# Bright Horizons Family Solutions (BFAM.US)

Canonical: https://gigainvestors.com/s/BFAM

Analysis as of: 2026-10-16T07:26:53.626Z. Financial observations: FY2012–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $70.42 per share; close as of 2026-10-15.

Estimated value: low $48.32 per share, central $64.66 per share, high $75.41 per share. Buy at or below the central value $64.66 per share. Valuation as of 2026-10-16T07:26:53.626Z; scenarios are not confidence intervals.

Expected annual return: 9.4% at the stated quote. About 9.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.12×

- FY2018: 0.13×

- FY2019: 0.13×

- FY2020: 0.04×

- FY2021: 0.07×

- FY2022: 0.08×

- FY2023: 0.07×

- FY2024: 0.09×

- FY2025: 0.11×

- LTM to Jun 2026: 0.10×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 8.4%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 23.6%

- Recent gross margin (lower of latest and 3-year median): 23.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.7%

- ROIC including acquisitions, ten-year median: 5.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 33.1%

- FY2018: 33.9%

- FY2019: 16.4%

- FY2020: 4.1%

- FY2021: 8.4%

- FY2022: 9.0%

- FY2023: 9.3%

- FY2024: 14.7%

- FY2025: 20.1%

- LTM to Jun 2026: 20.5%

### economics: pass

- Owner earnings / net income, 5-yr: 1.18×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $662M

- Net income, five-year total: $558M

- Return on incremental invested capital: 559.7%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.5 pp

- Working capital / revenue, final three-year average: 9.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.64×

- FY2022: 1.44×

- FY2023: 1.27×

- FY2024: 1.00×

- FY2025: 1.01×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 33.1% vs 14.7%

- Per-share earnings: 1.56 to 2.40 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.8%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: $1.5B

- Cumulative retained earnings: $1.1B

- Diluted shares, 10-year annual growth: -0.8%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 5.5%

- Per-share value change: $0.83

- Per-share value, starting three-year median: $1.56

- Per-share value, ending three-year median: $2.40

- Buybacks concentrated in cheaper years (correlation): 0.64

- Average buyback yield: 2.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $534M

- Cumulative net income, 10 years: $1.2B

- ROIC, first three-year median: 33.1%

- ROIC, last three-year median: 14.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.56

- FY2017: $2.61

- FY2018: $2.68

- FY2019: $3.06

- FY2020: $0.45

- FY2021: $1.16

- FY2022: $1.38

- FY2023: $1.28

- FY2024: $2.40

- FY2025: $3.36

### accounting: pass

- Sloan accruals: -3.7%

- Receivables to sales index (DSRI): 0.95×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.80×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.51×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: -3.2%

- FY2018: -5.4%

- FY2019: -4.5%

- FY2020: -4.9%

- FY2021: -4.3%

- FY2022: -2.8%

- FY2023: -4.7%

- FY2024: -5.1%

- FY2025: -3.7%

## Holders

- [Gavin Abrams](https://gigainvestors.com/ABI): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 58% since Oct 2021 · sales +3.2%

Story as of 2026-10-16T09:58:23.387Z; price observation 2026-10-15.

Price needs cash profits to grow 6.3% a year for ten years

- 2025-05-19: BFAM Q1 Earnings Call: Enrollment Gains and Margin Expansion Amid Mixed Demand Signals ([finance.yahoo.com](https://finance.yahoo.com/news/bfam-q1-earnings-call-enrollment-121922844.html))

- 2025-08-13: BFAM Q2 Deep Dive: Back-Up Care Drives Growth, Margin Expansion Continues ([finance.yahoo.com](https://finance.yahoo.com/news/bfam-q2-deep-dive-back-030717119.html))

- 2025-10-31: BFAM Q3 Deep Dive: Back-Up Care Growth and Margin Upside Drive Outlook Revision ([finance.yahoo.com](https://finance.yahoo.com/news/bfam-q3-deep-dive-back-124627419.html))

### Sales · FY2025–2026

sales +3.2%; source https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm; observed 2026-02-26.

- FY2017: $1.7B 

- FY2018: $1.9B 

- FY2019: $2.1B 

- FY2020: $1.5B 

- FY2021: $1.8B 

- FY2022: $2.0B 

- FY2023: $2.4B 

- FY2024: $2.7B 

- FY2025: $2.9B 

- FY2026: $3.0B 

### Gross margin · FY2026

gross margin 23.3%; source https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm; observed 2026-02-26.

- FY2017: 24.7% 

- FY2018: 24.9% 

- FY2019: 25.4% 

- FY2020: 20.1% 

- FY2021: 23.6% 

- FY2022: 23.7% 

- FY2023: 22.0% 

- FY2024: 23.1% 

- FY2025: 23.6% 

- FY2026: 23.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in personal services; annual sales are USD 2.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm (filed 2026-02-26); FY2025: revenue 2933607000; grossProfit 691048000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BFAM.US: Bright Horizons Family Solutions Inc. provides early education and childcare, comprehensive 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. It 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 childcare, preschool, and elementary education services. The Back-Up Care segment provides center-based back-up childcare, 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 childcare 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.

### Why customers stay

Margins ranged from 22% to 23.6% during 2023–25; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 22%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 23.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 23.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,0.33138277329381327],[2018,0.33861817214692463],[2019,0.16420643144231364],[2020,0.04122227675517752],[2021,0.0840214508429592],[2022,0.08956580372962901],[2023,0.09333499643620813],[2024,0.1473000566870108],[2025,0.20113040185275058],[2026,0.20524520347532374]]; median 0.15575324406466223. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 24% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm (filed 2026-02-26); Gross margin observations: [[2021,0.23643214548794028],[2022,0.23689981672735336],[2023,0.21987902857305902]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back USD 225.4 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2016: growth capex 0; upkeep 74100000; owner earnings 105944000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 0; upkeep 83837000; owner earnings 167902000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2018: growth capex 0; upkeep 91432000; owner earnings 167492000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 0; upkeep 104765000; owner earnings 183890000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 0; upkeep 72834000; owner earnings 65820000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 0; upkeep 63491000; owner earnings 115798000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 0; upkeep 70556000; owner earnings 116227000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: growth capex 0; upkeep 91020000; owner earnings 93710000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: growth capex 0; upkeep 97311000; owner earnings 140798000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm (filed 2026-02-26); FY2025: growth capex 0; upkeep 91317000; owner earnings 195201000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,1129288000],[2017,73725000],[2018,9576000],[2019,26559000],[2020,38843000],[2021,37503000],[2022,0],[2023,2592000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 225411000 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); BFAM.US SharesStats.PercentInsiders = 1.098 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.3% yearly over ten years; actual growth was 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Ten-year compound average after fade. Initial solved rate 0.07679127638046379. Price 70.42; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.521116365802877 → FY2025 3.3993817162369853. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $66.91 per share

- 2016-11: $68.82 per share

- 2016-12: $70.02 per share

- 2017-01: $70.86 per share

- 2017-02: $69.11 per share

- 2017-03: $72.49 per share

- 2017-04: $76.12 per share

- 2017-05: $76.72 per share

- 2017-06: $77.21 per share

- 2017-07: $79.01 per share

- 2017-08: $79.93 per share

- 2017-09: $86.21 per share

- 2017-10: $86.30 per share

- 2017-11: $88.95 per share

- 2017-12: $94.00 per share

- 2018-01: $98.20 per share

- 2018-02: $95.57 per share

- 2018-03: $99.72 per share

- 2018-04: $94.88 per share

- 2018-05: $101.20 per share

- 2018-06: $102.52 per share

- 2018-07: $106.99 per share

- 2018-08: $119.43 per share

- 2018-09: $117.84 per share

- 2018-10: $114.91 per share

- 2018-11: $121.68 per share

- 2018-12: $111.45 per share

- 2019-01: $115.79 per share

- 2019-02: $124.00 per share

- 2019-03: $127.11 per share

- 2019-04: $128.15 per share

- 2019-05: $137.06 per share

- 2019-06: $150.87 per share

- 2019-07: $152.07 per share

- 2019-08: $165.05 per share

- 2019-09: $152.50 per share

- 2019-10: $148.52 per share

- 2019-11: $150.52 per share

- 2019-12: $150.29 per share

- 2020-01: $163.73 per share

- 2020-02: $157.15 per share

- 2020-03: $102.00 per share

- 2020-04: $116.45 per share

- 2020-05: $111.88 per share

- 2020-06: $117.20 per share

- 2020-07: $107.24 per share

- 2020-08: $133.01 per share

- 2020-09: $152.04 per share

- 2020-10: $158.05 per share

- 2020-11: $170.11 per share

- 2020-12: $172.99 per share

- 2021-01: $151.97 per share

- 2021-02: $159.66 per share

- 2021-03: $171.45 per share

- 2021-04: $144.83 per share

- 2021-05: $138.23 per share

- 2021-06: $147.11 per share

- 2021-07: $149.50 per share

- 2021-08: $145.76 per share

- 2021-09: $139.42 per share

- 2021-10: $166.00 per share

- 2021-11: $122.95 per share

- 2021-12: $125.88 per share

- 2022-01: $128.41 per share

- 2022-02: $130.64 per share

- 2022-03: $132.69 per share

- 2022-04: $114.24 per share

- 2022-05: $90.55 per share

- 2022-06: $84.52 per share

- 2022-07: $93.67 per share

- 2022-08: $68.20 per share

- 2022-09: $57.65 per share

- 2022-10: $65.32 per share

- 2022-11: $74.20 per share

- 2022-12: $63.10 per share

- 2023-01: $76.78 per share

- 2023-02: $78.84 per share

- 2023-03: $76.99 per share

- 2023-04: $76.12 per share

- 2023-05: $85.60 per share

- 2023-06: $92.45 per share

- 2023-07: $97.03 per share

- 2023-08: $94.42 per share

- 2023-09: $81.46 per share

- 2023-10: $74.06 per share

- 2023-11: $87.44 per share

- 2023-12: $94.24 per share

- 2024-01: $98.25 per share

- 2024-02: $114.86 per share

- 2024-03: $113.36 per share

- 2024-04: $103.71 per share

- 2024-05: $105.12 per share

- 2024-06: $110.08 per share

- 2024-07: $120.25 per share

- 2024-08: $140.72 per share

- 2024-09: $140.13 per share

- 2024-10: $133.47 per share

- 2024-11: $115.63 per share

- 2024-12: $110.85 per share

- 2025-01: $122.60 per share

- 2025-02: $129.66 per share

- 2025-03: $127.04 per share

- 2025-04: $125.42 per share

- 2025-05: $129.20 per share

- 2025-06: $123.59 per share

- 2025-07: $113.10 per share

- 2025-08: $118.04 per share

- 2025-09: $108.57 per share

- 2025-10: $109.23 per share

- 2025-11: $102.76 per share

- 2025-12: $101.40 per share

- 2026-01: $92.63 per share

- 2026-02: $74.52 per share

- 2026-03: $82.13 per share

- 2026-04: $81.11 per share

- 2026-05: $62.62 per share

- 2026-06: $70.88 per share

- 2026-07: $74.54 per share

- 2026-08: $74.18 per share

- 2026-09: $63.72 per share

- 2026-10: $70.42 per share

## Annual estimated value (USD per share)

- FY2016: low $17.51 per share, central $19.93 per share, high $23.14 per share

- FY2017: low $20.54 per share, central $23.37 per share, high $27.14 per share

- FY2018: low $23.79 per share, central $27.08 per share, high $31.44 per share

- FY2019: low $33.71 per share, central $38.35 per share, high $44.53 per share

- FY2020: low $30.39 per share, central $33.72 per share, high $38.16 per share

- FY2021: low $31.82 per share, central $35.65 per share, high $40.74 per share

- FY2022: low $25.14 per share, central $28.57 per share, high $33.15 per share

- FY2023: low $27.03 per share, central $30.64 per share, high $35.46 per share

- FY2024: low $31.82 per share, central $42.08 per share, high $49.07 per share

- FY2025: low $39.62 per share, central $53.04 per share, high $61.86 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1437578/000143757826000006/bfam-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.