Bright Horizons Family Solutions (BFAM) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
Bright Horizons Family Solutions
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Bright Horizons Family Solutions as such a stock due to the following factors:
- BFAM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $9.5 million.
- BFAM has traded 4,630 shares today.
- BFAM is trading at a new lifetime high.
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More details on BFAM:
Bright Horizons Family Solutions Inc. provides child care, early education, and other services for employers and families. It operates through three segments: Full-Service Center-Based Child Care, Back-Up Dependent Care, and Other Educational Advisory Services. BFAM has a PE ratio of 47.6. Currently there are 6 analysts that rate Bright Horizons Family Solutions a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Bright Horizons Family Solutions has been 157,000 shares per day over the past 30 days. Bright Horizons Family has a market cap of $3.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 0.48 and a short float of 3.2% with 4.82 days to cover. Shares are up 8.4% year-to-date as of the close of trading on Tuesday.
Analysis:
rates Bright Horizons Family Solutions as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 5.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $52.99 million or 38.65% when compared to the same quarter last year. In addition, BRIGHT HORIZONS FAMILY SOLTN has also modestly surpassed the industry average cash flow growth rate of 29.94%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Diversified Consumer Services industry and the overall market on the basis of return on equity, BRIGHT HORIZONS FAMILY SOLTN has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Compared to its closing price of one year ago, BFAM's share price has jumped by 27.17%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- BRIGHT HORIZONS FAMILY SOLTN's earnings per share declined by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRIGHT HORIZONS FAMILY SOLTN increased its bottom line by earning $1.07 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($1.73 versus $1.07).
- You can view the full Bright Horizons Family Solutions Ratings Report.
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