Bright Horizons Family Solutions Inc
NYSE:BFAM
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%.
Valuation Backtest
Bright Horizons Family Solutions Inc
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Fundamental Analysis
Bright Horizons Forecasts Robust Growth in 2024
2023-Q4 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Ownership
BFAM Insider Trading
Buy and sell transactions by insiders
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Shareholder Return
BFAM Price
Bright Horizons Family Solutions Inc
Average Annual Return | -10.48% |
Standard Deviation of Annual Returns | 31.34% |
Max Drawdown | -69% |
Market Capitalization | 6.6B USD |
Shares Outstanding | 57 963 800 |
Percentage of Shares Shorted | 3.27% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.