Barrett Business Services, Inc.
Barrett Business Services, Inc. Fundamental Analysis
Barrett Business Services, Inc. (BBSI) shows moderate financial fundamentals with a PE ratio of 12.87, profit margin of 4.39%, and ROE of 21.04%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 8.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BBSI's fundamental strength across five key dimensions:
Efficiency Score
WeakBBSI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBBSI trades at attractive valuation levels.
Growth Score
ModerateBBSI shows steady but slowing expansion.
Financial Health Score
ExcellentBBSI maintains a strong and stable balance sheet.
Profitability Score
ModerateBBSI maintains healthy but balanced margins.
Key Financial Metrics
Is BBSI Expensive or Cheap?
P/E Ratio
BBSI trades at 12.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BBSI's PEG of 0.13 indicates potential undervaluation.
Price to Book
The market values Barrett Business Services, Inc. at 1.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.78 times EBITDA. This is generally considered low.
How Well Does BBSI Make Money?
Net Profit Margin
For every $100 in sales, Barrett Business Services, Inc. keeps $4.39 as profit after all expenses.
Operating Margin
Core operations generate 5.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.04 in profit for every $100 of shareholder equity.
ROA
Barrett Business Services, Inc. generates $6.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Barrett Business Services, Inc. generates limited operating cash flow of $43.76M, signaling weaker underlying cash strength.
Free Cash Flow
Barrett Business Services, Inc. generates weak or negative free cash flow of $27.10M, restricting financial flexibility.
FCF Per Share
Each share generates $1.06 in free cash annually.
FCF Yield
BBSI converts 3.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.13
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How BBSI Stacks Against Its Sector Peers
| Metric | BBSI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.87 | 27.03 | Better (Cheaper) |
| ROE | 21.04% | 1290.00% | Weak |
| Net Margin | 4.39% | -29392.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.29 | 10.88 | Neutral |
| ROA | 6.99% | -1541816.00% (disorted) | Weak |
BBSI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Barrett Business Services, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
92.70%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
100.00%
Industry Style: Cyclical, Value, Infrastructure
High Growth