Barrett Business Services (BBSI)
NASDAQ:BBSI
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Barrett Business Services
(NASDAQ:BBSI)
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Select Model
Rating:67Neutral
Price Target:
$32.00
â–²(8.99% Upside)
Action:DowngradedDate:03/27/26
The score is supported by solid financial performance (steady growth, profitability, and very low leverage) and a reasonable valuation, but is held back by weak technicals indicating a broader downtrend and a history of volatile cash-flow conversion.
Positive Factors
Conservative balance sheet / very low leverage
Very low debt and a growing equity base provide durable financial flexibility for a PEO exposed to insurance and payroll timing. This conservatism supports capital returns, withstands claims volatility, and reduces refinancing risk, enabling steady strategic investment and shareholder distributions.
Negative Factors
Volatile cash-flow conversion
Irregular operating and free cash flow reduces predictability of funding for growth and returns. For a PEO with payroll timing and insurance reserves, inconsistent cash conversion increases reliance on internal buffers, complicates capital allocation, and raises downside risk in weaker cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / very low leverage
Very low debt and a growing equity base provide durable financial flexibility for a PEO exposed to insurance and payroll timing. This conservatism supports capital returns, withstands claims volatility, and reduces refinancing risk, enabling steady strategic investment and shareholder distributions.
Read all positive factors
Barrett Business Services (BBSI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$739.96M
Dividend Yield0.88%
Average Volume (3M)253.93K
Price to Earnings (P/E)16.9
Beta (1Y)0.78
Revenue Growth9.64%
EPS Growth9.93%
CountryUS
Employees135,727
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.64
Shares Outstanding25,203,090
10 Day Avg. Volume287,688
30 Day Avg. Volume253,932
Financial Highlights & Ratios
PEG Ratio3.42
Price to Book (P/B)3.81
Price to Sales (P/S)0.74
P/FCF Ratio19.47
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda8.54
Forecast
1Y Price Target
$41.50Price Target Upside41.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)2.38
Revenue Forecast (FY)$1.34B
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 ind...
How the Company Makes Money
BBSI primarily makes money through its PEO model by charging client companies for a packaged set of employer-related services. A major revenue stream is fees associated with payroll and HR administration, generally tied to client payroll levels an...
Barrett Business Services Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlighted strong growth in worksite employees, revenue, and successful new market expansions, but also noted challenges in the staffing segment, lower client hiring, and margin pressures. Despite these challenges, the overall outlook remains optimistic due to strong controllable growth and positive developments in the workers' compensation and benefits segments.Positive Updates
Record Number of Worksite Employees
Added a record 10,400 worksite employees year-over-year from net new clients, resulting in a total growth of worksite employees by 6.1%.
Negative Updates
Staffing Business Decline
Staffing business declined by 10.3% over the prior year quarter, with revenues declining 10% to $19 million in the quarter.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Number of Worksite Employees
Added a record 10,400 worksite employees year-over-year from net new clients, resulting in a total growth of worksite employees by 6.1%.
Read all positive updates
Company Guidance
During the call, BBSI's President and CEO, Gary Kramer, outlined the company's financial performance and strategic initiatives for the third quarter of fiscal 2025. The company achieved an 8.6% increase in gross billings compared to the previous year, totaling $2.32 billion, driven by strong client additions and retention. A record addition of 10,400 worksite employees was noted, marking a 6.1% growth in worksite employees, although client hiring was lower than forecasted, particularly in California due to macroeconomic uncertainties. The staffing business saw a 10.3% decline. Client satisfaction remained high, with a consistent Net Promoter Score in the high 60s. The company expanded its geographic footprint with new branches in Chicago and Dallas and plans for a Nashville opening. BBSI Benefits saw continued momentum, with 1,300 new participants in Q3 and expectations of a 60% increase in October submissions for January transactions. The company is optimistic about controllable growth and aims to enhance its tech stack to attract larger clients. Looking ahead, BBSI expects full-year gross billings growth between 8.5% and 9.5%, with a gross margin of 2.9% to 3.0%.Barrett Business Services Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.24B | 1.14B | 1.07B | 1.05B | 955.17M |
| Gross Profit | 260.91M | 253.25M | 242.53M | 234.84M | 204.51M |
| EBITDA | 80.09M | 78.25M | 76.26M | 71.67M | 56.36M |
| Net Income | 54.45M | 52.99M | 50.61M | 47.27M | 38.08M |
Balance Sheet | |||||
| Total Assets | 779.07M | 745.51M | 721.54M | 686.94M | 746.95M |
| Cash, Cash Equivalents and Short-Term Investments | 192.24M | 121.86M | 152.19M | 159.75M | 166.17M |
| Total Debt | 24.45M | 21.45M | 21.21M | 21.18M | 25.30M |
| Total Liabilities | 538.07M | 524.10M | 522.40M | 509.10M | 538.42M |
| Stockholders Equity | 241.00M | 221.40M | 199.14M | 177.84M | 208.53M |
Cash Flow | |||||
| Free Cash Flow | 47.18M | -4.07M | 55.40M | 11.80M | -22.26M |
| Operating Cash Flow | 65.95M | 10.09M | 67.22M | 27.78M | -15.46M |
| Investing Cash Flow | 30.76M | 38.78M | -55.19M | 61.15M | -112.86M |
| Financing Cash Flow | -52.97M | -41.13M | -44.57M | -60.18M | -26.89M |
Barrett Business Services Technical Analysis
Neutral
29.36
Price Trends
32.23
Negative
34.17
Negative
39.19
Negative
Market Momentum
-0.72
Negative
48.52
Neutral
78.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBSI, the sentiment is Neutral. The current price of 29.36 is above the 20-day moving average (MA) of 28.29, below the 50-day MA of 32.23, and below the 200-day MA of 39.19, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 48.52 is Neutral, neither overbought nor oversold. The STOCH value of 78.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BBSI.
Barrett Business Services Risk Analysis
Barrett Business Services disclosed 42 risk factors in its most recent earnings report. Barrett Business Services reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Barrett Business Services Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $739.96M | 16.87 | 23.66% | 0.88% | 9.64% | 9.93% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $313.30M | -1.20 | -22.10% | 3.53% | 0.46% | -477.90% | |
55 Neutral | $518.36M | 15.78 | 26.32% | 5.12% | -5.91% | -23.01% | |
51 Neutral | $1.32B | -104.17 | -0.65% | 4.96% | -2.44% | -156.01% | |
45 Neutral | $999.43M | -210.19 | -7.69% | 6.37% | 3.19% | -86.21% |
* Industrials Sector Average
BBSI
Barrett Business Services
29.36
-11.42
-28.01%
NSP
Insperity
26.49
-57.10
-68.31%
KELYA
Kelly Services
8.78
-4.02
-31.42%
KFRC
Kforce
28.36
-18.16
-39.04%
MAN
ManpowerGroup
28.42
-27.04
-48.76%
Barrett Business Services Corporate Events
Stock BuybackDividendsFinancial Disclosures
Barrett Business Services Reports Strong 2025 Results, Dividend
Positive
Feb 25, 2026
Barrett Business Services, Inc. reported that fourth-quarter 2025 revenues rose 5% to $321.1 million and gross billings increased 6% to $2.40 billion, driven by growth in PEO services and a 5% increase in average worksite employees, while net inco...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.