Is Bright Horizons Stock a Good Investment?
Bright Horizons Investment Advice | BFAM |
- Examine Bright Horizons' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Bright Horizons' leadership team and their track record. Good management can help Bright Horizons navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Diversified Consumer Services space and any emerging trends that could impact Bright Horizons' business and its evolving consumer preferences.
- Compare Bright Horizons' performance and market position to its competitors. Analyze how Bright Horizons is positioned in terms of product offerings, innovation, and market share.
- Check if Bright Horizons pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Bright Horizons' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Bright Horizons Family stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Bright Horizons Family is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Bright Horizons Stock
Researching Bright Horizons' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 1.76. Bright Horizons Family had not issued any dividends in recent years.
To determine if Bright Horizons is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Bright Horizons' research are outlined below:
| Bright Horizons Family currently holds 1.86 B in liabilities with Debt to Equity (D/E) ratio of 1.57, which is about average as compared to similar companies. Bright Horizons Family has a current ratio of 0.84, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Bright Horizons' use of debt, we should always consider it together with its cash and equity. | |
| Over 98.0% of Bright Horizons shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Bright Horizons Family Solutions Inc Reports Strong Financial Performance for 2024 |
Bright Horizons Quarterly Liabilities And Stockholders Equity |
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Bright Horizons uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Bright Horizons Family. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Bright Horizons' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 13th of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 15th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Bright Horizons' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Bright Horizons' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-04-27 | 2000-03-31 | 0.09 | 0.1 | 0.01 | 11 | ||
2000-02-17 | 1999-12-31 | 0.08 | 0.09 | 0.01 | 12 | ||
1999-10-21 | 1999-09-30 | 0.07 | 0.08 | 0.01 | 14 | ||
1999-04-27 | 1999-03-31 | 0.07 | 0.08 | 0.01 | 14 | ||
1998-10-21 | 1998-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
1998-07-29 | 1998-06-30 | 0.06 | 0.07 | 0.01 | 16 | ||
1998-01-27 | 1997-12-31 | 0.05 | 0.06 | 0.01 | 20 | ||
2013-03-13 | 2012-12-31 | 0.14 | 0.16 | 0.02 | 14 |
Bright Horizons Target Price Consensus
Bright target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Bright Horizons' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 11 | Buy |
Most Bright analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Bright stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Bright Horizons Family, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationBright Horizons Target Price Projection
Bright Horizons' current and average target prices are 128.93 and 136.82, respectively. The current price of Bright Horizons is the price at which Bright Horizons Family is currently trading. On the other hand, Bright Horizons' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Bright Horizons Market Quote on 16th of February 2025
Target Price
Analyst Consensus On Bright Horizons Target Price
Bright Horizons Analyst Ratings
Bright Horizons' analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Bright Horizons stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Bright Horizons' financials, market performance, and future outlook by experienced professionals. Bright Horizons' historical ratings below, therefore, can serve as a valuable tool for investors.Know Bright Horizons' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Bright Horizons is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Bright Horizons Family backward and forwards among themselves. Bright Horizons' institutional investor refers to the entity that pools money to purchase Bright Horizons' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Neuberger Berman Group Llc | 2024-09-30 | 1.4 M | Capital World Investors | 2024-09-30 | 1.4 M | State Street Corp | 2024-09-30 | 999.3 K | Liontrust Investment Partners Llp | 2024-09-30 | 961 K | Geode Capital Management, Llc | 2024-09-30 | 924.8 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 865.6 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 758.5 K | Westfield Capital Management Company, L.p. | 2024-09-30 | 707.4 K | Charles Schwab Investment Management Inc | 2024-12-31 | 649.1 K | Jpmorgan Chase & Co | 2024-09-30 | 6.1 M | Vanguard Group Inc | 2024-09-30 | 5.3 M |
Bright Horizons' market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 7.5 B.Market Cap |
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Bright Horizons' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.05 | 0.04 | |
| Return On Capital Employed | 0.06 | 0.06 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.07 | 0.12 |
Determining Bright Horizons' profitability involves analyzing its financial statements and using various financial metrics to determine if Bright Horizons is a good buy. For example, gross profit margin measures Bright Horizons' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Bright Horizons' profitability and make more informed investment decisions.
Bright Horizons' Earnings Breakdown by Geography
Evaluate Bright Horizons' management efficiency
Bright Horizons Family has return on total asset (ROA) of 0.0398 % which means that it generated a profit of $0.0398 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1126 %, meaning that it created $0.1126 on every $100 dollars invested by stockholders. Bright Horizons' management efficiency ratios could be used to measure how well Bright Horizons manages its routine affairs as well as how well it operates its assets and liabilities. As of the 16th of February 2025, Return On Equity is likely to grow to 0.12, while Return On Tangible Assets are likely to drop 0.04. At this time, Bright Horizons' Asset Turnover is very stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 18.91 | 19.86 | |
| Tangible Book Value Per Share | (15.75) | (16.53) | |
| Enterprise Value Over EBITDA | 23.07 | 17.34 | |
| Price Book Value Ratio | 4.04 | 3.43 | |
| Price Fair Value | 4.04 | 3.43 | |
| Enterprise Value Multiple | 23.07 | 17.34 | |
| Enterprise Value | 6.5 B | 4.8 B |
Evaluating the management effectiveness of Bright Horizons allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Bright Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.454 |
Basic technical analysis of Bright Stock
As of the 16th of February 2025, Bright Horizons shows the Mean Deviation of 1.35, risk adjusted performance of 0.0705, and Downside Deviation of 1.93. Bright Horizons Family technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Bright Horizons Family standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if Bright Horizons Family is priced correctly, providing market reflects its regular price of 128.93 per share. Given that Bright Horizons has jensen alpha of 0.1664, we suggest you to validate Bright Horizons Family's prevailing market performance to make sure the company can sustain itself at a future point.Bright Horizons' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Bright Horizons insiders, such as employees or executives, is commonly permitted as long as it does not rely on Bright Horizons' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Bright Horizons insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Bright Horizons' Outstanding Corporate Bonds
Bright Horizons issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Bright Horizons Family uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Bright bonds can be classified according to their maturity, which is the date when Bright Horizons Family has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 4875 Corp BondUS55336VAJ98 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Understand Bright Horizons' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Bright Horizons' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0705 | |||
| Market Risk Adjusted Performance | 0.2711 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.68 | |||
| Downside Deviation | 1.93 | |||
| Coefficient Of Variation | 1105.26 | |||
| Standard Deviation | 1.96 | |||
| Variance | 3.83 | |||
| Information Ratio | 0.0848 | |||
| Jensen Alpha | 0.1664 | |||
| Total Risk Alpha | 0.164 | |||
| Sortino Ratio | 0.0861 | |||
| Treynor Ratio | 0.2611 | |||
| Maximum Drawdown | 8.78 | |||
| Value At Risk | (2.88) | |||
| Potential Upside | 2.66 | |||
| Downside Variance | 3.71 | |||
| Semi Variance | 2.84 | |||
| Expected Short fall | (1.34) | |||
| Skewness | 0.8078 | |||
| Kurtosis | 4.11 |
| Risk Adjusted Performance | 0.0705 | |||
| Market Risk Adjusted Performance | 0.2711 | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.68 | |||
| Downside Deviation | 1.93 | |||
| Coefficient Of Variation | 1105.26 | |||
| Standard Deviation | 1.96 | |||
| Variance | 3.83 | |||
| Information Ratio | 0.0848 | |||
| Jensen Alpha | 0.1664 | |||
| Total Risk Alpha | 0.164 | |||
| Sortino Ratio | 0.0861 | |||
| Treynor Ratio | 0.2611 | |||
| Maximum Drawdown | 8.78 | |||
| Value At Risk | (2.88) | |||
| Potential Upside | 2.66 | |||
| Downside Variance | 3.71 | |||
| Semi Variance | 2.84 | |||
| Expected Short fall | (1.34) | |||
| Skewness | 0.8078 | |||
| Kurtosis | 4.11 |
Consider Bright Horizons' intraday indicators
Bright Horizons intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Bright Horizons stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Bright Horizons Corporate Filings
| 14th of February 2025 Other Reports | ViewVerify | |
| 4th of February 2025 Other Reports | ViewVerify | |
8K | 11th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 5th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Bright Stock media impact
Far too much social signal, news, headlines, and media speculation about Bright Horizons that are available to investors today. That information is available publicly through Bright media outlets and privately through word of mouth or via Bright internal channels. However, regardless of the origin, that massive amount of Bright data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Bright Horizons news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Bright Horizons relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Bright Horizons' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Bright Horizons alpha.
Bright Horizons Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Bright Horizons can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Bright Horizons Family Historical Investor Sentiment
Investor biases related to Bright Horizons' public news can be used to forecast risks associated with an investment in Bright. The trend in average sentiment can be used to explain how an investor holding Bright can time the market purely based on public headlines and social activities around Bright Horizons Family. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Bright Horizons' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Bright Horizons and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Bright Horizons news discussions. The higher the estimate score, the more favorable the investor's outlook on Bright Horizons.
Bright Horizons Maximum Pain Price Across March 21st 2025 Option Contracts
Bright Horizons' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Bright Horizons close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Bright Horizons' options.
Bright Horizons Corporate Directors
| Julie Atkinson | Independent Director | Profile | |
| Marguerite Kondracke | Independent Director | Profile | |
| Cathy Minehan | Independent Director | Profile | |
| Joshua Bekenstein | Independent Director | Profile |
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Bright Horizons Family. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Is Diversified Consumer Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Bright Horizons. If investors know Bright will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Bright Horizons listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 4.242 | Earnings Share 2.4 | Revenue Per Share | Quarterly Revenue Growth 0.095 | Return On Assets |
The market value of Bright Horizons Family is measured differently than its book value, which is the value of Bright that is recorded on the company's balance sheet. Investors also form their own opinion of Bright Horizons' value that differs from its market value or its book value, called intrinsic value, which is Bright Horizons' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Bright Horizons' market value can be influenced by many factors that don't directly affect Bright Horizons' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Bright Horizons' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Bright Horizons is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bright Horizons' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.