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.

Snowflake

Fundamentals

Flawless balance sheet and good value.


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


Market Performance


7 Day Return

0.8%

BBSI

0.5%

US Professional Services

-0.6%

US Market


1 Year Return

39.5%

BBSI

10.5%

US Professional Services

0.7%

US Market

BBSI outperformed the Professional Services industry which returned 10.5% over the past year.

BBSI outperformed the Market in United States of America which returned 0.6% over the past year.


Share holder returns

BBSIIndustryMarket
7 Day0.8%0.5%-0.6%
30 Day1.2%1.7%2.9%
90 Day7.5%6.0%1.3%
1 Year41.4%39.5%11.6%10.5%2.9%0.7%
3 Year94.6%86.3%49.8%44.7%44.6%35.2%
5 Year143.1%120.9%84.1%74.1%61.9%44.2%

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

2 weeks ago | Simply Wall St

Read This Before You Buy Barrett Business Services, Inc. (NASDAQ:BBSI) Because Of Its P/E Ratio

Valuation

Is Barrett Business Services undervalued based on future cash flows and its price relative to the stock market?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Barrett Business Services's share price is below the future cash flow value, and at a moderate discount (> 20%).

Barrett Business Services's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Barrett Business Services is good value based on earnings compared to the US Professional Services industry average.

Barrett Business Services is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Barrett Business Services is poor value based on expected growth next year.


Price Based on Value of Assets

Barrett Business Services is overvalued based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

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

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Barrett Business Services's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

Barrett Business Services's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Barrett Business Services's revenue growth is positive but not above the United States of America market average.

Barrett Business Services's earnings growth is positive but not above the United States of America market average.

Barrett Business Services's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Barrett Business Services will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

42.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Barrett Business Services has delivered over 20% year on year earnings growth in the past 5 years.

Barrett Business Services's 1-year earnings growth exceeds its 5-year average (73.6% vs 42.9%)

Barrett Business Services's earnings growth has exceeded the US Professional Services industry average in the past year (73.6% vs 37.9%).


Return on Equity

Barrett Business Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Barrett Business Services used its assets less efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

Barrett Business Services's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Barrett Business Services's financial position?


Financial Position Analysis

Barrett Business Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Barrett Business Services's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Barrett Business Services's level of debt (3%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (7% vs 3% today).

Debt is well covered by operating cash flow (2270.1%, greater than 20% of total debt).

Barrett Business Services earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 95.6x debt.


Next Steps

Dividend

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

1.35%

Current Dividend Yield


Dividend Yield and Payments Analysis

Barrett Business Services's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Barrett Business Services's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (6.4x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

4.2yrs

Average management tenure


CEO

Mike Elich (54yo)

8.7yrs

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

Mike's remuneration is about average for companies of similar size in United States of America.

Mike's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

The tenure for the Barrett Business Services management team is about average.


Board Age and Tenure

8.7yrs

Average Tenure

60yo

Average Age

The tenure for the Barrett Business Services board of directors is about average.


Insider Trading

Barrett Business Services individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
Director
Shares3,000
Max PriceUS$88.25
SellUS$14,99516 Aug 19
James Hicks
EntityIndividual
Role
Member of the Board of Directors
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
Director
Shares5,561
Max PriceUS$81.68
SellUS$290,90010 Jan 19
Jon Justesen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$58.18
SellUS$70,59428 Dec 18
Jon Justesen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,235
Max PriceUS$57.16

Ownership Breakdown


Management Team

  • Mike Elich (54yo)

    CEO, President & Director

    • Tenure: 8.7yrs
    • Compensation: US$2.62m
  • Heather Gould (45yo)

    Chief Strategy Officer & VP

    • Tenure: 2.7yrs
    • Compensation: US$2.87m
  • Gary Kramer (39yo)

    VP of Finance

    • Tenure: 3.1yrs
    • Compensation: US$2.85m
  • Gerald Blotz (49yo)

    COO of Field Operations & VP

    • Tenure: 5.3yrs
    • Compensation: US$2.86m

Board Members

  • Tony Meeker (80yo)

    Chairman

    • Tenure: 8.7yrs
    • Compensation: US$174.98k
  • Jim Hicks (72yo)

    Director

    • Tenure: 18.7yrs
    • Compensation: US$139.98k
  • Thomas Carley (60yo)

    Director

    • Tenure: 19.7yrs
    • Compensation: US$136.23k
  • Jon Justesen (67yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$134.98k
  • Mike Elich (54yo)

    CEO, President & Director

    • Tenure: 8.7yrs
    • Compensation: US$2.62m
  • Tom Cusick (51yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$142.48k
  • Vince Price (55yo)

    Director

    • Tenure: 2.7yrs
    • 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$663.466m
  • Shares outstanding: 7.47m
  • 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 Analysis2019/09/21 23:32
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.