BGSF (BGSF) AI Stock Analysis

• Market Cap: $36.53M
• Dividend Yield: 56.5%
• Average Volume (3M): 138.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -24.36%
• EPS Growth: -393.95%
• Country: US
• Employees: 400
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.09
• Shares Outstanding: 11,172,258
• 10 Day Avg. Volume: 45,971
• 30 Day Avg. Volume: 138,740
• PEG Ratio: 0.25
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 2.51
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -1.09
• Revenue Forecast (FY): $92.84M

• Rating: 49 Neutral
• Price Target: $5.50 ▲(50.27% Upside)

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. is a staffing and recruitment company that specializes in providing professional staffing solutions across various sectors, including information technology, accounting, finance, and engineering. The company focuses on connecting skilled professionals with businesses seeking temporary or permanent staffing solutions, leveraging its expertise to meet the specific needs of clients and candidates alike. BGSF operates primarily in the United States and is known for its commitment to quality service and workforce management.

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 2019	Dec 2018	Dec 2017
Income Statement
Total Revenue	113.64M	272.50M	313.17M	294.31M	286.86M	272.60M
Gross Profit	38.73M	92.86M	111.78M	80.68M	76.60M	68.40M
EBITDA	-4.41M	8.98M	589.00K	80.68M	29.30M	24.05M
Net Income	-4.46M	-3.34M	-10.22M	13.25M	17.55M	5.85M
Balance Sheet
Total Assets	83.57M	150.11M	178.52M	115.59M	100.27M	104.63M
Cash, Cash Equivalents and Short-Term Investments	41.17M	353.00K	0.00	-5.41M	0.00	0.00
Total Debt	836.00K	51.66M	68.94M	32.90M	20.09M	44.12M
Total Liabilities	32.89M	67.84M	92.98M	47.13M	34.57M	65.50M
Stockholders Equity	50.69M	82.27M	85.54M	68.46M	65.70M	39.13M
Cash Flow
Free Cash Flow	3.25M	22.74M	17.79M	15.72M	17.50M	16.92M
Operating Cash Flow	3.27M	24.38M	20.39M	17.95M	18.43M	18.06M
Investing Cash Flow	-266.00K	-1.64M	-9.51M	-9.73M	-923.99K	-25.64M
Financing Cash Flow	-254.00K	-22.39M	-10.87M	-8.22M	-17.50M	7.58M

BGSF Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 3.66 is above the 20-day moving average (MA) of 3.53, below the 50-day MA of 4.23, and above the 200-day MA of 3.65, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 43.36 is Neutral, neither overbought nor oversold. The STOCH value of 43.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BGSF.

BGSF Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HQI	60 Neutral	$118.02M	48.52	4.06%	2.48%	-9.76%	-53.41%
MHH	52 Neutral	$81.31M	101.73	1.01%	―	5.16%	―
BGSF	49 Neutral	$36.53M	―	-9.13%	56.50%	-24.36%	-393.95%
JOB	47 Neutral	$20.38M	-0.56	-53.10%	―	-15.53%	-67.84%
DHX	45 Neutral	$90.74M	-9.17	-8.83%	―	-8.31%	-445.30%
IPDN	41 Neutral	$11.86M	―	-68.25%	―	-11.76%	48.03%

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.