One-glance verdict
Overvalued
$31.98 our estimate vs market $56.60
Wall Street consensus: $78.94 (146.8% higher than our fair-value estimate)
77% above our estimate, beyond the bull case
Fundamentals snapshot
BrightSpring Health Services, Inc.
BTSG · NMS · Healthcare · Health Information Services
Current price
$56.60
52-week range
$26.28 - $73.75
Market cap
$11.20B
Balance sheet
Stretched
1.88x Concerning
Net debt $1.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 11.3% last year.
- Reward Returns 13.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Risk Stock trades 21.7% above its 5-year average P/E.
What this company does
BrightSpring Health Services, Inc.
BrightSpring Health Services brings healthcare and pharmacy services, like nursing and therapy, directly into people's homes. The company is primarily paid by government programs such as Medicare and Medicaid, which creates a steady flow of revenue (the money generated from sales). This business matters because at-home care is often preferred by an aging population, suggesting a growing need for their services.
How the company got here
BrightSpring's story begins in 1974, originally as a company called ResCare. For over 40 years, it has focused on providing care and support to people with complex health needs. A key turning point was its rebranding to BrightSpring in 2019, which marked a renewed focus on a broader range of home and community-based healthcare services. The company has grown significantly by acquiring other healthcare providers, expanding its reach across all 50 states. In 2024, BrightSpring became a public company again, signaling its ambition to keep growing as a major player in providing healthcare outside of traditional hospitals.
What it actually does
Think of BrightSpring as a company that brings healthcare services directly to people where they live, rather than in a hospital. They serve patients who have complex, long-term health issues, often seniors or individuals with chronic conditions. This includes everything from having a nurse visit at home to providing the specialized medications someone might need for a serious illness. The goal is to provide both medical care and daily support to help people live better lives in the comfort of their own communities.
Pharmacy Solutions
This is the largest part of BrightSpring's business, responsible for most of its revenue (the total money it brings in). This segment acts like a specialized pharmacy, delivering medications to patients with complex and ongoing conditions, such as those needing infused or injectable drugs. They don't just serve individuals at home; they also provide pharmacy services to long-term care facilities, senior living communities, and hospice patients. Essentially, this division ensures that patients who need very specific and often critical medications get them reliably and safely outside of a hospital setting.
Provider Services
This segment is all about hands-on care and support delivered directly to patients. It's a smaller slice of the company's total revenue but is a very important part of their business. This includes services like home health care, where nurses and therapists visit patients at home to help them recover from an illness or manage a chronic condition. It also covers personal care (assisting with daily activities like bathing and dressing), hospice care for patients at the end of life, and specialized rehabilitation for people recovering from brain or spinal cord injuries.
What management is betting on now
Management is focused on growing by providing more integrated care, meaning they want to combine their pharmacy and provider services to treat the whole person. They are heavily investing in their Pharmacy Solutions segment, seeing it as a major engine for future growth. The company is also expanding its home-based care, recently acquiring numerous home health and hospice locations to serve more patients across the country. A key part of their strategy is to use technology and data to improve patient outcomes and make their services more efficient, ultimately aiming to provide high-quality care at a lower cost than a hospital stay.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$7.20M
FY2024 Q4
$75.30M
FY2025 Q1
$83.97M
FY2025 Q2
$24.65M
FY2025 Q3
$92.17M
FY2025 Q4
$193.89M
FY2026 Q1
$101.40M
FY2026 Q2
$14.88M
Revenue
$3.87B
Net income
$84.29M
Diluted EPS
0.38
Operating cash flow
$43.92M
Free cash flow
$14.88M
Fetching…
Sources
Revenue
$3.61B
Net income
$148.77M
Diluted EPS
0.67
Operating cash flow
$122.94M
Free cash flow
$101.40M
Fetching…
Sources
Revenue
$3.55B
Net income
$77.08M
Diluted EPS
0.34
Operating cash flow
$231.56M
Free cash flow
$193.89M
Fetching…
Sources
Revenue
$3.33B
Net income
$55.84M
Diluted EPS
0.26
Operating cash flow
$107.94M
Free cash flow
$92.17M
Fetching…
Sources
Revenue
$3.15B
Net income
$28.21M
Diluted EPS
0.13
Operating cash flow
$49.08M
Free cash flow
$24.65M
Fetching…
Sources
Revenue
$2.88B
Net income
$29.54M
Diluted EPS
0.14
Operating cash flow
$101.60M
Free cash flow
$83.97M
Fetching…
Sources
Revenue
$3.05B
Net income
$16.00M
Diluted EPS
0.11
Operating cash flow
$90.61M
Free cash flow
$75.30M
Fetching…
Sources
Revenue
$2.91B
Net income
$-8.23M
Diluted EPS
-0.04
Operating cash flow
$27.25M
Free cash flow
$7.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $31.98 vs current price $56.60
Wall Street consensus is the average analyst price target: $78.94 (146.8% higher than our fair-value estimate).
Our most-likely fair value is $31.98 a share — about 43.5% below today's price of $56.60, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $1.8B. Interest coverage 1.9x.
Net debt
$1.84B
Interest coverage
1.88x
BrightSpring Health Services, Inc.'s profit covers its interest bill about 1.9 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
BTSG
BASELINE
BrightSpring Health Services, Inc.
Total debt $2.39B Interest coverage 1.88x This is the baseline the peer rows are being compared against.
Total debt $1.27B Interest coverage 6.19x +230% vs BTSG Carries about 3.3x more debt cushion than BTSG.
Total debt $108.82M Interest coverage 10.18x +443% vs BTSG Carries about 5.4x more debt cushion than BTSG.
Total debt $76.31B Interest coverage 3.33x +77% vs BTSG Carries about 1.8x more debt cushion than BTSG.
Total debt $73.33B Interest coverage 4.74x +152% vs BTSG Carries about 2.5x more debt cushion than BTSG.
What you should know
The case for and against BTSG
3 Rewards
1 Risk
Rewards
-
Revenue grew 11.3% last year.
-
Returns 13.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Stock trades 21.7% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
52.41x
Forward P/E
24.84x
P/B
5.69x
P/S
0.78x
EV/EBITDA
21.55x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
12.4%
Operating margin
3.4%
Net margin
2.5%
ROE
13.0%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.16x
Current ratio
1.59x
Quick ratio
1.20x
Total debt
$2.39B
Total cash
$550.38M
Growth
How the business has been compounding
Revenue TTM
$14.37B
Revenue 5Y CAGR
18.7%
EPS TTM
1.08
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$506.35M
Free CF TTM
$394.69M
FCF margin
2.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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