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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Bright Horizons Family Solutions's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 1.03. The higher Degree of Operating Leverage, the higher operating risk the company will take.
MEX:BFAM's Degree of Operating Leverage is ranked worse than 56.67% of 90
companies
in the Personal Services industry
Industry Median: 0.775
vs MEX:BFAM: 1.03
Bright Horizons Family Solutions (MEX:BFAM) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Bright Horizons Family Solutions Degree of Operating Leverage Related Terms
Bright Horizons Family Solutions Degree of Operating Leverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Bright Horizons Family Solutions Degree of Operating Leverage Chart
MEX:BFAM vs FTDR, ANDG, HRB: Degree of Operating Leverage Comparison
For the Personal Services subindustry, Bright Horizons Family Solutions's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bright Horizons Family Solutions Degree of Operating Leverage vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Bright Horizons Family Solutions's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Bright Horizons Family Solutions's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 1.03 mean?
Bright Horizons Family Solutions (MEX:BFAM) has a Degree of Operating Leverage of 1.03 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Bright Horizons Family Solutions and its competitors. According to the industry distribution chart, Bright Horizons Family Solutions ranks #51 out of 90 companies in the Personal Services industry, placing it in the top 56.7%.
Is Bright Horizons Family Solutions' Degree of Operating Leverage too high?
Bright Horizons Family Solutions' current Degree of Operating Leverage is 1.03. The Personal Services industry median Degree of Operating Leverage is 0.78. Bright Horizons Family Solutions' value of 1.03 is 32.9% above this industry median. Based on the distribution chart, Bright Horizons Family Solutions ranks #51 out of 90 companies in the Personal Services industry, which is below the industry midpoint. Overall, Bright Horizons Family Solutions has a GF Score™ of 71/100, reflecting its overall financial health beyond just this single metric.
How does Bright Horizons Family Solutions' Degree of Operating Leverage compare to FTDR and ANDG?
According to the Personal Services industry distribution chart, Bright Horizons Family Solutions ranks #51 out of 90 companies for Degree of Operating Leverage. This places Bright Horizons Family Solutions in the lower half of its industry. The industry median Degree of Operating Leverage is 0.78. Bright Horizons Family Solutions' value of 1.03 is 32.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Personal Services company?
The median Degree of Operating Leverage among Personal Services companies is 0.78, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bright Horizons Family Solutions's current Degree of Operating Leverage of 1.03 is 32.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Bright Horizons Family Solutions and its competitors. For the Personal Services industry, the median Degree of Operating Leverage is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Horizons Family Solutions's current Degree of Operating Leverage is 1.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bright Horizons Family Solutions stock overvalued right now?
Bright Horizons Family Solutions (MEX:BFAM) has a current Degree of Operating Leverage of 1.03. The stock's GF Value™ is MXN2,947.35, compared to a current price of MXN1,370.45 — trading 53.5% below its estimated fair value. The current Degree of Operating Leverage is 1.03 and 32.9% above the Personal Services industry median of 0.78. Bright Horizons Family Solutions' overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Bright Horizons Family Solutions (MEX:BFAM), the current Degree of Operating Leverage is 1.03 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bright Horizons Family Solutions (MEX:BFAM) Overvalued in 2026?
Based on GuruFocus' analysis, Bright Horizons Family Solutions stock appears to be undervalued.
The current stock price of MXN1,370.45 is trading 53.5% below its estimated GF Value™ of MXN2,947.35.
Key valuation signals for MEX:BFAM:
Degree of Operating Leverage: 1.03
GF Value™: MXN2,947.35 vs. price of MXN1,370.45 (53.5% below fair value)
Industry Position: 32.9% above the Personal Services median (#51 of 90)
No single metric tells the full story. See the MEX:BFAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bright Horizons Family Solutions Inc provider of early education and child care, family care solutions, and workforce education services that help working families and client employees personally and professionally. It provides services under multi-year contracts with employers that offer early education and child care, back-up care, and educational advisory services as part of their employee benefits package. The company has three business segments; Full-service center-based child care, Backup care, and Educational advisory services. The majority of the revenue is generated by full-service center-based child care, which includes traditional center-based child care and early education services. Other services provided by the company include in-home child and elder care, and Others.
71GF Score
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