Trueblue (TBI) AI Stock Analysis

• Market Cap: $164.37M
• Dividend Yield: N/A
• Average Volume (3M): 221.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -5.37%
• EPS Growth: 75.32%
• Country: US
• Employees: 4,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.03
• Shares Outstanding: 29,939,468
• 10 Day Avg. Volume: 274,439
• 30 Day Avg. Volume: 221,088
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -6.15
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: -48.27
• 1Y Price Target: $6.00
• Price Target Upside: 22.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $4.50 ▼(-8.16% Downside)

Trueblue's overall stock score reflects significant financial challenges, with negative profit margins and cash flow issues being the most impactful. Technical analysis indicates bearish momentum, while valuation concerns persist due to a negative P/E ratio. Despite these challenges, the earnings call provided some optimism with strong revenue growth and strategic initiatives.

Positive Factors

Revenue Growth

The 13% revenue growth, especially in the energy sector, indicates strong market demand and effective business strategies, supporting long-term expansion.

Operational Efficiency

Reducing SG&A costs by 8% while increasing revenue shows strong operational efficiency, which can enhance profitability and competitive positioning.

Digital Transformation

Digital transformation initiatives improve service delivery and customer engagement, positioning the company for future growth and market leadership.

Negative Factors

Gross Margin Decline

A decline in gross margin from 26.2% to 22.7% indicates pressure on profitability, which could affect long-term financial health if not addressed.

Net Loss

Reporting a net loss of $2 million suggests challenges in achieving profitability, which could hinder investment and growth opportunities.

Cash Flow Issues

Negative operating and free cash flows highlight cash management issues, which can limit the company's ability to invest in growth and innovation.

Trueblue Business Overview & Revenue Model

Company Description

Trueblue, Inc. (TBI) is a leading provider of specialized workforce solutions in the United States. The company operates primarily in the staffing and recruitment sectors, delivering a range of services that include temporary staffing, direct hire solutions, and managed services for various industries such as manufacturing, logistics, and administrative sectors. Trueblue focuses on connecting businesses with skilled workers, helping organizations manage their workforce needs efficiently and effectively.

How the Company Makes Money

Trueblue 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 Financial Statement Overview

Summary

Trueblue's financial performance is challenged by declining revenue and profitability, negative net profit margins, and cash flow issues. While leverage is manageable, the negative return on equity and cash flow management problems highlight the need for strategic improvements.

Income Statement

Trueblue's income statement shows a challenging financial position with declining revenue and profitability. The TTM data reveals a slight revenue growth of 0.4%, but the company is struggling with negative net profit and EBIT margins, indicating operational inefficiencies. The gross profit margin has decreased slightly from previous years, reflecting pressure on cost management. Overall, the income statement suggests a need for strategic improvements to enhance profitability.

Balance Sheet

The balance sheet presents a moderate financial position with a manageable debt-to-equity ratio of 0.36 in the TTM period, indicating a relatively low level of leverage. However, the return on equity is negative, reflecting the company's inability to generate positive returns for shareholders. The equity ratio remains stable, suggesting a balanced asset structure. While the debt levels are under control, the negative ROE highlights the need for improved profitability.

Cash Flow

Cash flow analysis indicates significant challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is positive, but the operating cash flow to net income ratio is negative, highlighting cash flow management issues. The free cash flow to net income ratio is above 1, suggesting that despite losses, the company is generating some free cash flow relative to net income. Overall, cash flow management needs improvement to support financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.53B	1.57B	1.91B	2.25B	2.17B	1.85B
Gross Profit	382.49M	406.39M	506.06M	602.14M	560.32M	440.64M
EBITDA	-5.95M	-3.54M	11.46M	115.61M	96.00M	32.34M
Net Income	-33.85M	-125.75M	-14.17M	62.27M	61.63M	-141.84M
Balance Sheet
Total Assets	672.78M	675.38M	899.38M	1.02B	1.03B	980.58M
Cash, Cash Equivalents and Short-Term Investments	21.90M	22.54M	61.88M	72.05M	49.90M	62.51M
Total Debt	110.10M	66.53M	61.34M	62.56M	67.02M	68.73M
Total Liabilities	367.59M	360.02M	441.51M	523.09M	540.16M	543.39M
Stockholders Equity	305.19M	315.36M	457.87M	496.31M	493.07M	437.19M
Cash Flow
Free Cash Flow	-54.71M	-41.21M	3.48M	89.88M	-14.57M	125.47M
Operating Cash Flow	-34.91M	-17.06M	34.75M	120.50M	20.44M	152.53M
Investing Cash Flow	-16.93M	-2.45M	-32.32M	-20.95M	-16.22M	-34.41M
Financing Cash Flow	48.55M	-17.09M	-37.58M	-64.69M	-19.13M	-92.50M

Trueblue Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.90
• 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 TBI, the sentiment is Neutral. The current price of 4.9 is above the 20-day moving average (MA) of 4.90, below the 50-day MA of 5.48, and below the 200-day MA of 5.78, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TBI.

Trueblue Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	65 Neutral	$121.96M	17.41	11.08%	2.48%	-12.65%	368.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MHH	60 Neutral	$92.17M	―	-0.08%	―	1.24%	97.14%
DHX	50 Neutral	$90.74M	-9.17	-12.89%	―	-9.13%	-1032.39%
BGSF	49 Neutral	$50.40M	―	-14.43%	43.20%	-36.79%	-507.05%
TBI	48 Neutral	$164.37M	-5.79	-8.91%	―	-5.37%	75.32%
KELYA	46 Neutral	$305.36M	―	-13.11%	3.47%	0.46%	-477.90%

Trueblue Corporate Events

TrueBlue Adopts Shareholder Rights Plan to Thwart Unsolicited Takeover by HireQuest

TrueBlue’s recent adoption of a shareholder rights plan, as approved by its Board on May 14, 2025, introduces potential obstacles to takeovers that shareholders might find advantageous. This plan, initiated in response to an unsolicited acquisition proposal from HireQuest, Inc., involves the issuance of preferred stock purchase rights that could significantly dilute the holdings of any acquiring party not sanctioned by the Board. Additionally, TrueBlue’s incorporation under Washington law further complicates potential business combinations, as specific statutory provisions may delay or obstruct changes in control, even if such changes could benefit shareholders. These measures collectively serve as deterrents to unsolicited acquisition attempts, potentially impacting shareholder interests and market dynamics.

TrueBlue’s Earnings Call: Balancing Growth and Challenges

The recent earnings call for TrueBlue painted a picture of robust revenue growth, driven by key sectors such as energy and commercial drivers, alongside effective cost management and digital initiatives. However, the positive sentiment was tempered by challenges including declining gross margins, a net loss, and specific segment declines, balancing the overall outlook.

TrueBlue Reports Revenue Growth Amidst Challenges

TrueBlue, Inc. is a staffing and workforce management company operating primarily in the United States, providing temporary and permanent staffing solutions across various industries.

TrueBlue Reports Strong Q3 2025 Financial Results

TrueBlue reported its third-quarter 2025 financial results, highlighting a 13% increase in revenue to $431 million compared to the same period last year. The company reduced its net loss to $2 million from $8 million in the prior year, with strategic growth in skilled businesses and digital transformation efforts contributing to improved performance. TrueBlue’s focus on high-growth markets and optimizing its sales function aims to drive sustainable, profitable growth and enhance shareholder value.

The most recent analyst rating on (TBI) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Trueblue stock, see the TBI Stock Forecast page.

TrueBlue’s Strategic Moves Highlighted in Earnings Call

TrueBlue’s recent earnings call revealed a cautiously optimistic sentiment despite facing challenges such as flat revenue and declining gross margins. The company demonstrated resilience through strategic expansions into high-growth markets and significant cost reductions. Positive trends in skilled businesses and a promising revenue growth outlook contribute to a hopeful future for TrueBlue.

TrueBlue Reports Stable Revenue and Strategic Growth Initiatives

TrueBlue, Inc., a company specializing in workforce solutions and staffing services across various industries, has released its second quarter financial results for 2025, showing a stable revenue stream and strategic growth initiatives. The company reported a revenue of $396 million for the second quarter of 2025, consistent with the same period last year, and highlighted a significant reduction in net loss from $105 million to zero. TrueBlue’s strategic acquisition of Healthcare Staffing Professionals in January contributed $16 million to the revenue, and the company improved its SG&A expenses by 7% compared to the previous year.