Bright Horizons Family Stock Buy Hold or Sell Recommendation
| BFAM Stock | USD 106.83 0.79 0.73% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Bright Horizons Family is 'Strong Hold'. Macroaxis provides Bright Horizons buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding BFAM positions. The advice algorithm takes into account all of Bright Horizons' available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Bright Horizons' buy or sell advice are summarized below:
Real Value 90.1 | Target Price 90.7 | Hype Value 107.62 | Market Value 106.83 | Naive Value 105 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Bright Horizons Family given historical horizon and risk tolerance towards Bright Horizons. When Macroaxis issues a 'buy' or 'sell' recommendation for Bright Horizons Family, the advice is generated through an automated system that utilizes algorithms and statistical models.
Bright |
Execute Bright Horizons Buy or Sell Advice
The Bright recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Bright Horizons Family. Macroaxis does not own or have any residual interests in Bright Horizons Family or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Bright Horizons' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Bright Horizons Trading Alerts and Improvement Suggestions
| The company 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. Debt can assist Bright Horizons until it has trouble settling it off, either with new capital or with free cash flow. So, Bright Horizons' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Bright Horizons Family sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Bright to invest in growth at high rates of return. When we think about Bright Horizons' use of debt, we should always consider it together with cash and equity. | |
| Over 99.0% of Bright Horizons shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Is Bright Horizons Family Solutions Inc. Trading At A 34 percent Discount |
Bright Horizons Returns Distribution Density
The distribution of Bright Horizons' historical returns is an attempt to chart the uncertainty of Bright Horizons' future price movements. The chart of the probability distribution of Bright Horizons daily returns describes the distribution of returns around its average expected value. We use Bright Horizons Family price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Bright Horizons returns is essential to provide solid investment advice for Bright Horizons.
| Mean Return | 0.16 | Value At Risk | -2.65 | Potential Upside | 2.30 | Standard Deviation | 1.97 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Bright Horizons historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Bright Stock 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 originates 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 | Capital World Investors | 2023-12-31 | 1.3 M | Liontrust Investment Partners Llp | 2023-12-31 | 1 M | Neuberger Berman Group Llc | 2023-12-31 | 988 K | State Street Corporation | 2023-12-31 | 955.6 K | Geode Capital Management, Llc | 2023-12-31 | 862.7 K | Ameriprise Financial Inc | 2023-12-31 | 775.1 K | Mackenzie Investments | 2023-12-31 | 743.3 K | Dimensional Fund Advisors, Inc. | 2023-12-31 | 708.5 K | Westfield Capital Management Company, Lp | 2023-12-31 | 657.7 K | T. Rowe Price Associates, Inc. | 2023-12-31 | 6.5 M | Vanguard Group Inc | 2023-12-31 | 5.3 M |
Bright Horizons Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (7.3M) | 357.3M | (123.2M) | (213.4M) | 47.6M | 50.0M | |
| Free Cash Flow | 225.6M | 136.7M | 169.6M | 128.5M | 165.1M | 88.4M | |
| Depreciation | 108.3M | 111.7M | 108.8M | 106.1M | 110.7M | 61.5M | |
| Other Non Cash Items | (555K) | 31.8M | 22.9M | 23.4M | 48.6M | 51.0M | |
| Capital Expenditures | 104.8M | 72.8M | 57.7M | 60.0M | 91.0M | 55.5M | |
| Net Income | 180.4M | 27.0M | 70.5M | 80.6M | 74.0M | 56.5M | |
| End Period Cash Flow | 31.2M | 388.5M | 265.3M | 51.9M | 87.3M | 59.8M | |
| Change To Netincome | 3.2M | 35.6M | 40.9M | 39.8M | 45.7M | 48.0M | |
| Dividends Paid | 26.6M | 38.8M | 37.5M | 2.6M | 2.3M | 2.2M | |
| Change To Inventory | 10.2M | 8.2M | 10.8M | (6.2M) | (5.6M) | (5.3M) | |
| Investments | (30.9M) | (2.7M) | (5.8M) | (278.0M) | (119.1M) | (125.1M) | |
| Change Receivables | (14.5M) | (15.7M) | (27.5M) | (34.6M) | (31.2M) | (29.6M) | |
| Net Borrowings | (128.6M) | (13.6M) | (42.4M) | 68M | 61.2M | 58.1M |
Bright Horizons Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Bright Horizons or Diversified Consumer Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Bright Horizons' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Bright stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.01 | |
β | Beta against NYSE Composite | 1.88 | |
σ | Overall volatility | 1.99 | |
Ir | Information ratio | 0.03 |
Bright Horizons Volatility Alert
Bright Horizons Family has relatively low volatility with skewness of 1.99 and kurtosis of 10.42. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Bright Horizons' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Bright Horizons' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Bright Horizons Fundamentals Vs Peers
Comparing Bright Horizons' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Bright Horizons' direct or indirect competition across all of the common fundamentals between Bright Horizons and the related equities. This way, we can detect undervalued stocks with similar characteristics as Bright Horizons or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Bright Horizons' fundamental indicators could also be used in its relative valuation, which is a method of valuing Bright Horizons by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Bright Horizons to competition |
| Fundamentals | Bright Horizons | Peer Average |
| Return On Equity | 0.0647 | -0.31 |
| Return On Asset | 0.0261 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.10 % | (5.51) % |
| Current Valuation | 8.03 B | 16.62 B |
| Shares Outstanding | 57.96 M | 571.82 M |
| Shares Owned By Insiders | 1.11 % | 10.09 % |
| Shares Owned By Institutions | 98.89 % | 39.21 % |
| Number Of Shares Shorted | 1.24 M | 4.71 M |
| Price To Earning | 158.54 X | 28.72 X |
| Price To Book | 5.22 X | 9.51 X |
| Price To Sales | 2.62 X | 11.42 X |
| Revenue | 2.42 B | 9.43 B |
| Gross Profit | 408.71 M | 27.38 B |
| EBITDA | 271.17 M | 3.9 B |
| Net Income | 74.05 M | 570.98 M |
| Cash And Equivalents | 270.42 M | 2.7 B |
| Cash Per Share | 4.68 X | 5.01 X |
| Total Debt | 1.86 B | 5.32 B |
| Debt To Equity | 1.57 % | 48.70 % |
| Current Ratio | 0.86 X | 2.16 X |
| Book Value Per Share | 20.97 X | 1.93 K |
| Cash Flow From Operations | 256.14 M | 971.22 M |
| Short Ratio | 3.69 X | 4.00 X |
| Earnings Per Share | 1.28 X | 3.12 X |
| Price To Earnings To Growth | 1.76 X | 4.89 X |
| Target Price | 105.11 | |
| Number Of Employees | 31.4 K | 18.84 K |
| Beta | 1.38 | -0.15 |
| Market Capitalization | 6.25 B | 19.03 B |
| Total Asset | 4.17 B | 29.47 B |
| Retained Earnings | 625.83 M | 9.33 B |
| Working Capital | (352.53 M) | 1.48 B |
Note: Disposition of 1500 shares by Burke Mary Lou of Bright Horizons at 110.0 subject to Rule 16b-3 [view details]
Bright Horizons Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Bright . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 3336.33 | |||
| Daily Balance Of Power | (0.41) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 107.76 | |||
| Day Typical Price | 107.45 | |||
| Price Action Indicator | (1.32) | |||
| Period Momentum Indicator | (0.79) |
About Bright Horizons Buy or Sell Advice
When is the right time to buy or sell Bright Horizons Family? Buying financial instruments such as Bright Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 1.8B | 2.0B | 1.9B | 2.0B | Total Assets | 3.6B | 3.8B | 4.2B | 4.4B |
Use Investing Ideas to Build Portfolios
In addition to having Bright Horizons in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Consumption Thematic Idea Now
Consumption
Companies that deliver final goods such as cars or clothing for consumption by consumers. The Consumption theme has 18 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumption Theme or any other thematic opportunities.
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Check out Bright Horizons Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Bright Horizons Family information on this page should be used as a complementary analysis to other Bright Horizons' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Complementary Tools for Bright Stock analysis
When running Bright Horizons' price analysis, check to measure Bright Horizons' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Bright Horizons is operating at the current time. Most of Bright Horizons' value examination focuses on studying past and present price action to predict the probability of Bright Horizons' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Bright Horizons' price. Additionally, you may evaluate how the addition of Bright Horizons to your portfolios can decrease your overall portfolio volatility.
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Is Bright Horizons' industry 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 (0.69) | Earnings Share 1.28 | Revenue Per Share 41.898 | Quarterly Revenue Growth 0.163 | Return On Assets 0.0261 |
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.
Please note, there is a significant difference between Bright Horizons' value and its price as these two are different measures arrived at by different 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.