BARRETT BUSINESS SVCS INC (BBSI) Stock Fundamental Analysis
NASDAQ:BBSI - Nasdaq - US0684631080 - Common Stock - Currency: USD
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 an excellent financial health rating, but there are some minor concerns on its profitability. BBSI is quite expensive at the moment. 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 65.43% of the companies in the same industry.
The Return On Equity of BBSI (24.42%) is better than 76.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.11%, BBSI is in the better half of the industry, outperforming 79.01% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BBSI is in line with the industry average of 12.78%.
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
BBSI has a Profit Margin of 4.45%. This is comparable to the rest of the industry: BBSI outperforms 56.79% of 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 has a worse Gross Margin (21.88%) than 70.37% 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
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
Compared to 5 years ago, BBSI has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 3.36 indicates that BBSI is not in any danger for bankruptcy at the moment.
BBSI has a Altman-Z score of 3.36. This is in the better half of the industry: BBSI outperforms 62.96% of its industry peers.
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/WACC1.43
WACC9.15%
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.
A Quick Ratio of 1.21 indicates that BBSI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, BBSI is in line with its industry, outperforming 45.68% 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.
The Revenue has grown by 8.41% in the past year. This is quite good.
Measured over the past years, BBSI shows a small growth in Revenue. The Revenue has been growing by 3.96% on average per year.
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
Based on estimates for the next years, BBSI will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.96% on average per year.
Based on estimates for the next years, BBSI will show a quite strong growth in Revenue. The Revenue will grow by 8.11% on average per year.
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
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.52 indicates a rather expensive valuation of BBSI.
The rest of the industry has a similar Price/Earnings ratio as BBSI.
When comparing the Price/Earnings ratio of BBSI to the average of the S&P500 Index (26.35), we can say BBSI is valued inline with the index average.
The Price/Forward Earnings ratio is 16.57, which indicates a correct valuation of BBSI.
BBSI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 62.96% of the companies in the same industry.
BBSI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 16.57 |
4.2 Price Multiples
BBSI's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. BBSI is cheaper than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.07 |
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 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)4.39
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.
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 0.77, BBSI pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of BBSI decreases each year by -22.36%.
BBSI has been paying a dividend for at least 10 years, so it has 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
41.96
+0.87 (+2.12%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92%
Inst Owner Change-2.31%
Ins Owners3.12%
Ins Owner Change9.05%
Market Cap1.08B
Analysts82
Price Target47.69 (13.66%)
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 | 21.52 | ||
| Fwd PE | 16.57 | ||
| P/S | 0.92 | ||
| P/FCF | N/A | ||
| P/OCF | 170.52 | ||
| P/B | 5.05 | ||
| P/tB | 6.51 | ||
| EV/EBITDA | 13.07 |
EPS(TTM)1.95
EY4.65%
EPS(NY)2.53
Fwd EY6.04%
FCF(TTM)-0.37
FCFYN/A
OCF(TTM)0.25
OCFY0.59%
SpS45.61
BVpS8.31
TBVpS6.45
PEG (NY)1.91
PEG (5Y)4.39
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
WACC9.15%
ROIC/WACC1.43
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%