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BBSI

Barrett Business Services NasdaqGS:BBSI Stock Report

Last Price

US$75.87

Market Cap

US$555.4m

7D

10.6%

1Y

-0.2%

Updated

26 Jun, 2022

Data

Company Financials +
BBSI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

BBSI Stock Overview

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States.

Barrett Business Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Barrett Business Services
Historical stock prices
Current Share PriceUS$75.87
52 Week HighUS$86.82
52 Week LowUS$57.76
Beta1.46
1 Month Change2.21%
3 Month Change-1.47%
1 Year Change-0.17%
3 Year Change-8.15%
5 Year Change32.43%
Change since IPO2,701.35%

Recent News & Updates

May 08
Barrett Business Services' (NASDAQ:BBSI) Dividend Will Be US$0.30

Barrett Business Services' (NASDAQ:BBSI) Dividend Will Be US$0.30

Barrett Business Services, Inc. ( NASDAQ:BBSI ) will pay a dividend of US$0.30 on the 3rd of June. Based on this...

Shareholder Returns

BBSIUS Professional ServicesUS Market
7D10.6%7.2%6.6%
1Y-0.2%-17.3%-18.4%

Return vs Industry: BBSI exceeded the US Professional Services industry which returned -17.3% over the past year.

Return vs Market: BBSI exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is BBSI's price volatile compared to industry and market?
BBSI volatility
BBSI Average Weekly Movement4.6%
Professional Services Industry Average Movement6.7%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: BBSI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BBSI's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1965121,660Gary Kramerhttps://www.bbsi.com

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers’ compensation coverage, and other administration functions for the client’s existing workforce.

Barrett Business Services Fundamentals Summary

How do Barrett Business Services's earnings and revenue compare to its market cap?
BBSI fundamental statistics
Market CapUS$555.38m
Earnings (TTM)US$42.92m
Revenue (TTM)US$983.10m

12.9x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBSI income statement (TTM)
RevenueUS$983.10m
Cost of RevenueUS$769.10m
Gross ProfitUS$214.00m
Other ExpensesUS$171.08m
EarningsUS$42.92m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.86
Gross Margin21.77%
Net Profit Margin4.37%
Debt/Equity Ratio0%

How did BBSI perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

21%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BBSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BBSI?

Other financial metrics that can be useful for relative valuation.

BBSI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA8.4x
PEG Ratio1.6x

Price to Earnings Ratio vs Peers

How does BBSI's PE Ratio compare to its peers?

BBSI PE Ratio vs Peers
The above table shows the PE ratio for BBSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average142.8x
TBI TrueBlue
9x1.6%US$585.0m
KELY.A Kelly Services
9x54.3%US$735.4m
HSII Heidrick & Struggles International
8.4x1.7%US$640.4m
HRT HireRight Holdings
544.8x53.7%US$1.2b
BBSI Barrett Business Services
12.9x7.9%US$555.4m

Price-To-Earnings vs Peers: BBSI is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (142.8x).


Price to Earnings Ratio vs Industry

How does BBSI's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: BBSI is good value based on its Price-To-Earnings Ratio (12.9x) compared to the US Professional Services industry average (15.8x)


Price to Earnings Ratio vs Fair Ratio

What is BBSI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BBSI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.9x
Fair PE Ratio15.5x

Price-To-Earnings vs Fair Ratio: BBSI is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).


Share Price vs Fair Value

What is the Fair Price of BBSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BBSI ($75.87) is trading below our estimate of fair value ($285.18)

Significantly Below Fair Value: BBSI is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: BBSI is poor value based on its PEG Ratio (1.6x)


Discover undervalued companies

Future Growth

How is Barrett Business Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBSI's forecast earnings growth (7.9% per year) is above the savings rate (1.9%).

Earnings vs Market: BBSI's earnings (7.9% per year) are forecast to grow slower than the US market (13.9% per year).

High Growth Earnings: BBSI's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBSI's revenue (6.7% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: BBSI's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BBSI's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Barrett Business Services performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


11.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BBSI has a high level of non-cash earnings.

Growing Profit Margin: BBSI's current net profit margins (4.4%) are higher than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: BBSI's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: BBSI's earnings growth over the past year (31.6%) exceeds its 5-year average (11% per year).

Earnings vs Industry: BBSI earnings growth over the past year (31.6%) underperformed the Professional Services industry 33.1%.


Return on Equity

High ROE: BBSI's Return on Equity (23.1%) is considered high.


Discover strong past performing companies

Financial Health

How is Barrett Business Services's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BBSI's short term assets ($516.4M) exceed its short term liabilities ($391.9M).

Long Term Liabilities: BBSI's short term assets ($516.4M) exceed its long term liabilities ($206.9M).


Debt to Equity History and Analysis

Debt Level: BBSI is debt free.

Reducing Debt: BBSI has no debt compared to 5 years ago when its debt to equity ratio was 7.9%.

Debt Coverage: BBSI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BBSI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Barrett Business Services's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


1.58%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BBSI's dividend (1.58%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: BBSI's dividend (1.58%) is low compared to the top 25% of dividend payers in the US market (4.24%).


Stability and Growth of Payments

Stable Dividend: BBSI's dividends per share have been stable in the past 10 years.

Growing Dividend: BBSI's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21%), BBSI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: BBSI is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Gary Kramer (41 yo)

2.25yrs

Tenure

US$3,014,992

Compensation

Mr. Gary Edward Kramer serves as Chief Executive Officer and President at Barrett Business Services, Inc. since March 5, 2020 and its Director since May 27, 2020. Mr. Kramer served as Chief Financial and A...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD3.01M) is about average for companies of similar size in the US market ($USD2.83M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BBSI's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: BBSI's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BBSI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Barrett Business Services, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Barrett Business Services, Inc.
  • Ticker: BBSI
  • Exchange: NasdaqGS
  • Founded: 1965
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: US$555.380m
  • Shares outstanding: 7.32m
  • Website: https://www.bbsi.com

Number of Employees


Location

  • Barrett Business Services, Inc.
  • 8100 NE Parkway Drive
  • Suite 200
  • Vancouver
  • Washington
  • 98662
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.