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Bright Horizons Family Solutions Inc (BFAM)

Upturn stock ratingUpturn stock rating
$127.05
Delayed price
Profit since last BUY6.61%
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BUY since 50 days
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Upturn Advisory Summary

04/01/2025: BFAM (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit 12.11%
Avg. Invested days 46
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 2.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 04/01/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 7.29B USD
Price to earnings Ratio 52.93
1Y Target Price 138.31
Price to earnings Ratio 52.93
1Y Target Price 138.31
Volume (30-day avg) 411505
Beta 1.5
52 Weeks Range 100.59 - 141.90
Updated Date 04/1/2025
52 Weeks Range 100.59 - 141.90
Updated Date 04/1/2025
Dividends yield (FY) -
Basic EPS (TTM) 2.4

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 5.22%
Operating Margin (TTM) 11.55%

Management Effectiveness

Return on Assets (TTM) 4.5%
Return on Equity (TTM) 11.26%

Valuation

Trailing PE 52.93
Forward PE 31.25
Enterprise Value 8956855489
Price to Sales(TTM) 2.71
Enterprise Value 8956855489
Price to Sales(TTM) 2.71
Enterprise Value to Revenue 3.33
Enterprise Value to EBITDA 26
Shares Outstanding 57354200
Shares Floating 56877036
Shares Outstanding 57354200
Shares Floating 56877036
Percent Insiders 1.11
Percent Institutions 105.74

Analyst Ratings

Rating 3.64
Target Price 136.82
Buy 5
Strong Buy 2
Buy 5
Strong Buy 2
Hold 3
Sell -
Strong Sell 1
Strong Sell 1

ai summary icon Upturn AI SWOT

Bright Horizons Family Solutions Inc

stock logo

Company Overview

overview logo History and Background

Bright Horizons Family Solutions Inc. was founded in 1986. It initially focused on providing on-site childcare for corporations. Over time, it expanded its services to include back-up care, educational advisory services, and college coaching, becoming a leading provider of employer-sponsored childcare and education solutions.

business area logo Core Business Areas

  • Full Service Center-Based Child Care: Offers full-time and part-time childcare and early education programs for children from infancy through kindergarten. These centers are often located near employer worksites or in communities.
  • Back-Up Care: Provides short-term childcare solutions for employees when their regular care arrangements fall through, or when elder relatives need short-term assistance, including center-based, in-home, and virtual options.
  • Educational Advisory and Other Services: Offers services to help employees navigate college admissions, student loan debt, and other educational challenges.
  • Managed Services: Offers solutions for corporate clients who are looking to build their own centers, in-house.

leadership logo Leadership and Structure

The leadership team includes Stephen Kramer (Chief Executive Officer), Elizabeth Boland (Chief Financial Officer), and various VPs leading different business segments. The company operates under a corporate structure with different functional departments reporting to the executive team.

Top Products and Market Share

overview logo Key Offerings

  • Full Service Center-Based Child Care: Core business offering childcare and early education. Market share within the employer-sponsored childcare market is significant, estimated at 20-25%. Competitors include KinderCare Education, Learning Care Group and local chains. Revenue from this makes up the majority of company revenue
  • Back-Up Care: Provides care when regular arrangements are unavailable. Competitors are Care.com and other local nanny agencies. Significant portion of company revenue.
  • Educational Advisory Services: Assists families with educational planning. Competitors are Collegewise, Kaplan and private education consultants. Lower portion of total revenue.

Market Dynamics

industry overview logo Industry Overview

The childcare and education industry is experiencing growth due to increasing workforce participation of women and a greater emphasis on early childhood education. The market is fragmented, with both large national providers and numerous smaller regional and local operators.

Positioning

Bright Horizons is a premium provider known for its high-quality care and focus on employer-sponsored solutions. Its competitive advantages include its strong brand reputation, established relationships with major corporations, and comprehensive suite of services.

Total Addressable Market (TAM)

The total addressable market for employer-sponsored childcare and education is estimated to be in the billions of dollars. Bright Horizons is well-positioned to capture a significant portion of this market due to its strong market presence and employer relationships.

Upturn SWOT Analysis

Strengths

  • Strong brand reputation
  • Established relationships with major corporations
  • Comprehensive suite of services
  • High-quality care standards
  • Technology solutions for center management and parent engagement

Weaknesses

  • High operating costs
  • Dependence on employer contracts
  • Exposure to economic downturns
  • Labor-intensive business model
  • Potential for regulatory changes

Opportunities

  • Expanding into new geographic markets
  • Offering new services, such as elder care
  • Leveraging technology to improve efficiency
  • Acquiring smaller competitors
  • Increasing government funding for childcare

Threats

  • Increased competition from other childcare providers
  • Economic downturns impacting employer budgets
  • Changes in government regulations
  • Labor shortages and rising wages
  • Negative publicity from incidents at childcare centers

Competitors and Market Share

competitor logo Key Competitors

  • KNDR
  • LRNG
  • CARE

Competitive Landscape

Bright Horizons differentiates itself through its focus on employer-sponsored solutions and its reputation for high-quality care. It faces competition from other large national providers, as well as smaller regional and local operators. Bright Horizons has a competitive advantage based on brand recognition and relationships with large employers.

Major Acquisitions

College Coach

  • Year: 2006
  • Acquisition Price (USD millions): 22
  • Strategic Rationale: To expand educational advisory services to employers

Sittercity

  • Year: 2020
  • Acquisition Price (USD millions): 123
  • Strategic Rationale: To expand the reach of the Bright Horizons back-up care service.

Growth Trajectory and Initiatives

Historical Growth: Bright Horizons has experienced consistent revenue growth over the past decade, driven by acquisitions, new center openings, and increased demand for its services.

Future Projections: Analysts project continued revenue growth in the mid-single digits, driven by market expansion and increased employer investment in childcare benefits. EPS growth is expected to be higher due to operating leverage.

Recent Initiatives: Recent initiatives include expanding its back-up care offerings, investing in technology to improve center management, and launching new educational advisory services.

Summary

Bright Horizons is a strong company with a solid position in the employer-sponsored childcare market. Its strengths lie in its brand reputation, employer relationships, and comprehensive service offerings. Challenges include high operating costs and dependence on the economy. The company should capitalize on opportunities such as market expansion and technology adoption.

Similar Companies

  • KNDR
  • LRNG
  • CARE

Sources and Disclaimers

Data Sources:

  • Company Filings
  • Analyst Reports
  • Industry Publications
  • Market Research Reports

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual research and consultation with a qualified financial advisor.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Bright Horizons Family Solutions Inc

Exchange NYSE
Headquaters Newton, MA, United States
IPO Launch date 1997-08-12
CEO, President & Director Mr. Stephen Howard Kramer
Sector Consumer Cyclical
Industry Personal Services
Full time employees 32050
Full time employees 32050

Bright Horizons Family Solutions Inc. provides early education and childcare, back-up care, educational advisory, and other workplace solutions services for employers and families in the United States, Puerto Rico, the United Kingdom, the Netherlands, Australia, and India. The company operates in three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory services. The Full Service Center-Based Child Care segment offers traditional center-based early education and child care, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up child care, in-home child and senior care, school-age programs, camps, tutoring, pet care, and self-sourced reimbursed care services, as well as sittercity, an online marketplace for families and caregivers through early education and child care centers, school-age programs and in-home care providers, the back-up care network, and other providers. The Educational Advisory services segment offers tuition assistance and student loan repayment program management, workforce education, and related educational consulting services, as well as college admissions and college financial advisory services. The company was formerly known as Bright Horizons Solutions Corp. and changed its name to Bright Horizons Family Solutions Inc. in July 2012. Bright Horizons Family Solutions Inc. was founded in 1986 and is headquartered in Newton, Massachusetts.

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