BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
Taking everything into account, BBSI scores 5 out of 10 in our fundamental rating. BBSI was compared to 82 industry peers in the Professional Services industry. BBSI has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
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
BBSI's Return On Assets of 7.11% is fine compared to the rest of the industry. BBSI outperforms 69.51% of its industry peers.
With a decent Return On Equity value of 23.93%, BBSI is doing good in the industry, outperforming 73.17% of the companies in the same industry.
The Return On Invested Capital of BBSI (11.46%) is better than 69.51% 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 13.38%.
| 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.
BBSI's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 22.13%, BBSI is not doing good in the industry: 70.73% of the companies in the same industry are doing better.
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
BBSI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
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 3.60. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.60, BBSI is in the better half of the industry, outperforming 70.73% 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 | 3.6 |
ROIC/WACC1.28
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.32 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI's Current ratio of 1.32 is in line compared to the rest of the industry. BBSI outperforms 53.66% of its industry peers.
A Quick Ratio of 1.32 indicates that BBSI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.32, BBSI perfoms like the industry average, 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%.
The Earnings Per Share has been growing slightly by 4.90% on average over the past years.
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.
The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
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
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 21.12, 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.
When comparing the Price/Earnings ratio of BBSI to the average of the S&P500 Index (28.22), we can say BBSI is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.01, which indicates a rather expensive current valuation of BBSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBSI is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BBSI to the average of the S&P500 Index (20.86), we can say BBSI is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.01 |
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 | 13.22 |
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.
BBSI's earnings are expected to grow with 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.86
PEG (5Y)4.31
EPS Next 2Y13.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.78%, BBSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.39, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, 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 -22.36%.
BBSI has been paying a dividend for at least 10 years, so it has 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
BBSI pays out 15.26% of its income as dividend. This is a sustainable payout ratio.
DP15.26%
EPS Next 2Y13.34%
EPS Next 3YN/A
42.02
+1.24 (+3.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner Change-0.21%
Ins Owners3.12%
Ins Owner Change8.63%
Market Cap1.08B
Analysts82
Price Target47.69 (13.49%)
Short Float %2.01%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)0%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.12 | ||
| Fwd PE | 19.01 | ||
| P/S | 0.94 | ||
| P/FCF | N/A | ||
| P/OCF | 106.98 | ||
| P/B | 4.87 | ||
| P/tB | 6.22 | ||
| EV/EBITDA | 13.22 |
EPS(TTM)1.99
EY4.74%
EPS(NY)2.21
Fwd EY5.26%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)0.39
OCFY0.93%
SpS44.57
BVpS8.62
TBVpS6.76
PEG (NY)1.86
PEG (5Y)4.31
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 | 3.6 |
F-Score7
WACC8.97%
ROIC/WACC1.28
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%