Barrett Business Services (BBSI) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 0.92%
• Average Volume (3M): 148.69K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.82
• Revenue Growth: 9.64%
• EPS Growth: 9.93%
• Country: US
• Employees: 135,727
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.79
• Shares Outstanding: 25,689,564
• 10 Day Avg. Volume: 149,072
• 30 Day Avg. Volume: 148,687
• PEG Ratio: 2.68
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -278.11
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 3.55
• Enterprise Value/Ebitda: 11.50
• 1Y Price Target: $50.00
• Price Target Upside: 50.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $38.00 ▲(14.08% Upside)

Barrett Business Services has a solid financial foundation with strong revenue growth and low leverage, which supports its stability. However, bearish technical indicators and cash flow challenges weigh on the score. The optimistic outlook from the earnings call, despite some operational challenges, provides a positive counterbalance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective client acquisition strategies, supporting long-term business expansion.

Market Expansion

Strategic geographic expansion enhances market presence and client reach, potentially increasing revenue and market share over time.

Client Satisfaction

High client satisfaction fosters loyalty and retention, reducing churn and supporting stable revenue streams and business growth.

Negative Factors

Cash Flow Challenges

Negative cash flow can limit investment in growth opportunities and strain financial flexibility, impacting long-term operational stability.

Staffing Business Decline

Decline in staffing business may indicate competitive pressures or market saturation, potentially affecting revenue diversification and growth.

Margin Pressure

Margin pressure from pricing trends and volume declines can reduce profitability, affecting the company's ability to reinvest in growth initiatives.

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 demonstrates solid financial health with consistent revenue growth and profitability. The balance sheet is strong with low leverage, enhancing financial stability. However, the decline in free cash flow growth poses a concern, indicating potential cash management challenges.

Income Statement

Barrett Business Services shows a steady revenue growth rate of 2.06% in the TTM, indicating positive momentum. The gross profit margin is healthy at 21.57%, though slightly lower than previous years. The net profit margin remains stable at 4.48%, reflecting consistent profitability. However, the EBIT and EBITDA margins have decreased, suggesting potential cost pressures or operational inefficiencies.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.07, indicating low leverage and financial stability. The return on equity is robust at 21.65%, showcasing effective use of equity to generate profits. The equity ratio is solid, reflecting a strong capital structure and low financial risk.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth at -331.83% in the TTM. However, the operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations. The free cash flow to net income ratio is healthy at 0.62, suggesting adequate cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.22B	1.14B	1.07B	1.05B	955.17M	880.82M
Gross Profit	264.02M	253.25M	242.53M	234.84M	204.51M	182.91M
EBITDA	81.46M	78.25M	76.26M	78.63M	64.40M	55.93M
Net Income	54.85M	52.99M	50.61M	47.27M	38.08M	33.77M
Balance Sheet
Total Assets	777.92M	745.51M	721.54M	686.94M	746.95M	774.95M
Cash, Cash Equivalents and Short-Term Investments	128.08M	121.86M	152.19M	159.75M	166.17M	169.93M
Total Debt	25.17M	21.45M	21.21M	21.18M	25.30M	27.69M
Total Liabilities	424.90M	524.10M	522.40M	509.10M	538.42M	576.72M
Stockholders Equity	353.02M	221.40M	199.14M	177.84M	208.53M	198.24M
Cash Flow
Free Cash Flow	26.76M	-4.07M	55.40M	11.80M	-22.26M	-36.52M
Operating Cash Flow	43.20M	10.09M	67.22M	27.78M	-15.46M	-27.91M
Investing Cash Flow	37.15M	38.78M	-55.19M	61.15M	-112.86M	4.14M
Financing Cash Flow	-43.02M	-41.13M	-44.57M	-60.18M	-26.89M	-15.73M

Barrett Business Services Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 33.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 33.31 is below the 20-day moving average (MA) of 40.77, below the 50-day MA of 43.88, and below the 200-day MA of 42.65, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 13.08 is Positive, neither overbought nor oversold. The STOCH value of 15.57 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	75 Outperform	$1.22B	34.32	7.47%	1.02%	11.53%	-6.32%
KFRC	66 Neutral	$587.36M	14.11	27.19%	6.13%	-5.91%	-23.01%
BBSI	65 Neutral	$1.03B	19.80	24.08%	0.92%	9.64%	9.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NSP	47 Neutral	$1.28B	77.05	16.04%	7.04%	3.19%	-86.21%
KELYA	47 Neutral	$402.45M	―	-13.11%	3.12%	0.46%	-477.90%
MAN	46 Neutral	$1.38B	―	-1.00%	7.87%	-2.44%	-156.01%

Barrett Business Services Corporate Events

Barrett Business Services’ Earnings Call Highlights Growth Amid Challenges

Barrett Business Services Reports Optimistic Earnings Call Amidst Challenges

Barrett Business Services Reports Strong Q3 2025 Results

Barrett Business Services, Inc. (BBSI) is a prominent provider of business management solutions, specializing in human resource outsourcing and professional management consulting, serving over 8,100 PEO clients across the United States.

Barrett Business Services Announces Quarterly Cash Dividend

On November 5, 2025, Barrett Business Services announced a quarterly cash dividend of $0.08 per share, payable on December 5, 2025. The company reported strong financial results for the third quarter of 2025, with revenues increasing by 8% to $318.9 million and gross billings rising by 9% to $2.32 billion. The growth was attributed to new client additions and an increase in worksite employees. BBSI also repurchased $7.5 million of its stock and maintained a debt-free status with $109.8 million in cash and investments. The company remains focused on disciplined execution and investment in its people and technology to support long-term growth.

The most recent analyst rating on (BBSI) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Barrett Business Services stock, see the BBSI Stock Forecast page.

Barrett Business Services Amends Credit Facility with Wells Fargo

On September 22, 2025, Barrett Business Services, Inc. amended its credit facility with Wells Fargo Bank. The amendment extends the company’s $50 million revolving credit line from July 1, 2026, to August 1, 2028, and reduces the unused commitment fee from 0.35% to 0.30% per annum. This change reflects a strategic financial adjustment, potentially enhancing the company’s liquidity and operational flexibility, while all other material terms remain unchanged.

The most recent analyst rating on (BBSI) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Barrett Business Services stock, see the BBSI Stock Forecast page.

Barrett Business Services Reports Strong Q2 Growth Amid Challenges

The recent earnings call for Barrett Business Services (BBSI) painted a generally positive picture, highlighting strong growth in several key areas. Despite some challenges in the Staffing segment and specific regional performances due to macroeconomic uncertainties, the overall sentiment was optimistic. The company reported significant growth in gross billings, net new client additions, and successful expansion into new markets, suggesting a promising outlook for the future.

Barrett Business Services Reports Strong Q2 2025 Results

Barrett Business Services, Inc. (BBSI) is a leading provider of business management solutions, offering human resource outsourcing and professional management consulting services across all 50 states. The company combines expertise in payroll processing, employee benefits, workers’ compensation coverage, risk management, and workplace safety programs to enhance operational efficiency for over 8,100 PEO clients.