Bright Horizons Family Solutions Inc. Common Stock (BFAM)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable demand, honest accounting, and a price that leaves room for error. Bright Horizons provides employer-sponsored child care, back-up care, and educational advisory services, which can be sticky once employers and families build routines around them. The filed numbers show scale: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $779.2 million, net income $40.6 million, and diluted EPS $0.79. That was up in revenue from fiscal Q2 2025, when revenue was $731.6 million, but net income fell from $54.8 million and diluted EPS from $0.95. For FY2025, period ended 2025-12-31, revenue was $2.9 billion, net income $193.1 million, and diluted EPS $3.36, so the longer record is profitable. The FairStock Lynch category calls it a FAST GROWER, based on 48.2% annual profit growth and 14.1% revenue growth over five years. Yet the latest profit trend is negative. Financial health is mixed: FairStock reports TTM free cash flow of $235.9 million, a 7.1% FCF yield, and Piotroski F-Score of 8/9. But D/E is 2.18, Altman Z-Score is 1.18, and ROCE is 6.14%, so debt and returns deserve scrutiny. On valuation, the close on 2026-10-13 was $68.17, with a FairStock P/E of 21.64 and P/B of 3.56. The Graham Number is $36.85, leaving a margin of safety of -84.99%—no bargain on that conservative measure. The 52-week range of $57.63-$109.86 shows the market has swung widely on this story. I would want profit margins and debt to improve before calling this a classic value opportunity.

In plain English: Bright Horizons runs child care centers and backup care for employees of other companies. Sales are growing a little, but recent profits have fallen and the company has borrowed a lot. At the current price, the stock looks expensive compared with its profits and what its books show, even though it produces decent cash.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer