Is Bright Horizons Family Solutions Inc.'s (NYSE:BFAM) Recent Price Movement Underpinned By Its Weak Fundamentals?
Is Bright Horizons Family Solutions Inc.'s (NYSE:BFAM) Recent Price Movement Underpinned By Its Weak Fundamentals?
With its stock down 5.9% over the past month, it is easy to disregard Bright Horizons Family Solutions (NYSE:BFAM). We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Stock prices are usually driven by a company's financial performance over the long term, and therefore we decided to pay more attention to the company's financial performance. Particularly, we will be paying attention to Bright Horizons Family Solutions' ROE today.
由於其股價在過去一個月中下跌了5.9％，人們很容易忽視Bright Horizons家庭解決方案（紐約證券交易所代碼：BFAM）。但是，我們決定研究公司的財務狀況，以確定它們是否與價格下跌有關。股票價格通常由公司的長期財務業績驅動，因此我們決定更多地關注公司的財務業績。特別是，我們今天將關注Bright Horizons家庭解決方案的投資回報率。
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. Put another way, it reveals the company's success at turning shareholder investments into profits.
投資回報率或股本回報率是評估公司如何有效地從股東那裏獲得投資回報的有用工具。換句話說，它揭示了公司成功地將股東投資轉化爲利潤。
How Is ROE Calculated?
ROE 是如何計算的？
ROE can be calculated by using the formula:
ROE 可以通過以下公式計算：
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
股本回報率 = 淨利潤（來自持續經營業務）÷ 股東權益
So, based on the above formula, the ROE for Bright Horizons Family Solutions is:
因此，根據上述公式，Bright Horizons家庭解決方案的投資回報率爲：
6.1% = US$74m ÷ US$1.2b (Based on the trailing twelve months to December 2023).
6.1% = 7400萬美元 ÷ 12億美元（基於截至2023年12月的過去十二個月）。
The 'return' is the income the business earned over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.06 in profit.
“回報” 是企業在過去一年中獲得的收入。這意味着，每獲得價值1美元的股東權益，該公司就會產生0.06美元的利潤。
What Has ROE Got To Do With Earnings Growth?
投資回報率與收益增長有什麼關係？
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes.
我們已經確定，投資回報率是衡量公司未來收益的有效盈利指標。然後，我們能夠評估公司的收益增長潛力，具體取決於公司對這些利潤進行再投資或 “保留” 了多少及其有效性。一般而言，在其他條件相同的情況下，股本回報率和利潤留存率高的公司的增長率要高於不具有這些屬性的公司。
A Side By Side comparison of Bright Horizons Family Solutions' Earnings Growth And 6.1% ROE
Bright Horizons Family Solutions的收益增長和6.1％的投資回報率的並排比較
At first glance, Bright Horizons Family Solutions' ROE doesn't look very promising. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 11% either. Therefore, it might not be wrong to say that the five year net income decline of 22% seen by Bright Horizons Family Solutions was probably the result of it having a lower ROE. We reckon that there could also be other factors at play here. For example, it is possible that the business has allocated capital poorly or that the company has a very high payout ratio.
乍一看，Bright Horizons家庭解決方案的投資回報率看起來並不十分樂觀。一項快速的進一步研究表明，該公司的投資回報率與行業平均水平的11％相比也並不理想。因此，說Bright Horizons Family Solutions的五年淨收入下降22％可能是其投資回報率下降的結果，這可能沒有錯。我們認爲，這裏可能還有其他因素在起作用。例如，企業的資本分配可能不力，或者公司的派息率很高。
However, when we compared Bright Horizons Family Solutions' growth with the industry we found that while the company's earnings have been shrinking, the industry has seen an earnings growth of 22% in the same period. This is quite worrisome.
但是，當我們將Bright Horizons Family Solutions的增長與該行業的增長進行比較時，我們發現，儘管該公司的收益一直在萎縮，但同期該行業的收益增長了22％。這非常令人擔憂。
Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is BFAM fairly valued? This infographic on the company's intrinsic value has everything you need to know.
收益增長是對股票進行估值時要考慮的重要指標。無論如何，投資者應設法確定預期的收益增長或下降是否已計入其中。通過這樣做，他們將知道股票是走向清澈的藍色海水還是沼澤水域在等着呢。BFAM 的價值是否合理？這張關於公司內在價值的信息圖包含了你需要知道的一切。
Is Bright Horizons Family Solutions Making Efficient Use Of Its Profits?
Bright Horizons的家庭解決方案能否有效利用其利潤？
Because Bright Horizons Family Solutions doesn't pay any regular dividends, we infer that it is retaining all of its profits, which is rather perplexing when you consider the fact that there is no earnings growth to show for it. It looks like there might be some other reasons to explain the lack in that respect. For example, the business could be in decline.
由於Bright Horizons Family Solutions不支付任何定期股息，因此我們推斷它保留了所有利潤，考慮到它沒有收益增長這一事實，這相當令人困惑。看來可能還有其他一些原因可以解釋這方面的不足。例如，業務可能會下滑。
Summary
摘要
On the whole, we feel that the performance shown by Bright Horizons Family Solutions can be open to many interpretations. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company.
總的來說，我們認爲Bright Horizons家庭解決方案所表現出的表現可以有多種解釋。儘管該公司的利潤保留率確實很高，但其低迴報率可能會阻礙其收益增長。話雖如此，我們研究了分析師的最新預測，發現儘管該公司過去曾縮減收益，但分析師預計其未來收益將增長。要詳細了解分析師對公司的最新預測，請查看該公司的分析師預測的可視化。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論，我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議，也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意，我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之，華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。