BGSF (BGSF) AI Stock Analysis

• Market Cap: $70.67M
• Dividend Yield: 41.67%
• Average Volume (3M): 60.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -36.79%
• EPS Growth: -507.05%
• Country: US
• Employees: 400
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.09
• Shares Outstanding: 11,199,787
• 10 Day Avg. Volume: 62,226
• 30 Day Avg. Volume: 60,718
• PEG Ratio: -0.05
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -2.05K
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 0.57
• Enterprise Value/Gross Profit: 1.67
• Enterprise Value/Ebitda: -6.79
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): $95.75M

• Rating: 59 Neutral
• Price Target: $6.50 ▲(44.44% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial performance (losses and deteriorated cash generation) despite an improved, low-debt balance sheet. Technicals are supportive with a clear uptrend across major moving averages, and the earnings call added modest support via 2026 growth guidance and cost-reduction progress. Valuation is mixed: a negative P/E reflects current losses, while the very high dividend yield may be harder to sustain given recent cash flow softness.

Positive Factors

Low Leverage / Debt-Free

Eliminating debt materially reduces solvency and refinancing risk, giving management durable financial flexibility to fund operations, invest in PropTech/AI, and return capital (special dividend and buybacks) without relying on external credit markets. This supports multi‑quarter stability.

Strategic Focus on Property-Management Staffing

Becoming a pure‑play in property management narrows operational scope, increases domain expertise, and lets the company align recruiting, tech investments, and sales to a defined end market. That focused model can improve client relationships, speed‑to‑fill, and margin reliability over several quarters.

Margin and Cost Structure Improvements

Year‑over‑year narrowing of adjusted EBITDA loss, combined with SG&A reductions and an identified ~$1.0M of annualized cost savings, indicates improving operating leverage. If sustained, these actions can convert margin stability into sustained profitability as revenues recover.

Negative Factors

Sharp Revenue Contraction

A nearly 50% revenue decline erodes scale benefits in staffing (lower utilization and spread), making fixed costs harder to absorb and reducing resilience to shocks. Restoring prior scale will take multiple quarters, and persistent top‑line weakness undermines margin recovery and cash generation.

Weak Cash Generation / Escrow Dependency

Operating cash flow that relies on an escrow and near‑zero free cash flow weakens the company’s ability to fund working capital, tech investments, and shareholder returns from operations. If escrow timing shifts or demand softens, liquidity pressure could constrain growth and strategic initiatives.

Customer Demand Headwinds and Concentration Risk

As a concentrated property‑management staffing specialist, BGSF is exposed to cyclical cost pressures in real estate. Lower billed hours directly reduce revenue and margin; sector volatility increases utilization swings and makes earnings more volatile over the medium term versus a more diversified staffing model.

BGSF Business Overview & Revenue Model

Company Description

BGSF, 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 Money

BGSF primarily makes money by supplying labor to client companies and charging fees that exceed its direct labor costs. The largest recurring revenue stream is typically contract/temporary staffing: BGSF recruits and employs (or co-employs, depending on arrangement) workers who are assigned to client sites; the client is billed an hourly (or other time-based) rate, and BGSF retains a gross margin after paying wages and employment-related costs (payroll taxes, benefits, insurance, and recruiting/operating expenses). A second revenue stream is direct-hire/permanent placement, where BGSF earns a placement fee—often structured as a percentage of the placed candidate’s first-year compensation or a fixed fee—upon successful hire (sometimes with a guarantee period). The company may also generate revenue from managed services or project-based consulting arrangements in its professional segments (e.g., IT or finance and accounting services) where it bills clients based on time-and-materials, fixed-fee project pricing, or service retainers; specific pricing structures vary by engagement and are not always publicly detailed. Key factors that drive earnings include demand for staffing in BGSF’s end markets, bill rates versus wage rates (spread), utilization of placed consultants, recruiting efficiency, and the mix between higher-margin professional services and lower-margin high-volume staffing. Information about any specific significant partnerships is null.

BGSF Financial Statement Overview

Summary

Financials are under significant pressure: a sharp revenue contraction and a swing to operating/net losses with weakened cash generation (operating cash flow barely positive and free cash flow slightly negative). The key positive is materially lower leverage (debt-to-equity ~0.03), which reduces solvency risk and provides flexibility, but profitability and cash conversion remain the main drag.

Income Statement

Profitability has deteriorated sharply. The latest annual period shows a steep revenue decline (down ~48% year over year) and a swing to meaningful operating losses (negative EBIT and EBITDA) with a net loss and negative net margin. While gross margin is high in the latest year, it did not translate into earnings, and results have been volatile over time (profits in 2021–2023, losses in 2024–2025), reducing confidence in earnings stability.

Balance Sheet

The balance sheet improved materially in the latest year, with very low debt relative to equity (debt-to-equity ~0.03 vs. ~0.63–0.81 in prior years), which lowers financial risk and increases flexibility. The key weakness is returns: equity is currently generating a loss (negative return on equity), reflecting the recent earnings downturn despite the stronger leverage position.

Cash Flow

Cash generation weakened significantly in the latest year. Operating cash flow is barely positive and free cash flow turned slightly negative, a sharp drop from the prior year’s strong positive operating and free cash flow. Cash flow also provides limited support to reported losses in the latest period, indicating reduced cash conversion and raising liquidity/operating risk if weak profitability persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	93.31M	272.50M	313.17M	298.42M	239.03M
Gross Profit	31.78M	92.86M	111.78M	103.55M	80.94M
EBITDA	-7.80M	8.98M	589.00K	20.34M	18.23M
Net Income	-7.71M	-3.34M	-10.22M	25.36M	14.11M
Balance Sheet
Total Assets	57.84M	150.11M	178.52M	194.67M	148.29M
Cash, Cash Equivalents and Short-Term Investments	19.02M	353.00K	0.00	0.00	112.10K
Total Debt	1.65M	51.66M	68.94M	71.56M	44.03M
Total Liabilities	9.73M	67.84M	92.98M	93.94M	71.70M
Stockholders Equity	48.10M	82.27M	85.54M	100.74M	76.59M
Cash Flow
Free Cash Flow	-25.00K	22.74M	17.79M	-12.80M	3.46M
Operating Cash Flow	113.00K	24.38M	20.39M	-7.12M	6.66M
Investing Cash Flow	91.20M	-1.64M	-9.51M	-8.92M	-7.02M
Financing Cash Flow	-72.49M	-22.39M	-10.87M	15.93M	473.00K

BGSF Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BGSF, the sentiment is Positive. The current price of 4.5 is below the 20-day moving average (MA) of 6.18, below the 50-day MA of 5.78, and below the 200-day MA of 4.63, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BGSF.

BGSF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	68 Neutral	$141.71M	14.57	10.52%	2.55%	-12.65%	368.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BGSF	59 Neutral	$70.67M	-6.66	-17.82%	41.67%	-36.79%	-507.05%
DHX	59 Neutral	$115.57M	-5.14	-12.89%	―	-9.13%	-1032.39%
MHH	56 Neutral	$64.57M	21.01	0.69%	―	1.24%	97.14%
JOB	48 Neutral	$28.72M	-35.64	-51.65%	―	-15.43%	-43.45%
IPDN	44 Neutral	$6.69M	-0.83	-78.12%	―	-7.26%	-1.37%

BGSF Corporate Events

BGSF Reports Q4 Results Amid Strategic Transformation Efforts

BGSF, Inc., a property management-focused staffing provider that markets itself as BG Staffing, serves apartment, luxury, and commercial properties in North America with trained talent and technology-driven solutions. The company leverages exclusive relationships and proprietary platforms to support efficiency and service quality in the leased residential and commercial property sectors.

On March 11, 2026, BGSF reported fourth-quarter and fiscal 2025 results, reflecting a year of strategic transformation following the sale of its Professional division and a shift to a pure-play, debt-free property management staffing model. For the quarter ended Dec. 28, 2025, revenue fell to $22.0 million and gross profit to $7.7 million amid lower billed hours and seasonal demand, though net loss narrowed to $1.3 million and adjusted EBITDA loss improved due to cost-cutting. The company is realigning its brand under the BG Staffing name and BGStaffing.com domain, exiting a transition services agreement with INSPYR Solutions in April 2026, and investing in AI-enabled automation and PropTech, including a February 2026 partnership with Yardi’s Independent Consultant Network to pair industry expertise with technology-enabled talent solutions.

The most recent analyst rating on (BGSF) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on BGSF stock, see the BGSF Stock Forecast page.