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. BBSI is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. BBSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BBSI had positive earnings in the past year.
BBSI had a positive operating cash flow in the past year.
BBSI had positive earnings in each of the past 5 years.
In multiple years BBSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
BBSI has a better Return On Assets (6.99%) than 70.89% of its industry peers.
Looking at the Return On Equity, with a value of 23.56%, BBSI is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
With a decent Return On Invested Capital value of 10.97%, BBSI is doing good in the industry, outperforming 68.35% of the companies in the same industry.
BBSI had an Average Return On Invested Capital over the past 3 years of 10.43%. This is below the industry average of 13.65%.
The 3 year average ROIC (10.43%) for BBSI is below the current ROIC(10.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 23.56% | ||
| ROIC | 10.97% |
ROA(3y)6.33%
ROA(5y)5.79%
ROE(3y)23.42%
ROE(5y)23.08%
ROIC(3y)10.43%
ROIC(5y)8.77%
1.3 Margins
The Profit Margin of BBSI (4.55%) is better than 60.76% of its industry peers.
In the last couple of years the Profit Margin of BBSI has grown nicely.
BBSI has a Operating Margin of 5.14%. This is comparable to the rest of the industry: BBSI outperforms 45.57% of its industry peers.
In the last couple of years the Operating Margin of BBSI has grown nicely.
Looking at the Gross Margin, with a value of 22.17%, BBSI is doing worse than 73.42% of the companies in the same industry.
In the last couple of years the Gross Margin of BBSI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.14% | ||
| PM (TTM) | 4.55% | ||
| GM | 22.17% |
OM growth 3Y11.39%
OM growth 5Y7.6%
PM growth 3Y7.28%
PM growth 5Y3.19%
GM growth 3Y2.99%
GM growth 5Y2.71%
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.
Compared to 1 year ago, BBSI has more shares outstanding
Compared to 5 years ago, BBSI has more shares outstanding
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
BBSI has an Altman-Z score of 3.59. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.59, BBSI is doing good in the industry, outperforming 68.35% of the companies in the same industry.
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 | 3.59 |
ROIC/WACC1.21
WACC9.06%
2.3 Liquidity
BBSI has a Current Ratio of 1.31. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
BBSI has a Current ratio of 1.31. This is comparable to the rest of the industry: BBSI outperforms 48.10% of its industry peers.
A Quick Ratio of 1.31 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI has a Quick ratio (1.31) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.70%, which is quite good.
Measured over the past years, BBSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.59% on average per year.
Looking at the last year, BBSI shows a small growth in Revenue. The Revenue has grown by 4.87% in the last year.
The Revenue has been growing slightly by 2.60% on average over the past years.
EPS 1Y (TTM)9.7%
EPS 3Y19.17%
EPS 5Y8.59%
EPS Q2Q%10.45%
Revenue 1Y (TTM)4.87%
Revenue growth 3Y6.68%
Revenue growth 5Y2.6%
Sales Q2Q%7.66%
3.2 Future
Based on estimates for the next years, BBSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.51% on average per year.
Based on estimates for the next years, BBSI will show a small growth in Revenue. The Revenue will grow by 6.40% on average per year.
EPS Next Y8.86%
EPS Next 2Y10.44%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue Next Year5.57%
Revenue Next 2Y6.42%
Revenue Next 3Y6.4%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BBSI is valuated rather expensively with a Price/Earnings ratio of 21.13.
BBSI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. BBSI is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 17.72, which indicates a rather expensive current valuation of BBSI.
The rest of the industry has a similar Price/Forward Earnings ratio as BBSI.
BBSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 17.72 |
4.2 Price Multiples
BBSI's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BBSI does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BBSI may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)2.46
EPS Next 2Y10.44%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 1.92, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
The dividend of BBSI decreases each year by -13.27%.
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)-13.27%
Div Incr Years1
Div Non Decr Years18
5.3 Sustainability
15.76% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.76%
EPS Next 2Y10.44%
EPS Next 3Y11.51%
40.14
-0.68 (-1.67%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner Change2.24%
Ins Owners3.12%
Ins Owner Change-2.48%
Market Cap1.04B
Analysts82
Price Target46.92 (16.89%)
Short Float %2.15%
Short Ratio5.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend0.49
Dividend Growth(5Y)-13.27%
DP15.76%
Div Incr Years1
Div Non Decr Years18
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.3%
Min EPS beat(2)4.69%
Max EPS beat(2)5.91%
EPS beat(4)4
Avg EPS beat(4)29.05%
Min EPS beat(4)4.69%
Max EPS beat(4)94.15%
EPS beat(8)8
Avg EPS beat(8)46.55%
EPS beat(12)12
Avg EPS beat(12)46.47%
EPS beat(16)15
Avg EPS beat(16)40.73%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.3%
Max Revenue beat(2)0.43%
Revenue beat(4)1
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-3.53%
Max Revenue beat(4)0.43%
Revenue beat(8)1
Avg Revenue beat(8)-3.05%
Revenue beat(12)2
Avg Revenue beat(12)-2.28%
Revenue beat(16)3
Avg Revenue beat(16)-1.76%
PT rev (1m)0%
PT rev (3m)15.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 17.72 | ||
| P/S | 0.93 | ||
| P/FCF | N/A | ||
| P/OCF | 74.73 | ||
| P/B | 4.83 | ||
| P/tB | 6.21 | ||
| EV/EBITDA | 13.64 |
EPS(TTM)1.9
EY4.73%
EPS(NY)2.27
Fwd EY5.64%
FCF(TTM)-0.03
FCFYN/A
OCF(TTM)0.54
OCFY1.34%
SpS43.04
BVpS8.3
TBVpS6.46
PEG (NY)2.38
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.99% | ||
| ROE | 23.56% | ||
| ROCE | 15.06% | ||
| ROIC | 10.97% | ||
| ROICexc | 14.59% | ||
| ROICexgc | 17.51% | ||
| OM | 5.14% | ||
| PM (TTM) | 4.55% | ||
| GM | 22.17% | ||
| FCFM | N/A |
ROA(3y)6.33%
ROA(5y)5.79%
ROE(3y)23.42%
ROE(5y)23.08%
ROIC(3y)10.43%
ROIC(5y)8.77%
ROICexc(3y)17.98%
ROICexc(5y)14.34%
ROICexgc(3y)23.07%
ROICexgc(5y)17.96%
ROCE(3y)14.32%
ROCE(5y)12.03%
ROICexcg growth 3Y35.9%
ROICexcg growth 5Y26.04%
ROICexc growth 3Y32.65%
ROICexc growth 5Y23.34%
OM growth 3Y11.39%
OM growth 5Y7.6%
PM growth 3Y7.28%
PM growth 5Y3.19%
GM growth 3Y2.99%
GM growth 5Y2.71%
F-Score6
Asset Turnover1.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 197.08% | ||
| Cap/Sales | 1.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 21.49% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.59 |
F-Score6
WACC9.06%
ROIC/WACC1.21
Cap/Depr(3y)184.24%
Cap/Depr(5y)201.76%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.7%
EPS 3Y19.17%
EPS 5Y8.59%
EPS Q2Q%10.45%
EPS Next Y8.86%
EPS Next 2Y10.44%
EPS Next 3Y11.51%
EPS Next 5YN/A
Revenue 1Y (TTM)4.87%
Revenue growth 3Y6.68%
Revenue growth 5Y2.6%
Sales Q2Q%7.66%
Revenue Next Year5.57%
Revenue Next 2Y6.42%
Revenue Next 3Y6.4%
Revenue Next 5YN/A
EBIT growth 1Y0.09%
EBIT growth 3Y18.83%
EBIT growth 5Y10.4%
EBIT Next Year14.52%
EBIT Next 3Y11.69%
EBIT Next 5YN/A
FCF growth 1Y-102.8%
FCF growth 3YN/A
FCF growth 5Y-2.88%
OCF growth 1Y-66.59%
OCF growth 3YN/A
OCF growth 5Y-0.75%