NYSE:TBI

Stock Analysis Report

Executive Summary

TrueBlue, Inc. provides contingent staffing, recruitment process outsourcing, and contingent staffing management services in the United States, Canada, and Puerto Rico.

Rewards

Trading at 52.5% below its fair value

Risk Analysis

Earnings are forecast to decline by an average of -7.8% per year for the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has TrueBlue's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

TBI

2.5%

US Professional Services

1.5%

US Market


1 Year Return

-29.7%

TBI

30.1%

US Professional Services

20.1%

US Market

Return vs Industry: TBI underperformed the US Professional Services industry which returned 30.1% over the past year.

Return vs Market: TBI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

TBIIndustryMarket
7 Day2.5%2.5%1.5%
30 Day-29.3%3.5%1.4%
90 Day-26.1%13.1%8.7%
1 Year-29.7%-29.7%31.3%30.1%22.7%20.1%
3 Year-35.4%-35.4%61.8%56.6%50.1%40.5%
5 Year-23.8%-23.8%85.7%75.5%73.1%54.1%

Price Volatility Vs. Market

How volatile is TrueBlue's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TrueBlue 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: TBI ($16.72) is trading below our estimate of fair value ($35.22)

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


Price To Earnings Ratio

PE vs Industry: TBI is good value based on its PE Ratio (10.3x) compared to the Professional Services industry average (20.1x).

PE vs Market: TBI is good value based on its PE Ratio (10.3x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: TBI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TBI is good value based on its PB Ratio (1x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is TrueBlue forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TBI's earnings are forecast to decline over the next 3 years (-7.8% per year).

Earnings vs Market: TBI's earnings are forecast to decline over the next 3 years (-7.8% per year).

High Growth Earnings: TBI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TBI's revenue is expected to decline over the next 3 years (-0.7% per year).

High Growth Revenue: TBI's revenue is forecast to decline over the next 3 years (-0.7% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TBI's Return on Equity is forecast to be low in 3 years time (8.8%).


Next Steps

Past Performance

How has TrueBlue performed over the past 5 years?

5.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TBI has high quality earnings.

Growing Profit Margin: TBI's current net profit margins (2.7%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: TBI's earnings have grown by 5.1% per year over the past 5 years.

Accelerating Growth: TBI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TBI had negative earnings growth (-4.1%) over the past year, making it difficult to compare to the Professional Services industry average (10.4%).


Return on Equity

High ROE: TBI's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TrueBlue's financial position?


Financial Position Analysis

Short Term Liabilities: TBI's short term assets ($421.7M) exceed its short term liabilities ($230.8M).

Long Term Liabilities: TBI's short term assets ($421.7M) exceed its long term liabilities ($279.4M).


Debt to Equity History and Analysis

Debt Level: TBI's debt to equity ratio (3.7%) is considered satisfactory.

Reducing Debt: TBI's debt to equity ratio has reduced from 42.1% to 3.7% over the past 5 years.

Debt Coverage: TBI's debt is well covered by operating cash flow (412.1%).

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


Balance Sheet

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

Debt Coverage by Assets: TBI's debt is covered by short term assets (assets are 18.4x debt).


Next Steps

Dividend

What is TrueBlue's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TBI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TBI's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TBI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TBI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TBI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

A. Beharelle (49yo)

1.4yrs

Tenure

US$2,495,541

Compensation

Mr. A. Patrick Beharelle serves as the President at eDebt, Inc. Mr. Beharelle has been the Chief Executive Officer and Director of TrueBlue Inc. since September 1, 2018 and was its President and Chief Oper ...


CEO Compensation Analysis

Compensation vs Market: A.'s total compensation ($USD2.50M) is about average for companies of similar size in the US market ($USD2.47M).

Compensation vs Earnings: A.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
A. Beharelle
CEO & Director1.4yrsUS$2.50m0.42% $2.6m
Derrek Gafford
Executive VP & CFO14.2yrsUS$2.19m0.23% $1.5m
James Defebaugh
Executive VP14.4yrsUS$1.03m0.10% $634.7k
Taryn Owen
President of PeopleReady0.3yrsUS$1.21m0.16% $994.0k
Norman Frey
Senior VP & Chief Accounting Officer0yrsno data0.11% $709.1k
Jeff Dirks
Senior VP0.7yrsno datano data
Jennifer Grasz
Vice President of Corporate Communications0yrsno datano data
Maggie Lower
Senior VP & Chief Marketing Officer0yrsno datano data
Randall Rothschiller
Senior VP & Chief Human Resources Officer3.7yrsno datano data
Carl Schweihs
President of People Management0.7yrsno data0.075% $474.4k

1.4yrs

Average Tenure

49yo

Average Age

Experienced Management: TBI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
A. Beharelle
CEO & Director1.4yrsUS$2.50m0.42% $2.6m
Colleen Brown
Independent Director5.7yrsUS$213.76k0.079% $499.9k
Steven Cooper
Chairman1.4yrsUS$4.00m0.41% $2.6m
Bonnie Soodik
Independent Director9.9yrsUS$213.79k0.032% $203.7k
Kristi Savacool
Independent Director1.6yrsUS$102.57k0.0054% $34.2k
Stephen Robb
Independent Director3.8yrsUS$214.93kno data
Jeffrey Sakaguchi
Lead Independent Director3.1yrsUS$265.15k0.087% $545.7k
Kim Jones
Independent Director3.8yrsUS$198.51k0.0089% $55.9k
William Goings
Independent Director3.8yrsUS$198.51k0.016% $98.4k

3.8yrs

Average Tenure

59yo

Average Age

Experienced Board: TBI's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

TrueBlue, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TrueBlue, Inc.
  • Ticker: TBI
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$629.329m
  • Shares outstanding: 37.64m
  • Website: https://www.trueblue.com

Number of Employees


Location

  • TrueBlue, Inc.
  • 1015 A Street
  • Tacoma
  • Washington
  • 98402
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TBINYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1990
LRYDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1990

Biography

TrueBlue, Inc. provides contingent staffing, recruitment process outsourcing, and contingent staffing management services in the United States, Canada, and Puerto Rico. It operates through three segments: PeopleReady, PeopleManagement, and PeopleScout. The PeopleReady segment offers a range of staffing solutions for blue-collar, contingent on-demand, and skilled labor in construction, manufacturing and logistics, warehousing and distribution, waste and recycling, energy, retail, hospitality, general labor, and other industries under the Labor Ready, CLP Resources, and Spartan Staffing brands. The PeopleManagement segment provides contingent labor and outsourced industrial workforce solutions. It offers recruitment and on-premise management services, and temporary and dedicated drivers for the transportation and distribution industries under Staff Management, SIMOS Insourcing Solutions, and Centerline Drivers brands. The PeopleScout segment offers permanent employee recruitment process outsourcing services; and manages customers' contingent labor programs comprising vendor selection, performance management, compliance monitoring, and risk management. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was founded in 1985 and is headquartered in Tacoma, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:34
End of Day Share Price2020/02/14 00:00
Earnings2019/12/29
Annual Earnings2019/12/29


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.