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Trueblue Inc (TBI)
NYSE:TBI
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Trueblue
(NYSE:TBI)44Neutral
Positive Factors
Cost Reductions
Management noted $70 million in SG&A reductions over the past two years from aligning its costs, expecting future benefits from simplifying its organizational structure and technology improvements.
Negative Factors
Earnings
TBI reported a disappointing quarter with both revenues and profits below consensus.
Revenue Performance
Revenues fell 16.7% year over year, which was worse than the expected decline of -9% to -16%.
Trueblue (TBI) vs. S&P 500 (SPY)
Market Cap
$186.57M
Dividend YieldN/A
Average Volume (3M)168.62K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-17.78%
EPS Growth-820.48%
CountryUS
Employees5,000
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)-4.16
Shares Outstanding29,707,860
10 Day Avg. Volume275,160
30 Day Avg. Volume168,622
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.11
Price to Cash Flow (P/CF)-6.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside94.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Trueblue Business Overview & Revenue Model
Company DescriptionTrueBlue, Inc. (TBI) is a leading workforce solutions company that specializes in connecting people with work. The company operates across several sectors, including staffing, workforce management, and recruitment process outsourcing. TrueBlue offers a range of services that help businesses meet their labor needs, from temporary staffing to permanent placement solutions. Its core brands include PeopleReady, PeopleScout, and PeopleManagement, each catering to different workforce demands and helping businesses navigate the complexities of talent acquisition and management.
How the Company Makes MoneyTrueBlue makes money primarily through its staffing and workforce management services. The company generates revenue by providing temporary, contract, and permanent staffing solutions to a variety of industries, including construction, manufacturing, logistics, and retail. TrueBlue charges clients a fee for these services, which is typically based on a markup over the wages paid to the temporary workers. Additionally, through its PeopleScout brand, TrueBlue offers recruitment process outsourcing (RPO) services, where it manages all or part of the recruitment activities for its clients, generating revenue through service fees and performance-based contracts. Significant partnerships with large corporate clients and a broad network of offices and digital platforms contribute to TrueBlue's earnings by expanding its market reach and enhancing service delivery.
Trueblue Financial Statement Overview
Summary
Trueblue faces significant financial challenges across income, balance, and cash flow statements. The income statement reveals declining revenues and profitability, the balance sheet shows weakening financial stability, and cash flow issues indicate struggles in maintaining liquidity and operational efficiency. Addressing these challenges is vital to improve financial health and sustainability.Income Statement
The revenue and profitability metrics for Trueblue indicate challenges. Gross profit margin has been decreasing, and both EBIT and EBITDA margins have turned negative, highlighting operational inefficiencies. The consistent decline in total revenue over the past few years, with a significant drop in 2024, underscores a concerning trend. The net profit margin is also negative, indicating overall losses.45
Neutral
Balance Sheet
Trueblue's balance sheet reflects moderate stability with some areas of concern. The debt-to-equity ratio is manageable, but the decline in stockholders' equity and total assets suggests weakening financial health. The equity ratio remains healthy, indicating a reasonable proportion of equity financing. However, the decrease in cash and short-term investments in 2024 compared to previous years signals potential liquidity issues.60
Neutral
Cash Flow
The cash flow statement presents a worrying picture. The operating cash flow turned negative in 2024, indicating cash flow issues from core operations. Free cash flow has also declined significantly, reflecting reduced capacity to reinvest or return value to shareholders. The ratios of cash flow to net income are unfavorable, pointing to inefficiencies in converting net income into cash.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.57B | 1.91B | 2.25B | 2.17B | 1.85B | Gross Profit |
| 406.39M | 506.06M | 602.14M | 560.32M | 440.64M | EBIT |
| -92.78M | -23.85M | 72.19M | 68.44M | 175.50M | EBITDA |
| -3.54M | 11.46M | 115.61M | 96.00M | -126.04M | Net Income Common Stockholders |
| -125.75M | -14.17M | 62.27M | 61.63M | -141.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 22.54M | 61.88M | 72.05M | 49.90M | 62.51M | Total Assets |
| 675.38M | 899.38M | 1.02B | 1.03B | 980.58M | Total Debt |
| 66.53M | 61.34M | 62.56M | 67.02M | 68.73M | Net Debt |
| 44.00M | -549.00K | -9.49M | 17.13M | 6.23M | Total Liabilities |
| 360.02M | 441.51M | 523.09M | 540.16M | 543.39M | Stockholders Equity |
| 315.36M | 457.87M | 496.31M | 493.07M | 437.19M |
| Cash Flow | Free Cash Flow | |||
| -41.21M | 3.48M | 89.88M | -14.57M | 125.47M | Operating Cash Flow |
| -17.06M | 34.75M | 120.50M | 20.44M | 152.53M | Investing Cash Flow |
| -2.45M | -32.32M | -20.95M | -16.22M | -34.41M | Financing Cash Flow |
| -17.09M | -37.58M | -64.69M | -19.13M | -92.50M |
Trueblue Technical Analysis
Negative
5.66
Price Trends
7.52
Negative
7.59
Negative
8.52
Negative
Market Momentum
-0.53
Positive
29.12
Positive
9.58
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBI, the sentiment is Negative. The current price of 5.66 is below the 20-day moving average (MA) of 6.90, below the 50-day MA of 7.52, and below the 200-day MA of 8.52, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 29.12 is Positive, neither overbought nor oversold. The STOCH value of 9.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBI.
Trueblue Risk Analysis
Trueblue disclosed 34 risk factors in its most recent earnings report. Trueblue 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
Trueblue Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $82.55B | 49.37 | 39.89% | 0.73% | 8.12% | 20.35% | |
71 Outperform | $907.83M | 107.99 | 1.93% | 1.51% | 7.15% | -83.77% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $5.76B | 23.09 | 18.26% | 3.87% | -9.33% | -37.06% | |
58 Neutral | $2.69B | 19.18 | 6.83% | 5.35% | -5.61% | 77.92% | |
56 Neutral | $470.21M | 11.43 | -0.05% | 2.33% | -10.42% | -101.51% | |
44 Neutral | $186.57M | ― | -39.87% | ― | -17.78% | -820.48% |
* Industrials Sector Average
Performance Comparison
TBI
Trueblue
5.66
-5.70
-50.18%
CTAS
Cintas
204.56
49.41
31.85%
HSII
Heidrick & Struggles
44.48
12.60
39.52%
KELYA
Kelly Services
12.94
-10.55
-44.91%
MAN
ManpowerGroup
57.35
-11.95
-17.24%
RHI
Robert Half
54.98
-20.93
-27.57%
Trueblue Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -24.03% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic expansions, successful technology launches, and strong performance in skilled markets. However, significant revenue declines and net losses underscore ongoing challenges in the current market environment. The acquisition of Health Care Staffing Professionals is a positive step towards growth, but the overall sentiment remains cautiously optimistic.Highlights
Expansion and Strategic Wins
TrueBlue expanded its role to become the primary staffing provider for an international transportation and logistics company and secured an exclusive partnership with a Fortune 50 technology company for commercial driving services. Additionally, PeopleScout signed a significant contract with the U.K.'s Armed Forces, expected to be one of its top clients.
Launch of Proprietary Technologies
TrueBlue launched its new proprietary JobStack app and introduced AI-assisted digital interviewing and self-scheduling, enhancing operational efficiency and customer experience.
Growth in Skilled Markets
The company reported strong performance in skilled markets, including commercial driving and energy work, with double-digit growth in commercial driving services for the second consecutive quarter.
Health Care Staffing Professionals Acquisition
TrueBlue acquired Health Care Staffing Professionals for $42 million, expected to produce $5 to $7 million in segment profit over the next 12 months. This acquisition enhances TrueBlue's presence in the health care space.
Cost Management and SG&A Reduction
SG&A expenses were reduced by 18%, outpacing the revenue decline. On an adjusted basis, SG&A was reduced by 24%.
Lowlights
Revenue Decline
Total revenue for the quarter was $386 million, a decline of 22% with 6 percentage points driven by the extra 14th week in the prior year, resulting in a 16% decline on a comparable 13-week basis.
Net Loss for the Quarter
The company reported a net loss of $12 million, with an adjusted net loss of $1 million, despite positive adjusted EBITDA of $9 million.
Challenges in PeopleScout and PeopleReady Segments
PeopleScout revenue decreased 30% on a comparable 13-week basis, and PeopleReady revenue decreased 21% due to lower client volumes and challenging market dynamics.
Cautious Market Environment
Clients remained uncertain of their workforce needs, resulting in suppressed temporary labor and permanent hiring volumes.
Company Guidance
During the TrueBlue Fourth Quarter 2024 Earnings Call, the management provided detailed guidance and insights into the company's performance and future outlook. The company reported a total revenue of $386 million for the quarter, marking a 22% decline year-over-year, with a comparable 16% decline when adjusting for an extra week in the prior year. The gross margin improved by 50 basis points to 26.6%, driven by a 170 basis point expansion from lower workers' compensation costs, though offset by revenue mix changes and market pressures. SG&A expenses were reduced by 18%, or 24% on an adjusted basis, highlighting disciplined cost management. The net loss for the quarter was $12 million, while adjusted EBITDA was a positive $9 million. Segment-specific performance showed PeopleReady's revenue decreased by 21% on a comparable 13-week basis, PeopleScout declined by 30%, and PeopleManagement decreased by 2%. Additionally, the company expects a first-quarter revenue decline between 13% and 7%, influenced by a 3 percentage point contribution from the Health care Staffing Professionals acquisition. TrueBlue also emphasized its strategic focus on digital transformation, showcasing advancements such as the JobStack app and AI-assisted tools, and highlighted efforts to expand in high-growth markets such as healthcare through key acquisitions.Trueblue Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
TrueBlue Acquires Healthcare Staffing Professionals for Expansion
Neutral
Feb 19, 2025
TrueBlue reported its fourth quarter and full-year 2024 financial results, highlighting a revenue decrease to $386 million for the quarter, down from $492 million in the same period the previous year, attributed to a comparable 13-week basis. The company experienced a net loss of $12 million, while adjusting its EBITDA performance upward compared to the prior year. Notably, TrueBlue acquired Healthcare Staffing Professionals, Inc. for $42 million on January 31, 2025, indicating its strategic focus on expanding in high-growth markets and enhancing profitability.
M&A TransactionsBusiness Operations and Strategy
TrueBlue Acquires Healthcare Staffing Professionals, Inc.
Positive
Feb 4, 2025
On February 4, 2025, TrueBlue, Inc. announced its acquisition of Healthcare Staffing Professionals, Inc. (HSP), a provider of temporary and permanent staffing solutions in the healthcare sector, particularly for state and local government entities. This acquisition is aimed at diversifying TrueBlue’s portfolio and expanding its presence in the high-growth healthcare market. TrueBlue sees this move as a strategic opportunity to leverage HSP’s expertise and client base to enhance revenue opportunities and market impact, while also benefiting from potential revenue synergies.
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.