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Bright Horizons Family Solutions Inc. (BFAM) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Bright Horizons Family Solutions Inc.

BFAMMarket cap $3.23BPrice $66.4

Country🇺🇸United States

SectorConsumer

IndustryConsumer Services

Runs employer-sponsored childcare centers and back-up care programs for major corporations, letting parents actually show up to work. Trusted by hundreds of Fortune 500 companies, it turns daycare into a corporate benefit, not a parenting scramble.

In Bastion Portfolios?

52W Return-34%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+13%8

Revenue Forecast

Rev CAGR (1y)+6%4

Rev CAGR (3y)+6%5

Rev CAGR (5y)+5%4

Earnings Forecast

EPS Growth Y+1+126%10

EPS Growth Y+2+11%7

EPS Growth Y+3+12%7

Quality

Margins

EBIT Margin13%5

Net Income Margin6%4

Free Cash Flow Margin8%5

Debt

Net Debt/EBITDA2.73

Efficiency

ROE15%6

ROA5%6

Earnings Stability55

GEAR+AVERAGE45

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)128

P/E Ratio (Forward 3y)108

P/BV3.44

EV Multiples

EV/EBITDA Fwd106

EV/EBIT Fwd136

Yield

Free Cash Flow Yield7.3%8

Dividend Yieldna–

Momentum

Short term

1 month return-5%5

3 month return-13%3

YTD return-34%1

Mid term

Price vs 52wHigh60%2

1 year return-33%2

Long term

3 year return-18%2

5 year return-58%1

Risk Shield

Price Risk

Beta0.48

Volatility47%3

Free Cash Flow

Free Cash Flow Margin8%5

Free Cash Flow Yield7.3%8

Quality

ROCE13%7

Earnings Stability55

Net Debt/EBITDA2.73

02Growth

Is it actually growing, and how fast?

BFAMBright Horizons Family Solutions

Revenue FY25$2.7B

GROWTH RATING↗

AVERAGE49 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+126%10

EPS growth, FY27E+11%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow faster than sales (EPS about 12%/yr vs revenue 6%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 49% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that is slowing. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK9 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-13%3

YTD return-34%1

MID & LONG-TERM▾SCORE

% of 52-week high60%2

1-year return-33%2

3-year return-18%2

5-year return-58%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-18% over three years and -58% over five), behind 80% of the market.

It's down 33% over the past year, now 40% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-13%) and so far this year (-34%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Bright Horizons Family Solutions Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

BFAMBright Horizons Family Solutions

Revenue FY25$2.7B

GROWTH RATING↗

AVERAGE49 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+13%8

Revenue, next 1Y+6%4

Revenue, next 3Y, CAGR+6%5

Revenue, next 5Y, CAGR+5%4

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+126%10

EPS growth, FY27E+11%7

EPS growth, FY28E+12%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 13%/yr over the last 3 years, ahead of 70% of companies worldwide.8/10

Earnings are set to grow faster than sales (EPS about 12%/yr vs revenue 6%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 49% of companies worldwide.

Revenue is set to grow 6%/yr over the next 3 years, a little behind the market.4/10

Revenue grew 13%/yr over the last 3 years; forecasts see it cooling to 6%/yr.

Over five years revenue is set to grow 5%/yr, behind 60% of companies worldwide.4/10

WEAKNESSES

None flagged.

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that is slowing. The one thing to watch: forward revenue growth is only about average.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

VERY WEAK9 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-13%3

YTD return-34%1

MID & LONG-TERM▾SCORE

% of 52-week high60%2

1-year return-33%2

3-year return-18%2

5-year return-58%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Returns sit at the market level over the past month (-5%).

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-18% over three years and -58% over five), behind 80% of the market.

It's down 33% over the past year, now 40% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-13%) and so far this year (-34%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Bright Horizons Family Solutions Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community