BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BBSI. 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. While showing a medium growth rate, BBSI is valued expensive at the moment.
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
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.
The Return On Equity of BBSI (24.42%) is better 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 12.78%.
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
The Profit Margin of BBSI (4.45%) is comparable to the rest of the industry.
BBSI's Profit Margin has declined in the last couple of years.
BBSI has a Operating Margin of 5.15%. This is comparable to the rest of the industry: BBSI outperforms 52.44% of its industry peers.
In the last couple of years the Operating Margin of BBSI has remained more or less at the same level.
BBSI's Gross Margin of 21.88% is on the low side compared to the rest of the industry. BBSI is outperformed by 69.51% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BBSI is still creating some value.
The number of shares outstanding for BBSI has been reduced compared to 1 year ago.
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 3.37 indicates that BBSI is not in any danger for bankruptcy at the moment.
BBSI has a Altman-Z score of 3.37. This is in the better half of the industry: BBSI outperforms 67.07% 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 | N/A | ||
| Altman-Z | 3.37 |
ROIC/WACC1.45
WACC9.05%
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 in line with its industry, outperforming 42.68% 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.
Looking at the Quick ratio, with a value of 1.21, BBSI is in line with its industry, 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
The Earnings Per Share has been growing slightly by 7.00% over the past year.
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 8.41% in the past year. This is quite good.
BBSI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.96% yearly.
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 12.96% yearly.
BBSI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.11% yearly.
EPS Next Y11.25%
EPS Next 2Y12.96%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.82%
Revenue Next 2Y8.11%
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
The Price/Earnings ratio is 21.19, which indicates a rather expensive current valuation of BBSI.
BBSI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.25, BBSI is valued at the same level.
Based on the Price/Forward Earnings ratio of 16.31, the valuation of BBSI can be described as correct.
63.41% of the companies in the same industry are more expensive than BBSI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, BBSI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BBSI is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.16 |
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 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)4.32
EPS Next 2Y12.96%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, BBSI is not a good candidate for dividend investing.
BBSI's Dividend Yield is a higher than the industry average which is at 2.08.
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 | 0.77% |
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
15.69% of the earnings are spent on dividend by BBSI. This is a low number and sustainable payout ratio.
DP15.69%
EPS Next 2Y12.96%
EPS Next 3YN/A
41.325
-0.45 (-1.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner Change-2.32%
Ins Owners3.12%
Ins Owner Change9.05%
Market Cap1.06B
Analysts82
Price Target47.69 (15.4%)
Short Float %2.34%
Short Ratio3.6
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)1.63%
EPS NQ rev (1m)-4.18%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-2.53%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 16.31 | ||
| P/S | 0.91 | ||
| P/FCF | N/A | ||
| P/OCF | 167.94 | ||
| P/B | 4.97 | ||
| P/tB | 6.41 | ||
| EV/EBITDA | 13.16 |
EPS(TTM)1.95
EY4.72%
EPS(NY)2.53
Fwd EY6.13%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.25
OCFY0.6%
SpS45.61
BVpS8.31
TBVpS6.45
PEG (NY)1.88
PEG (5Y)4.32
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 | 3.37 |
F-Score6
WACC9.05%
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 Y11.25%
EPS Next 2Y12.96%
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 Year8.82%
Revenue Next 2Y8.11%
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%