NYSE:BFAM

Stock Analysis Report

Bright Horizons Family Solutions

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential with acceptable track record.


Similar Companies

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


Market Performance


7 Day Return

-1.9%

BFAM

-3.3%

US Consumer Services

0.07%

US Market


1 Year Return

35.8%

BFAM

25.0%

US Consumer Services

8.9%

US Market

Return vs Industry: BFAM exceeded the US Consumer Services industry which returned 25% over the past year.

Return vs Market: BFAM exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

BFAMIndustryMarket
7 Day-1.9%-3.3%0.07%
30 Day-4.2%-3.6%-0.3%
90 Day-3.4%-4.6%-1.6%
1 Year35.8%35.8%25.6%25.0%11.3%8.9%
3 Year122.9%122.9%97.1%86.6%46.3%36.8%
5 Year239.6%239.6%130.9%106.8%62.1%44.3%

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

Valuation

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

50.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BFAM ($149.3) is trading above our estimate of fair value ($68.57)

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


Price To Earnings Ratio

PE vs Industry: BFAM is poor value based on its PE Ratio (50.5x) compared to the Consumer Services industry average (25.8x).

PE vs Market: BFAM is poor value based on its PE Ratio (50.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: BFAM is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: BFAM is overvalued based on its PB Ratio (9.8x) compared to the US Consumer Services industry average (2.2x).


Next Steps

Future Growth

How is Bright Horizons Family Solutions forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BFAM's forecast earnings growth (12.9% per year) is above the savings rate (2.7%).

Earnings vs Market: BFAM's earnings (12.9% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: BFAM's earnings are forecast to grow, but not significantly.

Revenue vs Market: BFAM's revenue (8.3% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BFAM's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BFAM's Return on Equity is forecast to be high in 3 years time (21.9%)


Next Steps

Past Performance

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

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BFAM's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: BFAM's earnings growth over the past year (7.2%) is below its 5-year average (18.6% per year).

Earnings vs Industry: BFAM earnings growth over the past year (7.2%) exceeded the Consumer Services industry 3.9%.


Return on Equity

High ROE: BFAM's Return on Equity (19.5%) is considered low.


Return on Assets

ROA vs Industry: BFAM has a higher Return on Assets than the Consumer Services industry average last year.


Return on Capital Employed

ROCE Improving: BFAM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bright Horizons Family Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: BFAM's short term assets ($187.1M) do not cover its short term liabilities ($453.3M)

Long Term Liabilities: BFAM's short term assets (187.1M) do not cover its long term liabilities (1.9B)


Debt to Equity History and Analysis

Debt Level: BFAM's debt to equity ratio (119%) is considered high

Reducing Debt: BFAM's debt to equity ratio has increased from 80% to 119% over the past 5 years.

Debt Coverage: BFAM's debt is well covered by operating cash flow (28.4%).

Interest Coverage: BFAM's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

Inventory Level: BFAM has a high level of physical assets or inventory.

Debt Coverage by Assets: BFAM's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if BFAM'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 BFAM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Bright Horizons Family Solutions's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Stephen Kramer (48yo)

1.8yrs

Tenure

US$3,390,321

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Stephen's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: BFAM's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

16.4yrs

Average Tenure

63yo

Average Age

Experienced Board: BFAM's board of directors are seasoned and experienced ( 16.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$461,56430 Aug 19
Stephen Dreier
EntityIndividual
Role
Senior Key Executive
Executive VP & Secretary
Shares2,768
Max PriceUS$166.75
SellUS$355,30107 Jun 19
Mary Burke-Afonso
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of North America Center Operations
Shares2,556
Max PriceUS$139.01
SellUS$535,00017 May 19
Stephen Dreier
EntityIndividual
Role
Senior Key Executive
Executive VP & Secretary
Shares4,000
Max PriceUS$133.75
SellUS$108,92015 Apr 19
Mary Burke-Afonso
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of North America Center Operations
Shares852
Max PriceUS$127.84
SellUS$4,697,07015 Mar 19
David Lissy
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares37,673
Max PriceUS$124.68
SellUS$101,98415 Feb 19
Mary Burke-Afonso
EntityIndividual
Role
Senior Key Executive
Chief Operating Officer of North America Center Operations
Shares852
Max PriceUS$119.70

Ownership Breakdown


Management Team

  • Stephen Kramer (48yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$3.39m
  • Elizabeth Boland (59yo)

    Chief Financial Officer

    • Tenure: 20.3yrs
    • Compensation: US$1.19m
  • Steve Dreier (76yo)

    Executive VP & Secretary

    • Tenure: 3.8yrs
    • Compensation: US$682.84k
  • Dave Lissy (53yo)

    Executive Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$1.67m
  • Dan Henry (52yo)

    Chief Culture Officer

    • Tenure: 3.3yrs
    • Compensation: US$818.38k
  • Mary Burke-Afonso (54yo)

    Chief Operating Officer of North America Center Operations

    • Tenure: 3.8yrs
    • Compensation: US$1.05m
  • Sandy Wells

    Chief Development Officer

    • Tenure: 0yrs
  • Hoffer Serpa

    Vice President of Communications

    • Tenure: 20.8yrs
  • Tammy Chuprevich

    Senior Vice President of Operations

    • Tenure: 19.1yrs
  • John Casagrande

    General Counsel

    • Tenure: 9.8yrs

Board Members

  • Stephen Kramer (48yo)

    CEO, President & Director

    • Tenure: 1.8yrs
    • Compensation: US$3.39m
  • Josh Bekenstein (60yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$157.50k
  • Mary Tocio (71yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$150.00k
  • Roger Brown (62yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$152.50k
  • Dave Lissy (53yo)

    Executive Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$1.67m
  • Linda Mason (64yo)

    Independent Director

    • Tenure: 33.8yrs
    • Compensation: US$150.00k
  • Salle Kondracke (73yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$162.50k
  • Sara Lawrence-Lightfoot (74yo)

    Independent Director

    • Tenure: 26.8yrs
    • Compensation: US$155.00k
  • Jordan Hitch (52yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$170.00k
  • Larry Alleva (69yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$182.50k

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: BFAM
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Education Services
  • Sector: Consumer Services
  • Market Cap: US$8.691b
  • Shares outstanding: 58.21m
  • 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, back-up care, and educational advisory services for employers and families. The company operates through three segments: Full  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:16
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.