BGSF (BGSF) AI Stock Analysis

• Market Cap: $49.43M
• Dividend Yield: 4.69%
• Average Volume (3M): 17.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -12.93%
• EPS Growth: -159.19%
• Country: US
• Employees: 400
• Sector: Industrials
• Sector Strength: 92
• Industry: Staffing & Employment Services
• EPS (TTM): 0.05
• Shares Outstanding: 11,108,693
• 10 Day Avg. Volume: 16,069
• 30 Day Avg. Volume: 17,121
• PEG Ratio: N/A
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.19
• Enterprise Value/Market Cap: 1.95
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.09
• Enterprise Value/Ebitda: 2.07
• 1Y Price Target: $12.00
• Price Target Upside: 169.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $4.50 ▲(1.12%Upside)

BGSF's overall stock score reflects its struggles with profitability and valuation challenges, offset by positive technical momentum and strategic initiatives. While the company is making strides in restructuring and customer acquisition, it faces significant risks due to revenue decline and financial covenant issues. Improving financial health and sustaining growth initiatives are crucial for future performance.

BGSF Business Overview & Revenue Model

Company Description

BGSF, Inc. is a workforce solutions provider operating in the United States. The company specializes in providing staffing services across various sectors, including real estate, professional, and light industrial. BGSF offers tailored staffing solutions to meet the specific needs of its clients, helping them optimize workforce management and efficiency.

How the Company Makes Money

BGSF 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 shows some strengths in cash flow generation, but struggles with profitability as reflected in negative net income and profit margins. While the balance sheet indicates a stable financial position with manageable leverage, the negative Return on Equity is a concern. Overall, the company's financial health is mixed, requiring improvements in profitability and cash flow sustainability.

Income Statement

The company has shown some signs of revenue growth, but profitability remains a challenge. The TTM (Trailing-Twelve-Months) data shows a slight decline in total revenue compared to the previous year, and net income remains negative, indicating ongoing struggles with profitability. Gross Profit Margin remains modest at around 33.1%, and Net Profit Margin is negative, reflecting the company's difficulty in translating revenues into profits. Stability in margins is crucial for improvement.

Balance Sheet

The balance sheet shows a moderate financial position with a Debt-to-Equity Ratio of approximately 0.64, indicating manageable leverage. However, the company's equity ratio of 53.7% suggests a stable reliance on equity to finance assets. The Return on Equity (ROE) is negative due to the negative net income, which is a concern for future equity growth.

Cash Flow

The company has demonstrated strong free cash flow generation, with a positive Free Cash Flow to Net Income Ratio, despite negative net income. The Operating Cash Flow to Net Income Ratio is favorable, indicating effective cash management. However, the Free Cash Flow Growth Rate has slowed down, signaling potential future challenges in cash flow sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Mar 2023	Dec 2021	Dec 2020
Income Statement		Total Revenue
266.97M	272.50M	313.17M	298.42M	239.03M	277.89M
	Gross Profit
88.36M	92.86M	111.78M	103.55M	80.94M	76.22M
	EBIT
1.14M	1.21M	-7.18M	16.28M	14.53M	11.05M
	EBITDA
8.57M	9.70M	589.00K	20.34M	18.23M	3.63M
	Net Income Common Stockholders
-2.47M	-3.34M	-10.22M	11.26M	10.46M	1.44M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.05M	353.00K	0.00	112.10M	112.10K	-6.94M
	Total Assets
152.26M	150.11M	178.52M	194.67M	148.29M	130.28M
	Total Debt
52.05M	51.66M	68.94M	66.67M	44.03M	41.57M
	Net Debt
50.00M	51.31M	68.94M	-45.43M	43.92M	48.51M
	Total Liabilities
70.44M	67.84M	92.98M	93.94M	71.70M	64.82M
	Stockholders Equity
81.82M	82.27M	85.54M	100.74M	76.59M	65.46M
Cash Flow		Free Cash Flow
21.22M	22.74M	17.79M	-8.98M	3.46M	20.11M
	Operating Cash Flow
22.39M	24.38M	20.39M	-3.30M	6.66M	22.26M
	Investing Cash Flow
-1.17M	-1.64M	-9.51M	-8.90M	-7.02M	-24.15M
	Financing Cash Flow
-19.78M	-22.39M	-10.87M	15.93M	473.12K	1.89M

BGSF Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4.45 is above the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.58, and below the 200-day MA of 5.76, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 68.84 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, 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 *	65 Neutral	$4.41B	12.06	5.22%	249.80%	4.09%	-12.16%
DHX	62 Neutral	$94.09M	268.89	-7.21%	―	-7.42%	-567.61%
BGSF	61 Neutral	$49.43M	―	-3.95%	4.69%	-12.93%	-159.19%
JOB	51 Neutral	$21.43M	―	-70.70%	―	-17.38%	-1165.13%
HSON	50 Neutral	$24.48M	―	-8.66%	―	-9.28%	-244.22%
IPDN	35 Underperform	$3.19M	―	-67.31%	―	-12.88%	53.73%
NIXX	34 Underperform	$36.80M	―	-633.62%	―	-89.25%	39.71%

BGSF Corporate Events

BGSF Reports Q1 2025 Financial Results and Restructuring Progress

BGSF, Inc. reported its financial results for the first quarter of 2025, ending March 30. The company experienced a slight decline in revenues to $63.2 million from $64.4 million in the previous quarter, primarily due to a seasonal decrease in the Property Management segment, while the Professional segment saw a 5.6% increase in revenues. Despite a net loss of $0.7 million, the company improved its adjusted EBITDA to $2.4 million and adjusted EPS to $0.05. BGSF continues to advance its restructuring plan to streamline operations, with improvements noted in the Professional segment and gross margins.

BGSF Appoints Keith Schroeder as New CFO

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.

BGSF Reports Q4 2024 Revenue Decline and Restructuring

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.