BFAM Bright Horizons Family Solutions Inc. - Fundamental Analysis
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BFAM Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Cyclical
Personal Services
Current Price
Live
$93.43
Analyst Target
$127.33
+36.3%
Upside
52W High
$132.99
52W Low
$91.49
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
BFAM exhibits a mixed financial profile with a weak Piotroski F-Score of 4/9 indicating marginal financial health, and no available Altman Z-Score limits distress risk assessment. Despite strong recent earnings growth (YoY EPS +45.7%) and solid revenue momentum (11.6% growth), the company faces significant liquidity concerns with a current ratio of 0.54 and quick ratio of 0.43, suggesting near-term solvency risks. Valuation is stretched relative to Graham’s defensive standard ($44.17 vs current $93.43), though growth investors may justify the premium given robust earnings progression and analyst target of $127.33. Insider selling activity and bearish technical trend counterbalance strong profitability metrics like ROE of 14.19% and improving margins.
Key Strengths
Strong year-over-year earnings growth of 45.7%, supported by consistent quarterly beats (3 of last 4 quarters)
High operating margin of 15.05% and solid ROE of 14.19%, outperforming sector average ROE of 7.11%
Revenue growth of 11.6% exceeds sector average of 7.52%
Analyst consensus target of $127.33 implies 36% upside, with unanimous buy recommendation from 9 analysts
Improving earnings trajectory with Q/Q EPS growth of 43.1% and multi-year recovery from pandemic lows
Key Risks
Piotroski F-Score of 4/9 indicates weak to stable financial health, raising concerns about balance sheet strength
Critical liquidity risk: current ratio of 0.54 and quick ratio of 0.43 are well below safe levels (below 1.0)
Debt/Equity of 1.22 is high, especially for a service company with cyclical exposure
Insiders have been net sellers: $0.71M in sales over last 6 months with no buys, signaling lack of confidence
Stock trades at a premium valuation (P/E 27.08) despite lack of dividend and uncertain cash flow data
AI Fair Value Estimate
Based on comprehensive analysis
$101.78
+8.9% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare BFAM against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations
Past News Coverage
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