Fundamental analysis BFAM (Bright Horizons Family Solutions Inc)

Updated on 06/07/2026

We analyzed Bright Horizons Family Solutions stock against the 10 quality criteria of Lubin Investment. The company gets a quality score of 9/10, meaning high quality, and a P/FCF valuation multiple of 13.3×.

Sector: Personal Services. Listing: US. Current price: 62.19 USD.

⭐ Current opportunity : Bright Horizons Family Solutions Inc is in its historical low decile of valuation (P/FCF ≤ 10th percentile over 10 years, AND ratio < 25×). This is a potentially interesting entry point for long-term investors.

Lubin scoring methodology

Bright Horizons Family Solutions Inc (BFAM)'s score is calculated automatically from 10 objective financial criteria, with no human intervention or opinion. Each criterion is validated (YES / PARTIAL / NO) based on thresholds drawn from the financial literature (Warren Buffett, Bettin-Mauboussin, Aswath Damodaran). The final score is the sum of validations.

The 10 quantitative criteria analyzed

1. Profitable: positive net margin
2. Growing revenue: revenue growing > 10%/year over 5 years
3. Growing earnings per share: FCF per share adjusted for stock-based compensation, > 10%/year over 5 years
4. Share count under control: stable or declining (net buybacks = value creation for shareholders)
5. Cash profitability: free cash flow margin > 10% of revenue
6. Expanding margins: operating margin widens over 5 years (operating leverage)
7. Return on invested capital: Bettin-Mauboussin Cash ROCE > 15% per year
8. Debt under control: net debt repayable in less than 3 years of free cash flow
9. Earnings converted to cash: free cash flow exceeds accounting net income
10. Net collection period: short or negative cash conversion cycle

Frequently asked questions

Is Bright Horizons Family Solutions a quality stock?

Bright Horizons Family Solutions gets a quality score of 9/10 (high quality), calculated over the 10 Lubin Investment criteria: profitability, revenue and free cash flow growth, share buybacks, margins, debt and return on capital.

How is Bright Horizons Family Solutions's score calculated?

The score is the total of validated criteria (YES / PARTIAL / NO) using thresholds drawn from the financial literature (Warren Buffett, Mauboussin, Aswath Damodaran), automatically and with no human opinion.

What is Bright Horizons Family Solutions's P/FCF?

The price-to-free-cash-flow (P/FCF) multiple of Bright Horizons Family Solutions stock is 13.3×. At Lubin Investment, valuation is judged separately from quality.

Where to see Bright Horizons Family Solutions's full analysis?

The full interactive analysis (10-criteria detail, history, P/FCF valuation, sector comparisons) is available at https://lubin-investment.com/analyse/BFAM?lng=en.

Other stocks in the Personal Services sector

• Rollins (ROL) — score 10/10, P/FCF 39.1×
• Frontdoor (FTDR) — score 10/10, P/FCF 12.8×
• XPS Pensions Group (XPS.L) — score 9/10, P/FCF 1617.6×
• Mears Group (MER.L) — score 7/10, P/FCF 575.3×
• Interactive Strength (TRNR) — score 6/10

Go further

👉 See the full interactive analysis of BFAM

Other resources : Detailed methodology · All stocks in the Personal Services sector · Stocks rated 10 out of 10 · Top quality companies · Lubin Investment pricing.