BBSI Stock Analysis: Barrett Business | NASDAQ
Staffing & Employment Services | NASDAQ, USA | Market Cap: 833m USD | 12M Return: -28.7% | US0684631080 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.37M
EPS Trend: -82.7%
Qual. Beats: -1
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Barrett Business Services, Inc. (BBSI) is a U.S.-based provider of business management solutions primarily serving small and mid-sized companies. The company operates through two main service lines: professional employer organization (PEO) services and staffing/recruiting services. Under its PEO model, BBSI enters into a co-employment relationship with client companies, assuming responsibility for payroll, payroll taxes, workers compensation coverage, and related administrative functions. Its staffing arm offers on-demand and short-term staffing, contract staffing, direct placement, and long-term on-site management services.
BBSI serves a diverse customer base across multiple industries, including construction, manufacturing, transportation and warehousing, health care, retail, professional services, and wholesale trade, among others. Founded in 1965 and headquartered in Vancouver, Washington, the company has been publicly traded on NASDAQ since 1993 and falls within the GICS Industrials sector, specifically the Human Resource & Employment Services sub-industry.
The PEO industry, represented nationally by the National Association of Professional Employer Organizations (NAPEO), is a well-established segment of the U.S. business services market that enables small and mid-sized employers to outsource HR, payroll, benefits, and workers compensation administration. The co-employment arrangement is the defining feature of this model, allowing client firms to share certain employer responsibilities with the PEO while retaining control over day-to-day operations and core business decisions.
- Workers compensation expense ratio pressures BBSI gross margins
- Worksite employee count growth drives PEO segment revenue
- Elevated short-term rates boost interest income on client funds
| Net Income: 35.1m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 3.80 > 1.0 |
| NWC/Revenue: 4.61% < 20% (prev 7.74%; Δ -3.12% < -1%) |
| CFO/TA 0.05 > 3% & CFO 36.6m > Net Income 35.1m |
| Net Debt (-43.4m) to EBITDA (69.3m): -0.63 < 3 |
| Current Ratio: 1.14 > 1.5 & < 3 |
| Outstanding Shares: last quarter (24.7m) vs 12m ago -5.75% < -2% |
| Gross Margin: 19.81% > 18% (prev 21.82%; Δ -2.01% > 0.5%) |
| Asset Turnover: 177.7% > 50% (prev 168.1%; Δ 9.69% > 0%) |
| Interest Coverage Ratio: 729.8 > 6 (EBIT TTM 60.6m / Interest Expense TTM 83.0k) |
| A: 0.08 (Total Current Assets 466.3m - Total Current Liabilities 407.9m) / Total Assets 711.3m |
| B: 0.23 (Retained Earnings 167.1m / Total Assets 711.3m) |
| C: 0.09 (EBIT TTM 60.6m / Avg Total Assets 712.5m) |
| D: 0.40 (Book Value of Equity 203.8m / Total Liabilities 507.5m) |
| Altman-Z'' = 2.30 = BBB |
| DSRI: 1.08 (Receivables 301.5m/264.2m, Revenue 1.27b/1.20b) |
| GMI: 1.10 (GM 21.82% / 19.81%) |
| AQI: 0.95 (AQ_t 0.21 / AQ_t-1 0.22) |
| SGI: 1.06 (Revenue 1.27b / 1.20b) |
| TATA: -0.00 (NI 35.1m - CFO 36.6m) / TA 711.3m) |
| Beneish M = -2.86 (Cap -4..+1) = A |
As of September 01, 2026, the stock is trading at USD 34.40 with a total of 155,518 shares traded. Over the past week, the price has changed by +2.93%, over one month by -11.67%, over three months by +2.08% and over the past year by -28.70%.
Current recommended Stop Loss: 32.70 (which is 4.9% or 1.3 ATR below the current price).
Barrett Business has received a consensus analysts rating of 3.75. Therefore, it is recommended to hold BBSI.
- StrongBuy: 0
- Buy: 3
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 40.8 | 18.5% |
P/E Trailing = 25.6493
P/E Forward = 24.0385
P/S = 0.6578
P/B = 4.0614
P/EG = 1.6033
Revenue TTM = 1.27b USD
EBIT TTM = 60.6m USD
EBITDA TTM = 69.3m USD
Long Term Debt = 17.3m USD (estimated: total debt 24.5m - short term 7.24m)
Short Term Debt = 7.24m USD (from shortTermDebt, last quarter)
Debt = 24.5m USD (from shortLongTermDebtTotal, last quarter) (leases 24.5m already included)
Net Debt = -43.4m USD (calculated: Debt 24.5m - CCE 67.9m)
Enterprise Value = 789.6m USD (833.0m + Debt 24.5m - CCE 67.9m)
Interest Coverage Ratio = 729.8 (Ebit TTM 60.6m / Interest Expense TTM 83.0k)
EV/FCF = 50.86x (Enterprise Value 789.6m / FCF TTM 15.5m)
FCF Yield = 1.97% (FCF TTM 15.5m / Enterprise Value 789.6m)
FCF Margin = 1.23% (FCF TTM 15.5m / Revenue TTM 1.27b)
Net Margin = 2.77% (Net Income TTM 35.1m / Revenue TTM 1.27b)
Gross Margin = 19.81% ((Revenue TTM 1.27b - Cost of Revenue TTM 1.02b) / Revenue TTM)
Gross Margin QoQ = 20.31% (prev 13.36%)
Tobins Q-Ratio = 1.11 (Enterprise Value 789.6m / Total Assets 711.3m)
Interest Expense / Debt = 0.34% (Interest Expense 83.0k / Debt 24.5m)
Taxrate = 42.01% (25.4m / 60.5m)
NOPAT = 35.1m (EBIT 60.6m * (1 - 42.01%))
Current Ratio = 1.14 (Total Current Assets 466.3m / Total Current Liabilities 407.9m)
Debt / Equity = 0.12 (Debt 24.5m / totalStockholderEquity, last quarter 203.8m)
Debt / EBITDA = -0.63 (Net Debt -43.4m / EBITDA 69.3m)
Debt / FCF = -2.80 (Net Debt -43.4m / FCF TTM 15.5m)
Total Stockholder Equity = 222.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 4.92% (Net Income 35.1m / Total Assets 711.3m)
RoE = 15.76% (Net Income TTM 35.1m / Total Stockholder Equity 222.6m)
RoCE = 25.25% (EBIT 60.6m / Capital Employed (Equity 222.6m + L.T.Debt 17.3m))
RoIC = 14.20% (NOPAT 35.1m / Invested Capital 247.3m)
WACC = 5.99% (E(833.0m)/V(857.5m) * Re(6.16%) + D(24.5m)/V(857.5m) * Rd(0.34%) * (1-Tc(0.42)))
Discount Rate = 6.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -83.33 | Cagr: -2.70%
[DCF] Terminal Value 75.44% ; FCFF base≈15.5m ; Y1≈15.6m ; Y5≈16.5m
[DCF] Fair Price = 12.39 (EV 256.8m - Net Debt -43.4m = Equity 300.2m / Shares 24.2m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -82.72 | EPS CAGR: -22.38% | SUE: -0.88 | # QB: -1
Revenue Correlation: 99.16 | Revenue CAGR: 7.40% | SUE: -0.00 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.69 | Chg30d=-9.07% | Revisions=-40% | Analysts=2
EPS current Year (2026-12-31): EPS=1.71 | Chg30d=-8.88% | Revisions=-50% | GrowthEPS=-17.8% | GrowthRev=+4.0%
EPS next Year (2027-12-31): EPS=2.02 | Chg30d=-5.81% | Revisions=-40% | GrowthEPS=+18.4% | GrowthRev=+5.3%
[Analyst] Revisions Ratio: -70% (up=0, down=7)