BrightSpring Health Services, Inc. (BTSGU) stock analysis
Close on Oct 30, 2026Market cap $13.24BP/E 36.4Yield –
StockData Score
Prices as of Oct 30, 2026How the score works
Mixed11 of 30 checks passed
BrightSpring Health Services passes 11 of the 30 checks behind our score; 11 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 11.0%, above the 10% that usually covers the cost of capital.
Revenue growing 10%+ a year
Revenue grew 18.7% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 27.6% of total debt.
Low bankruptcy risk
The Altman Z-score is 4.89; above 3 is the safe zone and below 1.8 the distress zone.
What to watch
Margin of safety under 20%
The price is 45.4% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $66.89 is above our fair value estimate of $46.01.
High debt
Debt is 100% of shareholders' equity, above the 40% we consider low.
Interest not well covered
Operating income covers interest expense 3.6 times; we look for at least 5.
Valuation1/6
P/E against its history
Not enough price and earnings history to compare.
P/E above the industry
BrightSpring Health Services's P/E of 36.4 is above the Health Services median of 23.9.
EV/EBITDA below its 5-year median
BrightSpring Health Services's EV/EBITDA of 21.7 is below its 5-year median of 22.4.
P/B above the industry
BrightSpring Health Services's price-to-book of 6.08 is above the Health Services median of 3.37.
Trading above fair value
The share price of $66.89 is above our fair value estimate of $46.01.
Margin of safety under 20%
The price is 45.4% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 18.7% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 26.0% over the last twelve months; the Health Services median is 6.8%.
Guidance lowered
BrightSpring Health Services lowered its full year 2026 Provider Segment Revenue outlook on Jul 31, 2026.
Gross margin improving
Gross margin was 12.5% over the last twelve months, against 11.9% a year earlier.
Past performance4/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 11.0%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
BrightSpring Health Services's return on equity of 20.5% is above the Health Services median of -1.0%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 2.7% over the last twelve months, against a 5-year average of -0.4%.
Net margin above the industry
BrightSpring Health Services's net margin of 2.7% is above the Health Services median of -3.9%.
Financial health3/6
High debt
Debt is 100% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 27.6% of total debt.
Interest not well covered
Operating income covers interest expense 3.6 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.62 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 4.89; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
BrightSpring Health Services has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$46.01
The share price is 45% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 23.9× | – | 23.9× | $44.04 | 47% |
| EV/EBITDA | 17.2× | 22.4× | 15.0× | $51.74 | 41% |
| P/B | 3.1× | 2.4× | 3.4× | $33.89 | 12% |
| Earnings powerleft out, too far from the others | 10.2% cost of equity | – | – | $7.80 | – |
| Fair value | $46.01 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Health Services median 23.9
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $136.39M
- Value traded per 1% price move
- $72.42M
Downside
Medium risk
- Typical loss in a bad month
- 16.6%
- Volatility (annualized)
- 45%
- Sharpe ratio, 1 year
- 2.06
- Beta to the S&P 500 (5Y)
- 1.05
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2022 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +28.2% | +18.7% | – | – | |
| Gross profit | +19.8% | +3.9% | – | – | |
| Operating income | +173.5% | +16.3% | – | – |
Returns and balance sheet
4 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2022 | FY2022 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 10.8% | |
| Return on assets | – | – | 3.1% | |
| Current ratio | – | – | 1.57 | |
| Debt to equity | – | – | 1.34 | |
| Net debt to EBITDA | – | – | 5.26× | |
| Interest coverage | 0.8× | 0.8× | 1.9× | |
| Inventory turnover | – | – | 15.7× | |
| Capex to revenue | 0.9% | 0.9% | 0.7% | |
| Diluted shares | 118M | 118M | 220M |
Cash use needs five years of cash flow figures
BrightSpring Health Services does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 1.5% | 2.09× | 3.50× | 10.8% |
| FY2024 | -0.2% | 1.76× | 5.13× | -1.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$190.67M
- Cash generatingOperating cash flow above zero$490.17M
- Return on assets improvedROA up on the prior year-0.3% → 3.2%
- Earnings backed by cashOperating cash flow above net income$490.17M vs $190.67M
- Less leverageLong-term debt to assets fell43.2% → 38.3%
- Better liquidityCurrent ratio rose1.33 → 1.57
- No dilutionShare count did not rise193M → 220M
- Gross margin improvedGross margin up on the prior year12.57% → 11.76%
- More efficientAsset turnover rose1.82 → 2.18