BFAM Stock Fair Value – BRIGHT HORIZONS FAMILY SOLUTIONS Reports Financial Results for Second Quarter of Fiscal Year 2023
August 8, 2023
☀️Earnings Overview
On August 1 2023, BRIGHT HORIZONS FAMILY SOLUTIONS ($NYSE:BFAM) reported its financial results for the second quarter of the fiscal year 2023, which ended on June 30 2023. Total revenue for the quarter increased by 23.0% to USD 603.2 million, compared to the same period in the previous fiscal year. However, net income decreased by 17.4% year over year, standing at USD 20.6 million.
Price History
Their stock opened at $96.6 and closed at $94.8, representing a decrease of 2.3% from their last closing price of 97.0. This performance marks a slight decline, as the company had been trading at a steady rate for the past few weeks. This represented a 4% decrease in revenue from the same period last year. In terms of outlook, the company stated that they are expecting to perform better in the latter half of the fiscal year and are hopeful for strong year-on-year growth when the year ends.
They are also exploring new strategic partnerships and investments that could help drive growth in the long term. Despite a slight dip in revenue and earnings per share, the company is optimistic about its growth prospects and remains committed to driving long-term success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BFAM. More…
| Total Revenues | Net Income | Net Margin |
| 2.23k | 64.85 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 242.74 | -323.64 | -118.79 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BFAM. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.82k | 2.67k | 19.09 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -5.2% | 7.0% |
| FCF Margin | ROE | ROA |
| 7.1% | 8.8% | 2.5% |
Analysis – BFAM Stock Fair Value
At GoodWhale, we analyzed the financials of BRIGHT HORIZONS FAMILY SOLUTIONS and calculated the intrinsic value of BRIGHT HORIZONS FAMILY SOLUTIONS shares to be around $149.1, using our proprietary Valuation Line. Currently, the stock is traded at $94.8, which is significantly lower than the intrinsic value, representing a 36.4% undervaluation. This presents an attractive opportunity for investors to buy shares in BRIGHT HORIZONS FAMILY SOLUTIONS. More…
Peers
The company operates in the United States, Canada, the United Kingdom, and India. It has a network of more than 1,000 child care centers. The company also offers online learning programs, family support services, and professional development services. The company’s competitors include Mad Paws Holdings Ltd, Rover Group Inc, Mayfield Childcare Ltd.
– Mad Paws Holdings Ltd ($ASX:MPA)
Mad Paws Holdings Ltd is a pet care company that operates in Australia and New Zealand. The company offers a range of services including pet sitting, dog walking, dog daycare, and pet boarding. Mad Paws has a market cap of 39.81M as of 2022 and a ROE of -36.33%.
– Rover Group Inc ($NASDAQ:ROVR)
Rover Group Inc is a publicly traded company that manufactures and sells motor vehicles and related products. The company has a market capitalization of 745.75 million as of 2022 and a return on equity of -12.44%. The company’s products include cars, trucks, buses, and other vehicles.
– Mayfield Childcare Ltd ($ASX:MFD)
Mayfield Childcare Ltd is a publicly traded company that operates in the child care industry. The company has a market capitalization of $63.35 million as of 2022 and a return on equity of 7.15%. Mayfield Childcare Ltd provides child care services to families in the United Kingdom. The company operates a network of child care centers that provide care for children aged 0-5 years old.
Summary
Bright Horizons Family Solutions reported their second quarter financial results for 2023, with total revenue up 23% to USD 603.2 million year over year. Net income, however, decreased 17.4%, to USD 20.6 million. This may be a concerning development for investors, as it demonstrates a dip in profitability for the company.
Investors may want to research Bright Horizons’ strategies for increasing revenue and lowering expenses in order to improve their bottom line. A further look into industry trends and market conditions affecting the company may also be worthwhile.
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