Stock analysis · Bull Rankings model

BFAM analysis

Bright Horizons Family Solutions Inc.Personal Services. Scored on the same transparent model behind the daily rankings.

BFAM
Bright Horizons Family Solutions Inc. · Personal Services
FCF$275mC
Rev+9.2%B
D/E1.64C+
P/E23.1xB
PEG2.55C
68.4Score
$76.85$4.0B
1Y Target$91.00Analyst consensus · 9 analysts
5Y Target$133.23Compound horizon
10Y Target$197.64Long-dated conviction
FCF$275mTTM
C
FCF $275m — modest; watch for margin expansion
Rev+9.2%TTM YoY
B
Revenue +9.2% — at or above S&P median
D/E1.64
C+
D/E 1.64 — above the Consumer Cyclical debt median (≈75th pctile)
P/E23.1x
B
P/E 23.1 — near the Consumer Cyclical median (≈60th pctile)
PEG2.55proxy
C
PEG 2.55 — expensive relative to growth rate · PEG proxy: P/E ÷ revenue growth % (true PEG requires forward EPS estimates, not in Finnhub free tier).

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.4
Quality0.67
Growth0.84
Value0.57
Why this score
  • Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
41% off the 12-month high
vs DCF fair value13% belowest. fair value ~$89
What the price assumes: free cash flow compounding at ~6% a year for the next decade — vs the ~15% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability19% · C+gross profit ÷ total assets (Novy-Marx)
ROIC12.3% · B+return on invested capital — not score-weighted
Why now
Personal Services · market cap $4.0b. Down 41% from 52-week high of $130.76 — deep drawdown territory. 9 sell-side analysts rate this a Buy with a mean 1-yr target of $91.00 (implying +18% upside).
Moat
ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 145% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.
Horizon
1-3 yr $91.00 (9-analyst consensus) — fundamentals + valuation re-rating. 5 yr $133.23 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $197.64 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

BFAM vs the Top Picks average

PillarBFAMBook avgDiff
Quality0.670.82-0.15
Growth0.840.90-0.06
Value0.570.75-0.18

Averaged across the 30 names in today's Top Picks (mean score 81.8). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-6.9 over 32 daily scores
From 75.2 (Jun 22) → 68.3 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
26
Position size
$1,998
4.0% of portfolio
Stop price
$57.64
25% below $76.85
$ at risk if stopped
$499.52
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Bright Horizons Family Solutions Inc. (BFAM): score, valuation & FAQ

Bright Horizons Family Solutions Inc. (BFAM) is a Personal Services company that scores 68.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

On valuation, BFAM sits about 13% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 6% annual free-cash-flow growth over the next decade.

Is BFAM a good stock to buy?

Bull Rankings scores BFAM 68.4 out of 100 on its quality-growth model, which is a solid, above-average reading. A score is a quantitative screen of Bright Horizons Family Solutions Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does BFAM score 68.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). BFAM grades middle-of-pack across the strip. Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is BFAM overvalued or undervalued?

Based on $76.85, BFAM sits about 13% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 6% annual free-cash-flow growth over the next decade. It trades at a 23.1x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in BFAM?

Down 41% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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