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Bright Horizons Family Solutions (FRA:BHA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Bright Horizons Family Solutions ROE % Related Terms
Bright Horizons Family Solutions ROE % 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.
For the Personal Services subindustry, Bright Horizons Family Solutions's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Bright Horizons Family Solutions's ROE % distribution charts can be found below:
* The bar in red indicates where Bright Horizons Family Solutions's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Bright Horizons Family Solutions (FRA:BHA) has a ROE % of 15.59% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bright Horizons Family Solutions and its competitors. This is 26% above median its historical median of 12.33. Over the past decade, Bright Horizons Family Solutions' ROE % has ranged from 2.39 to 21.85. According to the industry distribution chart, Bright Horizons Family Solutions ranks #31 out of 90 companies in the Personal Services industry, placing it in the top 34.4%.
Is Bright Horizons Family Solutions' ROE % too high?
Bright Horizons Family Solutions' current ROE % of 15.59% is 26% above median its 10-year median of 12.33. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 21.85. The Personal Services industry median ROE % is 6.16. Bright Horizons Family Solutions' value of 15.59% is 153.3% above this industry median. Based on the distribution chart, Bright Horizons Family Solutions ranks #31 out of 90 companies in the Personal Services industry, which is above the industry midpoint. Overall, Bright Horizons Family Solutions has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Bright Horizons Family Solutions' ROE % compare to ANDG and FTDR?
According to the Personal Services industry distribution chart, Bright Horizons Family Solutions ranks #31 out of 90 companies for ROE %. This puts Bright Horizons Family Solutions in the upper half of its industry. The industry median ROE % is 6.16. Bright Horizons Family Solutions' value of 15.59% is 153.3% above this benchmark. Historically, Bright Horizons Family Solutions' own ROE % has ranged from 2.39 to 21.85 over the past decade. While the company's 10-year median is 12.33 vs. the industry median of 6.16, 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 ROE % for a Personal Services company?
The median ROE % among Personal Services companies is 6.16, based on 90 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bright Horizons Family Solutions's current ROE % of 15.59% is 153.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Bright Horizons Family Solutions and its competitors. For the Personal Services industry, the median ROE % is 6.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Horizons Family Solutions's current ROE % is 15.59%, which is 26% above median its own 10-year median of 12.33. 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?
Based on GuruFocus' analysis, Bright Horizons Family Solutions (FRA:BHA) is currently considered Possible Value Trap. The stock's GF Value™ is €117.91, compared to a current price of €64.00 — trading 45.7% below its estimated fair value. The current ROE % is 15.59%, which is 26% above median its 10-year median of 12.33 and 153.3% above the Personal Services industry median of 6.16. Bright Horizons Family Solutions' overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Bright Horizons Family Solutions (FRA:BHA), the current ROE % is 15.59% 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 (FRA:BHA) Overvalued in 2026?
Based on GuruFocus' analysis, Bright Horizons Family Solutions stock appears to be undervalued.
The current stock price of €64.00 is trading 45.7% below its estimated GF Value™ of €117.91.
GuruFocus considers Bright Horizons Family Solutions to be Possible Value Trap.
Key valuation signals for FRA:BHA:
ROE %: 15.59% (26% above median its 10-year median of 12.33)
GF Value™: €117.91 vs. price of €64.00 (45.7% below fair value)
Industry Position: 153.3% above the Personal Services median (#31 of 90)
No single metric tells the full story. See the FRA:BHA 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.
68GF Score
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