Wedge Capital Management Invests Heavily in Bright Horizons Family Solutions (NYSE:BFAM)
April 1, 2023
Trending News ☀️
Wedge Capital Management L L P NC has recently made a considerable investment in Bright Horizons Family ($NYSE:BFAM) Solutions Inc. (NYSE:BFAM). Bright Horizons is one of the leading providers of child care and early education, back-up care, and senior care, as well as other education and work/life services for employers. With the recent investment from Wedge Capital Management, Bright Horizons is expected to continue expanding its services and reach even more families around the world.
Market Price
On Monday, BRIGHT HORIZONS FAMILY SOLUTIONS Inc. (NYSE:BFAM) experienced a slight uptick of 0.5% as the stock opened at $77.1 and closed at $76.6 from the previous closing price of $76.2. This movement was in response to Wedge Capital Management’s recent investment in the company. Wedge Capital Management is a private investment firm based in Durham, NC, specializing in venture capital, growth equity, and private equity investments. The firm’s announcement of investing heavily in BRIGHT HORIZONS FAMILY SOLUTIONS Inc. has certainly caused the stock to move up and become one of Monday’s biggest movers.
As a provider of childcare, early education and other services to employers and families, BRIGHT HORIZONS FAMILY SOLUTIONS is well-positioned to benefit from the increased demand for childcare and early education services as more families return to work following the pandemic. Wedge Capital Management’s investment will provide the resources necessary for BRIGHT HORIZONS FAMILY SOLUTIONS to continue to expand its market share and capitalize on the growing demand for childcare and early education services. 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 |
| 2.02k | 80.3 | 4.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BFAM. More…
| Operations | Investing | Financing |
| 188.47 | -278.05 | -121.34 |
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 |
| 3.8k | 2.72k | 18.78 |
Key Ratios Snapshot
Some of the financial key ratios for BFAM are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.7% | -16.2% | 7.5% |
| FCF Margin | ROE | ROA |
| 5.8% | 9.1% | 2.5% |
Analysis
As a GoodWhale analyst, I have evaluated BRIGHT HORIZONS FAMILY SOLUTIONS’s financials and according to our Star Chart, it is classified as a ‘rhino’ company, which means that it has achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for steady returns with moderate risk. Additionally, BRIGHT HORIZONS FAMILY SOLUTIONS is strong in health and has a high health score of 7/10 considering its cashflows and debt, showing that the company is capable of sustaining future operations in times of crisis. However, it is weaker in asset, dividend, growth, and profitability. Therefore, investors need to take into account the company’s weaknesses when considering the investment potential of 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
This investment signals confidence in the company’s potential for future growth. The Bright Horizons Family Solutions has a strong track record of providing quality childcare, early education, and health and productivity solutions. Their innovative offerings have enabled them to become a leader in the industry and are helping to provide parents with a more secure and reliable childcare solution.
In addition to this, their financials are also very strong, with solid revenues, high margins and positive cash flows. Furthermore, their long-term outlook has been extremely positive, with the company looking to expand their offerings into other areas such as workplace benefit programs.
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