BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
USA - NASDAQ:BBSI - US0684631080 - Common Stock
42 USD
+0.32 (+0.77%)
42 USD
0 (0%)
BBSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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. While showing a medium growth rate, BBSI is valued expensive at the moment.
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.
In the past 5 years BBSI has always been profitable.
In multiple years BBSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
BBSI has a better Return On Assets (7.55%) than 75.58% of its industry peers.
Looking at the Return On Equity, with a value of 23.85%, BBSI is in the better half of the industry, outperforming 76.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.92%, BBSI is in the better half of the industry, outperforming 79.07% 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 13.28%.
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
With a Profit Margin value of 4.49%, BBSI perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
In the last couple of years the Profit Margin of BBSI has declined.
BBSI has a Operating Margin (5.25%) which 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 has a Gross Margin of 21.82%. This is in the lower half of the industry: BBSI underperforms 69.77% 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
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 less shares outstanding
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 3.84 indicates that BBSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.84, BBSI is in the better half of the industry, outperforming 70.93% 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 | 3.84 |
ROIC/WACC1.61
WACC8.66%
2.3 Liquidity
BBSI has a Current Ratio of 1.25. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BBSI (1.25) is worse than 61.63% 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's Quick ratio of 1.25 is on the low side compared to the rest of the industry. BBSI is outperformed by 61.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.23%, which is quite good.
The Earnings Per Share has been growing slightly by 4.90% on average over the past years.
The Revenue has grown by 9.48% 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)11.23%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%12.9%
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.01%
3.2 Future
The Earnings Per Share is expected to grow by 12.49% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.28% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BBSI is valuated rather expensively with a Price/Earnings ratio of 20.69.
BBSI's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.89. BBSI is valued slightly cheaper when compared to this.
BBSI is valuated correctly with a Price/Forward Earnings ratio of 16.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBSI indicates a somewhat cheap valuation: BBSI is cheaper than 61.63% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. BBSI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 16.72 |
4.2 Price Multiples
BBSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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)1.86
PEG (5Y)4.22
EPS Next 2Y12.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, BBSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.92, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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
15.35% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.35%
EPS Next 2Y12.49%
EPS Next 3YN/A
42
+0.32 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.26%
Inst Owner Change0.55%
Ins Owners4.26%
Ins Owner Change1.02%
Market Cap1.08B
Revenue(TTM)1.20B
Net Income(TTM)53.86M
Analysts82
Price Target52.53 (25.07%)
Short Float %2.12%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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 | 20.69 | ||
| Fwd PE | 16.72 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 281.35 | ||
| P/B | 4.78 | ||
| P/tB | 6.06 | ||
| EV/EBITDA | 13.06 |
EPS(TTM)2.03
EY4.83%
EPS(NY)2.51
Fwd EY5.98%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.15
OCFY0.36%
SpS46.68
BVpS8.79
TBVpS6.93
PEG (NY)1.86
PEG (5Y)4.22
Graham Number20.04
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 | 3.84 |
F-Score6
WACC8.66%
ROIC/WACC1.61
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)11.23%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%12.9%
EPS Next Y11.12%
EPS Next 2Y12.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.48%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.01%
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 3 / 10 to BARRETT BUSINESS SVCS INC (BBSI). This can be considered as Overvalued.
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%.