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Bright Horizons Family Solutions Inc
NYSE:BFAM

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Bright Horizons Family Solutions Inc Logo
Bright Horizons Family Solutions Inc
NYSE:BFAM
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Price: 113.72 USD 0.79% Market Closed
Updated: Mar 28, 2024

Intrinsic Value

Bright Horizons Family Solutions, Inc. engages in the provision of child care and early education, dependent care, and workforce education services. [ Read More ]

The intrinsic value of one BFAM stock under the Base Case scenario is 102.06 USD. Compared to the current market price of 113.72 USD, Bright Horizons Family Solutions Inc is Overvalued by 10%.

Key Points:
BFAM Intrinsic Value
Base Case
102.06 USD
Overvaluation 10%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Bright Horizons Family Solutions Inc

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Fundamental Analysis

Bright Horizons Forecasts Robust Growth in 2024
2023-Q4 Earnings Call

Bright Horizons Forecasts Robust Growth in 2024

The story of Bright Horizons is one of strategic adjustment and recovery. The UK Full Service division, once profitable, lost around $30 million in 2023 due to the pandemic. Cost-cutting measures are anticipated to improve its performance towards the end of 2024 and into 2025. The company's Back-Up Care revenue soared by 24% to $135 million in Q4, exceeding expectations, with operating income climbing 25% year-over-year. Operationally, cash flows improved significantly, with $256 million generated in 2023, up from $188 million in 2022. Debt levels were also reduced, with the leverage ratio dropping to 2.5x net debt to EBITDA. Looking forward, Bright Horizons expects 2024 revenues to be between $2.6 billion to $2.7 billion, translating to an 8% to 12% growth, and adjusted EPS ranging from $3 to $3.20. Q1 projections maintain this positive outlook, with revenue growth estimated at 10% to 12% and adjusted EPS at $0.42 to $0.47.

Financials

Balance Sheet Decomposition
Bright Horizons Family Solutions Inc

Current Assets 446.9m
Cash & Short-Term Investments 93.6m
Receivables 281.7m
Other Current Assets 71.6m
Non-Current Assets 3.4B
PP&E 1.4B
Intangibles 2B
Other Non-Current Assets 92.3m
Current Liabilities 799.4m
Accounts Payable 24.8m
Accrued Liabilities 334.7m
Other Current Liabilities 440m
Non-Current Liabilities 1.9B
Long-Term Debt 944.3m
Other Non-Current Liabilities 939.8m
Efficiency

Earnings Waterfall
Bright Horizons Family Solutions Inc

Revenue
2.4B USD
Cost of Revenue
-1.9B USD
Gross Profit
531.7m USD
Operating Expenses
-360.5m USD
Operating Income
171.2m USD
Other Expenses
-97.2m USD
Net Income
74m USD

Free Cash Flow Analysis
Bright Horizons Family Solutions Inc

Last Value
3-Years Average
FCF Margin
Conversion Rate
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Fundamental Scores

BFAM Profitability Score
Profitability Due Diligence

Bright Horizons Family Solutions Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive 3-Years Revenue Growth
Positive Free Cash Flow
Positive Gross Profit
Positive Revenue Growth Forecast
50/100
Profitability
Score

Bright Horizons Family Solutions Inc's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

BFAM Solvency Score
Solvency Due Diligence

Bright Horizons Family Solutions Inc's solvency score is 32/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Average Altman Z-Score
Short-Term Solvency
32/100
Solvency
Score

Bright Horizons Family Solutions Inc's solvency score is 32/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

BFAM Price Targets Summary
Bright Horizons Family Solutions Inc

Wall Street analysts forecast BFAM stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for BFAM is 105.51 USD with a low forecast of 77.77 USD and a high forecast of 131.25 USD.

Lowest
Price Target
77.77 USD
32% Downside
Average
Price Target
105.51 USD
7% Downside
Highest
Price Target
131.25 USD
15% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Ownership

BFAM Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Shareholder Return

BFAM Price
Bright Horizons Family Solutions Inc

1M 1M
0%
6M 6M
+39%
1Y 1Y
+49%
3Y 3Y
-31%
5Y 5Y
-10%
10Y 10Y
+194%
Annual Price Range
113.72
52w Low
72.02
52w High
117.9
Price Metrics
Average Annual Return -10.48%
Standard Deviation of Annual Returns 31.34%
Max Drawdown -69%
Shares Statistics
Market Capitalization 6.6B USD
Shares Outstanding 57 963 800
Percentage of Shares Shorted 3.27%

BFAM Return Decomposition
Main factors of price return

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BFAM News

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Company Profile

Bright Horizons Family Solutions Inc Logo
Bright Horizons Family Solutions Inc

Country

United States of America

Industry

Diversified Consumer Services

Market Cap

6.6B USD

Dividend Yield

0%

Description

Bright Horizons Family Solutions, Inc. engages in the provision of child care and early education, dependent care, and workforce education services. The company is headquartered in Newton, Massachusetts and currently employs 25,800 full-time employees. The company went IPO on 2013-01-25. The firm operates through three segments: Full service center-based child care, Back-up care, and Educational advisory and other services. The Full service center-based child care segment includes the traditional center-based early education and child care, preschool, and elementary education. The Back-up care segment includes center-based back-up child care, in-home care for children and adult/elder dependents, school age camps, virtual tutoring, and self-sourced reimbursed care. The Educational advisory and other services segment primarily consist of tuition assistance and student loan repayment program administration, workforce education, related educational advising, college admissions advisory services, and Sittercity, an online marketplace for families and caregivers. The company provides services under multi-year contracts with employers who offer services as part of their employee benefits packages.

Contact

MASSACHUSETTS
Newton
2 Wells Avenue
+16176738000.0
https://investors.brighthorizons.com/

IPO

2013-01-25

Employees

25 800

Officers

CEO, President & Director
Mr. Stephen Howard Kramer
Chief Financial Officer
Ms. Elizabeth J. Boland
General Counsel & Secretary
Mr. John G. Casagrande
Chief Operating Officer of North America Center Operations
Ms. Mary Lou Burke-Afonso
Managing Director of International
Ms. Rosamund Marshall
Senior Vice President of Operations
Dr. Tammy Chuprevich
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Chief Accounting Officer
Mr. Jason R. Janoff
Sr. Director of Investor Relations
Michael Flanagan
Vice President of Communications
Ilene Serpa
Chief Culture Officer
Mr. Danroy T. Henry Sr.
Show Less

See Also

Discover More
What is the Intrinsic Value of one BFAM stock?

The intrinsic value of one BFAM stock under the Base Case scenario is 102.06 USD.

Is BFAM stock undervalued or overvalued?

Compared to the current market price of 113.72 USD, Bright Horizons Family Solutions Inc is Overvalued by 10%.