BFAM Stock Analysis: Bright Horizons Family | NYSE
Personal Services | NYSE, USA | Market Cap: 4.101m USD | 12M Return: -37.9% | US1091941005 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 64.9M
EPS Trend: 98.9%
Qual. Beats: 1
Rev. Trend: 99.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 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. (NYSE: BFAM) is a provider of early education and childcare services operating across three segments: Full-Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. The company serves both employers and families, operating in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. Founded in 1986 and headquartered in Newton, Massachusetts, BFAM is classified within the GICS Education Services sub-industry under Consumer Discretionary.
The companys primary segment, Full-Service Center-Based Child Care, offers traditional center-based early education, preschool, and elementary education. The Back-Up Care segment provides an array of supplemental care services including center-based back-up childcare, in-home child and elder care, school-age programs, camps, tutoring, pet care, and an online caregiver marketplace called Sittercity. The Educational Advisory segment offers tuition assistance and student loan repayment program management, workforce education, and college admissions and financial advisory services.
BFAM operates primarily through a B2B2C model, where employers purchase childcare and family care benefits on behalf of their workforce, distinguishing it from purely consumer-facing childcare providers. This corporate-sponsored approach makes the companys revenue heavily dependent on employer-sponsored benefits programs, positioning it as a workplace solutions provider within the broader education services sector. The company has been publicly traded since its 1997 IPO and was renamed Bright Horizons Family Solutions Inc. in July 2012.
- Center-based enrollment and tuition pricing drive revenue
- Caregiver wage inflation pressures operating margins
- Back-Up Care demand grows as employers expand benefits
| 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 23.46%; Δ 0.11% > 0.5%) |
| Asset Turnover: 78.23% > 50% (prev 71.37%; Δ 6.86% > 0%) |
| Interest Coverage Ratio: 6.83 > 6 (EBIT TTM 317.3m / 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: 0.43 (Book Value of Equity 1.15b / Total Liabilities 2.65b) |
| Altman-Z'' = 1.01 = BB |
| DSRI: 0.83 (Receivables 215.7m/239.2m, Revenue 2.98b/2.73b) |
| GMI: 1.00 (GM 23.46% / 23.58%) |
| 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 = -3.09 (Cap -4..+1) = AA |
As of August 08, 2026, the stock is trading at USD 73.97 with a total of 652,080 shares traded. Over the past week, the price has changed by -5.11%, over one month by -2.30%, over three months by +11.47% and over the past year by -37.94%.
Current recommended Stop Loss: 69.30 (which is 6.3% or 1.5 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 | 91 | 23% |
P/E Trailing = 23.4789
P/E Forward = 15.015
P/S = 1.3543
P/B = 3.7966
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 = 6.62b USD (4.10b + Debt 2.66b - CCE 148.6m)
Interest Coverage Ratio = 6.83 (Ebit TTM 317.3m / Interest Expense TTM 46.4m)
EV/FCF = 24.23x (Enterprise Value 6.62b / FCF TTM 273.0m)
FCF Yield = 4.13% (FCF TTM 273.0m / Enterprise Value 6.62b)
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 = 1.74 (Enterprise Value 6.62b / Total Assets 3.79b)
Interest Expense / Debt = 1.74% (Interest Expense 46.4m / Debt 2.66b)
Taxrate = 30.17% (81.7m / 270.9m)
NOPAT = 221.6m (EBIT 317.3m * (1 - 30.17%))
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 = 7.36% (NOPAT 221.6m / Invested Capital 3.01b)
WACC = 3.23% (E(4.10b)/V(6.76b) * Re(4.54%) + D(2.66b)/V(6.76b) * Rd(1.74%) * (1-Tc(0.30)))
Discount Rate = 4.54% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -75.23 | 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: 98.92 | EPS CAGR: 24.70% | SUE: 1.03 | # QB: 1
Revenue Correlation: 99.26 | Revenue CAGR: 10.69% | SUE: -0.23 | # QB: 0
EPS current Quarter (2026-09-30): EPS=1.73 | Chg30d=+0.41% | Revisions=-36% | Analysts=9
EPS current Year (2026-12-31): EPS=5.03 | Chg30d=+0.24% | Revisions=-8% | GrowthEPS=+10.5% | GrowthRev=+5.8%
EPS next Year (2027-12-31): EPS=5.76 | Chg30d=+0.36% | Revisions=-8% | GrowthEPS=+14.6% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -21% (up=10, down=16)