Barrett Business Services (BBSI) AI Stock Analysis

• Market Cap: $1.16B
• Dividend Yield: 0.71%
• Average Volume (3M): 160.92K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.83
• Revenue Growth: 9.48%
• EPS Growth: 11.62%
• Country: US
• Employees: 135,727
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.70
• Shares Outstanding: 25,689,564
• 10 Day Avg. Volume: 164,614
• 30 Day Avg. Volume: 160,922
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 11.65
• 1Y Price Target: $50.67
• Price Target Upside: 15.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: $48.00 ▲(9.09% Upside)

Barrett Business Services' overall stock score is driven by strong financial performance and positive earnings call sentiment, despite technical analysis indicating bearish momentum and valuation concerns. The company's expansion into new markets and improved financial outlook are significant positives, while cash flow challenges and macroeconomic uncertainties pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand for BBSI's services, enhancing its competitive position and supporting long-term business expansion.

Market Expansion

Strategic market expansion into new regions like Chicago and Dallas diversifies revenue streams and reduces geographic risk, supporting sustainable growth.

Financial Outlook

An improved financial outlook reflects management's confidence in future performance, driven by strong client retention and market expansion.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could constrain BBSI's ability to invest in growth opportunities and manage financial obligations.

Decline in Staffing Operations

A decline in staffing operations revenue suggests challenges in this segment, potentially impacting overall profitability and market competitiveness.

Macroeconomic Uncertainty

Macroeconomic uncertainty affecting client hiring decisions can lead to slower growth and reduced revenue, impacting BBSI's long-term strategic goals.

Barrett Business Services Business Overview & Revenue Model

Company Description

Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It offers professional employer services under which it enters into a client services agreement to establish a co-employment relationship with each client company, assuming responsibility for payroll, payroll taxes, workers' compensation coverage, and other administration functions for the client's existing workforce. The company also provides staffing and recruiting services, such as on-demand or short-term staffing assignment, contract staffing, direct placement, and long-term or indefinite-term on-site management services. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, and professional services firms. The company was incorporated in 1965 and is headquartered in Vancouver, Washington.

How the Company Makes Money

BBSI generates revenue primarily through a fee-based model where it charges clients for its PEO services. This includes monthly fees calculated based on the number of employees and the overall payroll, as well as additional charges for specialized services such as workers' compensation, safety training, and HR consulting. Key revenue streams include service fees from contracts with client businesses, commissions from employee benefits providers, and fees from risk management services. BBSI also benefits from strong partnerships with insurance carriers and benefits providers which enhance its service offerings and contribute to its earnings.

Barrett Business Services Financial Statement Overview

Summary

Barrett Business Services shows strong revenue growth and profitability with a solid balance sheet and low leverage. However, cash flow challenges, particularly negative free cash flow, could pose risks to financial flexibility.

Income Statement

Barrett Business Services has shown consistent revenue growth with a TTM revenue growth rate of 2.39% and a strong net profit margin of 4.49%. The gross profit margin is stable at 21.82%, indicating effective cost management. However, the EBIT and EBITDA margins have slightly decreased, suggesting potential pressure on operational efficiency.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.11, reflecting prudent financial leverage. The return on equity is robust at 24.60%, indicating efficient use of equity capital. The equity ratio stands at 31.63%, suggesting a solid equity base relative to total assets.

Cash Flow

The cash flow position shows some challenges, with negative free cash flow and a low operating cash flow to net income ratio of 0.01. Despite a 20.53% growth in free cash flow, the negative free cash flow to net income ratio indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.20B	1.14B	1.07B	1.05B	955.17M	880.82M
Gross Profit	261.67M	253.25M	242.53M	234.84M	204.51M	182.91M
EBITDA	80.39M	78.25M	76.26M	78.63M	64.40M	55.93M
Net Income	53.86M	52.99M	50.61M	47.27M	38.08M	33.77M
Balance Sheet
Total Assets	713.63M	745.51M	721.54M	686.94M	746.95M	774.95M
Cash, Cash Equivalents and Short-Term Investments	181.49M	153.06M	152.19M	159.75M	166.17M	169.93M
Total Debt	25.51M	21.45M	21.21M	21.18M	25.30M	27.69M
Total Liabilities	487.81M	524.10M	522.40M	509.10M	538.42M	576.72M
Stockholders Equity	225.82M	221.40M	199.14M	177.84M	208.53M	198.24M
Cash Flow
Free Cash Flow	-11.54M	-4.07M	55.40M	11.80M	-22.26M	-36.52M
Operating Cash Flow	3.83M	10.09M	67.22M	27.78M	-15.46M	-27.91M
Investing Cash Flow	7.90M	38.78M	-55.19M	61.15M	-112.86M	4.14M
Financing Cash Flow	-44.55M	-41.13M	-44.57M	-60.18M	-26.89M	-15.73M

Barrett Business Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBSI, the sentiment is Negative. The current price of 44 is below the 20-day moving average (MA) of 47.01, below the 50-day MA of 46.44, and above the 200-day MA of 42.78, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 32.66 is Neutral, neither overbought nor oversold. The STOCH value of 10.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBSI.

Barrett Business Services Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSII	74 Outperform	1.03B	31.20	6.95%	1.22%	8.89%	-13.57%
BBSI	66 Neutral	$1.16B	22.31	25.36%	0.71%	9.48%	11.62%
KFRC	62 Neutral	569.87M	12.95	32.63%	5.22%	-5.77%	-11.93%
MAN	54 Neutral	1.81B	-99.71	-0.81%	5.98%	-3.79%	-138.56%
KELYA	51 Neutral	460.82M	-71.26	-0.49%	2.33%	0.97%	-112.75%
NSP	49 Neutral	1.92B	48.56	35.71%	4.87%	2.40%	-75.66%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Barrett Business Services Corporate Events

Barrett Business Services Announces Dividend and Buyback Program

On August 6, 2025, Barrett Business Services announced a quarterly cash dividend of $0.08 per share, payable on September 5, 2025, and a new $100 million stock repurchase program over two years. The company reported strong financial results for the second quarter of 2025, with a 10% increase in revenues to $307.7 million and gross billings up to $2.23 billion. BBSI’s net income rose to $18.5 million, reflecting its ability to drive growth through new client additions despite a cautious macroeconomic environment. The company remains debt-free and continues to focus on long-term sustainable growth.

Barrett Business Services Holds Annual Stockholder Meeting

On June 2, 2025, Barrett Business Services held its Annual Meeting of stockholders, where several key proposals were voted on. Nine directors were elected to serve until the 2026 meeting, and the compensation for executive officers was approved in a non-binding vote. Additionally, the selection of Deloitte and Touche LLP as the independent registered public accounting firm for 2025 was ratified.

Barrett Business Services Appoints New Chairman of the Board

On June 4, 2025, Barrett Business Services, Inc. announced the appointment of Joseph S. Clabby as the new Chairman of the Board, effective June 2, 2025, succeeding Anthony Meeker, who will remain as a board member. Clabby, who joined the board in September 2022 and became Vice Chairman in December 2024, brings extensive industry experience from his previous roles at ACE Limited and Chubb. This leadership transition is expected to guide BBSI forward, building on its strong foundation and momentum.