BARRETT BUSINESS SVCS INC (BBSI)
US0684631080 - Common Stock
BBSI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. BBSI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BBSI has a decent growth rate and is not valued too expensively. These ratings could make BBSI a good candidate for quality investing.
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.
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 has a better Return On Assets (7.01%) than 76.25% of its industry peers.
With an excellent Return On Equity value of 25.39%, BBSI belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
BBSI has a Return On Invested Capital of 11.68%. This is in the better half of the industry: BBSI outperforms 71.25% of its industry peers.
BBSI had an Average Return On Invested Capital over the past 3 years of 10.44%. This is in line with the industry average of 12.24%.
The last Return On Invested Capital (11.68%) for BBSI is above the 3 year average (10.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 25.39% | ||
| ROIC | 11.68% |
ROA(3y)6.33%
ROA(5y)5.79%
ROE(3y)23.43%
ROE(5y)23.09%
ROIC(3y)10.44%
ROIC(5y)8.77%
1.3 Margins
The Profit Margin of BBSI (4.73%) is better than 62.50% of its industry peers.
BBSI's Profit Margin has improved in the last couple of years.
BBSI has a Operating Margin (5.67%) which is comparable to the rest of the industry.
BBSI's Operating Margin has improved in the last couple of years.
BBSI's Gross Margin of 22.67% is on the low side compared to the rest of the industry. BBSI is outperformed by 73.75% of its industry peers.
BBSI's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 4.73% | ||
| GM | 22.67% |
OM growth 3Y11.44%
OM growth 5Y7.6%
PM growth 3Y7.24%
PM growth 5Y3.17%
GM growth 3Y2.99%
GM growth 5Y2.71%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BBSI is still creating some value.
Compared to 1 year ago, BBSI has less shares outstanding
BBSI has less 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
BBSI has an Altman-Z score of 3.21. This indicates that BBSI is financially healthy and has little risk of bankruptcy at the moment.
BBSI has a Altman-Z score (3.21) which is in line with 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 | 3.21 |
ROIC/WACC1.27
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.30 indicates that BBSI should not have too much problems paying its short term obligations.
BBSI has a Current ratio (1.30) which is comparable to the rest of the industry.
BBSI has a Quick Ratio of 1.30. This is a normal value and indicates that BBSI is financially healthy and should not expect problems in meeting its short term obligations.
BBSI's Quick ratio of 1.30 is in line compared to the rest of the industry. BBSI outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
BBSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.41%, which is quite good.
Measured over the past years, BBSI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.59% on average per year.
BBSI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.41%.
Measured over the past years, BBSI shows a small growth in Revenue. The Revenue has been growing by 2.60% on average per year.
EPS 1Y (TTM)12.41%
EPS 3Y19.17%
EPS 5Y8.59%
EPS growth Q2Q31.71%
Revenue 1Y (TTM)1.41%
Revenue growth 3Y6.68%
Revenue growth 5Y2.6%
Revenue growth Q2Q1.72%
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 8.57% yearly.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y5.09%
EPS Next 2Y8.57%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.85%
Revenue Next 2Y7.31%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 16.61, which indicates a correct valuation of BBSI.
Based on the Price/Earnings ratio, BBSI is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.28. BBSI is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.80, the valuation of BBSI can be described as correct.
70.00% of the companies in the same industry are more expensive than BBSI, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BBSI to the average of the S&P500 Index (20.88), we can say BBSI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.8 |
4.2 Price Multiples
82.50% of the companies in the same industry are more expensive than BBSI, based on the Enterprise Value to EBITDA ratio.
BBSI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 8.47 |
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.
The decent profitability rating of BBSI may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)1.93
EPS Next 2Y8.57%
EPS Next 3YN/A
5. Dividend
5.1 Amount
BBSI has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.08, BBSI pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.00, BBSI pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of BBSI has a limited annual growth rate of 3.87%.
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)3.87%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
BBSI pays out 16.00% of its income as dividend. This is a sustainable payout ratio.
BBSI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16%
EPS Next 2Y8.57%
EPS Next 3YN/A
BARRETT BUSINESS SVCS INC
NASDAQ:BBSI (5/3/2024, 7:00:01 PM)
After market: 123.38 0 (0%)123.38
+3.89 (+3.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap806.91M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 15.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.26
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.01% | ||
| ROE | 25.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.67% | ||
| PM (TTM) | 4.73% | ||
| GM | 22.67% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.41%
EPS 3Y19.17%
EPS 5Y
EPS growth Q2Q
EPS Next Y5.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.41%
Revenue growth 3Y6.68%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y