BBSI Stock Analysis: Barrett Business | NASDAQ
Staffing & Employment Services | NASDAQ, USA | Market Cap: 789m USD | 12M Return: -23.3% | US0684631080 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 6.64M
EPS Trend: -82.7%
Qual. Beats: -1
Rev. Trend: 99.2%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 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 targeted at small and mid-sized companies. The company combines management consulting methodologies with human resource outsourcing tools, offering a platform designed to handle back-office functions for smaller employers that typically lack internal resources.
A core component of BBSIs business is its professional employer organization (PEO) services, under which it establishes a co-employment relationship with clients. In this arrangement, BBSI assumes responsibility for payroll processing, payroll tax administration, workers compensation coverage, and related administrative tasks for the clients existing workforce. The PEO model allows client companies to outsource complex employment-related liabilities while retaining day-to-day management of their staff.
In addition to PEO services, BBSI offers staffing and recruiting solutions, including on-demand and short-term staffing, contract staffing, direct placement, and long-term on-site management services. Its customer base spans a diverse range of industries, including construction, waste management and remediation, manufacturing, transportation and warehousing, health care, leisure and hospitality, retail, professional and advisory services, and wholesale trade.
BBSI was incorporated in 1965 and is headquartered in Vancouver, Washington. The company operates within the GICS Industrials sector, specifically in the Human Resource & Employment Services sub-industry, a segment that benefits from small and mid-sized businesses growing reliance on outsourced employment administration.
- Workers comp loss ratio trends pressure gross margins
- Co-employed WSE count growth drives PEO segment revenue
- Interest income on client funds rises with elevated federal funds rate
| 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: 362.7 > 6 (EBIT TTM 60.6m / Interest Expense TTM 167k) |
| 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 October 22, 2026, the stock is trading at USD 31.83 with a total of 161,213 shares traded. Over the past week, the price has changed by -0.25%, over one month by -3.13%, over three months by -19.77% and over the past year by -23.25%.
Current recommended Stop Loss: 30.60 (which is 3.9% or 1.3 ATR below the current price).
Barrett Business has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold BBSI.
- StrongBuy: 0
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 40.8 | 28% |
P/E Trailing = 24.291
P/E Forward = 16.6113
P/S = 0.6229
P/B = 3.9532
P/EG = 1.108
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 = 745.5m USD (788.9m + Debt 24.5m - CCE 67.9m)
Interest Coverage Ratio = 362.7 (Ebit TTM 60.6m / Interest Expense TTM 167k)
EV/FCF = 48.02x (Enterprise Value 745.5m / FCF TTM 15.5m)
FCF Yield = 2.08% (FCF TTM 15.5m / Enterprise Value 745.5m)
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 = 1.05 (Enterprise Value 745.5m / Total Assets 711.3m)
Interest Expense / Debt = 0.68% (Interest Expense 167k / 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 = 5.58% (E(788.9m)/V(813.4m) * Re(5.74%) + D(24.5m)/V(813.4m) * Rd(0.68%) * (1-Tc(0.42)))
Discount Rate = 5.74% (= 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)