BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
USA - NASDAQ:BBSI - US0684631080 - Common Stock
40.62 USD
+0.15 (+0.37%)
40.62 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BBSI. BBSI was compared to 87 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
BBSI had positive earnings in the past year.
In the past year BBSI had a positive cash flow from operations.
Each year in the past 5 years BBSI has been profitable.
In multiple years BBSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
BBSI's Return On Assets of 7.55% is fine compared to the rest of the industry. BBSI outperforms 74.71% of its industry peers.
BBSI has a Return On Equity of 23.85%. This is in the better half of the industry: BBSI outperforms 77.01% of its industry peers.
With a decent Return On Invested Capital value of 13.92%, BBSI is doing good in the industry, outperforming 79.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BBSI is in line with the industry average of 13.25%.
The 3 year average ROIC (11.91%) for BBSI is below the current ROIC(13.92%), indicating increased profibility in the last year.
| 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
BBSI has a Profit Margin (4.49%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BBSI has declined.
With a Operating Margin value of 5.25%, BBSI perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
In the last couple of years the Operating Margin of BBSI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 21.82%, BBSI is doing worse than 68.97% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BBSI is creating some value.
The number of shares outstanding for BBSI has been reduced compared to 1 year ago.
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
An Altman-Z score of 3.79 indicates that BBSI is not in any danger for bankruptcy at the moment.
BBSI has a Altman-Z score of 3.79. This is in the better half of the industry: BBSI outperforms 70.11% 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 | N/A | ||
| Altman-Z | 3.79 |
ROIC/WACC1.59
WACC8.75%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI's Current ratio of 1.25 is in line compared to the rest of the industry. BBSI outperforms 40.23% of its industry peers.
A Quick Ratio of 1.25 indicates that BBSI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, BBSI is in line with its industry, outperforming 40.23% of the companies in the same industry.
| 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.
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.
Looking at the last year, BBSI shows a quite strong growth in Revenue. The Revenue has grown by 9.48% 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)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
Based on estimates for the next years, BBSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.49% on average per year.
Based on estimates for the next years, BBSI will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.01, the valuation of BBSI can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BBSI.
BBSI is valuated rather cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
BBSI is valuated correctly with a Price/Forward Earnings ratio of 16.17.
Based on the Price/Forward Earnings ratio, BBSI is valued a bit cheaper than 63.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, BBSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.01 | ||
| Fwd PE | 16.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as BBSI's earnings are expected to grow with 12.49% in the coming years.
PEG (NY)1.8
PEG (5Y)4.08
EPS Next 2Y12.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.79%, which is pretty low.
BBSI's Dividend Yield is a higher than the industry average which is at 4.46.
Compared to an average S&P500 Dividend Yield of 2.38, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 15.35% of its income as dividend. This is a sustainable payout ratio.
DP15.35%
EPS Next 2Y12.49%
EPS Next 3YN/A
40.62
+0.15 (+0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.26%
Inst Owner Change0.27%
Ins Owners4.26%
Ins Owner Change1.02%
Market Cap1.04B
Revenue(TTM)1.20B
Net Income(TTM)53.86M
Analysts82
Price Target52.53 (29.32%)
Short Float %2%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 | 20.01 | ||
| Fwd PE | 16.17 | ||
| P/S | 0.87 | ||
| P/FCF | N/A | ||
| P/OCF | 272.11 | ||
| P/B | 4.62 | ||
| P/tB | 5.86 | ||
| EV/EBITDA | 12.51 |
EPS(TTM)2.03
EY5%
EPS(NY)2.51
Fwd EY6.18%
FCF(TTM)-0.45
FCFYN/A
OCF(TTM)0.15
OCFY0.37%
SpS46.68
BVpS8.79
TBVpS6.93
PEG (NY)1.8
PEG (5Y)4.08
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 | 3.79 |
F-Score6
WACC8.75%
ROIC/WACC1.59
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%.