Breaking Down Staffing 360 Solutions, Inc. (STAF) Financial Health: Key Insights for Investors

Are you keeping a close watch on Staffing 360 Solutions, Inc. (STAF)? Recent financial filings reveal a challenging landscape, with a revenue decrease to $46.098 million in a recent quarter, down from $49.537 million in the same quarter the previous year, primarily due to a tough U.S. operating environment. Moreover, the company faces significant hurdles, including a delisting notice from NASDAQ due to non-compliance with minimum stockholders' equity requirements, which stipulate a minimum of $2,500,000. With a total debt of $41.32 million and a negative EBITDA of -$10.49 million in the last twelve months, is STAF poised for a turnaround, or are further challenges on the horizon? Read on to explore key insights that can guide your investment decisions.

Staffing 360 Solutions, Inc. (STAF) Revenue Analysis

Understanding Staffing 360 Solutions, Inc. (STAF)'s financial health requires a detailed look into its revenue streams. Here's a breakdown to provide key insights for investors:

Breakdown of Primary Revenue Sources:

Staffing 360 Solutions operates primarily in the staffing sector, focusing on:

• Commercial Staffing: Providing temporary and permanent staffing solutions for various industries.
• Professional Staffing: Specializing in IT, financial, accounting, healthcare, and cybersecurity roles.

The company generates revenue through its operations in the US and the UK, executing a 'buy-and-build' strategy by acquiring staffing organizations.

Based on the latest available data, the revenue contribution from different business segments is as follows:

• Commercial Staffing US: Contributed 42.45% of total revenue.
• Professional Staffing US: Accounted for 59.62% of total revenue.
• Permanent Placement Revenue: Represented 0.93% of total revenue.
• Temporary Contractor Revenue: Made up 101.14% of total revenue.

Year-over-Year Revenue Growth Rate:

Staffing 360 Solutions has experienced fluctuating revenue growth rates. Recent data indicates:

• In 2023, the company's annual revenue was $190.88 million, with a growth of 3.24%.
• The latest twelve-month revenue reached $176.82 million, marking a 13.64% year-over-year increase.

However, it's important to note that first-quarter revenue in 2024 saw a 13.0% year-over-year decrease, amounting to $41.4 million.

Contribution of Different Business Segments to Overall Revenue:

The company's revenue is divided between its commercial and professional staffing segments. For instance, in an earlier period:

• US Commercial Staffing: Recorded $25.94 million.
• US Professional Staffing: Generated $25.756 million.

This highlights the significance of both segments in driving overall revenue.

Analysis of Any Significant Changes in Revenue Streams:

Significant changes in revenue streams can be attributed to:

• Acquisitions: The acquisition of companies like Headway Workforce Solutions has influenced revenue.
• Market Conditions: Challenges in the commercial staffing sector have led to revenue declines in specific periods.
• Strategic Shifts: Divesting from operations, such as the sale of its UK operations, has also impacted revenue streams.

Here is a table summarizing key financial data:

For more detailed insights, you can refer to: Breaking Down Staffing 360 Solutions, Inc. (STAF) Financial Health: Key Insights for Investors

Staffing 360 Solutions, Inc. (STAF) Profitability Metrics

Analyzing the profitability of Staffing 360 Solutions, Inc. (STAF) involves looking at several key metrics that reveal how efficiently the company generates profit from its revenue. These include gross profit, operating profit, and net profit margins. By examining these figures, investors can gain insights into the company's financial health and operational effectiveness.

Let's delve into these metrics:

• Gross Profit: In a recent report, Staffing 360 Solutions had a gross profit of approximately $6.16 million. However, this was viewed against a backdrop of overall losses.
• Operating Margin: Staffing 360 Solutions's Operating Margin % for the quarter that ended in September 2024 was calculated as -2.84%. For the fiscal year that ended in December 2023, the Operating Margin % was -6.07%.
• Net Income: The net income showed a loss of $2.844 million.

To better understand the trends in profitability, it's essential to review these metrics over time. Here’s a snapshot of some key profitability ratios:

When comparing Staffing 360 Solutions's profitability ratios with industry averages, it's crucial to consider the specific sector and market conditions. Here are some points to keep in mind:

• A company with a higher operating margin is generally more efficient in its operations compared to its peers.
• Declining operating margins may indicate increased competition or less efficient cost management.

Analyzing operational efficiency involves scrutinizing cost management and gross margin trends. For instance, in the second quarter of 2024, the gross margin narrowed to 13.2% from 14.5% in the year-ago quarter. This decline was primarily due to a higher proportion of revenue from lower-margin employer-of-record business.

For more insights into Staffing 360 Solutions, Inc. (STAF), you might find this resource helpful: Exploring Staffing 360 Solutions, Inc. (STAF) Investor Profile: Who’s Buying and Why?

Staffing 360 Solutions, Inc. (STAF) Debt vs. Equity Structure

Understanding Staffing 360 Solutions, Inc.'s financial strategy requires a close look at its debt and equity mix. This balance reveals how the company funds its operations and growth, and it's a critical indicator for investors.

As of the fiscal year 2024, details on Staffing 360 Solutions, Inc.'s debt levels provide a snapshot of its financial obligations:

• Long-term debt: Specific figures for 2024 need to be sourced from the latest financial reports to provide an accurate overview.
• Short-term debt: Like long-term debt, the precise amount for 2024 is essential for a current analysis.

The debt-to-equity ratio is a key metric for assessing financial leverage. To calculate this, we would divide the company's total liabilities by its shareholder equity. A higher ratio indicates greater financial risk, while a lower ratio suggests a more conservative approach. Comparing this ratio to industry averages offers valuable context. Unfortunately, without 2024 numbers, a precise comparison is not possible.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact the company's financial health. Accessing the latest financial news and filings is crucial to understanding these dynamics. For example, any upgrades or downgrades in credit ratings would influence investor confidence and borrowing costs.

Staffing 360 Solutions, Inc. strategically balances debt and equity to optimize its capital structure. More details on how this balance is achieved in 2024 are important for investors. The company may opt for debt financing to fund expansion projects or acquisitions, while equity funding could be used to strengthen the balance sheet or reduce debt.

For detailed insights into Staffing 360 Solutions, Inc.'s financial health, you can refer to: Breaking Down Staffing 360 Solutions, Inc. (STAF) Financial Health: Key Insights for Investors

Staffing 360 Solutions, Inc. (STAF) Liquidity and Solvency

When evaluating the financial health of Staffing 360 Solutions, Inc. (STAF), understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing Staffing 360 Solutions, Inc.'s Liquidity:

To assess Staffing 360 Solutions, Inc.'s liquidity, several key financial ratios and statements should be examined:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A current ratio of 1.0 or higher generally indicates good liquidity.
• Quick Ratio: Also known as the acid-test ratio, this is similar to the current ratio but excludes inventory, which is less liquid. A quick ratio of 1.0 or higher is typically preferred.
• Working Capital: This is the difference between a company's current assets and current liabilities. Positive working capital indicates that a company has enough liquid assets to cover its short-term liabilities.

Analysis of Working Capital Trends:

Monitoring the trends in working capital can provide insights into a company's operational efficiency and short-term financial health. A decreasing working capital trend may indicate potential liquidity issues, while an increasing trend suggests improved liquidity.

Cash Flow Statements Overview:

The cash flow statement is a critical tool for evaluating a company's liquidity. It categorizes cash flows into three main activities:

• Operating Activities: Cash flow from the normal day-to-day business operations. Positive cash flow from operations is a good sign.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets.
• Financing Activities: Cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends can reveal whether the company is generating enough cash to cover its obligations and invest in future growth.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, investors can identify potential liquidity concerns or strengths for Staffing 360 Solutions, Inc. Consistent positive cash flow from operations and healthy current and quick ratios would indicate strong liquidity. Conversely, negative cash flow, declining ratios, or negative working capital could signal potential liquidity risks.

For further insights into Staffing 360 Solutions, Inc.'s financial health, you can refer to this comprehensive analysis: Breaking Down Staffing 360 Solutions, Inc. (STAF) Financial Health: Key Insights for Investors

Staffing 360 Solutions, Inc. (STAF) Valuation Analysis

Determining whether Staffing 360 Solutions, Inc. (STAF) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Here's a breakdown:

Key Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: As of now, a current P/E ratio for Staffing 360 Solutions, Inc. (STAF) isn't clearly available.
• Price-to-Book (P/B) Ratio: Similarly, the current P/B ratio for Staffing 360 Solutions, Inc. (STAF) isn't readily accessible.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: Up-to-date EV/EBITDA ratio for Staffing 360 Solutions, Inc. (STAF) isn't available at the moment.

Stock Price Trends:

• As of its last trading, Staffing 360 Solutions, Inc. (STAF) was trading at $2.17. Reviewing the stock's performance over the past year provides insights into its volatility and overall trend.

Dividend Information:

• Currently, Staffing 360 Solutions, Inc. (STAF) does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

• The consensus among analysts regarding Staffing 360 Solutions, Inc. (STAF) stock valuation varies. To gain a comprehensive understanding, it's essential to consider opinions from multiple financial analysts and research firms.

To make well-informed investment decisions, it's important to look at these metrics along with other financial data and qualitative aspects of Staffing 360 Solutions, Inc. (STAF). Keep in mind that the absence of certain real-time data points may influence the accuracy of valuation assessments.

Explore more about Staffing 360 Solutions, Inc. (STAF): Exploring Staffing 360 Solutions, Inc. (STAF) Investor Profile: Who’s Buying and Why?

Staffing 360 Solutions, Inc. (STAF) Risk Factors

Investing in Staffing 360 Solutions, Inc. (STAF) involves navigating a complex landscape of both internal and external risk factors that could significantly impact the company's financial health. Understanding these risks is crucial for investors looking to make informed decisions. For additional insights, you might find this resource helpful: Exploring Staffing 360 Solutions, Inc. (STAF) Investor Profile: Who’s Buying and Why?

One of the primary external risks is the intense industry competition. The staffing industry is highly competitive, with numerous firms vying for market share. This competition can pressure pricing and profitability, potentially impacting Staffing 360 Solutions' revenue and margins. Additionally, regulatory changes and compliance requirements in various regions where the company operates can create uncertainty and increase operational costs. Changes in labor laws, immigration policies, or healthcare regulations can all have a direct impact on the company's ability to conduct business efficiently.

Market conditions also play a significant role. Economic downturns can lead to decreased demand for staffing services as companies reduce hiring. Conversely, economic growth can increase demand, but Staffing 360 Solutions must effectively manage its resources to capitalize on these opportunities. Unexpected events such as pandemics or global crises can further disrupt market conditions, leading to volatility and uncertainty.

Recent earnings reports and filings may highlight several operational, financial, and strategic risks. Operationally, the company faces the risk of effectively managing its workforce and ensuring the quality of its placements. Failure to do so can lead to client dissatisfaction and loss of business. Financially, liquidity and debt management are critical. The company must maintain sufficient cash flow to meet its obligations and manage its debt levels effectively. Strategically, the company faces the risk of adapting to changing technology and industry trends. The staffing industry is evolving, and Staffing 360 Solutions must innovate to remain competitive.

Mitigation strategies or plans, if available, are essential for addressing these risks. For example, Staffing 360 Solutions might implement strategies to diversify its service offerings, expand into new markets, or improve its operational efficiency. The company may also focus on building strong relationships with its clients and candidates to enhance its reputation and ensure customer loyalty. Prudent financial management, including maintaining adequate cash reserves and managing debt effectively, is also crucial for mitigating financial risks.

Staffing 360 Solutions, Inc. (STAF) Growth Opportunities

For Staffing 360 Solutions, Inc. (STAF), several factors could drive future expansion. These encompass new service offerings, expansion into additional markets, strategic acquisitions, and capitalizing on its competitive edge. To provide a detailed outlook, a thorough examination of revenue growth projections, profit forecasts, and significant strategic initiatives is essential.

Analysis of key growth drivers for Staffing 360 Solutions, Inc. (STAF):

• Product Innovations: Staffing 360 Solutions, Inc. (STAF) can grow by introducing specialized staffing solutions that cater to emerging industries or specific skill sets in high demand.
• Market Expansions: Exploring untapped geographic markets, both domestically and internationally, can significantly broaden the company's reach.
• Acquisitions: Strategic acquisitions of smaller or complementary firms can provide access to new technologies, talent pools, or client bases.

Future revenue growth projections and earnings estimates for Staffing 360 Solutions, Inc. (STAF) require a comprehensive analysis, but are unavailable as of my knowledge cut-off date in April 2025. To get the most accurate and up-to-date information, it is best to consult reliable financial news sources.

Strategic initiatives or partnerships that may drive future growth for Staffing 360 Solutions, Inc. (STAF):

• Technology Adoption: Implementing advanced technologies like AI-driven matching algorithms can improve efficiency and candidate placement rates.
• Strategic Alliances: Partnering with technology providers or industry associations can enhance service offerings and market access.

Staffing 360 Solutions, Inc. (STAF) competitive advantages that position the company for growth:

• Specialized Expertise: A focus on specific industries or skill sets can differentiate the company from general staffing firms.
• Strong Client Relationships: Building and maintaining long-term relationships with key clients provides a stable revenue stream and opportunities for expansion.
• Global Footprint: A presence in multiple geographic locations allows the company to serve multinational clients and adapt to regional market trends.

More on Staffing 360 Solutions, Inc. (STAF): Mission Statement, Vision, & Core Values of Staffing 360 Solutions, Inc. (STAF).