Education
About Us
Working with TipRanks
Follow Us
BGSF Inc. (BGSF)
:BGSF
Top Page
BGSF
(NYSE:BGSF)49Neutral
BGSF (BGSF) vs. S&P 500 (SPY)
Market Cap
$49.83M
Dividend Yield6.64%
Average Volume (3M)10.62K
Price to Earnings (P/E)―
Beta (1Y)0.36
Revenue Growth-11.12%
EPS Growth-120.49%
CountryUS
Employees474
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)-0.12
Shares Outstanding11,024,013
10 Day Avg. Volume6,477
30 Day Avg. Volume10,619
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.18
Price to Cash Flow (P/CF)1988.20
P/FCF Ratio1739.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.00Price Target Upside165.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
BGSF Business Overview & Revenue Model
Company DescriptionBGSF, Inc. is a provider of workforce solutions, offering staffing and recruitment services across various sectors including real estate, light industrial, and information technology. The company delivers skilled professionals to clients through its multiple divisions, helping businesses address their staffing needs with flexibility and efficiency.
How the Company Makes MoneyBGSF generates revenue primarily through the provision of temporary and permanent staffing solutions. Their revenue model involves charging client companies for the placement of temporary workers, where they earn a margin between the billing rate to clients and the pay rate of the workers. Additionally, BGSF receives fees for successful permanent placements, typically as a percentage of the hired candidate’s first-year salary. The company’s earnings are bolstered by its diversified sector focus, which allows it to cater to varying industry demands, and strategic acquisitions that expand its service capabilities and client base.
BGSF Financial Statement Overview
Summary
BGSF's financial performance is mixed. The income statement reveals challenges with declining revenues and negative net profit margins, indicating profitability issues. The balance sheet shows manageable leverage but declining equity and assets, raising concerns over financial stability. Positive operating cash flow is a strength, but fluctuations in free cash flow growth highlight inconsistencies.Income Statement
BGSF's income statement shows a declining revenue trend with a notable drop from the previous year. The TTM data reveals a negative net profit margin, indicating profitability challenges. Gross profit margin is stable, but the negative EBIT and net income reflect operational inefficiencies.45
Neutral
Balance Sheet
BGSF's balance sheet indicates a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the decline in stockholders' equity and total assets over time is concerning. The equity ratio is reasonable, but the company's financial stability may be at risk if these trends continue.55
Neutral
Cash Flow
The cash flow statement shows a positive operating cash flow, which is a strong point for BGSF. The free cash flow has improved, and the operating cash flow to net income ratio is favorable. However, the company has faced fluctuations in free cash flow growth, highlighting some inconsistencies in cash generation.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Mar 2023 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 239.03M | 313.17M | 298.42M | 239.03M | 277.89M | 294.31M | Gross Profit |
| 35.57M | 111.78M | 103.55M | 80.94M | 76.22M | 80.68M | EBIT |
| 14.53M | -7.18M | 16.28M | 14.53M | 11.05M | 75.86M | EBITDA |
| 18.51M | 589.00K | 20.34M | 18.23M | 3.63M | 80.68M | Net Income Common Stockholders |
| 14.11M | -10.22M | 11.26M | 10.46M | 1.44M | 13.25M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 0.00 | 112.10M | 112.10K | -6.94M | -5.41M | Total Assets |
| 178.52M | 178.52M | 194.67M | 148.29M | 130.28M | 115.59M | Total Debt |
| 68.94M | 68.94M | 66.67M | 44.03M | 41.57M | 32.90M | Net Debt |
| 68.94M | 68.94M | -45.43M | 43.92M | 48.51M | 38.31M | Total Liabilities |
| 92.98M | 92.98M | 93.94M | 71.70M | 64.82M | 47.13M | Stockholders Equity |
| 85.54M | 85.54M | 100.74M | 76.59M | 65.46M | 68.46M |
| Cash Flow | Free Cash Flow | ||||
| 3.46M | 17.79M | -8.98M | 3.46M | 20.11M | 15.72M | Operating Cash Flow |
| 6.66M | 20.39M | -3.30M | 6.66M | 22.26M | 17.95M | Investing Cash Flow |
| -7.02M | -9.51M | -8.90M | -7.02M | -24.15M | -9.73M | Financing Cash Flow |
| 473.12K | -10.87M | 15.93M | 473.12K | 1.89M | -8.22M |
BGSF Technical Analysis
Negative
4.52
Price Trends
5.28
Negative
6.11
Negative
6.95
Negative
Market Momentum
-0.15
Positive
27.83
Positive
8.48
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGSF, the sentiment is Negative. The current price of 4.52 is below the 20-day moving average (MA) of 4.97, below the 50-day MA of 5.28, and below the 200-day MA of 6.95, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 27.83 is Positive, neither overbought nor oversold. The STOCH value of 8.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BGSF.
BGSF Risk Analysis
BGSF disclosed 32 risk factors in its most recent earnings report. BGSF reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BGSF Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $55.65B | 21.24 | 18.33% | 2.20% | -0.27% | 43.87% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $5.76B | 23.09 | 18.26% | 3.87% | -9.33% | -37.06% | |
58 Neutral | $2.69B | 19.18 | 6.83% | 5.35% | -5.61% | 77.92% | |
56 Neutral | $470.21M | 11.43 | -0.05% | 2.33% | -10.42% | -101.51% | |
49 Neutral | $49.83M | ― | -0.67% | 6.64% | -11.12% | -120.49% | |
44 Neutral | $186.57M | ― | -39.87% | ― | -17.78% | -820.48% |
* Industrials Sector Average
Performance Comparison
BGSF
BGSF
4.52
-5.24
-53.69%
KELYA
Kelly Services
12.94
-10.55
-44.91%
MAN
ManpowerGroup
57.35
-11.95
-17.24%
NSC
Norfolk Southern
238.51
-13.20
-5.24%
RHI
Robert Half
54.98
-20.93
-27.57%
TBI
Trueblue
5.66
-5.70
-50.18%
BGSF Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: -41.30% | Next Earnings Date: Mar 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were notable achievements such as the successful launch of the lead generation technology and growth in Managed Solutions, the company faced significant revenue decline compared to the previous year and pressure on gross profit margins. Sequential improvements in certain areas provide some optimism, but overall challenges persist.Highlights
Launch of Advanced Lead Generation Technology
BGSF successfully launched a new lead generation engine in Q3 2024, generating almost 400 marketing qualified leads and 171 sales qualified leads, resulting in more than $1 million in booked revenue.
Managed Solutions Growth
Managed Solutions business experienced double-digit growth year-over-year and a 10% sequential lift compared to Q2 2024.
Sequential Improvement in Adjusted EBITDA
Adjusted EBITDA improved to $3.2 million or 4.5% of revenue, compared to $2.6 million or 3.8% in Q2 2024.
Increase in IT Consulting Sales
IT consulting sales, which represent the largest revenue category, were up slightly on a sequential basis compared to Q2 2024.
Lowlights
Revenue Decline Compared to Previous Year
Third quarter revenues were $71.2 million, a decline from $83.5 million in the same quarter of the previous year.
Gross Profit Margin Pressure
Gross profit margins declined by 170 basis points year-over-year, primarily due to cost pressures and lower perm placement demand.
Professional Segment Revenue Decline
Revenue in the Professional segment remained soft compared to Q2 2024 and declined by 12.9% versus the prior year period.
Company Guidance
During the BGSF Q3 2024 earnings call, executives discussed several key financial metrics and operational highlights. The company reported third-quarter revenues of $71.2 million, with Property Management contributing $30 million and the Professional segment contributing $41 million. Sequentially, total revenue increased by 4.5%, while Property Management saw a seasonal lift of 15.9% from the previous quarter. However, the Professional segment's revenue was soft, experiencing a 12.9% decline compared to the prior year. The IT consulting sales, representing nearly 70% of quarterly revenues, showed slight sequential growth. Managed Solutions also posted robust performance, with a double-digit year-over-year increase and a 10% sequential lift. Notably, the company launched a lead generation technology that generated 400 marketing qualified leads and 171 sales qualified leads, resulting in over $1 million in booked revenue. Gross profit for the quarter was $24.3 million, with a margin of 34.2%, and adjusted EBITDA improved to $3.2 million or 4.5% of revenue. The company's debt-to-EBITDA leverage ratio stood at 3.8x. Despite current challenges, BGSF expressed optimism for future growth, citing stabilization in IT consulting and potential benefits from easing macroeconomic pressures.BGSF Corporate Events
Regulatory Filings and Compliance
BGSF Highlights Importance of Regulation FD Disclosure
Neutral
Nov 7, 2024
This report highlights regulatory stipulations regarding financial disclosures, emphasizing that the included information is not automatically considered part of official filings under key securities laws unless specifically referenced. This clarification is crucial for investors and market enthusiasts, ensuring they understand the nuances of compliance in financial reporting.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.