BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
BBSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. BBSI has an excellent financial health rating, but there are some minor concerns on its profitability. BBSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BBSI was profitable.
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
With a decent Return On Assets value of 6.69%, BBSI is doing good in the industry, outperforming 69.51% of the companies in the same industry.
BBSI's Return On Equity of 24.42% is amongst the best of the industry. BBSI outperforms 80.49% of its industry peers.
BBSI has a better Return On Invested Capital (13.11%) than 78.05% of its industry peers.
BBSI had an Average Return On Invested Capital over the past 3 years of 11.91%. This is in line with the industry average of 12.49%.
The 3 year average ROIC (11.91%) for BBSI is below the current ROIC(13.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 24.42% | ||
| ROIC | 13.11% |
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 (4.45%) which is in line with its industry peers.
In the last couple of years the Profit Margin of BBSI has declined.
BBSI has a Operating Margin (5.15%) which is comparable to the rest of the industry.
BBSI's Operating Margin has been stable in the last couple of years.
BBSI's Gross Margin of 21.88% is on the low side compared to the rest of the industry. BBSI is outperformed by 71.95% of its industry peers.
BBSI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.15% | ||
| PM (TTM) | 4.45% | ||
| GM | 21.88% |
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
Compared to 5 years ago, BBSI has more shares outstanding
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 3.52 indicates that BBSI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.52, BBSI is in the better half of the industry, outperforming 65.85% 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 | 3.52 |
ROIC/WACC1.48
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.21 indicates that BBSI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.21, BBSI is doing worse than 60.98% of the companies in the same industry.
BBSI has a Quick Ratio of 1.21. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.21, BBSI is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.23% 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 been growing slightly by 7.03% in the past year.
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)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%699.02%
3.2 Future
The Earnings Per Share is expected to grow by 12.66% on average over the next years. This is quite good.
BBSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.03% yearly.
EPS Next Y10.35%
EPS Next 2Y12.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.65%
Revenue Next 2Y8.03%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.23, BBSI is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BBSI.
BBSI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 18.71 indicates a rather expensive valuation of BBSI.
The rest of the industry has a similar Price/Forward Earnings ratio as BBSI.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, BBSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 18.71 |
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 | 15.25 |
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 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)4.74
EPS Next 2Y12.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, BBSI is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.23, BBSI pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, BBSI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
15.69% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.69%
EPS Next 2Y12.66%
EPS Next 3YN/A
47.15
+0.28 (+0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.78%
Inst Owner Change-2.25%
Ins Owners4.2%
Ins Owner Change11.45%
Market Cap1.21B
Analysts82
Price Target47.69 (1.15%)
Short Float %2.74%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.69%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.63%
Min EPS beat(2)0.02%
Max EPS beat(2)69.24%
EPS beat(4)4
Avg EPS beat(4)19.97%
Min EPS beat(4)0.02%
Max EPS beat(4)69.24%
EPS beat(8)8
Avg EPS beat(8)28.44%
EPS beat(12)12
Avg EPS beat(12)40.21%
EPS beat(16)15
Avg EPS beat(16)41.75%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.32%
Max Revenue beat(2)1.77%
Revenue beat(4)3
Avg Revenue beat(4)0.55%
Min Revenue beat(4)-0.3%
Max Revenue beat(4)1.77%
Revenue beat(8)3
Avg Revenue beat(8)-1.94%
Revenue beat(12)3
Avg Revenue beat(12)-2.02%
Revenue beat(16)5
Avg Revenue beat(16)-1.47%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.23 | ||
| Fwd PE | 18.71 | ||
| P/S | 1.03 | ||
| P/FCF | N/A | ||
| P/OCF | 191.61 | ||
| P/B | 5.68 | ||
| P/tB | 7.31 | ||
| EV/EBITDA | 15.25 |
EPS(TTM)2.03
EY4.31%
EPS(NY)2.52
Fwd EY5.34%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.25
OCFY0.52%
SpS45.61
BVpS8.31
TBVpS6.45
PEG (NY)2.24
PEG (5Y)4.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.69% | ||
| ROE | 24.42% | ||
| ROCE | 17.7% | ||
| ROIC | 13.11% | ||
| ROICexc | 18.49% | ||
| ROICexgc | 23.05% | ||
| OM | 5.15% | ||
| PM (TTM) | 4.45% | ||
| GM | 21.88% | ||
| 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-Score6
Asset Turnover1.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 206.24% | ||
| Cap/Sales | 1.36% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 9.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 3.52 |
F-Score6
WACC8.87%
ROIC/WACC1.48
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 Y10.35%
EPS Next 2Y12.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.03%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%699.02%
Revenue Next Year8.65%
Revenue Next 2Y8.03%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y5.23%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year25.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-149.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-79.94%
OCF growth 3YN/A
OCF growth 5Y-33.42%