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BGSF

BEARISH
$6.4 Live
BGSF, Inc. · NYSE
$2.91 52W Range $8.22

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AI Analysis

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Confidence
85%
BGSF exhibits severe financial distress, as evidenced by a Piotroski F-Score of 2/9 (indicating weak financial health) and a lack of Altman Z-Score data, which raises bankruptcy risk concerns. The company reports negative profitability across all key metrics—ROE (-17.69%), ROA (-5.62%), and a -12.25% profit margin—while revenue has collapsed by 65.8% YoY. Despite a seemingly low Price/Book (1.49) and modest Price/Sales (0.77), the company’s deteriorating earnings trajectory and lack of sustainable growth undermine valuation appeal. Insider activity is neutral with no recent trades, and analyst coverage is absent, signaling minimal institutional interest. The stock’s recent 151.7% 1-year return appears speculative, driven by momentum rather than fundamentals.

Key Strengths

Strong liquidity position with a current ratio of 4.12 and quick ratio of 3.31
Very low debt/equity ratio (0.02), indicating minimal leverage risk
Gross margin of 35.72% suggests operational efficiency in cost of goods sold
Recent quarterly earnings have shown some positive surprises (e.g., +36.4% in 2025-05-07)
Price is below 52-week high ($8.22), offering a potential short-term technical bounce opportunity

Key Risks

Piotroski F-Score of 2/9 indicates extreme financial weakness and high risk of distress
Revenue declined 65.8% YoY, signaling severe business contraction
Negative ROE (-17.69%) and ROA (-5.62%) reflect poor capital utilization and declining profitability
No analyst coverage or target price, indicating lack of market confidence
Forward P/E of 53.33 is high relative to negative earnings, suggesting overvaluation if no recovery occurs

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