Bright Horizons Family Solutions Inc.

Consumer Discretionary
Other Consumer Services
www.brighthorizons.com

Earnings Score
Moat Score
Safety Score

Market Cap $7.11B
PE 51
Debt $946.95M
Cash $123.72M
EV $7.94B
FCF $240.15M

Earnings

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Sales & Net Margins

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Earnings	$140.19M
EBIT	$246.62M
ROE	11%
ROA	6%
FCF	$240.15M
Equity	$1.28B
Growth Stability	16%
PE	50.73
PEG	2.43
PB	5.56
P/FCF	29.61
P/S	2.65
Price/Cash	0.02
Debt/Equity	0.74
Debt/FCF	3.94
Net Margins	5%
Gross Margins	23%
Op. Margins	9%
Earnings CAGR	-7%
Sales Growth YoY	10%
Sales Growth QoQ	-6%
Sales CAGR	5%
FCF CAGR	2%
Equity CAGR	8%
Earnings Stability	0.06
Earnings Growth YoY	428%
Earnings Growth QoQ	-47%

Earnings CAGR 5Y	21%
Sales CAGR 5Y	12%
FCF CAGR 5Y	9%
Equity CAGR 5Y	2%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	24%
Equity CAGR 3Y	8%
Market Cap	$7.11B
Revenue	$2.69B
Assets	$3.85B
Total Debt	$946.95M
Cash	$123.72M
Shares Outstanding	57.4M
EV	7.94B
Earnings Score	5%
Moat Score	83%
Safety Score	58%
Final Score	49%
Working Capital	-283.37M
Current Ratio	0.64
Gross Profit	$619.61M
Shares Growth 3y	-0%
Equity Growth QoQ	-9%
Equity Growth YoY	5%

Assets & ROA

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Stockholders Equity & ROE

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Bright Horizons Family Solutions provides education and care solutions designed to help employers support their employees in managing their work/life balance. The company has three business segments: full-service center-based child care, backup care, and educational advisory services. The vast majority of the company's revenue is generated by full-service center-based child care, which includes traditional center-based child care and early education services. Other services provided by the company include in-home child and elder care, tuition assistance, and education consulting. The company earns more than half of its revenue in North America.

SEC Filings

Direct access to Bright Horizons Family Solutions Inc. (BFAM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Bright Horizons Family Solutions Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Bright Horizons Family Solutions Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -7%

Stability 6%

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Bright Horizons Family Solutions Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Bright Horizons Family Solutions Inc..

Years

Calculation mode

= $2.7B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$240M	$244M	$248M	$251M	$255M	$259M	$263M	$267M	$271M	$275M	$279M	$2.8B
DCF		$222M	$205M	$189M	$174M	$161M	$148M	$137M	$126M	$117M	$108M	$1.1B
Value	$2.7B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	6%	6%	9%	8%	9%	2%	4%	4%	3%	5%	5%
ROA	-	8%	8%	9%	8%	1%	4%	4%	4%	6%	6%
ROE	-	14%	21%	20%	18%	2%	6%	7%	6%	11%	11%

Bad Net Margins (5.22%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	7.87	7.27	5.28	4.75	8.34	6.06	8.29	5.83	3.94	3.94
Debt over Equity	1.27	1.58	1.44	1.37	1.07	0.81	0.84	0.9	0.79	0.74	0.74
Growth Stability	-	-	-	100%	100%	16%	58%	87%	100%	100%	16%

Neutral Debt/FCF ratio (3.94)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (0.74)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (16%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	8%	11%	9%	8%	-27%	16%	15%	20%	11%	12%
Earnings YoY growth	-	1%	66%	1%	14%	-85%	161%	14%	-8%	89%	21%
Equity YoY growth	-	-5%	9%	4%	25%	32%	-8%	-8%	12%	5%	2%
FCF YoY growth	-	50%	7%	37%	8%	-43%	31%	-28%	40%	45%	9%