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BGSF (BGSF)
NYSE:BGSF
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BGSF
(NYSE:BGSF)
51Neutral
BGSF (BGSF) vs. S&P 500 (SPY)
Market Cap
$33.12M
Dividend Yield5.02%
Average Volume (3M)28.16K
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-12.99%
EPS Growth-152.96%
CountryUS
Employees400
SectorIndustrials
Sector Strength61
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.31
Shares Outstanding11,077,007
10 Day Avg. Volume17,297
30 Day Avg. Volume28,164
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.14
Price to Cash Flow (P/CF)0.40
P/FCF Ratio0.30
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 Upside308.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
BGSF Business Overview & Revenue Model
Company DescriptionBGSF, Inc. provides workforce solutions and placement services in the United States. It operates in two segments, Real Estate and Professional. The Real Estate segment offers office and maintenance field talent to various apartment communities and commercial buildings. The Professional segment provides skilled IT professionals with expertise in SAP, Workday, Peoplesoft, Hyperion, Oracle, One Stream, cyber, project management, and other IT workforce solutions, as well as finance, accounting, legal, human resource, and related support personnel. Its client partners include Fortune 500 companies, and medium and small companies, as well as consulting companies that engage in systems integration projects. The company was formerly known as BG Staffing, Inc. and changed its name to BGSF, Inc. in February 2021. BGSF, Inc. was incorporated in 2007 and is based in Plano, Texas.
How the Company Makes MoneyBGSF makes money primarily through its staffing services, which include temporary staffing, direct hire, and workforce management solutions. The company generates revenue by charging clients for the placement of temporary workers and permanent employees, often based on a percentage of the employee's salary or an agreed flat fee. BGSF's revenue streams are diversified across different sectors, allowing it to leverage its expertise in real estate, professional staffing, and light industrial staffing. Significant factors contributing to its earnings include long-standing client relationships, a broad network of qualified candidates, and strategic acquisitions that enhance its service offerings and geographic reach.
BGSF Financial Statement Overview
Summary
BGSF faces challenges in its income statement with declining revenues and profitability issues. However, the balance sheet shows improved leverage, and cash flow generation remains strong. While operational efficiency needs improvement, the company maintains financial flexibility through healthy cash flows.Income Statement
The income statement shows some weaknesses, with declining revenues from $313.2M in 2023 to $272.5M in 2024. The company experienced negative net income in the last two years, impacting net profit margins. Gross profit margin has decreased slightly from 35.7% in 2023 to 34.1% in 2024. EBIT and EBITDA margins have been weak, with negative EBITDA in 2024. This suggests challenges in operational efficiency and profitability.45
Neutral
Balance Sheet
The balance sheet reflects a moderate financial position. The debt-to-equity ratio improved from 0.81 in 2023 to 0.18 in 2024, indicating a significant reduction in leverage. However, equity ratio decreased slightly to 54.8% in 2024, showing some reliance on liabilities. ROE was negative due to net losses, which poses a risk to shareholder returns.60
Neutral
Cash Flow
Cash flow statements indicate strong operational cash flows with a positive free cash flow growth rate in 2024, driven by improved operating cash flow. The operating cash flow to net income ratio is favorable due to positive operating cash flows despite net losses, indicating good cash generation relative to reported earnings. This provides some resilience to financial stress.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 272.50M | 313.17M | 298.42M | 239.03M | 277.89M | Gross Profit |
| 92.86M | 111.78M | 103.55M | 80.94M | 76.22M | EBIT |
| 1.21M | -7.18M | 16.28M | 14.53M | 11.05M | EBITDA |
| 8.98M | 589.00K | 20.34M | 18.23M | 3.63M | Net Income Common Stockholders |
| -3.34M | -10.22M | 11.26M | 10.46M | 1.44M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 353.00K | 0.00 | 112.10M | 112.10K | -6.94M | Total Assets |
| 150.11M | 178.52M | 194.67M | 148.29M | 130.28M | Total Debt |
| 14.77M | 68.94M | 66.67M | 44.03M | 41.57M | Net Debt |
| 14.42M | 68.94M | -45.43M | 43.92M | 48.51M | Total Liabilities |
| 67.84M | 92.98M | 93.94M | 71.70M | 64.82M | Stockholders Equity |
| 82.27M | 85.54M | 100.74M | 76.59M | 65.46M |
| Cash Flow | Free Cash Flow | |||
| 22.74M | 17.79M | -8.98M | 3.46M | 20.11M | Operating Cash Flow |
| 24.38M | 20.39M | -3.30M | 6.66M | 22.26M | Investing Cash Flow |
| -1.64M | -9.51M | -8.90M | -7.02M | -24.15M | Financing Cash Flow |
| -22.39M | -10.87M | 15.93M | 473.12K | 1.89M |
BGSF Technical Analysis
Negative
2.94
Price Trends
4.28
Negative
4.95
Negative
6.51
Negative
Market Momentum
-0.29
Negative
39.00
Neutral
21.42
Neutral
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 2.94 is below the 20-day moving average (MA) of 3.51, below the 50-day MA of 4.28, and below the 200-day MA of 6.51, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 39.00 is Neutral, neither overbought nor oversold. The STOCH value of 21.42 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $47.07B | 17.98 | 19.34% | 2.62% | -0.27% | 43.87% | |
68 Neutral | $2.47B | 17.60 | 6.67% | 6.32% | -5.61% | 77.92% | |
62 Neutral | $7.67B | 13.25 | 3.04% | 3.47% | 3.63% | -13.99% | |
60 Neutral | $4.84B | 19.37 | 16.96% | 4.71% | -9.33% | -37.06% | |
56 Neutral | $417.66M | 11.43 | -0.05% | 2.62% | -10.42% | -101.51% | |
51 Neutral | $33.12M | ― | -3.98% | 5.02% | -12.99% | -152.96% | |
44 Neutral | $145.87M | ― | -32.53% | ― | -17.78% | -820.48% |
* Industrials Sector Average
Performance Comparison
BGSF
BGSF
2.94
-6.32
-68.25%
KELYA
Kelly Services
11.70
-11.62
-49.83%
MAN
ManpowerGroup
50.75
-18.45
-26.66%
NSC
Norfolk Southern
215.46
-28.80
-11.79%
RHI
Robert Half
48.50
-22.26
-31.46%
TBI
Trueblue
4.39
-6.33
-59.05%
BGSF Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -24.23% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. Highlights included strategic leadership appointments, cost-saving initiatives, and increased client engagement, while lowlights focused on revenue declines and profitability challenges. The overall sentiment is balanced.Highlights
CFO Transition and Strengthened Leadership
Keith Schroeder was appointed as the new CFO, bringing strategic operational and financial expertise to strengthen the finance and accounting functions.
Cost Savings from Restructuring
The restructuring plan is expected to save approximately $7 million to $9 million in 2025, with additional annual savings of $800,000 from shifting IT middleware maintenance to lower-cost nearshore support.
Recognition for Company Culture
BGSF was recognized as one of the best places for working parents for the fifth consecutive year.
Increase in New Client Engagement
The Professional segment added 15 new logos in Q4 and saw a 30% increase in signed master service agreements compared to Q4 2023.
Revenue Growth in Key Markets
The Property Management segment saw a 23% increase in revenue from territory mapping initiatives in key markets.
AI and Technology Initiatives
The company launched an operational excellence team focused on leveraging AI to improve productivity and streamline workflows, generating $2 million in revenue in six months from a lead generation engine.
Lowlights
Revenue Decline
Q4 revenue was $64.4 million, a decrease from $73.6 million in Q4 2023, reflecting declines in both business segments.
Decreased Profit Margins
Gross profit margin decreased to 33.3% from 34.6% in the prior year due to increased competition and economic pressures in property management.
GAAP Loss
Reported a GAAP loss of $0.10 per diluted share and an adjusted loss of $0.06 per diluted share in Q4.
Challenges in Property Management
The segment faced challenges due to rising operating expenses and credit issues in the multifamily housing sector.
Company Guidance
During the BGSF, Inc. Fiscal Year Fourth Quarter 2024 earnings call, the company provided guidance on several key metrics and strategic initiatives. The company anticipates cash savings of approximately $7 million to $9 million in 2025 from their restructuring plan, which includes headcount reductions and streamlined indirect costs. They also expect to save an additional $800,000 annually by shifting IT middleware maintenance to lower-cost nearshore support with Arroyo. In the Professional segment, fourth-quarter revenues were down 3% sequentially, but adjusted for billing days, they grew approximately 2%. The Property Management segment saw a 23% revenue increase from a territory mapping initiative. Overall, BGSF's gross profit margin was 33.3% in Q4, a slight decrease from 34.6% the previous year, due to increased competition and economic pressures. The company also reported an adjusted EBITDA of $1.4 million, representing 2.2% of revenue, and highlighted a strategic focus on enhancing profitability and capturing operational efficiencies in 2025.BGSF Corporate Events
Executive/Board Changes
BGSF Appoints Keith Schroeder as New CFO
Neutral
Mar 18, 2025
On March 12, 2025, BGSF, Inc. announced the appointment of Keith Schroeder as the new Chief Financial Officer and Secretary, effective March 18, 2025. Schroeder, with over 40 years of experience in finance and executive roles, succeeds John Barnett, who resigned as part of a leadership succession plan. Schroeder’s employment agreement includes a structured salary plan, equity grants, and potential bonuses tied to company performance and acquisitions. The agreement also outlines severance terms and confidentiality obligations, indicating a strategic move to strengthen BGSF’s financial leadership and ensure smooth operational continuity.
Business Operations and StrategyFinancial Disclosures
BGSF Reports Q4 2024 Revenue Decline and Restructuring
Negative
Mar 13, 2025
BGSF, Inc. reported its financial results for the fourth quarter and fiscal year ending December 29, 2024, showing a decline in revenues to $64.4 million from the previous quarter’s $71.2 million, primarily due to seasonal demand in the Property Management segment and fewer billing days in the Professional segment. Despite a net loss of $1.0 million, the company generated a record operating cash flow of $24 million and implemented a cost restructuring plan expected to save $7 to $9 million annually, indicating efforts to stabilize revenues amid ongoing strategic reviews and uncertain demand environments.
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.