(BFAM) Bright Horizons Family - Overview
Sector: Consumer Cyclical | Industry: Personal Services | Exchange: NYSE (USA) | Market Cap: 3.291m USD | Total Return: -51% in 12m
Avg Turnover: 86.7M
EPS Trend: 99.2%
Qual. Beats: 0
Rev. Trend: 99.3%
Qual. Beats: 0
Warnings
Altman Z'' 0.93 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
No distinct edge detected
Bright Horizons Family Solutions Inc. (BFAM) provides employer-sponsored childcare, early education, and strategic workforce solutions across North America, Europe, and Asia. The company operates through three primary segments: Full-Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. Its business model relies heavily on multi-year contracts with corporate clients, who offer these services as employee benefits to improve retention and productivity.
The Education Services sector often experiences counter-cyclical demand for upskilling and advisory services, while the childcare segment remains sensitive to corporate return-to-office trends and labor participation rates. Beyond traditional schooling, Bright Horizons manages niche offerings such as student loan repayment programs and senior care, diversifying its revenue streams within the human capital management space.
Investors can further evaluate these operational segments and historical performance metrics on ValueRay.
Founded in 1986 and headquartered in Newton, Massachusetts, the company serves a global market including the United Kingdom, the Netherlands, and India. Its portfolio includes the Sittercity online marketplace and a broad network of backup care providers designed to support working families during primary care disruptions.
- Corporate return-to-office mandates increase demand for employer-sponsored childcare centers
- High-margin back-up care segment expansion drives overall EBITDA growth
- Labor shortages and rising childcare educator wages compress operating margins
- Corporate benefits spending shifts impact educational advisory and tuition assistance revenue
- Low unemployment rates sustain high utilization across full-service childcare centers
| Net Income: 189.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA 1.60 > 1.0 |
| NWC/Revenue: -16.72% < 20% (prev -10.84%; Δ -5.88% < -1%) |
| CFO/TA 0.10 > 3% & CFO 369.2m > Net Income 189.2m |
| Net Debt (2.51b) to EBITDA (412.1m): 6.10 < 3 |
| Current Ratio: 0.46 > 1.5 & < 3 |
| Outstanding Shares: last quarter (54.7m) vs 12m ago -5.60% < -2% |
| Gross Margin: 23.58% > 18% (prev 0.23%; Δ 2.33k% > 0.5%) |
| Asset Turnover: 78.23% > 50% (prev 71.37%; Δ 6.86% > 0%) |
| Interest Coverage Ratio: 6.83 > 6 (EBITDA TTM 412.1m / Interest Expense TTM 46.4m) |
| A: -0.13 (Total Current Assets 429.7m - Total Current Liabilities 927.8m) / Total Assets 3.79b |
| B: 0.26 (Retained Earnings 993.2m / Total Assets 3.79b) |
| C: 0.08 (EBIT TTM 317.3m / Avg Total Assets 3.81b) |
| D: 0.36 (Book Value of Equity 947.1m / Total Liabilities 2.65b) |
| Altman-Z'' = 0.93 = BB |
| DSRI: 0.83 (Receivables 215.7m/239.2m, Revenue 2.98b/2.73b) |
| GMI: 1.00 (GM 23.58% / 23.46%) |
| AQI: 1.04 (AQ_t 0.56 / AQ_t-1 0.54) |
| SGI: 1.09 (Revenue 2.98b / 2.73b) |
| TATA: -0.05 (NI 189.2m - CFO 369.2m) / TA 3.79b) |
| Beneish M = -3.13 (Cap -4..+1) = AA |
As of May 31, 2026, the stock is trading at USD 62.62 with a total of 1,393,459 shares traded.
Over the past week, the price has changed by -7.30%,
over one month by -23.67%,
over three months by -15.97% and
over the past year by -51.03%.
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 | 92.6 | 47.8% |
P/E Trailing = 18.8404
P/E Forward = 15.015
P/S = 1.1041
P/B = 2.8713
P/EG = 1.76
Revenue TTM = 2.98b USD
EBIT TTM = 317.3m USD
EBITDA TTM = 412.1m USD
Long Term Debt = 897.7m USD (from longTermDebt, last quarter)
Short Term Debt = 296.1m USD (from shortTermDebt, last quarter)
Debt = 2.66b USD (from shortLongTermDebtTotal, last quarter) + Leases 790.1m
Net Debt = 2.51b USD (calculated: Debt 2.66b - CCE 148.6m)
Enterprise Value = 5.81b USD (3.29b + Debt 2.66b - CCE 148.6m)
Interest Coverage Ratio = 6.83 (Ebit TTM 317.3m / Interest Expense TTM 46.4m)
EV/FCF = 21.26x (Enterprise Value 5.81b / FCF TTM 273.0m)
FCF Yield = 4.70% (FCF TTM 273.0m / Enterprise Value 5.81b)
FCF Margin = 9.17% (FCF TTM 273.0m / Revenue TTM 2.98b)
Net Margin = 6.35% (Net Income TTM 189.2m / Revenue TTM 2.98b)
Gross Margin = 23.58% ((Revenue TTM 2.98b - Cost of Revenue TTM 2.28b) / Revenue TTM)
Gross Margin QoQ = 22.79% (prev 19.33%)
Tobins Q-Ratio = 1.53 (Enterprise Value 5.81b / Total Assets 3.79b)
Interest Expense / Debt = 1.74% (Interest Expense 46.4m / Debt 2.66b)
Taxrate = 35.56% (18.8m / 52.9m)
NOPAT = 204.5m (EBIT 317.3m * (1 - 35.56%))
Current Ratio = 0.46 (Total Current Assets 429.7m / Total Current Liabilities 927.8m)
Debt / Equity = 2.32 (Debt 2.66b / totalStockholderEquity, last quarter 1.15b)
Debt / EBITDA = 6.10 (Net Debt 2.51b / EBITDA 412.1m)
Debt / FCF = 9.21 (Net Debt 2.51b / FCF TTM 273.0m)
Total Stockholder Equity = 1.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.97% (Net Income 189.2m / Total Assets 3.79b)
RoE = 14.25% (Net Income TTM 189.2m / Total Stockholder Equity 1.33b)
RoCE = 14.26% (EBIT 317.3m / Capital Employed (Equity 1.33b + L.T.Debt 897.7m))
RoIC = 6.79% (NOPAT 204.5m / Invested Capital 3.01b)
WACC = 3.45% (E(3.29b)/V(5.95b) * Re(5.33%) + D(2.66b)/V(5.95b) * Rd(1.74%) * (1-Tc(0.36)))
Discount Rate = 5.33% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.44 | Cagr: -2.62%
[DCF] Terminal Value 77.97% ; FCFF base≈249.5m ; Y1≈286.0m ; Y5≈420.9m
[DCF] Fair Price = 72.59 (EV 6.33b - Net Debt 2.51b = Equity 3.82b / Shares 52.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.16 | EPS CAGR: 25.38% | SUE: 0.27 | # QB: 0
Revenue Correlation: 99.26 | Revenue CAGR: 10.69% | SUE: -0.23 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.20 | Chg30d=+1.05% | Revisions=+33% | Analysts=9
EPS next Quarter (2026-09-30): EPS=1.73 | Chg30d=-1.47% | Revisions=-33% | Analysts=9
EPS current Year (2026-12-31): EPS=5.01 | Chg30d=-0.16% | Revisions=-8% | GrowthEPS=+10.2% | GrowthRev=+5.8%
EPS next Year (2027-12-31): EPS=5.74 | Chg30d=+0.51% | Revisions=-8% | GrowthEPS=+14.5% | GrowthRev=+6.0%
[Analyst] Revisions Ratio: +33%