BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
USA - NASDAQ:BBSI - US0684631080 - Common Stock
46.48 USD
-0.03 (-0.06%)
46.48 USD
0 (0%)
Overall BBSI gets a fundamental rating of 5 out of 10. We evaluated BBSI against 82 industry peers in the Professional Services industry. BBSI has an excellent financial health rating, but there are some minor concerns on its profitability. BBSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BBSI was profitable.
In the past year BBSI had a positive cash flow from operations.
In the past 5 years BBSI has always been profitable.
The reported operating cash flow has been mixed in the past 5 years: BBSI reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of BBSI (7.55%) is better than 74.39% of its industry peers.
BBSI has a Return On Equity of 23.85%. This is in the better half of the industry: BBSI outperforms 76.83% of its industry peers.
The Return On Invested Capital of BBSI (13.92%) is better than 79.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BBSI is in line with the industry average of 12.76%.
The 3 year average ROIC (11.91%) for BBSI is below the current ROIC(13.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 23.85% | ||
| ROIC | 13.92% |
ROA(3y)7%
ROA(5y)6.09%
ROE(3y)25.31%
ROE(5y)22.25%
ROIC(3y)11.91%
ROIC(5y)9.76%
1.3 Margins
BBSI has a Profit Margin (4.49%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BBSI has declined.
With a Operating Margin value of 5.25%, BBSI perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
BBSI's Operating Margin has been stable in the last couple of years.
BBSI has a worse Gross Margin (21.82%) than 68.29% of its industry peers.
BBSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 4.49% | ||
| GM | 21.82% |
OM growth 3Y4.34%
OM growth 5Y-0.51%
PM growth 3Y5.11%
PM growth 5Y-2.01%
GM growth 3Y1.1%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
BBSI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BBSI has been reduced compared to 1 year ago.
BBSI has more shares outstanding than it did 5 years ago.
There is no outstanding debt for BBSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.98 indicates that BBSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.98, BBSI is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
There is no outstanding debt for BBSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.98 |
ROIC/WACC1.6
WACC8.68%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI has a worse Current ratio (1.25) than 60.98% of its industry peers.
BBSI has a Quick Ratio of 1.25. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.25, BBSI is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.23%, which is quite good.
BBSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.90% yearly.
Looking at the last year, BBSI shows a quite strong growth in Revenue. The Revenue has grown by 9.48% in the last year.
BBSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
EPS 1Y (TTM)11.23%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%12.9%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.01%
3.2 Future
BBSI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.26% yearly.
Based on estimates for the next years, BBSI will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y9.84%
EPS Next 2Y12.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.86%
Revenue Next 2Y4.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BBSI is valuated rather expensively with a Price/Earnings ratio of 22.90.
BBSI's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.20, BBSI is valued at the same level.
The Price/Forward Earnings ratio is 18.58, which indicates a rather expensive current valuation of BBSI.
BBSI's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, BBSI is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 18.58 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.7 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BBSI's earnings are expected to grow with 12.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.33
PEG (5Y)4.67
EPS Next 2Y12.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.68%, which is pretty low.
Compared to an average industry Dividend Yield of 2.07, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
The dividend of BBSI decreases each year by -22.36%.
BBSI has paid a dividend for at least 10 years, which is a reliable track record.
BBSI has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-22.36%
Div Incr Years1
Div Non Decr Years18
5.3 Sustainability
BBSI pays out 15.35% of its income as dividend. This is a sustainable payout ratio.
DP15.35%
EPS Next 2Y12.26%
EPS Next 3YN/A
46.48
-0.03 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.43%
Inst Owner Change-7.36%
Ins Owners4.45%
Ins Owner Change2.22%
Market Cap1.19B
Analysts82
Price Target52.53 (13.02%)
Short Float %2.39%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.35%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)34.53%
Min EPS beat(2)-0.18%
Max EPS beat(2)69.24%
EPS beat(4)3
Avg EPS beat(4)18.75%
Min EPS beat(4)-0.18%
Max EPS beat(4)69.24%
EPS beat(8)7
Avg EPS beat(8)24.53%
EPS beat(12)11
Avg EPS beat(12)37.42%
EPS beat(16)14
Avg EPS beat(16)38.85%
Revenue beat(2)2
Avg Revenue beat(2)0.44%
Min Revenue beat(2)0.32%
Max Revenue beat(2)0.56%
Revenue beat(4)4
Avg Revenue beat(4)0.77%
Min Revenue beat(4)0.32%
Max Revenue beat(4)1.77%
Revenue beat(8)4
Avg Revenue beat(8)-1.23%
Revenue beat(12)4
Avg Revenue beat(12)-1.95%
Revenue beat(16)5
Avg Revenue beat(16)-1.56%
PT rev (1m)10.16%
PT rev (3m)10.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)-0.47%
EPS NY rev (3m)-1.27%
Revenue NQ rev (1m)0.59%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.9 | ||
| Fwd PE | 18.58 | ||
| P/S | 1 | ||
| P/FCF | N/A | ||
| P/OCF | 311.36 | ||
| P/B | 5.29 | ||
| P/tB | 6.71 | ||
| EV/EBITDA | 14.7 |
EPS(TTM)2.03
EY4.37%
EPS(NY)2.5
Fwd EY5.38%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.15
OCFY0.32%
SpS46.68
BVpS8.79
TBVpS6.93
PEG (NY)2.33
PEG (5Y)4.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.55% | ||
| ROE | 23.85% | ||
| ROCE | 18.79% | ||
| ROIC | 13.92% | ||
| ROICexc | 19.07% | ||
| ROICexgc | 23.7% | ||
| OM | 5.25% | ||
| PM (TTM) | 4.49% | ||
| GM | 21.82% | ||
| FCFM | N/A |
ROA(3y)7%
ROA(5y)6.09%
ROE(3y)25.31%
ROE(5y)22.25%
ROIC(3y)11.91%
ROIC(5y)9.76%
ROICexc(3y)19.77%
ROICexc(5y)16.02%
ROICexgc(3y)25.28%
ROICexgc(5y)20.16%
ROCE(3y)16.08%
ROCE(5y)13.18%
ROICexcg growth 3Y10.93%
ROICexcg growth 5Y13.42%
ROICexc growth 3Y10.91%
ROICexc growth 5Y11.86%
OM growth 3Y4.34%
OM growth 5Y-0.51%
PM growth 3Y5.11%
PM growth 5Y-2.01%
GM growth 3Y1.1%
GM growth 5Y0.02%
F-Score6
Asset Turnover1.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 196.31% | ||
| Cap/Sales | 1.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 5.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.98 |
F-Score6
WACC8.68%
ROIC/WACC1.6
Cap/Depr(3y)203.57%
Cap/Depr(5y)183.63%
Cap/Sales(3y)1.29%
Cap/Sales(5y)1.11%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.23%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%12.9%
EPS Next Y9.84%
EPS Next 2Y12.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.01%
Revenue Next Year9.86%
Revenue Next 2Y4.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.96%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year25.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-140.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-90.87%
OCF growth 3YN/A
OCF growth 5Y-33.42%