Barrett Business Services, Inc. : BBSI-US: Dividend Analysis : August 25th, 2017 (record date) : By the numbers : September 20, 2017

Our analysis is based on comparing Barrett Business Services, Inc. with the following peers – Kelly Services, Inc. Class A, Insperity, Inc., On Assignment, Inc., Robert Half International Inc., TrueBlue, Inc., ManpowerGroup Inc., Kforce Inc., Mastech Digital, Inc., TriNet Group, Inc. and Automatic Data Processing, Inc. (KELYA-US, NSP-US, ASGN-US, RHI-US, TBI-US, MAN-US, KFRC-US, MHH-US, TNET-US and ADP-US).

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), BBSI-US paid a high quality dividend, which represents a yield of 1.74% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 15.61x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), BBSI-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 13.21x), investing cash flow (coverage of -8.46x), issuance cash flow (coverage of -1.19x) and twelve-month prior cash (coverage of 7.16x), for a total dividend coverage of 16.61x.

BBSI-US’s issuance cash flow includes outflows from net debt repayment (coverage of -1.14x) and net share buybacks (coverage of -0.06x). Thus, the total coverage including share buybacks is 16.67x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 1.33 0.61 2.79 2.01 1.37 1.79
Dividend Payout (%) 27.54 23.55 -21.29 25.36 34.51 39.5

A complete list of metrics and analysis is available on the company page.

Company Profile

Barrett Business Services, Inc. engages in the provision of business management solutions, human resource outsourcing, and management consulting. Its services include payroll processing, employee benefits, workers’ compensation coverage, risk management and workplace safety programs, human resource administration, recruiting and permanent placement. The company was founded in 1951 and is headquartered in Vancouver, WA.


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