Bright Horizons Family Solutions (MEX:BFAM) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Bright Horizons Family Solutions Operating Margin % Related Terms
Bright Horizons Family Solutions Operating 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 Operating Margin % Chart
MEX:BFAM vs ANDG, HRB, FTDR: Operating Margin % Comparison
For the Personal Services subindustry, Bright Horizons Family Solutions's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Bright Horizons Family Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Bright Horizons Family Solutions's Operating Margin % falls into.
Bright Horizons Family Solutions Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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 (MEX:BFAM) has a Operating Margin % of 9.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Bright Horizons Family Solutions and its competitors. This is near median its historical median of 9.96. Over the past decade, Bright Horizons Family Solutions' Operating Margin % has ranged from 3.52 to 12.99. According to the industry distribution chart, Bright Horizons Family Solutions ranks #33 out of 97 companies in the Personal Services industry, placing it in the top 34%.
Is Bright Horizons Family Solutions' Operating Margin % too high?
Bright Horizons Family Solutions' current Operating Margin % of 9.12% is near median its 10-year median of 9.96. Over the past 10 years, this metric has ranged from a low of 3.52 to a high of 12.99. The Personal Services industry median Operating Margin % is 6.55. Bright Horizons Family Solutions' value of 9.12% is 39.2% above this industry median. Based on the distribution chart, Bright Horizons Family Solutions ranks #33 out of 97 companies in the Personal Services industry, which is above the industry midpoint. 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' Operating Margin % compare to ANDG and HRB?
According to the Personal Services industry distribution chart, Bright Horizons Family Solutions ranks #33 out of 97 companies for Operating Margin %. This puts Bright Horizons Family Solutions in the upper half of its industry. The industry median Operating Margin % is 6.55. Bright Horizons Family Solutions' value of 9.12% is 39.2% above this benchmark. Historically, Bright Horizons Family Solutions' own Operating Margin % has ranged from 3.52 to 12.99 over the past decade. While the company's 10-year median is 9.96 vs. the industry median of 6.55, Bright Horizons Family Solutions has consistently been above 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 Operating Margin % for a Personal Services company?
The median Operating Margin % among Personal Services companies is 6.55, based on 97 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bright Horizons Family Solutions's current Operating Margin % of 9.12% is 39.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Bright Horizons Family Solutions and its competitors. For the Personal Services industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Horizons Family Solutions's current Operating Margin % is 9.12%, which is near median its own 10-year median of 9.96. 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 Operating Margin % of 9.12%. 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 Operating Margin % is 9.12%, which is near median its 10-year median of 9.96 and 39.2% above the Personal Services industry median of 6.55. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Bright Horizons Family Solutions (MEX:BFAM), the current Operating Margin % is 9.12% 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:
Operating Margin %: 9.12% (near median its 10-year median of 9.96)
GF Value™: MXN2,633.63 vs. price of MXN1,370.45 (48% below fair value)
Industry Position: 39.2% above the Personal Services median (#33 of 97)
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
Get the complete analysis for MEX:BFAM
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:BFAM has been successfully added to your 
