📊 BGSF Key Takeaways
Investment Thesis
BGSF is experiencing severe operational distress with negative operating income (-10% margin) and negative net income (-14.4% margin) despite generating $71.3M in revenue, indicating fundamental business model challenges. The company is burning cash operationally (-$1.5M) and free cash flow is deeply negative (-$1.7M), raising sustainability concerns despite maintaining adequate liquidity with $41.2M in cash and a 1.97x current ratio. With ROE of -20.3% and ROA of -12.3%, the company is destroying shareholder value and requires immediate operational restructuring to return to profitability.
BGSF Strengths
- Strong gross margin of 36% indicates pricing power and cost of goods sold management in the staffing segment
- Solid liquidity position with $41.2M cash and 1.97x current ratio providing runway to address operational issues
- Moderate leverage with 0.64x debt-to-equity ratio leaves room for additional financing if needed
BGSF Risks
- Significant operating losses (-$7.1M) and negative net income (-$10.3M) indicate core business is unprofitable
- Negative operating cash flow (-$1.5M) and free cash flow (-$1.7M) demonstrate the business cannot fund operations from earnings
- Large gap between gross margin (36%) and net margin (-14.4%) suggests severe SG&A expense issues that are eroding profitability
- Long-term debt of $32.5M represents 64% of equity and creates fixed obligations the company struggles to service
Key Metrics to Watch
- Operating margin trend - critical to reach positive territory
- Operating cash flow - must return to positive to validate business sustainability
- Gross margin stability - ensure 36% margin is maintained during turnaround
- SG&A expense as % of revenue - identify where margin is being lost
- Cash balance depletion rate - monitor cash burn runway
BGSF Financial Metrics
💡 AI Analyst Insight
BGSF, INC. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
BGSF Profitability Ratios
BGSF vs Default Sector
How BGSF, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BGSF Balance Sheet & Liquidity
BGSF 5-Year Financial Trend
5-Year Trend Summary: BGSF, INC.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $2.42 reflects profitable operations.
BGSF Growth Metrics (YoY)
BGSF Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $26.9M | -$722.0K | $-0.07 |
| Q2 2025 | $23.5M | -$722.0K | $-0.07 |
| Q1 2025 | $63.2M | -$722.0K | N/A |
| Q3 2024 | $71.2K | -$761 | N/A |
| Q2 2024 | $68.1K | -$761 | N/A |
| Q1 2024 | $68.8K | -$792 | N/A |
| Q3 2023 | $78.5K | $2.6K | $0.24 |
| Q2 2023 | $74.1K | $2.6K | $0.24 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BGSF Capital Allocation
BGSF SEC Filings
Access official SEC EDGAR filings for BGSF, INC. (CIK: 0001474903)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BGSF
What is the AI rating for BGSF?
BGSF, INC. (BGSF) has an AI rating of STRONG SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BGSF's key strengths?
Strong gross margin of 36% indicates pricing power and cost of goods sold management in the staffing segment. Solid liquidity position with $41.2M cash and 1.97x current ratio providing runway to address operational issues.
What are the risks of investing in BGSF?
Significant operating losses (-$7.1M) and negative net income (-$10.3M) indicate core business is unprofitable. Negative operating cash flow (-$1.5M) and free cash flow (-$1.7M) demonstrate the business cannot fund operations from earnings.
What is BGSF's revenue and growth?
BGSF, INC. reported revenue of $71.3M.
Does BGSF pay dividends?
BGSF, INC. does not currently pay dividends.
Where can I find BGSF SEC filings?
Official SEC filings for BGSF, INC. (CIK: 0001474903) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BGSF's EPS?
BGSF, INC. has a diluted EPS of $-0.93.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.