Barrett Business Services
Market Cap
US$517.8m
Last Updated
2021/01/17 00:42 UTC
Data Sources
Company Financials +
Executive Summary
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with excellent balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Barrett Business Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BBSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: BBSI's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-3.5%
BBSI
-3.5%
US Professional Services
-1.0%
US Market
1 Year Return
-24.9%
BBSI
14.8%
US Professional Services
19.6%
US Market
Return vs Industry: BBSI underperformed the US Professional Services industry which returned 14.8% over the past year.
Return vs Market: BBSI underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| BBSI | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.5% | -3.5% | -1.0% |
| 30 Day | -6.4% | -2.9% | 2.2% |
| 90 Day | 18.0% | 6.9% | 11.5% |
| 1 Year | -23.2%-24.9% | 15.6%14.8% | 22.3%19.6% |
| 3 Year | -0.3%-4.9% | 53.7%49.3% | 45.3%35.7% |
| 5 Year | 90.6%74.5% | 131.6%118.9% | 124.8%99.8% |
Long-Term Price Volatility Vs. Market
How volatile is Barrett Business Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Is Barrett Business Services, Inc.'s (NASDAQ:BBSI) Shareholder Ownership Skewed Towards Insiders?3 weeks ago | Simply Wall St
Here's How We Evaluate Barrett Business Services, Inc.'s (NASDAQ:BBSI) Dividend1 month ago | Simply Wall St
We're Watching These Trends At Barrett Business Services (NASDAQ:BBSI)Valuation
Is Barrett Business Services undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BBSI ($67.72) is trading below our estimate of fair value ($154.92)
Significantly Below Fair Value: BBSI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BBSI is good value based on its PE Ratio (13.3x) compared to the US Professional Services industry average (24.7x).
PE vs Market: BBSI is good value based on its PE Ratio (13.3x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: BBSI is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: BBSI is good value based on its PB Ratio (2.6x) compared to the US Professional Services industry average (3.5x).
Next Steps
Future Growth
How is Barrett Business Services forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BBSI's forecast earnings growth (8.6% per year) is above the savings rate (2%).
Earnings vs Market: BBSI's earnings (8.6% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: BBSI's earnings are forecast to grow, but not significantly.
Revenue vs Market: BBSI's revenue (5.7% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: BBSI's revenue (5.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BBSI's Return on Equity is forecast to be low in 3 years time (16.7%).
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Past Performance
How has Barrett Business Services performed over the past 5 years?
20.1%
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 (4.3%) are lower than last year (5.7%).
Past Earnings Growth Analysis
Earnings Trend: BBSI's earnings have grown significantly by 20.1% per year over the past 5 years.
Accelerating Growth: BBSI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BBSI had negative earnings growth (-28.2%) over the past year, making it difficult to compare to the Professional Services industry average (-0.06%).
Return on Equity
High ROE: BBSI's Return on Equity (19.4%) is considered low.
Next Steps
Financial Health
How is Barrett Business Services's financial position?
Financial Position Analysis
Short Term Liabilities: BBSI's short term assets ($466.5M) exceed its short term liabilities ($346.0M).
Long Term Liabilities: BBSI's short term assets ($466.5M) exceed its long term liabilities ($280.0M).
Debt to Equity History and Analysis
Debt Level: BBSI's debt to equity ratio (1.9%) is considered satisfactory.
Reducing Debt: BBSI's debt to equity ratio has reduced from 68.3% to 1.9% over the past 5 years.
Debt Coverage: BBSI's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: BBSI earns more interest than it pays, so 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?
1.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BBSI's dividend (1.77%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: BBSI's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (3.85%).
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.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.7%), BBSI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
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Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Gary Kramer (40 yo)
0.83
Tenure
US$1,537,139
Compensation
Mr. Gary Edward Kramer serves as Chief Executive Officer and President at Barrett Business Services, Inc. since March 5, 2020 and its Director since May 27, 2020. Mr. Kramer served as Chief Financial and A...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD1.54M) is about average for companies of similar size in the US market ($USD1.66M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.83yr | US$1.54m | 0.35% $ 1.8m | |
| COO & VP | no data | US$1.41m | 0.35% $ 1.8m | |
| CFO & Secretary | 0.83yr | no data | 0.024% $ 122.6k | |
| Executive VP & General Counsel | 0.33yr | no data | no data | |
| Executive Director of Sales & Distribution | 0.75yr | no data | no data |
0.8yrs
Average Tenure
44.5yo
Average Age
Experienced Management: BBSI's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.83yr | US$1.54m | 0.35% $ 1.8m | |
| Independent Chairman of the Board | 10yrs | US$174.95k | 0.21% $ 1.1m | |
| Independent Director | 20yrs | US$137.04k | 0.21% $ 1.1m | |
| Independent Director | 21yrs | US$136.20k | 0.32% $ 1.7m | |
| Independent Director | 1.25yrs | US$58.34k | 0.0066% $ 33.9k | |
| Independent Director | 16.08yrs | US$134.95k | 0.35% $ 1.8m | |
| Independent Director | 4.25yrs | US$142.45k | 0.041% $ 212.7k | |
| Independent Director | 4yrs | US$139.12k | 0.039% $ 199.6k |
7.1yrs
Average Tenure
58.5yo
Average Age
Experienced Board: BBSI's board of directors are considered experienced (7.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BBSI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.
Top Shareholders
Company Information
Barrett Business Services, Inc.'s company bio, 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
- Market Cap: US$517.809m
- Shares outstanding: 7.65m
- Website: https://mybbsi.com
Number of Employees
Location
- Barrett Business Services, Inc.
- 8100 NE Parkway Drive
- Suite 200
- Vancouver
- Washington
- 98662
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BBSI | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 1993 |
| BB1 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 1993 |
Biography
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. It develops a management platform that integrates a knowledge-based approach f...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/17 00:42 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.