BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
Overall BBSI gets a fundamental rating of 5 out of 10. We evaluated BBSI against 82 industry peers in the Professional Services industry. While BBSI has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, BBSI is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BBSI was profitable.
BBSI had a positive operating cash flow in the past year.
Each year in the past 5 years BBSI has 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
With a decent Return On Assets value of 6.69%, BBSI is doing good in the industry, outperforming 68.29% of the companies in the same industry.
BBSI has a better Return On Equity (24.42%) than 78.05% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.11%, BBSI belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBSI is in line with the industry average of 12.28%.
The last Return On Invested Capital (13.11%) for BBSI is above the 3 year average (11.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 24.42% | ||
| ROIC | 13.11% |
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 4.45%, BBSI is in line with its industry, outperforming 59.76% of the companies in the same industry.
In the last couple of years the Profit Margin of BBSI has declined.
The Operating Margin of BBSI (5.15%) 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 21.88% 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 | 5.15% | ||
| PM (TTM) | 4.45% | ||
| GM | 21.88% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BBSI is still 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.
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 3.43 indicates that BBSI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.43, BBSI is doing good in the industry, outperforming 65.85% 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 | 3.43 |
ROIC/WACC1.45
WACC9.07%
2.3 Liquidity
BBSI has a Current Ratio of 1.21. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
BBSI's Current ratio of 1.21 is in line compared to the rest of the industry. BBSI outperforms 41.46% of its industry peers.
BBSI has a Quick Ratio of 1.21. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BBSI (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
BBSI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.00%.
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 8.41% 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)7%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%-700%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.08%
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 12.66% yearly.
The Revenue is expected to grow by 8.03% on average over the next years. This is quite good.
EPS Next Y10.35%
EPS Next 2Y12.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.65%
Revenue Next 2Y8.03%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.96, BBSI is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BBSI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.19. BBSI is around the same levels.
The Price/Forward Earnings ratio is 17.00, which indicates a rather expensive current valuation of BBSI.
BBSI's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.33, BBSI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as BBSI's earnings are expected to grow with 12.66% in the coming years.
PEG (NY)2.12
PEG (5Y)4.48
EPS Next 2Y12.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.74%, which is pretty low.
BBSI's Dividend Yield is a higher than the industry average which is at 2.06.
Compared to an average S&P500 Dividend Yield of 2.35, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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
15.69% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.69%
EPS Next 2Y12.66%
EPS Next 3YN/A
42.83
-0.78 (-1.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.78%
Inst Owner Change0%
Ins Owners4.2%
Ins Owner Change11.45%
Market Cap1.10B
Analysts82
Price Target47.69 (11.35%)
Short Float %2.65%
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.69%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.63%
Min EPS beat(2)0.02%
Max EPS beat(2)69.24%
EPS beat(4)4
Avg EPS beat(4)19.97%
Min EPS beat(4)0.02%
Max EPS beat(4)69.24%
EPS beat(8)8
Avg EPS beat(8)28.44%
EPS beat(12)12
Avg EPS beat(12)40.21%
EPS beat(16)15
Avg EPS beat(16)41.75%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.32%
Max Revenue beat(2)1.77%
Revenue beat(4)3
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-0.3%
Max Revenue beat(4)1.77%
Revenue beat(8)3
Avg Revenue beat(8)-1.94%
Revenue beat(12)3
Avg Revenue beat(12)-2.02%
Revenue beat(16)5
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)-0.81%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.96 | ||
| Fwd PE | 17 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 174.06 | ||
| P/B | 5.16 | ||
| P/tB | 6.64 | ||
| EV/EBITDA | 14.02 |
EPS(TTM)1.95
EY4.55%
EPS(NY)2.52
Fwd EY5.88%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.25
OCFY0.57%
SpS45.61
BVpS8.31
TBVpS6.45
PEG (NY)2.12
PEG (5Y)4.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 24.42% | ||
| ROCE | 17.7% | ||
| ROIC | 13.11% | ||
| ROICexc | 18.49% | ||
| ROICexgc | 23.05% | ||
| OM | 5.15% | ||
| PM (TTM) | 4.45% | ||
| GM | 21.88% | ||
| 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 Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 206.24% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.43 |
F-Score6
WACC9.07%
ROIC/WACC1.45
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)7%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%-700%
EPS Next Y10.35%
EPS Next 2Y12.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.08%
Revenue Next Year8.65%
Revenue Next 2Y8.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.23%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year33.38%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-149.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.94%
OCF growth 3YN/A
OCF growth 5Y-33.42%