ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bright Horizons Family Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.15%.
As of today (2026-06-29), Bright Horizons Family Solutions's WACC % is 6.18%. Bright Horizons Family Solutions's ROIC % is 5.57% (calculated using TTM income statement data).
Bright Horizons Family Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Bright Horizons Family Solutions (MEX:BFAM) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Bright Horizons Family Solutions's WACC % is 6.18%. Bright Horizons Family Solutions's ROIC % is 5.57% (calculated using TTM income statement data).
Bright Horizons Family Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Bright Horizons Family Solutions ROIC % Related Terms
Bright Horizons Family Solutions ROIC % 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 ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Bright Horizons Family Solutions's ROIC % distribution charts can be found below:
* The bar in red indicates where Bright Horizons Family Solutions's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROIC % of 4.15% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Bright Horizons Family Solutions and its competitors.
Is Bright Horizons Family Solutions' ROIC % too high?
Bright Horizons Family Solutions' current ROIC % is 4.15%. The Personal Services industry median ROIC % is 3.69. Bright Horizons Family Solutions' value of 4.15% is 12.6% above this industry median. 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' ROIC % compare to ANDG and HRB?
Bright Horizons Family Solutions' ROIC % of 4.15% can be compared against companies in the Personal Services industry. The industry median ROIC % is 3.69. Bright Horizons Family Solutions' value of 4.15% is 12.6% 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 ROIC % for a Personal Services company?
The median ROIC % among Personal Services companies is 3.69, based on 98 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bright Horizons Family Solutions's current ROIC % of 4.15% is 12.6% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Bright Horizons Family Solutions and its competitors. For the Personal Services industry, the median ROIC % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bright Horizons Family Solutions's current ROIC % is 4.15%. 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 ROIC % of 4.15%. 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 ROIC % is 4.15% and 12.6% above the Personal Services industry median of 3.69. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Bright Horizons Family Solutions (MEX:BFAM), the current ROIC % is 4.15% 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:
ROIC %: 4.15%
GF Value™: MXN2,633.63 vs. price of MXN1,370.45 (48% below fair value)
Industry Position: 12.6% above the Personal Services median
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
ROIC % 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 
