BFAM Stock Analysis: Bright Horizons Family | NYSE
Personal Services | NYSE, USA | Market Cap: 3.102m USD | 12M Return: -35% | US1091941005 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 62.5M
EPS Trend: 98.9%
Qual. Beats: 1
Rev. Trend: 99.6%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Bright Horizons Family Solutions Inc. (BFAM) is a provider of early education, childcare, back-up care, and educational advisory services operating across the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company is organized into three reportable segments: Full-Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. Its Back-Up Care segment includes an online caregiver marketplace called Sittercity, while the Educational Advisory segment offers tuition assistance, student loan repayment program management, and college admissions advisory services.
The company was founded in 1986 and is headquartered in Newton, Massachusetts, originally operating under the name Bright Horizons Solutions Corp. before adopting its current name in July 2012. BFAM listed on the NYSE following its 1997 IPO and is classified within the Consumer Discretionary sector under the Education Services sub-industry.
BFAMs business model is primarily B2B (business-to-business), selling family-care benefits directly to employers who offer these services to their workforce as part of employee benefits packages. This employer-sponsored model distinguishes the company from consumer-facing childcare operators and aligns with the broader work-life benefits services space, where corporate clients contract for back-up care, dependent care assistance programs, and educational advisory benefits on behalf of their employees.
- Center-based enrollment growth drives Full-Service segment revenue
- Back-up care demand rises as employers expand family benefits
- Wage inflation pressures child care operating margins
| Net Income: 175.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.06 > 0.02 and ΔFCF/TA -0.03 > 1.0 |
| NWC/Revenue: -16.74% < 20% (prev -13.13%; Δ -3.61% < -1%) |
| CFO/TA 0.09 > 3% & CFO 330.1m > Net Income 175.0m |
| Net Debt (2.66b) to EBITDA (407.7m): 6.52 < 3 |
| Current Ratio: 0.48 > 1.5 & < 3 |
| Outstanding Shares: last quarter (51.8m) vs 12m ago -10.50% < -2% |
| Gross Margin: 23.38% > 18% (prev 23.67%; Δ -0.29% > 0.5%) |
| Asset Turnover: 78.51% > 50% (prev 71.19%; Δ 7.32% > 0%) |
| Interest Coverage Ratio: 6.23 > 6 (EBIT TTM 311.1m / Interest Expense TTM 49.9m) |
| A: -0.13 (Total Current Assets 465.1m - Total Current Liabilities 971.7m) / Total Assets 3.79b |
| B: 0.26 (Retained Earnings 987.6m / Total Assets 3.79b) |
| C: 0.08 (EBIT TTM 311.1m / Avg Total Assets 3.85b) |
| D: 0.33 (Book Value of Equity 943.5m / Total Liabilities 2.85b) |
| Altman-Z'' = 0.86 = B |
| DSRI: 0.97 (Receivables 208.8m/197.9m, Revenue 3.03b/2.79b) |
| GMI: 1.01 (GM 23.67% / 23.38%) |
| AQI: 1.35 (AQ_t 0.73 / AQ_t-1 0.54) |
| SGI: 1.08 (Revenue 3.03b / 2.79b) |
| TATA: -0.04 (NI 175.0m - CFO 330.1m) / TA 3.79b) |
| Beneish M = -2.77 (Cap -4..+1) = A |
As of October 07, 2026, the stock is trading at USD 66.42 with a total of 656,830 shares traded. Over the past week, the price has changed by +4.12%, over one month by -0.29%, over three months by -12.27% and over the past year by -35.00%.
Current recommended Stop Loss: 62.80 (which is 5.5% or 1.7 ATR below the current price).
Bright Horizons Family has received a consensus analysts rating of 3.60. Therefore, it is recommended to hold BFAM.
- StrongBuy: 2
- Buy: 4
- Hold: 3
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 89.2 | 34.3% |
P/E Trailing = 20.2508
P/E Forward = 22.6244
P/S = 1.0246
P/B = 3.4284
P/EG = 1.76
Revenue TTM = 3.03b USD
EBIT TTM = 311.1m USD
EBITDA TTM = 407.7m USD
Long Term Debt = 1.07b USD (from longTermDebt, last quarter)
Short Term Debt = 325.7m USD (from shortTermDebt, last quarter)
Debt = 2.82b USD (from shortLongTermDebtTotal, last quarter) + Leases 767.4m
Net Debt = 2.66b USD (calculated: Debt 2.82b - CCE 163.7m)
Enterprise Value = 5.76b USD (3.10b + Debt 2.82b - CCE 163.7m)
Interest Coverage Ratio = 6.23 (Ebit TTM 311.1m / Interest Expense TTM 49.9m)
EV/FCF = 24.65x (Enterprise Value 5.76b / FCF TTM 233.7m)
FCF Yield = 4.06% (FCF TTM 233.7m / Enterprise Value 5.76b)
FCF Margin = 7.72% (FCF TTM 233.7m / Revenue TTM 3.03b)
Net Margin = 5.78% (Net Income TTM 175.0m / Revenue TTM 3.03b)
Gross Margin = 23.38% ((Revenue TTM 3.03b - Cost of Revenue TTM 2.32b) / Revenue TTM)
Gross Margin QoQ = 24.10% (prev 22.79%)
Tobins Q-Ratio = 1.52 (Enterprise Value 5.76b / Total Assets 3.79b)
Interest Expense / Debt = 1.77% (Interest Expense 49.9m / Debt 2.82b)
Taxrate = 32.99% (86.2m / 261.2m)
NOPAT = 208.5m (EBIT 311.1m * (1 - 32.99%))
Current Ratio = 0.48 (Total Current Assets 465.1m / Total Current Liabilities 971.7m)
Debt / Equity = 2.99 (Debt 2.82b / totalStockholderEquity, last quarter 943.5m)
Debt / EBITDA = 6.52 (Net Debt 2.66b / EBITDA 407.7m)
Debt / FCF = 11.37 (Net Debt 2.66b / FCF TTM 233.7m)
Total Stockholder Equity = 1.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.54% (Net Income 175.0m / Total Assets 3.79b)
RoE = 14.42% (Net Income TTM 175.0m / Total Stockholder Equity 1.21b)
RoCE = 13.61% (EBIT 311.1m / Capital Employed (Equity 1.21b + L.T.Debt 1.07b))
RoIC = 6.97% (NOPAT 208.5m / Invested Capital 2.99b)
WACC = 2.95% (E(3.10b)/V(5.92b) * Re(4.56%) + D(2.82b)/V(5.92b) * Rd(1.77%) * (1-Tc(0.33)))
Discount Rate = 4.56% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -81.45 | Cagr: -5.16%
[DCF] Terminal Value 74.92% ; FCFF base≈237.3m ; Y1≈230.9m ; Y5≈229.7m
[DCF] Fair Price = 19.30 (EV 3.60b - Net Debt 2.66b = Equity 938.6m / Shares 48.6m; r=8.35% [WACC [floored]]; 5y FCF grow -3.71% → 2.50% )
EPS Correlation: 98.92 | EPS CAGR: 24.70% | SUE: 1.03 | # QB: 1
Revenue Correlation: 99.57 | Revenue CAGR: 9.79% | SUE: 0.60 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.76 | Chg30d=+0.06% | Revisions=+25% | Analysts=9
EPS current Year (2026-12-31): EPS=5.11 | Chg30d=+0.00% | Revisions=+75% | GrowthEPS=+12.3% | GrowthRev=+5.6%
EPS next Year (2027-12-31): EPS=5.90 | Chg30d=+0.15% | Revisions=+58% | GrowthEPS=+15.4% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +63% (up=23, down=4)