BGSF (BGSF) AI Stock Analysis

• Market Cap: $68.63M
• Dividend Yield: 4.69%
• Average Volume (3M): 24.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -24.36%
• EPS Growth: -393.95%
• Country: US
• Employees: 400
• Sector: Industrials
• Sector Strength: 74
• Industry: Staffing & Employment Services
• EPS (TTM): -0.19
• Shares Outstanding: 11,158,828
• 10 Day Avg. Volume: 15,033
• 30 Day Avg. Volume: 24,774
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.53
• Enterprise Value/Ebitda: 48.83
• 1Y Price Target: $8.00
• Price Target Upside: 30.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $5.50 ▼(-10.57% Downside)

BGSF's overall stock score reflects significant financial challenges, including declining revenue and profitability, and a negative valuation outlook. While technical analysis and earnings call sentiment provide some positive signals, the company's strategic transitions and operational inefficiencies remain key risks.

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 generates revenue primarily through its staffing services, which include the placement of temporary and permanent employees in various industries. The company charges clients a fee for each placement, which can be a percentage of the employee's salary or a flat fee based on the service provided. Additionally, BGSF earns revenue from value-added services such as workforce management solutions, payroll services, and consulting, which help clients optimize their staffing processes. Key partnerships with businesses in diverse sectors enhance BGSF's client base and opportunities for revenue generation, while its focus on specialized staffing niches allows it to command higher fees in competitive markets.

BGSF Financial Statement Overview

Summary

BGSF's financial performance is challenged by declining revenue and profitability, with negative margins and revenue growth. The balance sheet shows moderate leverage, but negative ROE highlights inefficiencies. Cash flow analysis reveals declining free cash flow growth, although cash generation remains relatively strong.

Income Statement

BGSF's income statement shows declining revenue with a negative growth rate of -16.72% in the TTM period. The gross profit margin remains relatively stable, but the net profit margin is negative, indicating losses. EBIT and EBITDA margins are also weak, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.16 in the TTM, suggesting manageable leverage. However, the return on equity is negative, indicating inefficiencies in generating returns from equity. The equity ratio is not provided, limiting further analysis.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth at -42.19% in the TTM. The operating cash flow to net income ratio is below 1, indicating potential cash flow issues. However, the free cash flow to net income ratio is relatively strong, suggesting some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	222.34M	272.50M	313.17M	298.42M	239.03M	277.89M
Gross Profit	74.87M	92.86M	111.78M	103.55M	80.94M	76.22M
EBITDA	2.34M	8.98M	589.00K	20.34M	18.23M	3.63M
Net Income	-6.24M	-3.34M	-10.22M	11.26M	10.46M	1.44M
Balance Sheet
Total Assets	149.69M	150.11M	178.52M	194.67M	148.29M	130.28M
Cash, Cash Equivalents and Short-Term Investments	2.78M	353.00K	0.00	112.10M	112.10K	-6.94M
Total Debt	47.56M	51.66M	68.94M	66.67M	44.03M	41.57M
Total Liabilities	71.41M	67.84M	92.98M	93.94M	71.70M	64.82M
Stockholders Equity	78.29M	82.27M	85.54M	100.74M	76.59M	65.46M
Cash Flow
Free Cash Flow	12.27M	22.74M	17.79M	-8.98M	3.46M	20.11M
Operating Cash Flow	12.93M	24.38M	20.39M	-3.30M	6.66M	22.26M
Investing Cash Flow	-911.00K	-1.64M	-9.51M	-8.90M	-7.02M	-24.15M
Financing Cash Flow	-9.14M	-22.39M	-10.87M	15.93M	473.12K	1.89M

BGSF Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.15
• 50DMA: Negative
• 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 6.15 is above the 20-day moving average (MA) of 5.88, below the 50-day MA of 6.27, and above the 200-day MA of 5.04, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 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
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
HSON	60 Neutral	$34.56M	―	-9.37%	―	-3.58%	-89.07%
DHX	57 Neutral	$144.51M	268.89	-8.83%	―	-8.31%	-445.30%
BGSF	49 Neutral	$68.63M	―	-9.13%	4.69%	-24.36%	-393.95%
JOB	48 Neutral	$20.90M	―	-53.10%	―	-15.53%	-67.84%
IPDN	46 Neutral	$20.10M	―	-68.25%	―	-11.76%	48.03%
NIXX	34 Underperform	$34.17M	―	-643.77%	―	2009.96%	-74.25%

BGSF Corporate Events

BGSF Stockholders Approve Equity Purchase Agreement

On September 4, 2025, BGSF, Inc. held a special meeting of stockholders where they approved the Equity Purchase Agreement involving the transfer of certain assets and liabilities to BGSF Professional and the sale of equity interests to INSPYR Solutions Holdings Corporation. The stockholders also approved executive compensation related to these transactions and the potential adjournment of the meeting, although the latter was unnecessary due to sufficient votes. The transactions are expected to close in the first half of September 2025, pending customary closing conditions.

BGSF Reports Q2 2025 Financial Results Amid Division Sale

BGSF, Inc. reported its financial results for the second quarter of 2025, showing a 12.6% increase in revenues to $23.5 million from the previous quarter, driven by seasonal demand. Despite the revenue growth, the company experienced a net loss of $4.9 million, which increased from the previous quarter’s loss. The company is in the process of selling its Professional Division to INSPYR Solutions, with a shareholder vote scheduled for September 4, 2025. Post-sale, BGSF plans to focus on its Property Management segment, reduce overhead costs, and implement AI-powered tools to enhance sales and recruiting, aiming for improved financial performance in future quarters.

BGSF Announces Sale of Professional Division

On June 16, 2025, BGSF, Inc. announced a definitive agreement to sell its Professional Division to INSPYR Solutions for $99 million in an all-cash transaction. This sale, which includes BGSF’s IT Consulting, Finance and Accounting, Managed Solutions, and Near and Offshore Software Engineering practices, is expected to close in the second half of 2025, pending shareholder approval. The transaction will lead to leadership changes, with Beth Garvey stepping down as CEO and the company planning to use the proceeds to eliminate debt and invest in its Property Management business.