BBSI Stock Analysis: Barrett Business | NASDAQ
Staffing & Employment Services | NASDAQ, USA | Market Cap: 945m USD | 12M Return: -5.5% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 8.19M
EPS Trend: -76.8%
Qual. Beats: 0
Rev. Trend: 98.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 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 (77.1m): -2.46 < 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 21.88%; Δ -1.22% > 0.5%) |
| Asset Turnover: 160.7% > 50% (prev 150.4%; Δ 10.23% > 0%) |
| Interest Coverage Ratio: 806.9 > 6 (EBIT TTM 68.6m / Interest Expense TTM 85.0k) |
| 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 68.6m / Avg Total Assets 780.9m) |
| D: 0.36 (Book Value of Equity 205.7m / Total Liabilities 577.6m) |
| Altman-Z'' = 2.29 = BBB |
| DSRI: 1.04 (Receivables 293.6m/264.5m, Revenue 1.25b/1.17b) |
| GMI: 1.06 (GM 21.88% / 20.67%) |
| 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 July 17, 2026, the stock is trading at USD 40.33 with a total of 210,117 shares traded. Over the past week, the price has changed by +8.30%, over one month by +22.10%, over three months by +36.79% and over the past year by -5.54%.
Current recommended Stop Loss: 38.20 (which is 5.3% or 1.6 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 | 42.3 | 4.8% |
P/E Trailing = 25.4702
P/E Forward = 27.4725
P/S = 0.7528
P/B = 4.6524
P/EG = 1.7148
Revenue TTM = 1.25b USD
EBIT TTM = 68.6m USD
EBITDA TTM = 77.1m 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 = 755.1m USD (944.6m + Debt 25.6m - CCE 215.0m)
Interest Coverage Ratio = 806.9 (Ebit TTM 68.6m / Interest Expense TTM 85.0k)
EV/FCF = 40.44x (Enterprise Value 755.1m / FCF TTM 18.7m)
FCF Yield = 2.47% (FCF TTM 18.7m / Enterprise Value 755.1m)
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 = 0.96 (Enterprise Value 755.1m / Total Assets 783.2m)
Interest Expense / Debt = 0.33% (Interest Expense 85.0k / Debt 25.6m)
Taxrate = 40.63% (27.8m / 68.5m)
NOPAT = 40.7m (EBIT 68.6m * (1 - 40.63%))
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 = -2.46 (Net Debt -189.4m / EBITDA 77.1m)
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 = 27.82% (EBIT 68.6m / Capital Employed (Equity 228.2m + L.T.Debt 18.4m))
RoIC = 15.48% (NOPAT 40.7m / Invested Capital 262.9m)
WACC = 6.64% (E(944.6m)/V(970.1m) * Re(6.81%) + D(25.6m)/V(970.1m) * Rd(0.33%) * (1-Tc(0.41)))
Discount Rate = 6.81% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -81.15 | 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: -76.76 | EPS CAGR: -19.96% | SUE: 0.42 | # 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=-2.93% | Revisions=+0% | Analysts=3
EPS next Quarter (2026-09-30): EPS=0.75 | Chg30d=-1.75% | Revisions=-40% | Analysts=3
EPS current Year (2026-12-31): EPS=1.88 | Chg30d=+0.00% | Revisions=-25% | GrowthEPS=-9.8% | GrowthRev=+4.6%
EPS next Year (2027-12-31): EPS=2.15 | Chg30d=-3.30% | Revisions=+0% | GrowthEPS=+14.6% | GrowthRev=+6.1%
[Analyst] Revisions Ratio: -38% (up=1, down=4)