchange)YesNew Common StockUSUSDJan 2013
BHADB (Deutsche Boerse AG)YesNew Common StockDEEURJan 2013

Biography

Bright Horizons Family Solutions Inc. provides child care and early education services, back-up care services, educational advisory services, and other workplace solutions for employers and families. The c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/18 21:18
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.