BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
USA - NASDAQ:BBSI - US0684631080 - Common Stock
33.31 USD
-1.64 (-4.69%)
33.31 USD
0 (0%)
Taking everything into account, BBSI scores 5 out of 10 in our fundamental rating. BBSI was compared to 86 industry peers in the Professional Services industry. BBSI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. BBSI has a correct valuation and a medium 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.
BBSI had positive earnings in each of the past 5 years.
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
BBSI has a Return On Assets of 7.55%. This is in the better half of the industry: BBSI outperforms 74.71% of its industry peers.
BBSI's Return On Equity of 23.85% is fine compared to the rest of the industry. BBSI outperforms 77.01% of its industry peers.
BBSI's Return On Invested Capital of 13.92% is fine compared to the rest of the industry. BBSI outperforms 79.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BBSI is in line with the industry average of 13.43%.
The last Return On Invested Capital (13.92%) for BBSI is above the 3 year average (11.91%), which is a sign of increasing profitability.
| 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
The Profit Margin of BBSI (4.49%) is comparable to the rest of the industry.
BBSI's Profit Margin has declined in the last couple of years.
BBSI has a Operating Margin (5.25%) which is in line with its industry peers.
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 21.82% is on the low side compared to the rest of the industry. BBSI is outperformed by 68.97% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BBSI is creating some value.
BBSI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BBSI has been increased compared to 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
An Altman-Z score of 3.57 indicates that BBSI is not in any danger for bankruptcy at the moment.
BBSI's Altman-Z score of 3.57 is fine compared to the rest of the industry. BBSI outperforms 66.67% of its industry peers.
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 | 3.57 |
ROIC/WACC1.59
WACC8.75%
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 Current ratio of 1.25. This is comparable to the rest of the industry: BBSI outperforms 40.23% of its industry peers.
A Quick Ratio of 1.25 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI has a Quick ratio of 1.25. This is comparable to the rest of the industry: BBSI outperforms 40.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.76% over the past year.
Measured over the past 5 years, BBSI shows a small growth in Earnings Per Share. The EPS has been growing by 4.90% on average per year.
BBSI shows a small growth in Revenue. In the last year, the Revenue has grown by 7.03%.
Measured over the past years, BBSI shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
EPS 1Y (TTM)9.76%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%6.76%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
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 Y11.12%
EPS Next 2Y12.49%
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
BBSI is valuated correctly with a Price/Earnings ratio of 16.01.
BBSI's Price/Earnings ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 70.11% of the companies in the same industry.
BBSI's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.06.
BBSI is valuated correctly with a Price/Forward Earnings ratio of 13.26.
Based on the Price/Forward Earnings ratio, BBSI is valued a bit cheaper than 68.97% of the companies in the same industry.
BBSI is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 13.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BBSI indicates a somewhat cheap valuation: BBSI is cheaper than 77.01% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.91 |
4.3 Compensation for Growth
BBSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BBSI's earnings are expected to grow with 12.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)3.27
EPS Next 2Y12.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.92%, which is pretty low.
The stock price of BBSI dropped by -29.35% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
BBSI's Dividend Yield is a higher than the industry average which is at 4.51.
Compared to an average S&P500 Dividend Yield of 2.37, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 2Y12.49%
EPS Next 3YN/A
33.31
-1.64 (-4.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.26%
Inst Owner Change10.75%
Ins Owners4.26%
Ins Owner Change1.02%
Market Cap855.73M
Revenue(TTM)1.14B
Net Income(TTM)53.86M
Analysts82
Price Target52.53 (57.7%)
Short Float %2%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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)0%
PT rev (3m)10.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.01 | ||
| Fwd PE | 13.26 | ||
| P/S | 0.71 | ||
| P/FCF | N/A | ||
| P/OCF | 223.14 | ||
| P/B | 3.79 | ||
| P/tB | 4.81 | ||
| EV/EBITDA | 9.91 |
EPS(TTM)2.08
EY6.24%
EPS(NY)2.51
Fwd EY7.54%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.15
OCFY0.45%
SpS46.68
BVpS8.79
TBVpS6.93
PEG (NY)1.44
PEG (5Y)3.27
Graham Number20.28
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%
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 Turnover1.68
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 | 3.57 |
F-Score6
WACC8.75%
ROIC/WACC1.59
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 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
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 Year29.44%
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%
BARRETT BUSINESS SVCS INC / BBSI FAQ
What is the fundamental rating for BBSI stock?
ChartMill assigns a fundamental rating of 5 / 10 to BBSI.
What is the valuation status for BBSI stock?
ChartMill assigns a valuation rating of 4 / 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 15.35%.