Bright Horizons Family Solutions Inc. provides child care and early education, back-up care, and educational advisory services for employers and families.
Moderate growth potential with acceptable track record.
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: BFAM has not had significant price volatility in the past 3 months.
7 Day Return
US Consumer Services
1 Year Return
US Consumer Services
Return vs Industry: BFAM exceeded the US Consumer Services industry which returned 29.3% over the past year.
Return vs Market: BFAM exceeded the US Market which returned 17.8% over the past year.
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
4 days ago | Simply Wall StHave Insiders Sold Bright Horizons Family Solutions Inc. (NYSE:BFAM) Shares Recently?
1 week ago | Simply Wall StDoes Bright Horizons Family Solutions Inc.'s (NYSE:BFAM) Recent Track Record Look Strong?
1 week ago | Simply Wall StBright Horizons Family Solutions Inc. Analysts Are Pretty Bullish On The Stock After Recent Results
Is Bright Horizons Family Solutions undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BFAM ($174.42) is trading above our estimate of fair value ($141.75)
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 (55.9x) compared to the Consumer Services industry average (26.4x).
PE vs Market: BFAM is poor value based on its PE Ratio (55.9x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: BFAM is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: BFAM is overvalued based on its PB Ratio (10.4x) compared to the US Consumer Services industry average (2.3x).
How is Bright Horizons Family Solutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BFAM's forecast earnings growth (12.8% per year) is above the savings rate (1.7%).
Earnings vs Market: BFAM's earnings (12.8% per year) are forecast to grow slower than the US market (14.1% 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 (7.6% 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 (23.9%)
How has Bright Horizons Family Solutions performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BFAM has high quality earnings.
Growing Profit Margin: BFAM's current net profit margins (8.7%) are higher than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: BFAM's earnings have grown by 18.5% per year over the past 5 years.
Accelerating Growth: BFAM's earnings growth over the past year (14.8%) is below its 5-year average (18.5% per year).
Earnings vs Industry: BFAM earnings growth over the past year (14.8%) underperformed the Consumer Services industry 20.1%.
Return on Equity
High ROE: BFAM's Return on Equity (18.6%) is considered low.
Return on Assets
Return on Capital Employed
How is Bright Horizons Family Solutions's financial position?
Financial Position Analysis
Short Term Liabilities: BFAM's short term assets ($228.9M) do not cover its short term liabilities ($483.3M).
Long Term Liabilities: BFAM's short term assets ($228.9M) do not cover its long term liabilities ($1.9B).
Debt to Equity History and Analysis
Debt Level: BFAM's debt to equity ratio (107%) is considered high.
Reducing Debt: BFAM's debt to equity ratio has reduced from 122.6% to 107% over the past 5 years.
Debt Coverage: BFAM's debt is well covered by operating cash flow (31.8%).
Interest Coverage: BFAM's interest payments on its debt are well covered by EBIT (5.9x coverage).
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).
What is Bright Horizons Family Solutions's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
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.
Stability and Growth of Payments
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Kramer (48yo)
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 ($USD3.39M) is below average for companies of similar size in the US market ($USD10.81M).
Compensation vs Earnings: Stephen's compensation has increased by more than 20% in the past year.
|CEO, President & Director||2.1yrs||US$3.39m||0.13% $12.4m|
|Chief Financial Officer||20.7yrs||US$1.19m||0.20% $19.6m|
|Chief Operating Officer of North America Center Operations||4.1yrs||US$1.05m||0.050% $4.9m|
|Senior Vice President of Operations||19.4yrs||no data||no data|
|Sr. Director of Investor Relations||0yrs||no data||no data|
|General Counsel & Secretary||10.1yrs||no data||0.0029% $284.6k|
|Vice President of Communications||21.1yrs||no data||no data|
|Chief Human Resources Officer||0.08yrs||no data||no data|
|Chief Culture Officer||3.7yrs||US$818.38k||no data|
|Chief Development Officer||0yrs||no data||no data|
Experienced Management: BFAM's management team is seasoned and experienced (7.1 years average tenure).
|CEO, President & Director||2.1yrs||US$3.39m||0.13% $12.4m|
|Independent Director||34.1yrs||US$157.50k||no data|
|Independent Director||18.3yrs||US$150.00k||0.13% $13.3m|
|Independent Director||34.1yrs||US$152.50k||0.0060% $590.0k|
|Non Executive Chairman||2.1yrs||US$1.67m||0.56% $55.8m|
|Independent Director||34.1yrs||US$150.00k||0.042% $4.2m|
|Independent Director||15.2yrs||US$162.50k||0.015% $1.4m|
|Independent Director||27.1yrs||US$155.00k||0.0017% $172.0k|
|Independent Director||12.1yrs||US$170.00k||no data|
|Independent Director||7.4yrs||US$182.50k||0.0017% $172.0k|
Experienced Board: BFAM's board of directors are seasoned and experienced ( 16.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BFAM insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Bright Horizons Family Solutions Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Bright Horizons Family Solutions Inc.
- Ticker: BFAM
- Exchange: NYSE
- Founded: 1986
- Industry: Education Services
- Sector: Consumer Services
- Market Cap: US$9.883b
- Shares outstanding: 58.18m
- Website: https://www.brighthorizons.com
Number of Employees
- Bright Horizons Family Solutions Inc.
- 200 Talcott Avenue South
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|BFAM||NYSE (New York Stock Exchange)||Yes||New Common Stock||US||USD||Jan 2013|
|BHA||DB (Deutsche Boerse AG)||Yes||New Common Stock||DE||EUR||Jan 2013|
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 Service Center-Based Child Care, Back-Up Care, and Educational Advisory Services. The Full Service Center-Based Child Care segment offers traditional center-based child care, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up child care, and in-home child and adult/elder dependent care services. The Educational Advisory Services segment offers tuition reimbursement program management and related educational consulting services, as well as college admissions advisory services. As of December 31, 2018, it operated 1,082 child care and early education centers in 41 U.S. states and the District of Columbia, Puerto Rico, the United Kingdom, Canada, the Netherlands, and India. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Watertown, Massachusetts.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 01:23|
|End of Day Share Price||2020/02/24 00:00|
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.