BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to BBSI. BBSI was compared to 82 industry peers in the Professional Services industry. While BBSI has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years BBSI has been profitable.
In multiple years BBSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.11%, BBSI is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Return On Equity of BBSI (23.93%) is better than 73.17% of its industry peers.
Looking at the Return On Invested Capital, with a value of 11.46%, BBSI is in the better half of the industry, outperforming 69.51% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBSI is in line with the industry average of 13.58%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 23.93% | ||
| ROIC | 11.46% |
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 of 4.63%. This is comparable to the rest of the industry: BBSI outperforms 57.32% of its industry peers.
BBSI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.22%, BBSI perfoms like the industry average, outperforming 50.00% of the companies in the same 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 22.13% is on the low side compared to the rest of the industry. BBSI is outperformed by 70.73% 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 | 5.22% | ||
| PM (TTM) | 4.63% | ||
| GM | 22.13% |
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.
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 3.56. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
BBSI's Altman-Z score of 3.56 is fine compared to the rest of the industry. BBSI outperforms 73.17% 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 | N/A | ||
| Altman-Z | 3.56 |
ROIC/WACC1.27
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.32 indicates that BBSI should not have too much problems paying its short term obligations.
The Current ratio of BBSI (1.32) is comparable to the rest of the industry.
BBSI has a Quick Ratio of 1.32. 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 1.32, BBSI is in line with its industry, outperforming 53.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
BBSI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.86%.
BBSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.90% yearly.
The Revenue has been growing slightly by 7.03% in the past 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)6.86%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%16.67%
Revenue 1Y (TTM)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.17%
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 13.34% yearly.
BBSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y11.38%
EPS Next 2Y13.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.74%
Revenue Next 2Y8.07%
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.
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 20.14, which indicates a rather expensive current valuation of BBSI.
The rest of the industry has a similar Price/Earnings ratio as BBSI.
BBSI is valuated rather cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.12, BBSI is valued on the expensive side.
BBSI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BBSI to the average of the S&P500 Index (21.65), we can say BBSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 18.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than 62.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.71 |
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 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.77
PEG (5Y)4.11
EPS Next 2Y13.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 2.40, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-22.36%
Div Incr Years1
Div Non Decr Years18
5.3 Sustainability
15.26% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.26%
EPS Next 2Y13.34%
EPS Next 3YN/A
NASDAQ:BBSI (4/25/2025, 9:47:31 AM)
40.07
-0.37 (-0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner Change0.01%
Ins Owners3.12%
Ins Owner Change8.63%
Market Cap1.04B
Analysts82
Price Target47.69 (19.02%)
Short Float %2.08%
Short Ratio3.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.26%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.97%
Min EPS beat(2)0.02%
Max EPS beat(2)5.91%
EPS beat(4)4
Avg EPS beat(4)26.19%
Min EPS beat(4)0.02%
Max EPS beat(4)94.15%
EPS beat(8)8
Avg EPS beat(8)45.96%
EPS beat(12)12
Avg EPS beat(12)43.28%
EPS beat(16)15
Avg EPS beat(16)38.14%
Revenue beat(2)2
Avg Revenue beat(2)1.1%
Min Revenue beat(2)0.43%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)-0.37%
Min Revenue beat(4)-3.38%
Max Revenue beat(4)1.77%
Revenue beat(8)2
Avg Revenue beat(8)-2.47%
Revenue beat(12)2
Avg Revenue beat(12)-2.23%
Revenue beat(16)4
Avg Revenue beat(16)-1.61%
PT rev (1m)0%
PT rev (3m)1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-325%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.14 | ||
| Fwd PE | 18.12 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 102.61 | ||
| P/B | 4.67 | ||
| P/tB | 5.96 | ||
| EV/EBITDA | 12.71 |
EPS(TTM)1.99
EY4.97%
EPS(NY)2.21
Fwd EY5.52%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.39
OCFY0.97%
SpS44.31
BVpS8.57
TBVpS6.72
PEG (NY)1.77
PEG (5Y)4.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.11% | ||
| ROE | 23.93% | ||
| ROCE | 15.46% | ||
| ROIC | 11.46% | ||
| ROICexc | 16.73% | ||
| ROICexgc | 20.42% | ||
| OM | 5.22% | ||
| PM (TTM) | 4.63% | ||
| GM | 22.13% | ||
| 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-Score7
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 186.29% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 14.97% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | 3.56 |
F-Score7
WACC9.04%
ROIC/WACC1.27
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)6.86%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%16.67%
EPS Next Y11.38%
EPS Next 2Y13.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.17%
Revenue Next Year8.74%
Revenue Next 2Y8.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.43%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year37.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-107.35%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-84.99%
OCF growth 3YN/A
OCF growth 5Y-33.42%