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    BGSF, Inc.'s (NYSE:BGSF) 50% Dip In Price Shows Sentiment Is Matching Revenues

    Simply Wall St·10/28/2025 13:11:48
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    BGSF, Inc. (NYSE:BGSF) shareholders that were waiting for something to happen have been dealt a blow with a 50% share price drop in the last month. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 56% loss during that time.

    Following the heavy fall in price, BGSF may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 0.1x, considering almost half of all companies in the Professional Services industry in the United States have P/S ratios greater than 1.3x and even P/S higher than 4x aren't out of the ordinary. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

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    View our latest analysis for BGSF

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    NYSE:BGSF Price to Sales Ratio vs Industry October 28th 2025

    What Does BGSF's Recent Performance Look Like?

    Recent times have been advantageous for BGSF as its revenues have been rising faster than most other companies. One possibility is that the P/S ratio is low because investors think this strong revenue performance might be less impressive moving forward. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

    If you'd like to see what analysts are forecasting going forward, you should check out our free report on BGSF.

    How Is BGSF's Revenue Growth Trending?

    In order to justify its P/S ratio, BGSF would need to produce sluggish growth that's trailing the industry.

    Retrospectively, the last year delivered an exceptional 28% gain to the company's top line. Despite this strong recent growth, it's still struggling to catch up as its three-year revenue frustratingly shrank by 2.9% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

    Looking ahead now, revenue is anticipated to slump, contracting by 65% during the coming year according to the lone analyst following the company. That's not great when the rest of the industry is expected to grow by 6.9%.

    In light of this, it's understandable that BGSF's P/S would sit below the majority of other companies. Nonetheless, there's no guarantee the P/S has reached a floor yet with revenue going in reverse. There's potential for the P/S to fall to even lower levels if the company doesn't improve its top-line growth.

    The Bottom Line On BGSF's P/S

    BGSF's recently weak share price has pulled its P/S back below other Professional Services companies. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

    With revenue forecasts that are inferior to the rest of the industry, it's no surprise that BGSF's P/S is on the lower end of the spectrum. Right now shareholders are accepting the low P/S as they concede future revenue probably won't provide any pleasant surprises. It's hard to see the share price rising strongly in the near future under these circumstances.

    Before you take the next step, you should know about the 3 warning signs for BGSF that we have uncovered.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.