3/21/2023 0 Comments Timenet bbsi![]() ![]() These business catalysts were depicted in a recent presentation to investors. I also believe that in the near future, economies of scale and leverage will help enhance the free cash flow margins. Keep in mind that management counts with know-how accumulated since 1965. The company knows well how to add new clients as well as design new products. Under normal conditions, I believe that organic growth will continue to play a major role. Quarterly Report The Most Likely Scenario Includes 7.5% Sales Growth And A Fair Price Close To $125 Let’s tell it this way, employees and workers seem to be financing part of the company’s operations. Long-term workers compensation claims liabilities are equal to $172 million. With that, long-term operation lease liabilities stand at $13 million, and accrued payroll, payroll taxes, and related benefits stand at $282 million. Management does not report debt, which most financial advisors would appreciate. The company’s financial situation appears solid. I obtained much more optimistic results.Īs of June 30, 2022, Barrett Business Services reports $34 million in cash, $756 million in total assets, and an asset/liability ratio of 1x-2x. Let’s finally note that the average target price by the analysts stands at $107 with a high price target of $117 and a low-price target of $101. ![]() These numbers made me interested in the company, and I decided to form my own opinion. In 20, the EBITDA margin is expected to reach 5% to 6%, and the net income would grow to $49 million in 2023. They believe that net sales growth could stand at 10% in 2022 and 7.39% in 2023. Source: BBSI Reports Strong Second Quarter 2022 Financial Results Great Expectations From Other Financial AnalystsĪnalysts out there are quite optimistic about Barrett Business Services. On February 28, 2022, BBSI’s board of directors approved a new stock repurchase program authorizing the Company to purchase up to $75 million of its stock over a two-year period. We are talking about the acquisition of $75 million of stock over the next two years: Source: BBSI Reports Strong Second Quarter 2022 Financial Resultsīesides, the company recently reported a new stock repurchase program, which will likely enhance value generation for shareholders in the coming months. In light of the strong performance in the second quarter, BBSI is increasing its outlook for 2022 and now expects the following: Gross billings growth of 11% to 13%, increased from 10% to 12% in the prior outlook. In my view, as soon as traders have a look at the new guidance, the stock price will most likely trend north: Second, gross billings are now expected to grow at close to 13% y/y. ![]() First, management recently increased its guidance. In my view, there are two main reasons to have a look at Barrett Business now. With a management platform bringing knowledge from the management consulting industry and the human resource outsourcing industry, the company has been successful since 1965. ![]() Barrett Business Services: Better Guidance And A Stock Repurchase Programīarrett Business Services, Inc., offers business management solutions. In my view, even considering risks from geographic concentration of revenue in California and failure of partner agreements, the current stock price appears too low. Under the most optimistic case scenario that includes M&A operations and geographic expansion, my DCF model resulted in a valuation of $155 per share. address : No.Barrett Business Services ( NASDAQ: BBSI) counts with expertise accumulated since 1965 and an extensive network of referrals, which will likely help enhance sales growth. ![]()
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