BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
Taking everything into account, BBSI scores 6 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. 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.
In the past year BBSI had a positive cash flow from operations.
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's Return On Assets of 6.69% is fine compared to the rest of the industry. BBSI outperforms 67.07% of its industry peers.
BBSI has a better Return On Equity (24.42%) than 76.83% of its industry peers.
The Return On Invested Capital of BBSI (13.11%) is better than 80.49% 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 12.61%.
The last Return On Invested Capital (13.11%) for BBSI is above the 3 year average (11.91%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 4.45%, BBSI perfoms like the industry average, outperforming 58.54% of the companies in the same industry.
BBSI's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.15%, BBSI is in line with its industry, outperforming 52.44% 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.
With a Gross Margin value of 21.88%, BBSI is not doing good in the industry: 69.51% 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 | 5.15% | ||
| 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
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 3.36 indicates that BBSI is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.36, BBSI is doing good in the industry, outperforming 67.07% of the companies in the same industry.
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 | 3.36 |
ROIC/WACC1.45
WACC9.02%
2.3 Liquidity
BBSI has a Current 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.
BBSI has a Current ratio (1.21) which is in line with its industry peers.
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 perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
BBSI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.00%.
The Earnings Per Share has been growing slightly by 4.90% on average over the past years.
Looking at the last year, BBSI shows a quite strong growth in Revenue. The Revenue has grown by 8.41% in the last year.
The Revenue has been growing slightly by 3.96% on average over the past years.
EPS 1Y (TTM)7%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%-700%
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.08%
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 12.66% yearly.
The Revenue is expected to grow by 8.03% on average over the next years. This is quite good.
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
BBSI is valuated rather expensively with a Price/Earnings ratio of 20.95.
BBSI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. BBSI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.22, the valuation of BBSI can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BBSI is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.03, BBSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 16.22 |
4.2 Price Multiples
64.63% of the companies in the same industry are more expensive than BBSI, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.98 |
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 12.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.02
PEG (5Y)4.27
EPS Next 2Y12.66%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.77%, which is pretty low.
BBSI's Dividend Yield is a higher than the industry average which is at 2.14.
With a Dividend Yield of 0.77, BBSI pays less dividend than the S&P500 average, which is at 2.44.
| 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
BBSI pays out 15.69% of its income as dividend. This is a sustainable payout ratio.
DP15.69%
EPS Next 2Y12.66%
EPS Next 3YN/A
40.86
-0.55 (-1.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.78%
Inst Owner Change-2.32%
Ins Owners4.2%
Ins Owner Change8.41%
Market Cap1.05B
Analysts82
Price Target47.69 (16.72%)
Short Float %2.65%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)-0.81%
EPS NY rev (3m)-3.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.58%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.95 | ||
| Fwd PE | 16.22 | ||
| P/S | 0.9 | ||
| P/FCF | N/A | ||
| P/OCF | 166.05 | ||
| P/B | 4.92 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 12.98 |
EPS(TTM)1.95
EY4.77%
EPS(NY)2.52
Fwd EY6.17%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.25
OCFY0.6%
SpS45.61
BVpS8.31
TBVpS6.45
PEG (NY)2.02
PEG (5Y)4.27
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 | 3.36 |
F-Score6
WACC9.02%
ROIC/WACC1.45
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)7%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%-700%
EPS Next Y10.35%
EPS Next 2Y12.66%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.41%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%10.08%
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 Year33.38%
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%