BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
USA - NASDAQ:BBSI - US0684631080 - Common Stock
35.6 USD
+0.43 (+1.22%)
35.6 USD
0 (0%)
BBSI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. While BBSI has a great health rating, its profitability is only average at the moment. BBSI has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of BBSI (7.05%) is better than 70.93% of its industry peers.
Looking at the Return On Equity, with a value of 22.84%, BBSI is in the better half of the industry, outperforming 74.42% of the companies in the same industry.
BBSI has a better Return On Invested Capital (12.83%) than 74.42% of its industry peers.
BBSI had an Average Return On Invested Capital over the past 3 years of 11.91%. This is significantly below the industry average of 22.56%.
The 3 year average ROIC (11.91%) for BBSI is below the current ROIC(12.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 22.84% | ||
| ROIC | 12.83% |
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's Profit Margin of 4.48% is in line compared to the rest of the industry. BBSI outperforms 55.81% of its industry peers.
BBSI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.25%, 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.
BBSI's Gross Margin of 21.57% is on the low side compared to the rest of the industry. BBSI is outperformed by 73.26% 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) | 4.48% | ||
| GM | 21.57% |
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.
BBSI has less shares outstanding than it did 1 year ago.
BBSI has more shares outstanding than it did 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 3.41 indicates that BBSI is not in any danger for bankruptcy at the moment.
BBSI has a Altman-Z score of 3.41. This is in the better half of the industry: BBSI outperforms 66.28% of its industry peers.
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 | 0 | ||
| Altman-Z | 3.41 |
ROIC/WACC1.46
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.27 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI has a Current ratio (1.27) which is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that BBSI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, BBSI perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.76%, which is quite good.
BBSI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.90% yearly.
The Revenue has grown by 9.64% 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)9.76%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%6.76%
Revenue 1Y (TTM)9.64%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
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 12.49% yearly.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.12, which indicates a rather expensive current valuation of BBSI.
65.12% of the companies in the same industry are more expensive than BBSI, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BBSI to the average of the S&P500 Index (25.89), we can say BBSI is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.17, BBSI is valued correctly.
BBSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 66.28% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. BBSI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 14.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than 76.74% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as BBSI.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.18 | ||
| EV/EBITDA | 10.27 |
4.3 Compensation for Growth
BBSI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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)1.54
PEG (5Y)3.49
EPS Next 2Y12.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a yearly dividend return of 0.91%, which is pretty low.
The stock price of BBSI dropped by -22.66% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.28, 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 | 0.91% |
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 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
15.02% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.02%
EPS Next 2Y12.49%
EPS Next 3YN/A
35.6
+0.43 (+1.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.26%
Inst Owner Change7.46%
Ins Owners4.26%
Ins Owner Change1.09%
Market Cap914.56M
Revenue(TTM)1.22B
Net Income(TTM)54.85M
Analysts82
Price Target52.53 (47.56%)
Short Float %2%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.31
Dividend Growth(5Y)-22.36%
DP15.02%
Div Incr Years1
Div Non Decr Years18
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.53%
Min EPS beat(2)-2.88%
Max EPS beat(2)-0.18%
EPS beat(4)2
Avg EPS beat(4)16.55%
Min EPS beat(4)-2.88%
Max EPS beat(4)69.24%
EPS beat(8)6
Avg EPS beat(8)22.8%
EPS beat(12)10
Avg EPS beat(12)36.55%
EPS beat(16)14
Avg EPS beat(16)38.99%
Revenue beat(2)1
Avg Revenue beat(2)-0.75%
Min Revenue beat(2)-2.06%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)1.77%
Revenue beat(8)4
Avg Revenue beat(8)-0.78%
Revenue beat(12)4
Avg Revenue beat(12)-1.99%
Revenue beat(16)5
Avg Revenue beat(16)-1.68%
PT rev (1m)0%
PT rev (3m)10.16%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)-1.8%
EPS NY rev (1m)0%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)6.53%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.12 | ||
| Fwd PE | 14.17 | ||
| P/S | 0.75 | ||
| P/FCF | 34.18 | ||
| P/OCF | 21.17 | ||
| P/B | 3.81 | ||
| P/tB | 4.76 | ||
| EV/EBITDA | 10.27 |
EPS(TTM)2.08
EY5.84%
EPS(NY)2.51
Fwd EY7.06%
FCF(TTM)1.04
FCFY2.93%
OCF(TTM)1.68
OCFY4.72%
SpS47.64
BVpS9.35
TBVpS7.49
PEG (NY)1.54
PEG (5Y)3.49
Graham Number20.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.05% | ||
| ROE | 22.84% | ||
| ROCE | 17.31% | ||
| ROIC | 12.83% | ||
| ROICexc | 18.21% | ||
| ROICexgc | 22.28% | ||
| OM | 5.25% | ||
| PM (TTM) | 4.48% | ||
| GM | 21.57% | ||
| FCFM | 2.19% |
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 Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 204.71% | ||
| Cap/Sales | 1.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.75% | ||
| Profit Quality | 48.78% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 3.41 |
F-Score6
WACC8.78%
ROIC/WACC1.46
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)9.76%
EPS 3Y16.67%
EPS 5Y4.9%
EPS Q2Q%6.76%
EPS Next Y11.12%
EPS Next 2Y12.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.64%
Revenue growth 3Y6.21%
Revenue growth 5Y3.96%
Sales Q2Q%8.38%
Revenue Next Year9.86%
Revenue Next 2Y4.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.03%
EBIT growth 3Y10.82%
EBIT growth 5Y3.44%
EBIT Next Year29.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.62%
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 4 / 10 to BARRETT BUSINESS SVCS INC (BBSI). This can be considered as Fairly Valued.
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 15.02%.