NasdaqGS:BBSI

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 65.1% below its fair value

Earnings are forecast to grow 5.96% per year

Earnings grew by 68.6% over the past year

Pays a reliable dividend of 1.33%

Risk Analysis

No risks detected for BBSI from our risk checks.


Snowflake Analysis

Outstanding track record with flawless 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.0%

BBSI

0.8%

US Professional Services

0.8%

US Market


1 Year Return

44.6%

BBSI

26.5%

US Professional Services

17.8%

US Market

Return vs Industry: BBSI exceeded the US Professional Services industry which returned 26.5% over the past year.

Return vs Market: BBSI exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

BBSIIndustryMarket
7 Day4.0%0.8%0.8%
30 Day0.2%3.6%1.8%
90 Day4.4%0.4%4.1%
1 Year46.5%44.6%27.6%26.5%20.4%17.8%
3 Year49.6%43.3%56.3%51.2%45.9%36.4%
5 Year270.1%238.5%80.4%70.5%68.1%49.6%

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

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 ($89.94) is trading below our estimate of fair value ($257.36)

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 (12.5x) compared to the Professional Services industry average (20x).

PE vs Market: BBSI is good value based on its PE Ratio (12.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BBSI is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BBSI is overvalued based on its PB Ratio (4.2x) compared to the US Professional Services industry average (2.7x).


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?

6.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBSI's forecast earnings growth (6% per year) is above the savings rate (1.7%).

Earnings vs Market: BBSI's earnings (6% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: BBSI's revenue (7.2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BBSI's revenue (7.2% 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 high in 3 years time (24.1%)


Next Steps

Past Performance

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

47.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBSI has high quality earnings.

Growing Profit Margin: BBSI's current net profit margins (5.7%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: BBSI has become profitable over the past 5 years, growing earnings by 47.6% per year.

Accelerating Growth: BBSI's earnings growth over the past year (68.6%) exceeds its 5-year average (47.6% per year).

Earnings vs Industry: BBSI earnings growth over the past year (68.6%) exceeded the Professional Services industry 23.5%.


Return on Equity

High ROE: BBSI's Return on Equity (33.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Barrett Business Services's financial position?


Financial Position Analysis

Short Term Liabilities: BBSI's short term assets ($448.3M) exceed its short term liabilities ($367.8M).

Long Term Liabilities: BBSI's short term assets ($448.3M) exceed its long term liabilities ($342.2M).


Debt to Equity History and Analysis

Debt Level: BBSI's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: BBSI's debt to equity ratio has reduced from 16.1% to 2.5% over the past 5 years.

Debt Coverage: BBSI's debt is well covered by operating cash flow (2007.2%).

Interest Coverage: BBSI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: BBSI has a low level of unsold assets or inventory.

Debt Coverage by Assets: BBSI's debt is covered by short term assets (assets are 111.9x debt).


Next Steps

Dividend

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

1.33%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: BBSI's dividend (1.33%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BBSI's dividend (1.33%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (14.6%), BBSI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBSI's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

What is the CEO of Barrett Business Services's salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Mike Elich (54yo)

8.9yrs

Tenure

US$2,622,434

Compensation

Mr. Michael L. Elich, also known as Mike, has been the Chief Executive Officer and President of Barrett Business Services, Inc. since February 17, 2011. Mr. Elich served as an Interim Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD2.62M) is about average for companies of similar size in the US market ($USD2.65M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.5yrs

Average Tenure

47yo

Average Age

Experienced Management: BBSI's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BBSI's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: BBSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$176,62827 Nov 19
Jon Justesen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$88.31
SellUS$177,00026 Nov 19
Thomas Carley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$88.50
SellUS$17,17228 Aug 19
Anthony Meeker
EntityIndividual
Role
Chairman of the Board
Chairman
Shares200
Max PriceUS$85.86
SellUS$264,75021 Aug 19
Thomas Carley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$88.25
SellUS$14,99516 Aug 19
James Hicks
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares176
Max PriceUS$85.20
SellUS$178,38325 Mar 19
Anthony Meeker
EntityIndividual
Role
Chairman of the Board
Chairman
Shares2,332
Max PriceUS$77.04
SellUS$1,296,30412 Mar 19
Gregory Vaughn
EntityIndividual
Shares16,115
Max PriceUS$80.98
SellUS$454,08206 Mar 19
Thomas Carley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,561
Max PriceUS$81.68
SellUS$290,90010 Jan 19
Jon Justesen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$58.18
SellUS$70,59428 Dec 18
Jon Justesen
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,235
Max PriceUS$57.16

Ownership Breakdown

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


Management Team

  • Mike Elich (54yo)

    CEO, President & Director

    • Tenure: 8.9yrs
    • Compensation: US$2.62m
  • Heather Gould (45yo)

    Chief Strategy Officer & VP

    • Tenure: 2.9yrs
    • Compensation: US$2.87m
  • Gary Kramer (39yo)

    VP of Finance

    • Tenure: 3.3yrs
    • Compensation: US$2.85m
  • Gerald Blotz (49yo)

    COO of Field Operations & VP

    • Tenure: 5.6yrs
    • Compensation: US$2.86m

Board Members

  • Tony Meeker (80yo)

    Chairman

    • Tenure: 8.9yrs
    • Compensation: US$174.98k
  • Jim Hicks (72yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$139.98k
  • Thomas Carley (60yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$136.23k
  • Diane Dewbrey (54yo)

    Director

    • Tenure: 0.2yrs
  • Jon Justesen (67yo)

    Independent Director

    • Tenure: 15yrs
    • Compensation: US$134.98k
  • Mike Elich (54yo)

    CEO, President & Director

    • Tenure: 8.9yrs
    • Compensation: US$2.62m
  • Tom Cusick (51yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$142.48k
  • Vince Price (55yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$133.73k

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$666.616m
  • Shares outstanding: 7.49m
  • Website: https://www.barrettbusiness.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBSINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1993
BB1DB (Deutsche Boerse AG)YesCommon StockDEEURJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:31
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.