Barrett Business Services Inc

BBSI

Services-Help Supply Services

Mkt Cap

$730.9M

PE

15.36

Debt

Cash

$62.44M

EV

FCF

$28.21M

Market Cap

$730.9M

P/E Ratio

15.36

Debt

Cash

$62.44M

EV

FCF

$28.21M

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers compensation coverage, and other administration functions for the client's existing workforce. The company also provides staffing and recruiting services, such as on-demand or short-term staffing assignment, contract staffing, direct placement, and long-term or indefinite-term on-site management services. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, restaurant franchises, and professional services firms. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.

Sector

10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-K
12/31/21
10-Q
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-K
12/31/20
10-Q
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Barrett Business Services Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$28.21M	$24.15M	$20.68M	$17.7M	$15.16M	$12.98M	$11.11M	$9.515M	$8.147M	$6.975M	$5.972M	$59.72M
DCF		$21M	$15.64M	$11.64M	$8.667M	$6.453M	$4.804M	$3.577M	$2.663M	$1.983M	$1.476M	$14.76M
Value	$92.66M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 12%

Earnings Stability 60%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Net Margin	-4.3%	3.4%	2.2%	2.7%	4%	5.1%	3.8%	4%	4.5%	4.5%
ROA	-9.5%	7.3%	4.8%	5%	5.9%	7.1%	5.5%	6.8%	9.5%	9.5%
ROE	-70%	47%	27%	28%	32%	28%	17%	18%	27%	26%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.03%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.21%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.64%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.67%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +25.05%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -1.74%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2014	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	TTM
Debt FCF	0.69	0.00	0.06	0.04	0.06	0.06	-0.10	0.00	-	-
Debt Equity	1.17	0.00	0.06	0.05	0.03	0.02	0.02	0.00	-	-
MIN
Graham Stability	-	-	100%	100%	100%	100%	91%	95%	100%	91%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.02.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.91.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has been increasing in past years.

Years	12-2015	12-2017	12-2019	12-2021	Trend
Revenue	5.2%	2.8%	3.8%	10%	-1.8%
Net Income	9.2%	13%	-0.71%	24%	0.99%
Stockholders Equity	18%	15%	1.2%	-15%	0.21%
FCF	-26%	-36%	-44%	-	-5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +2.75%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.82%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.43%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +0.99%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +14.89%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.21%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -35.91%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.99%.