Company Overview
BGSF, Inc. operates as a provider of consulting, managed services, and professional workforce solutions primarily within the United States. The company's business model focuses on delivering office and maintenance field talent specifically to apartment communities and commercial property management segments. This entity functions within the Industrials sector, specifically categorized under the Staffing & Employment Services industry, which denotes its reliance on deploying human capital to client organizations rather than manufacturing physical goods. The company holds a market capitalization of $69.69M and reported annual revenue of $93.31M, while the number of employees is listed as N/A in available records. These valuation and revenue figures indicate that BGSF operates as a mid-sized enterprise with a relatively small market cap that reflects the challenges associated with its recent financial performance.
Financial Health
The company reported revenue of $93.31M for the trailing twelve months, yet it recorded a net income of -$11,533,000 and an EBITDA of -$7,803,000, revealing a significant gap between top-line revenue and bottom-line profitability. This substantial disparity between the $93.31M revenue and the negative net income highlights a cost structure where operating expenses and losses severely eroded the bottom line. Despite the negative earnings, the company generated positive free cash flow of $12.63M, which provides a degree of financial flexibility by indicating that operational cash generation exceeded capital expenditures. The gross margin stands at 35.7%, suggesting a moderate ability to control direct costs relative to revenue, whereas the operating margin of -8.0% and profit margin of -12.2% indicate that overhead costs and other expenses are consuming a significant portion of revenue. On the balance sheet, the company holds $19.02M in cash against $1.16M in debt, resulting in a debt-to-equity ratio of 2.40. While the debt-to-equity ratio suggests a leveraged position, the presence of substantial cash reserves indicates that the company is not currently in a distressed liquidity state. The current ratio is 4.12, which signifies strong short-term liquidity and the ability to cover short-term obligations with current assets. Return on Equity is -17.7% and Return on Assets is -5.6%, metrics that reveal that management has not been effective in generating positive returns on the capital invested in the business over the trailing period.
Valuation Assessment
The P/E Ratio (TTM) is N/A due to the negative net income, while the forward P/E is 53.42, implying that the market is pricing in a significant expected turnaround or restructuring of earnings to justify a multiple. The price-to-book ratio is 1.50, indicating that the stock trades at a premium of 50% above its tangible book value. Additionally, the price-to-sales ratio is 0.75 and the EV/EBITDA is -6.93, suggesting that traditional valuation metrics are distorted by the current losses and that the market is relying on revenue-based or forward-looking multiples. The stock has a 52-week high of $8.22 and a 52-week low of $2.91. Without the specific current share price provided in the facts, the relative trading position cannot be precisely calculated, but the wide range between the high and low indicates high volatility over the past year. The beta is 0.68, which means the stock's price volatility is lower than the broader market, moving at roughly 32% less intensity than the market average.
Growth & Income
Revenue growth year-over-year is -65.8%, while earnings growth is N/A, indicating that the company is currently contracting significantly and has not yet posted positive earnings to calculate an earnings growth rate. The negative revenue growth rate suggests a contraction in the business scope or a loss of market share, which is a critical factor for investors analyzing the trajectory of the workforce solutions sector. As a non-dividend payer, the company has a dividend yield of N/A and a payout ratio of 0.0%, meaning it retains all earnings rather than distributing them to shareholders. This lack of a dividend payout implies that the company is currently prioritizing operational survival or balance sheet strengthening over shareholder distributions. The overall growth and income profile is characterized by significant revenue contraction, negative earnings, and an absence of dividend income, presenting a high-risk, turnaround-oriented investment scenario.