(BBSI) Barrett Business - Overview
Sector: Industrials | Industry: Staffing & Employment Services | Exchange: NASDAQ (USA) | Market Cap: 774m USD | Total Return: -21.3% in 12m
Avg Turnover: 7.88M
EPS Trend: -89.9%
Qual. Beats: 0
Rev. Trend: 98.3%
Qual. Beats: 0
Warnings
Fakeout
Tailwinds
Idiosyncratic Leader
Barrett Business Services, Inc. (BBSI) provides management solutions and human resource outsourcing for small to mid-sized enterprises across the United States. The firm operates primarily through a Professional Employer Organization (PEO) model, establishing co-employment relationships to manage payroll, taxes, and workers compensation. This model allows smaller firms to achieve economies of scale typically reserved for larger corporations by pooling employees for insurance and administrative purposes.
The company also maintains a staffing and recruiting segment, offering on-demand labor, direct placement, and long-term on-site management. BBSI serves a diverse client base ranging from construction and manufacturing to healthcare and professional services. In the HR services sector, revenue stability is often tied to the total worksite employee headcount and the prevailing regulatory environment regarding labor compliance. Investors seeking a deeper quantitative breakdown of these operations may find additional insights on ValueRay.
Founded in 1965 and headquartered in Vancouver, Washington, BBSI integrates management consulting methodologies with traditional administrative outsourcing. This dual approach aims to improve client operational efficiency while mitigating the risks associated with employment liability and workplace safety.
- Gross billings growth driven by expansion of professional employer service client base
- Workers compensation claim frequency and severity impact overall insurance cost margins
- Small business hiring trends and labor market participation affect staffing revenue
- Regulatory shifts in co-employment laws influence long-term operational risk profile
- Regional economic concentration in Western United States dictates organic growth trajectory
| Net Income: 40.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 3.61 > 1.0 |
| NWC/Revenue: 5.84% < 20% (prev 8.02%; Δ -2.17% < -1%) |
| CFO/TA 0.05 > 3% & CFO 38.7m > Net Income 40.7m |
| Net Debt (-189.4m) to EBITDA (75.1m): -2.52 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (25.0m) vs 12m ago -3.01% < -2% |
| Gross Margin: 20.67% > 18% (prev 0.22%; Δ 2.04k% > 0.5%) |
| Asset Turnover: 160.7% > 50% (prev 150.4%; Δ 10.23% > 0%) |
| Interest Coverage Ratio: 394.1 > 6 (EBITDA TTM 75.1m / Interest Expense TTM 169k) |
| A: 0.09 (Total Current Assets 538.0m - Total Current Liabilities 464.7m) / Total Assets 783.2m |
| B: 0.22 (Retained Earnings 170.4m / Total Assets 783.2m) |
| C: 0.09 (EBIT TTM 66.6m / Avg Total Assets 780.9m) |
| D: 0.27 (Book Value of Equity 158.8m / Total Liabilities 577.6m) |
| Altman-Z'' = 2.18 = BBB |
| DSRI: 1.04 (Receivables 293.6m/264.5m, Revenue 1.25b/1.17b) |
| GMI: 1.06 (GM 20.67% / 21.88%) |
| AQI: 0.90 (AQ_t 0.19 / AQ_t-1 0.21) |
| SGI: 1.07 (Revenue 1.25b / 1.17b) |
| TATA: 0.00 (NI 40.7m - CFO 38.7m) / TA 783.2m) |
| Beneish M = -2.95 (Cap -4..+1) = A |
As of May 30, 2026, the stock is trading at USD 32.54 with a total of 340,048 shares traded.
Over the past week, the price has changed by +5.17%,
over one month by +3.34%,
over three months by +17.83% and
over the past year by -21.34%.
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 | 42.3 | 29.8% |
P/E Trailing = 20.6013
P/E Forward = 21.8341
P/S = 0.617
P/B = 3.7049
P/EG = 1.3655
Revenue TTM = 1.25b USD
EBIT TTM = 66.6m USD
EBITDA TTM = 75.1m USD
Long Term Debt = 18.4m USD (estimated: total debt 25.6m - short term 7.17m)
Short Term Debt = 7.17m USD (from shortTermDebt, last quarter)
Debt = 25.6m USD (from shortLongTermDebtTotal, last quarter) (leases 25.6m already included)
Net Debt = -189.4m USD (calculated: Debt 25.6m - CCE 215.0m)
Enterprise Value = 584.7m USD (774.1m + Debt 25.6m - CCE 215.0m)
Interest Coverage Ratio = 394.1 (Ebit TTM 66.6m / Interest Expense TTM 169k)
EV/FCF = 31.31x (Enterprise Value 584.7m / FCF TTM 18.7m)
FCF Yield = 3.19% (FCF TTM 18.7m / Enterprise Value 584.7m)
FCF Margin = 1.49% (FCF TTM 18.7m / Revenue TTM 1.25b)
Net Margin = 3.24% (Net Income TTM 40.7m / Revenue TTM 1.25b)
Gross Margin = 20.67% ((Revenue TTM 1.25b - Cost of Revenue TTM 995.4m) / Revenue TTM)
Gross Margin QoQ = 13.36% (prev 21.26%)
Tobins Q-Ratio = 0.75 (Enterprise Value 584.7m / Total Assets 783.2m)
Interest Expense / Debt = 0.66% (Interest Expense 169k / Debt 25.6m)
Taxrate = 23.74% (17.0m / 71.4m)
NOPAT = 50.8m (EBIT 66.6m * (1 - 23.74%))
Current Ratio = 1.16 (Total Current Assets 538.0m / Total Current Liabilities 464.7m)
Debt / Equity = 0.12 (Debt 25.6m / totalStockholderEquity, last quarter 205.7m)
Debt / EBITDA = -2.52 (Net Debt -189.4m / EBITDA 75.1m)
Debt / FCF = -10.14 (Net Debt -189.4m / FCF TTM 18.7m)
Total Stockholder Equity = 228.2m (last 4 quarters mean from totalStockholderEquity)
RoA = 5.21% (Net Income 40.7m / Total Assets 783.2m)
RoE = 17.82% (Net Income TTM 40.7m / Total Stockholder Equity 228.2m)
RoCE = 27.01% (EBIT 66.6m / Capital Employed (Equity 228.2m + L.T.Debt 18.4m))
RoIC = 15.59% (NOPAT 50.8m / Invested Capital 325.7m)
WACC = 6.69% (E(774.1m)/V(799.7m) * Re(6.89%) + D(25.6m)/V(799.7m) * Rd(0.66%) * (1-Tc(0.24)))
Discount Rate = 6.89% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -3.24%
[DCF] Terminal Value 75.44% ; FCFF base≈18.7m ; Y1≈18.8m ; Y5≈19.9m
[DCF] Fair Price = 20.29 (EV 309.0m - Net Debt -189.4m = Equity 498.4m / Shares 24.6m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -89.88 | EPS CAGR: -45.18% | SUE: -0.61 | # QB: 0
Revenue Correlation: 98.26 | Revenue CAGR: 7.05% | SUE: 0.38 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.55 | Chg30d=-4.60% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.75 | Chg30d=-0.88% | Revisions=-33% | Analysts=3
EPS current Year (2026-12-31): EPS=1.88 | Chg30d=+0.76% | Revisions=-20% | GrowthEPS=-9.8% | GrowthRev=+4.6%
EPS next Year (2027-12-31): EPS=2.15 | Chg30d=-3.30% | Revisions=N/A | GrowthEPS=+14.6% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: -33%