35.03 USD
+0.35 (+1.01%)
35.025 USD
-0.01 (-0.01%)
We assign a fundamental rating of 6 out of 10 to BBSI. BBSI was compared to 87 industry peers in the Professional Services industry. While BBSI has a great health rating, its profitability is only average at the moment. BBSI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
BBSI had positive earnings in the past year.
In the past year BBSI had a positive cash flow from operations.
In the past 5 years BBSI has always been profitable.
In multiple years BBSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.05%, BBSI is doing good in the industry, outperforming 70.11% of the companies in the same industry.
With a decent Return On Equity value of 22.84%, BBSI is doing good in the industry, outperforming 74.71% of the companies in the same industry.
BBSI has a better Return On Invested Capital (12.83%) than 77.01% 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 12.15%.
The 3 year average ROIC (11.91%) for BBSI is below the current ROIC(12.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 22.84% | ||
| ROIC | 12.83% |
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
Looking at the Profit Margin, with a value of 4.48%, BBSI is in line with its industry, outperforming 57.47% of the companies in the same industry.
In the last couple of years the Profit Margin of BBSI has declined.
BBSI has a Operating Margin (5.25%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BBSI has remained more or less at the same level.
BBSI's Gross Margin of 21.57% is on the low side compared to the rest of the industry. BBSI is outperformed by 71.26% of its industry peers.
In the last couple of years the Gross Margin of BBSI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 4.48% | ||
| GM | 21.57% |
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.
BBSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
BBSI has an Altman-Z score of 3.38. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
BBSI has a better Altman-Z score (3.38) than 63.22% of its industry peers.
BBSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.48
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.27 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI's Current ratio of 1.27 is in line compared to the rest of the industry. BBSI outperforms 40.23% of its industry peers.
BBSI has a Quick Ratio of 1.27. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.27, BBSI is in line with its industry, outperforming 40.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.76%, 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.
BBSI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.64%.
The Revenue has been growing slightly by 3.96% on average over the past years.
EPS 1Y (TTM)9.76%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%6.76%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
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 13.29% yearly.
Based on estimates for the next years, BBSI will show a small growth in Revenue. The Revenue will grow by 7.57% on average per year.
EPS Next Y11.12%
EPS Next 2Y12.49%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue Next Year9.86%
Revenue Next 2Y4.28%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.84, which indicates a correct valuation of BBSI.
66.67% of the companies in the same industry are more expensive than BBSI, based on the Price/Earnings ratio.
BBSI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 13.95 indicates a correct valuation of BBSI.
BBSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 67.82% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BBSI to the average of the S&P500 Index (36.21), we can say BBSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 13.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
BBSI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.54 | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BBSI's earnings are expected to grow with 13.29% in the coming years.
PEG (NY)1.51
PEG (5Y)3.43
EPS Next 2Y12.49%
EPS Next 3Y13.29%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, BBSI is not a good candidate for dividend investing.
In the last 3 months the price of BBSI has falen by -27.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
BBSI's Dividend Yield is a higher than the industry average which is at 4.07.
With a Dividend Yield of 0.91, BBSI pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of BBSI decreases each year by -22.36%.
BBSI has been paying a dividend for at least 10 years, so it has 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
15.02% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.02%
EPS Next 2Y12.49%
EPS Next 3Y13.29%
35.03
+0.35 (+1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.26%
Inst Owner Change6.88%
Ins Owners4.26%
Ins Owner Change0.85%
Market Cap897.47M
Revenue(TTM)1.22B
Net Income(TTM)54.85M
Analysts82
Price Target52.79 (50.7%)
Short Float %1.73%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.02%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.53%
Min EPS beat(2)-2.88%
Max EPS beat(2)-0.18%
EPS beat(4)2
Avg EPS beat(4)16.55%
Min EPS beat(4)-2.88%
Max EPS beat(4)69.24%
EPS beat(8)6
Avg EPS beat(8)22.8%
EPS beat(12)10
Avg EPS beat(12)36.55%
EPS beat(16)14
Avg EPS beat(16)38.99%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)1.77%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-1.99%
Revenue beat(16)5
Avg Revenue beat(16)-1.68%
PT rev (1m)0.49%
PT rev (3m)2.48%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)-3.19%
EPS NY rev (1m)0%
EPS NY rev (3m)1.17%
Revenue NQ rev (1m)6.53%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.84 | ||
| Fwd PE | 13.95 | ||
| P/S | 0.73 | ||
| P/FCF | 33.54 | ||
| P/OCF | 20.78 | ||
| P/B | 3.74 | ||
| P/tB | 4.67 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)2.08
EY5.94%
EPS(NY)2.51
Fwd EY7.17%
FCF(TTM)1.04
FCFY2.98%
OCF(TTM)1.69
OCFY4.81%
SpS47.77
BVpS9.37
TBVpS7.51
PEG (NY)1.51
PEG (5Y)3.43
Graham Number20.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 22.84% | ||
| ROCE | 17.31% | ||
| ROIC | 12.83% | ||
| ROICexc | 18.21% | ||
| ROICexgc | 22.28% | ||
| OM | 5.25% | ||
| PM (TTM) | 4.48% | ||
| GM | 21.57% | ||
| FCFM | 2.19% |
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%
ROICexgc growth 3Y10.93%
ROICexgc 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 Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 204.71% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.75% | ||
| Profit Quality | 48.78% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.38 |
F-Score6
WACC8.66%
ROIC/WACC1.48
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)9.76%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%6.76%
EPS Next Y11.12%
EPS Next 2Y12.49%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue 1Y (TTM)9.64%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
Revenue Next Year9.86%
Revenue Next 2Y4.28%
Revenue Next 3Y7.57%
Revenue Next 5YN/A
EBIT growth 1Y12.03%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year29.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.62%
OCF growth 3YN/A
OCF growth 5Y-33.42%
BARRETT BUSINESS SVCS INC / BBSI FAQ
What is the fundamental rating for BBSI stock?
ChartMill assigns a fundamental rating of 6 / 10 to BBSI.
What is the valuation status for BBSI stock?
ChartMill assigns a valuation rating of 5 / 10 to BARRETT BUSINESS SVCS INC (BBSI). This can be considered as Fairly Valued.
How profitable is BARRETT BUSINESS SVCS INC (BBSI) stock?
BARRETT BUSINESS SVCS INC (BBSI) has a profitability rating of 5 / 10.
What is the earnings growth outlook for BARRETT BUSINESS SVCS INC?
The Earnings per Share (EPS) of BARRETT BUSINESS SVCS INC (BBSI) is expected to grow by 11.12% in the next year.
How sustainable is the dividend of BARRETT BUSINESS SVCS INC (BBSI) stock?
The dividend rating of BARRETT BUSINESS SVCS INC (BBSI) is 5 / 10 and the dividend payout ratio is 15.02%.