Bright Horizons Family Solutions (MEX:BFAM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Bright Horizons Family Solutions had a gross margin of 22.95% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Bright Horizons Family Solutions Gross Margin % Related Terms
Bright Horizons Family Solutions Gross Margin % 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 Gross Margin % Chart
MEX:BFAM vs ANDG, HRB, FTDR: Gross Margin % Comparison
For the Personal Services subindustry, Bright Horizons Family Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Bright Horizons Family Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bright Horizons Family Solutions's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Bright Horizons Family Solutions (MEX:BFAM) has a Gross Margin % of 22.95% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bright Horizons Family Solutions and its competitors. This is near median its historical median of 23.73. Over the past decade, Bright Horizons Family Solutions' Gross Margin % has ranged from 20.10 to 25.36. According to the industry distribution chart, Bright Horizons Family Solutions ranks #71 out of 94 companies in the Personal Services industry, placing it in the top 75.5%.
Is Bright Horizons Family Solutions' Gross Margin % too high?
Bright Horizons Family Solutions' current Gross Margin % of 22.95% is near median its 10-year median of 23.73. Over the past 10 years, this metric has ranged from a low of 20.10 to a high of 25.36. The Personal Services industry median Gross Margin % is 41.80. Bright Horizons Family Solutions' value of 22.95% is 45.1% below this industry median. Based on the distribution chart, Bright Horizons Family Solutions ranks #71 out of 94 companies in the Personal Services industry, which is in the bottom quartile relative to peers. Overall, Bright Horizons Family Solutions has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Bright Horizons Family Solutions' Gross Margin % compare to ANDG and HRB?
According to the Personal Services industry distribution chart, Bright Horizons Family Solutions ranks #71 out of 94 companies for Gross Margin %. This places Bright Horizons Family Solutions in the lower half of its industry. The industry median Gross Margin % is 41.80. Bright Horizons Family Solutions' value of 22.95% is 45.1% below this benchmark. Historically, Bright Horizons Family Solutions' own Gross Margin % has ranged from 20.10 to 25.36 over the past decade. While the company's 10-year median is 23.73 vs. the industry median of 41.80, Bright Horizons Family Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Personal Services company?
The median Gross Margin % among Personal Services companies is 41.80, based on 94 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bright Horizons Family Solutions's current Gross Margin % of 22.95% is 45.1% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Bright Horizons Family Solutions and its competitors. For the Personal Services industry, the median Gross Margin % is 41.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Horizons Family Solutions's current Gross Margin % is 22.95%, which is near median its own 10-year median of 23.73. 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 Gross Margin % of 22.95%. The stock's GF Value™ is MXN2,633.63, compared to a current price of MXN1,370.45 — trading 48% below its estimated fair value. The current Gross Margin % is 22.95%, which is near median its 10-year median of 23.73 and 45.1% below the Personal Services industry median of 41.80. Bright Horizons Family Solutions' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Bright Horizons Family Solutions (MEX:BFAM), the current Gross Margin % is 22.95% as of Mar. 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 48% below its estimated GF Value™ of MXN2,633.63.
Key valuation signals for MEX:BFAM:
Gross Margin %: 22.95% (near median its 10-year median of 23.73)
GF Value™: MXN2,633.63 vs. price of MXN1,370.45 (48% below fair value)
Industry Position: 45.1% below the Personal Services median (#71 of 94)
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 Business Description
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.
77GF Score
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