Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Barrett Business Services, Inc. (BBSI)

Company Dividend Discount ModelIndustry: Staffing & Employment ServicesSector: Industrials

Valuation Snapshot

Stable Growth$23.69 - $38.68$30.39
Multi-Stage$27.94 - $30.62$29.26
Blended Fair Value$29.82
Current Price$44.32
Upside-32.71%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.30%4.04%0.310.310.320.350.350.310.280.280.240.24
YoY Growth---0.04%-5.10%-6.01%-0.57%11.12%11.70%0.99%14.42%0.78%15.93%
Dividend Yield--0.75%0.97%1.47%1.79%2.02%3.16%1.43%1.34%1.77%3.35%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)54.85
(-) Cash Dividends Paid (M)8.24
(=) Cash Retained (M)46.62
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)10.976.864.11
Cash Retained (M)46.6246.6246.62
(-) Cash Required (M)-10.97-6.86-4.11
(=) Excess Retained (M)35.6439.7642.50
(/) Shares Outstanding (M)26.2326.2326.23
(=) Excess Retained per Share1.361.521.62
LTM Dividend per Share0.310.310.31
(+) Excess Retained per Share1.361.521.62
(=) Adjusted Dividend1.671.831.93
WACC / Discount Rate9.16%9.16%9.16%
Growth Rate1.96%2.96%3.96%
Fair Value$23.69$30.39$38.68
Upside / Downside-46.54%-31.43%-12.73%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)54.8556.4858.1559.8861.6563.4865.38
Payout Ratio15.02%30.01%45.01%60.01%75.00%90.00%92.50%
Projected Dividends (M)8.2416.9526.1735.9346.2457.1360.48

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.16%9.16%9.16%
Growth Rate1.96%2.96%3.96%
Year 1 PV (M)15.3815.5315.68
Year 2 PV (M)21.5421.9622.39
Year 3 PV (M)26.8227.6228.43
Year 4 PV (M)31.3132.5633.84
Year 5 PV (M)35.1036.8538.68
PV of Terminal Value (M)602.68632.82664.15
Equity Value (M)732.83767.34803.18
Shares Outstanding (M)26.2326.2326.23
Fair Value$27.94$29.26$30.62
Upside / Downside-36.96%-33.99%-30.91%

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