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Upturn AI Summary - About
Bright Horizons Family Solutions Inc(BFAM)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for BFAM
11/10/2026: BFAM (1-star) is currently NOT-A-BUY. Pass it for now.
Bright Horizons Family Solutions is a prominent provider of employer-sponsored childcare, back-up care, and educational advisory services. The company maintains a leading position by partnering with major corporations, which creates stable, long-term B2B revenue streams. Growth is primarily driven by expanding corporate dependent care benefits and diversifying into workforce advisory services. However, the company faces significant risks from labor market tightness, potential wage inflation, and sensitivity to corporate benefit spending. It may best suit growth-oriented investors looking for exposure to workplace flexibility trends, while those seeking immediate dividend income may find it less suitable given the focus on capital reinvestment.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company benefits from long-term secular trends in corporate investment toward employee dependent care. |
| Momentum investor | Mixed fit | Momentum depends on market sentiment regarding labor market tightness and corporate spend. |
| Value investor | Mixed fit | Valuation is often premium given the company's unique position in the B2B sector. |
| Dividend investor | Weak fit | The company does not pay a dividend, favoring capital reinvestment. |
| Low-risk investor | Mixed fit | Business model stability is high, but stock price can be sensitive to economic cycle volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock can experience significant swings based on shifts in macroeconomic expectations. |
| Valuation risk | Medium | The premium multiple reflects growth expectations that must be consistently met. |
| Competition risk (Labor/Staffing) | High | The business relies heavily on its ability to attract and retain qualified teachers. |
| Business quality | Strong | The company possesses a strong moat through its deep-rooted corporate partnerships. |
| Dividend income | Low / none | Investors should not rely on BFAM for income generation. |
| Execution risk | Medium | Successfully integrating acquired centers while maintaining quality standards is critical. |
Price Behavior

Downtrend
The stock has experienced a sustained decline in price over recent periods.

Extreme Price Shocks
The stock has experienced exceptionally large and disruptive price movements during the period.
Analysis of Past Performance
Type Stock | Historic Profit -35.16% | Avg. Invested days 35 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.49B USD | Price to earnings Ratio - | 1Y Target Price 71.22 |
Price to earnings Ratio - | 1Y Target Price 71.22 | ||
Volume (30-day avg) 1.1M shares | Beta 1.09 | 52 Weeks Range 50.58 - 105.75 | Updated Date 11/10/2026 |
52 Weeks Range 50.58 - 105.75 | Updated Date 11/10/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -2.64 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Full-Service Child Care | Center-based early education for corporate and family clients. | This is the core, steady revenue base from physical centers. |
| Back-Up Care | Short-term care solutions for children and elderly relatives. | High-margin service often integrated into corporate benefits packages. |
| Educational Advisory | College and career coaching services for employees. | A growth-oriented segment that leverages the existing B2B client base. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2026-10-29 | When After Market | Estimate 1.65 | Actual 1.69 |
Profitability
Profit Margin -4.38% | Operating Margin (TTM) 12.7% |
Management Effectiveness
Return on Assets (TTM) 6.13% | Return on Equity (TTM) -12.99% |
Valuation
Trailing PE - | Forward PE 22.62 | Enterprise Value 4.56B | Price to Sales(TTM) 0.81 |
Enterprise Value 4.56B | Price to Sales(TTM) 0.81 | ||
Enterprise Value to Revenue 1.49 | Enterprise Value to EBITDA 45.15 | Shares Outstanding 47.93M | Shares Floating 41.62M |
Shares Outstanding 47.93M | Shares Floating 41.62M | ||
Percent Insiders 1.11 | Percent Institutions 121.64 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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