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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2100
Positioning
Market Dominance
Services
Personal Services
$6.2B
Stephen H. Kramer
Bright Horizons Family Solutions Inc. provides early education and child care, back-up care, educational advisory, and other workplace solutions services. The company operates through three segments: Full Service Center-Based Child Care, Back-Up Care, and Educational Advisory and Other Services. As of December 31, 2021, it operated 1,014 child care and early education centers in the United States, Puerto Rico, the United Kingdom, Canada, the Netherlands, and India.
Headcount
25.8K
HQ Base
WATERTOWN, Massachusetts
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = BFAM ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$BFAM BRIGHT HORIZONS FAMILY SOLUTIONS INC. | 49 | 54 | 69 | 34 | 18.1x | 11.4x | 15.8% | 5.8% | 25.2% | 12.2% | 7.7% | 19.8% | 0.0% | 172.0x | $6.2B | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) receives a "Reduce" rating with a composite score of 49.4/100. It ranks #2100 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for BFAM.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 54 | 66 | -12DRAG |
| MOMENTUM | 34 | 29 | +5NEUTRAL |
| VALUATION | 69 | 79 | -10DRAG |
| INVESTMENT | 45 | 78 | -33DRAG |
| STABILITY | 65 | 71 | -6DRAG |
| SHORT INT | 57 | 71 | -14DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 10.9% vs WACC 8.1% (spread +2.8%)
GM 25% vs sector 65%, OM 12% vs sector 5%
Capital turnover 1.00x
Rev growth 20%, 10yr history
Interest coverage 9.9x, Net debt/EBITDA 6.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate BRIGHT HORIZONS FAMILY SOLUTIONS INC. (BFAM) as a Reduce with a composite score of 49.4/100 at a current price of $71.58. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
BRIGHT HORIZONS FAMILY SOLUTIONS INC. holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.4/100 places it at rank #2100 in our full universe.
Narrow
Medium
Poor
Undervalued
Returns on equity of 15.8% exceed cost of capital.
Value factor score of 69 suggests attractive pricing.
Stable competitive position in a defensive sector.
Leverage of 172% D/E amplifies downside risk.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
BRIGHT HORIZONS FAMILY SOLUTIONS INC. represents a reduce based on multi-factor quantitative performance.
BRIGHT HORIZONS FAMILY SOLUTIONS INC. receives a Reduce rating from our analysis, with a composite score of 49.4/100 and 2 out of 5 stars, ranking #2100 out of 7,333 stocks. BFAM's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 54/100, BFAM shows adequate but unremarkable business quality. The company reports a return on equity of 15.8% (sector avg: 5.7%), gross margins of 25.2% (sector avg: 64.6%), net margins of 7.7% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
BFAM's value score of 69/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 18.08x, an EV/EBITDA of 11.41x, a P/B ratio of 2.87x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 45/100, BFAM exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 19.8% vs. a sector average of 8.6% and a return on assets of 5.8% (sector: 2.4%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
BFAM is currently showing below-average momentum at 34/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 19.8% year-over-year, while a beta of 0.69 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
BFAM shows good financial stability with a score of 65/100. Key stability metrics include a beta of 0.69 and a debt-to-equity ratio of 172.00x (sector avg: 0.3x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
The short interest score of 57/100 for BFAM suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 172.00x). With a $6.2B market cap (mid-cap), BRIGHT HORIZONS FAMILY SOLUTIONS INC. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
BRIGHT HORIZONS FAMILY SOLUTIONS INC. is a mid-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #2100 of 7,333 overall (71st percentile). Key comparisons include ROE of 15.8% exceeding the 5.7% sector median and operating margins of 12.2% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While BFAM currently exhibits a REDUCE profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Momentum (34) would have the largest impact on the composite score.
EV/EBITDA IN LINE WITH SECTOR BENCHMARKS
ROE 176% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 61% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
Bright Horizons reported fourth quarter results that exceeded Wall Street’s revenue and non-GAAP profit expectations, but the market reacted negatively, reflecting concerns beyond the headline numbers. Management attributed performance to robust growth in its back-up care segment, with CEO Stephen Kramer highlighting a 17% revenue increase driven by both predictable and unexpected care needs. The company also made progress in its U.K. business, achieving positive operating profit after significa
Bright Horizons Family Solutions Inc. (NYSE:BFAM) is among the 12 Best Consumer Stocks to Buy According to Wall Street. On February 12, 2026, Bright Horizons Family Solutions Inc. (NYSE:BFAM) reported fourth-quarter revenue of $734 million, ahead of the consensus estimate of $727.44 million. CEO Stephen Kramer said the company’s diversified and integrated education and care […]
While the top- and bottom-line numbers for Bright Horizons (BFAM) give a sense of how the business performed in the quarter ended March 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Bright Horizons (BFAM) delivered earnings and revenue surprises of 13.33% and 1.32%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?