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Trueblue Inc (TBI)
NYSE:TBI
US Market
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Trueblue (TBI) AI Stock Analysis

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TBI

Trueblue

(NYSE:TBI)

Rating:49Neutral
Price Target:
$6.00
▲(4.35% Upside)
Trueblue's overall stock score reflects significant financial challenges, including negative profitability and cash flow issues. While strategic initiatives and market expansion offer some optimism, technical indicators and valuation concerns weigh heavily on the score.
Positive Factors
Business Expansion
Its recent HSP accretive acquisition should help expand into a vertical with more secular growth trends.
Market Position
Management believes its competitive advantages should help TBI gain share as the environment improves.
Market Trends
Trends are getting 'less worse,' typically a good time to buy the name, and something not reflected in its valuation.
Negative Factors
Market Uncertainty
Management acknowledged the current environment is still one of uncertainty, with customers still hesitant to make longer-term hiring decisions.

Trueblue (TBI) vs. SPDR S&P 500 ETF (SPY)

Trueblue Business Overview & Revenue Model

Company DescriptionTrueBlue, Inc., together with its subsidiaries, provides specialized workforce solutions in the United States, Canada, and Puerto Rico. It operates through three segments: PeopleReady, PeopleManagement, and PeopleScout. The PeopleReady segment offers contingent staffing solutions for blue-collar, on-demand, and skilled labor in construction, manufacturing and logistics, warehousing and distribution, waste and recycling, energy, retail, hospitality, and general labor industries. The PeopleManagement segment provides contingent labor and outsourced industrial workforce solutions. This segment also offers on-site management and recruitment for the contingent industrial workforce of manufacturing, warehouse, and distribution facilities; and recruitment and management of contingent and dedicated commercial drivers to the transportation and distribution industries under the Staff Management, SIMOS Insourcing Solutions, and Centerline Drivers brands. The PeopleScout segment offers permanent employee recruitment process outsourcing services; and manages clients' contingent labor programs comprising vendor selection, performance management, compliance monitoring, and risk management. The company was formerly known as Labor Ready, Inc. and changed its name to TrueBlue, Inc. in December 2007. TrueBlue, Inc. was incorporated in 1985 and is headquartered in Tacoma, Washington.
How the Company Makes MoneyTrueblue generates revenue primarily through its staffing and recruitment services. The company earns money by charging clients a fee for each worker placed, which can be based on a percentage of the employee's wage or a flat fee arrangement. Key revenue streams include temporary staffing services, where they provide workers on a short-term basis, and permanent placement services, where they connect businesses with candidates for long-term employment. Additionally, Trueblue has established significant partnerships with various organizations and companies, which help to secure large contracts and consistent revenue. The company's ability to adapt its offerings to meet the specific needs of different industries also contributes to its earnings.

Trueblue Earnings Call Summary

Earnings Call Date:Aug 04, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were significant strategic advancements in market expansion, digital innovation, and cost efficiency, the company faced challenges with flat revenue growth, margin declines, and reporting a net loss. Positive momentum in skilled segments and strategic acquisitions provide optimism for future growth.
Q2-2025 Updates
Positive Updates
Expansion and Strategic Acquisitions
TrueBlue strategically expanded its total addressable market from $45 billion to $90 billion with the acquisition of health care staffing professionals (HSP), enhancing its presence in high-growth sectors like health care.
Cost Reduction and Efficiency Improvements
The company implemented $90 million in permanent SG&A savings from its 2022 base, driving margin expansion during the industry downturn.
Growth in Skilled and Energy Segments
TrueBlue's skilled businesses delivered double-digit growth for the quarter, and the commercial driver business achieved its fourth consecutive quarter of double-digit revenue growth.
Digital Transformation and Innovation
The company integrated AI into its platform strategies, enhancing job matching and predictive analytics, leading to improved fill rates and client satisfaction.
Negative Updates
Flat Total Revenue
Total revenue for the quarter was $396 million, flat compared to the prior year, with temporary labor and permanent hiring volumes remaining suppressed.
Gross Margin Decline
Gross margin fell by 280 basis points to 23.6%, driven by revenue mix changes and non-cash software depreciation costs.
Net Loss Reported
The company reported a net loss of $0.2 million for the quarter, including a non-cash intangible asset impairment charge.
PeopleSolutions Segment Decline
PeopleSolutions segment experienced a 20% organic revenue decline, despite a 40% inorganic growth contribution from HSP.
Company Guidance
During the TrueBlue Second Quarter 2025 Earnings Call, the company provided guidance that highlights a strategic framework aimed at fostering growth and enhancing shareholder value amid a challenging market environment. TrueBlue reported total revenue of $396 million for the quarter, with a flat performance compared to the previous year and a 4% growth contribution from the recent acquisition of Health Care Staffing Professionals (HSP). The company's gross margin declined by 280 basis points to 23.6%, attributed to changes in revenue mix and certain software depreciation. Despite these challenges, TrueBlue has implemented targeted cost reductions, achieving approximately $90 million in permanent SG&A savings from its 2022 base, which has helped drive improved efficiencies and profitability. Looking ahead to the third quarter, TrueBlue expects revenue growth between 5% and 11% year-over-year. The company is leveraging its digital transformation, expanding into high-growth markets, and optimizing its sales function to capture demand, supported by a robust innovation pipeline focused on integrating responsible AI into its platform strategies.

Trueblue Financial Statement Overview

Summary
Trueblue is facing financial challenges with declining revenues, increased leverage, and cash flow difficulties. The income statement shows negative EBIT and net income margins, while the balance sheet indicates higher leverage. Cash flow metrics are under pressure, highlighting potential liquidity issues.
Income Statement
45
Neutral
The income statement for Trueblue reveals a challenging financial period. The TTM data shows a significant decline in revenue and profitability, with negative EBIT and net income margins. Revenue has seen a declining trend over the past few years, and the company is currently operating at a loss, resulting in a negative net profit margin. This indicates potential difficulties in managing costs relative to revenue, reflecting adverse operational performance.
Balance Sheet
50
Neutral
The balance sheet presents a mixed scenario. Trueblue's debt-to-equity ratio has increased over the years, suggesting higher leverage, which could be a risk if not managed properly. However, the equity ratio remains reasonable, indicating a stable base of stockholders' equity. Return on equity has been negative recently due to losses, which is a concern, but the overall equity position provides some stability.
Cash Flow
40
Negative
Cash flow metrics indicate significant pressure. Operating cash flow is negative in the TTM, and free cash flow has declined, reflecting challenges in generating cash from operations. The free cash flow to net income ratio and operating cash flow to net income ratio are unfavorable, highlighting potential liquidity issues if this trend continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.53B1.57B1.91B2.25B2.17B1.85B
Gross Profit375.52M406.39M506.06M602.14M560.32M440.64M
EBITDA-12.76M-3.54M11.46M115.61M96.00M-126.04M
Net Income-33.85M-125.75M-14.17M62.27M61.63M-141.84M
Balance Sheet
Total Assets672.78M675.38M899.38M1.02B1.03B980.58M
Cash, Cash Equivalents and Short-Term Investments21.90M22.54M61.88M72.05M49.90M62.51M
Total Debt110.10M66.53M61.34M62.56M67.02M68.73M
Total Liabilities367.59M360.02M441.51M523.09M540.16M543.39M
Stockholders Equity305.19M315.36M457.87M496.31M493.07M437.19M
Cash Flow
Free Cash Flow-54.71M-41.21M3.48M89.88M-14.57M125.47M
Operating Cash Flow-34.91M-17.06M34.75M120.50M20.44M152.53M
Investing Cash Flow-16.93M-2.45M-32.32M-20.95M-16.22M-34.41M
Financing Cash Flow48.55M-17.09M-37.58M-64.69M-19.13M-92.50M

Trueblue Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.75
Price Trends
50DMA
6.43
Negative
100DMA
5.88
Negative
200DMA
6.47
Negative
Market Momentum
MACD
-0.14
Negative
RSI
39.59
Neutral
STOCH
21.17
Neutral
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 5.75 is below the 20-day moving average (MA) of 5.94, below the 50-day MA of 6.43, and below the 200-day MA of 6.47, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 39.59 is Neutral, neither overbought nor oversold. The STOCH value of 21.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBI.

Trueblue Risk Analysis

Trueblue disclosed 36 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.73B15.657.58%2.01%2.80%-14.92%
63
Neutral
$138.18M56.814.06%2.48%-9.76%-53.41%
57
Neutral
$135.39M268.89-8.83%-8.31%-445.30%
54
Neutral
$94.16M112.991.01%5.16%
51
Neutral
$496.40M11.43-0.49%2.23%0.97%-112.75%
49
Neutral
$178.21M-10.53%-13.01%68.18%
49
Neutral
$67.51M-9.13%4.69%-24.36%-393.95%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBI
Trueblue
5.75
-1.65
-22.30%
DHX
DHI Group
3.01
1.37
83.54%
KELYA
Kelly Services
13.47
-6.10
-31.17%
MHH
Mastech Holdings
7.91
-1.09
-12.11%
BGSF
BGSF
6.15
-1.66
-21.25%
HQI
HireQuest
9.91
-4.12
-29.37%

Trueblue Corporate Events

Business Operations and StrategyFinancial Disclosures
TrueBlue Reports Improved Q2 2025 Financial Results
Positive
Aug 4, 2025

TrueBlue reported its second quarter 2025 financial results, showing a revenue of $396 million, which remained flat compared to the previous year. The company achieved a net loss of $0 million, a significant improvement from the $105 million net loss in the prior year, attributed to non-cash impairment and tax valuation charges. TrueBlue’s strategic focus on skilled trades, healthcare, and energy markets, along with investments in proprietary technologies, is expected to drive future growth and enhance operational efficiency. The company is optimistic about returning to growth in the third quarter, with a focus on retaining and expanding client relationships and delivering high-quality solutions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 19, 2025