BFAM Intrinsic Value Calculator – Citigroup Lowers Rating for Bright Horizons Family Solutions to “Neutral”
May 16, 2023
Trending News ☀️
Citigroup has recently downgraded their rating of Bright Horizons Family ($NYSE:BFAM) Solutions to Neutral at Defense World. Bright Horizons Family Solutions is a company that provides early education and care, specialized professional services and comprehensive workforce solutions. The company focuses on providing comprehensive and individualized solutions to families and employers. As a result, the company has seen a significant drop in revenue, profits and cash flow. Furthermore, the company has also experienced a decline in demand for its services due to the pandemic.
In addition, the company’s stock price has also gone down significantly. Despite the downgrade, Bright Horizons Family Solutions is still seen as a strong provider of early education and care services. The company is also making efforts to reduce its expenses and focus on cost-saving initiatives in order to mitigate the impact of the pandemic on its business.
Additionally, Bright Horizons Family Solutions is also looking to diversify its services in order to increase its market share and expand its customer base.
Price History
The stock opened at $88.6 and closed at $86.7, representing a 2.4% drop from the previous closing price of 88.8. This significant decrease in stocks was largely due to Citigroup lowering their rating for the company to “Neutral”. This news has caused much uncertainty in the investment community, as it appears that Bright Horizons Family Solutions may not be as successful as previously thought. It is unclear what this will mean for the company’s future, but it is certain that investors and analysts will be closely watching the stock’s performance in the upcoming weeks. 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 |
| 2.11k | 69.1 | 3.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 197.23 | -286.93 | -110.17 |
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 |
| 3.81k | 2.7k | 18.69 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.8% | -14.1% | 7.2% |
| FCF Margin | ROE | ROA |
| 5.6% | 8.7% | 2.5% |
Analysis – BFAM Intrinsic Value Calculator
At GoodWhale, we believe that the intrinsic value of BRIGHT HORIZONS FAMILY SOLUTIONS is around $153.3, calculated by our proprietary Valuation Line. Based on our analysis, it is currently undervalued by around 43.5%, as the stock is currently trading at $86.7. This presents an opportunity for investors to purchase shares in the company at a discounted rate, as it is likely that the stock price will rise as the company’s financials improve. Our insights can help investors make informed decisions about their investments in BRIGHT HORIZONS FAMILY SOLUTIONS. More…
Peers
The company operates in the United States, Canada, the United Kingdom, and India. It has a network of more than 1,000 child care centers. The company also offers online learning programs, family support services, and professional development services. The company’s competitors include Mad Paws Holdings Ltd, Rover Group Inc, Mayfield Childcare Ltd.
– Mad Paws Holdings Ltd ($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
Citigroup has recently downgraded its rating on Bright Horizons Family Solutions from Buy to Neutral. This change in investment recommendation indicates that there is a lower level of confidence in the company’s future performance and should be taken into consideration when making decisions about investing. The research team for Citigroup cited the company’s increasing debt level, a significant decline in free cash flow, and their expectation that the company’s cost of capital may be higher than expected as reasons for their decision. Investors should weigh the risks associated with investing in Bright Horizons against the potential rewards to make an informed decision.
