NasdaqGS:BBSI

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Executive Summary

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


Snowflake Analysis

Very 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

-1.9%

BBSI

-0.6%

US Professional Services

0.7%

US Market


1 Year Return

-21.5%

BBSI

24.1%

US Professional Services

22.2%

US Market

Return vs Industry: BBSI underperformed the US Professional Services industry which returned 26% over the past year.

Return vs Market: BBSI underperformed the US Market which returned 22.7% over the past year.


Shareholder returns

BBSIIndustryMarket
7 Day-1.9%-0.6%0.7%
30 Day9.3%10.0%11.8%
90 Day20.5%8.1%8.6%
1 Year-19.7%-21.5%25.1%24.1%25.0%22.2%
3 Year10.8%5.6%60.2%55.5%49.4%39.5%
5 Year70.3%56.0%110.6%99.7%100.2%78.1%

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

Valuation

Is Barrett Business Services undervalued compared to its fair value and its price relative to the market?

44.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBSI ($67.89) is trading below our estimate of fair value ($121.96)

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 (13.4x) compared to the US Professional Services industry average (22.6x).

PE vs Market: BBSI is good value based on its PE Ratio (13.4x) compared to the US market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: BBSI is good value based on its PEG Ratio (0.8x)


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 (3x).


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?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBSI's forecast earnings growth (17.2% per year) is above the savings rate (2.2%).

Earnings vs Market: BBSI's earnings (17.2% per year) are forecast to grow slower than the US market (21.8% per year).

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

Revenue vs Market: BBSI's revenue (8.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BBSI's revenue (8.5% 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 (19.5%).


Next Steps

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


Next Steps

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 (1.48%).

High Dividend: BBSI's dividend (1.77%) is low compared to the top 25% of dividend payers in the US market (4.14%).


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.


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Gary Kramer (40 yo)

0.75

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 ($USD1.54M) is about average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Kramer
President0.75yrUS$1.54m0.35%
$ 1.8m
Gerald Blotz
COO & VPno dataUS$1.41m0.35%
$ 1.8m
Anthony Harris
CFO & Secretary0.75yrno data0.024%
$ 122.9k
James Potts
Executive VP & General Counsel0.25yrno datano data
Michael Saverien
Executive Director of Sales & Distribution0.67yrno datano data

0.7yrs

Average Tenure

44.5yo

Average Age

Experienced Management: BBSI's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gary Kramer
President0.75yrUS$1.54m0.35%
$ 1.8m
Anthony Meeker
Independent Chairman of the Board9.92yrsUS$174.95k0.20%
$ 1.0m
James Hicks
Independent Director19.92yrsUS$137.04k0.21%
$ 1.1m
Thomas Carley
Independent Director20.92yrsUS$136.20k0.32%
$ 1.7m
Diane Dewbrey
Independent Director1.17yrsUS$58.34k0.0066%
$ 34.0k
Jon Justesen
Independent Director16yrsUS$134.95k0.32%
$ 1.7m
Thomas Cusick
Independent Director4.17yrsUS$142.45k0.041%
$ 213.2k
Vincent Price
Independent Director3.92yrsUS$139.12k0.039%
$ 200.1k

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BBSI's board of directors are considered experienced (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 sold more shares than they have bought 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$519.109m
  • 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

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 Analysis2020/12/03 00:29
End of Day Share Price2020/12/02 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.