37.53 USD
-0.5 (-1.31%)
37.53 USD
0 (0%)
BBSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 88 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.
- In the past 5 years BBSI has always 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 7.05%, BBSI is doing good in the industry, outperforming 71.59% of the companies in the same industry.
- BBSI has a Return On Equity of 22.84%. This is in the better half of the industry: BBSI outperforms 75.00% of its industry peers.
- The Return On Invested Capital of BBSI (12.83%) is better than 79.55% 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 11.85%.
- The last Return On Invested Capital (12.83%) for BBSI is above the 3 year average (11.91%), which is a sign of increasing profitability.
| 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
- With a decent Profit Margin value of 4.48%, BBSI is doing good in the industry, outperforming 60.23% of the companies in the same industry.
- BBSI's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 5.25%, BBSI perfoms like the industry average, outperforming 53.41% of the companies in the same industry.
- BBSI's Operating Margin has been stable in the last couple of years.
- BBSI has a worse Gross Margin (21.57%) than 68.18% 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) | 4.48% | ||
| 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
- 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.
- BBSI has more shares outstanding than it did 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
- BBSI has an Altman-Z score of 3.48. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
- BBSI has a better Altman-Z score (3.48) than 65.91% 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 | 0 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.44
WACC8.88%
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 42.05% of its industry peers.
- A Quick Ratio of 1.27 indicates that BBSI should not have too much problems paying its short term obligations.
- The Quick ratio of BBSI (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
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.
- The Revenue has grown by 9.64% in the past year. This is quite good.
- 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
- The Earnings Per Share is expected to grow by 13.29% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.57% on average over the next years.
EPS Next Y8.29%
EPS Next 2Y10.47%
EPS Next 3Y13.29%
EPS Next 5YN/A
Revenue Next Year9.6%
Revenue Next 2Y8.58%
Revenue Next 3Y7.57%
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 18.04.
- 67.05% of the companies in the same industry are more expensive than BBSI, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. BBSI is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 15.49, the valuation of BBSI can be described as correct.
- Based on the Price/Forward Earnings ratio, BBSI is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, BBSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.04 | ||
| Fwd PE | 15.49 |
4.2 Price Multiples
- BBSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 73.86% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of BBSI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.93 | ||
| EV/EBITDA | 11.1 |
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.
- A more expensive valuation may be justified as BBSI's earnings are expected to grow with 13.29% in the coming years.
PEG (NY)2.18
PEG (5Y)3.68
EPS Next 2Y10.47%
EPS Next 3Y13.29%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.81%, BBSI is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.41, BBSI pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.81, BBSI pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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
- BBSI pays out 15.02% of its income as dividend. This is a sustainable payout ratio.
DP15.02%
EPS Next 2Y10.47%
EPS Next 3Y13.29%
BARRETT BUSINESS SVCS INC / BBSI FAQ
What is the fundamental rating for BBSI stock?
ChartMill assigns a fundamental rating of 5 / 10 to BBSI.
Can you provide the valuation status for BARRETT BUSINESS SVCS INC?
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 valuation of BARRETT BUSINESS SVCS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BARRETT BUSINESS SVCS INC (BBSI) is 18.04 and the Price/Book (PB) ratio is 4.
What is the financial health of BARRETT BUSINESS SVCS INC (BBSI) stock?
The financial health rating of BARRETT BUSINESS SVCS INC (BBSI) is 7 / 10.