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Barrett Business Services Inc (BBSI)


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Upturn Advisory Summary
10/17/2025: BBSI (2-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $51.5
1 Year Target Price $51.5
0 | Strong Buy |
3 | Buy |
1 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 57.57% | Avg. Invested days 116 | Today’s Advisory PASS |
Upturn Star Rating ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.07B USD | Price to earnings Ratio 20.6 | 1Y Target Price 51.5 |
Price to earnings Ratio 20.6 | 1Y Target Price 51.5 | ||
Volume (30-day avg) 4 | Beta 0.95 | 52 Weeks Range 35.54 - 49.65 | Updated Date 10/18/2025 |
52 Weeks Range 35.54 - 49.65 | Updated Date 10/18/2025 | ||
Dividends yield (FY) 0.76% | Basic EPS (TTM) 2.02 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 4.49% | Operating Margin (TTM) 5.17% |
Management Effectiveness
Return on Assets (TTM) 5.61% | Return on Equity (TTM) 25.36% |
Valuation
Trailing PE 20.6 | Forward PE 18.45 | Enterprise Value 1073626432 | Price to Sales(TTM) 0.89 |
Enterprise Value 1073626432 | Price to Sales(TTM) 0.89 | ||
Enterprise Value to Revenue 0.9 | Enterprise Value to EBITDA 13.33 | Shares Outstanding 25689563 | Shares Floating 7217436 |
Shares Outstanding 25689563 | Shares Floating 7217436 | ||
Percent Insiders 4.22 | Percent Institutions 90.93 |
Upturn AI SWOT
Barrett Business Services Inc
Company Overview
History and Background
Barrett Business Services, Inc. (BBSI) was founded in 1951. Initially focused on staffing, it evolved into a professional employer organization (PEO) providing comprehensive HR solutions. Key milestones include expanding service offerings, geographic growth, and navigating regulatory changes in the PEO industry.
Core Business Areas
- PEO Services: BBSI's core offering: comprehensive HR outsourcing. It includes payroll administration, employee benefits, workers' compensation insurance, risk management, and HR consulting for small and medium-sized businesses (SMBs).
- Staffing Services: Provides temporary and permanent staffing solutions to clients across various industries. This is a smaller segment of their overall business compared to PEO.
Leadership and Structure
BBSI is led by its CEO, Gary Kramer. The organizational structure comprises executive management overseeing various departments like operations, finance, sales, and marketing. The company operates through a network of branch offices across the US.
Top Products and Market Share
Key Offerings
- PEO Services: Comprehensive HR outsourcing solutions for SMBs. BBSI does not publish precise market share figures. The PEO industry is highly fragmented. Competitors include ADP, Paychex, Insperity, and TriNet.
- Staffing Services: Temporary and permanent staffing solutions. Revenue numbers not typically disclosed individually. Competitors include Robert Half International, ManpowerGroup, and Adecco.
Market Dynamics
Industry Overview
The PEO industry is growing, driven by increasing regulatory complexities, the need for specialized HR expertise, and the desire of SMBs to focus on core business activities. Staffing services are cyclical and tied to economic conditions.
Positioning
BBSI positions itself as a trusted advisor to SMBs, emphasizing its consultative approach and local presence. Its competitive advantages include its expertise in workers' compensation and its focus on high-touch customer service.
Total Addressable Market (TAM)
The TAM for the PEO industry is estimated to be in the hundreds of billions of dollars annually. BBSI, with its current revenue, captures a small percentage of this TAM, indicating significant growth potential.
Upturn SWOT Analysis
Strengths
- Strong expertise in workers' compensation
- High-touch customer service approach
- Established network of branch offices
- Focus on SMBs
- Long-standing relationships with clients
Weaknesses
- Concentration risk in certain geographic regions
- Exposure to workers' compensation claims volatility
- Smaller scale compared to larger PEO providers
- Reliance on economic conditions
- Pricing pressure
Opportunities
- Expanding into new geographic markets
- Acquiring smaller PEOs
- Developing new service offerings
- Leveraging technology to improve efficiency
- Increasing adoption of PEO services by SMBs
Threats
- Economic downturns
- Increased competition from larger PEOs
- Changes in labor laws and regulations
- Rising workers' compensation costs
- Cybersecurity risks
Competitors and Market Share
Key Competitors
- ADP (ADP)
- Paychex (PAYX)
- Insperity (NSP)
- TriNet (TNET)
Competitive Landscape
BBSI's advantages include its workers comp expertise and customer service, but disadvantages are smaller scale and geographic concentration compared to the larger competitors.
Major Acquisitions
Morgan Hill Company
- Year: 2021
- Acquisition Price (USD millions): 10.5
- Strategic Rationale: Expand BBSI's presence in California and add scale to its existing operations.
Growth Trajectory and Initiatives
Historical Growth: BBSI's growth is driven by organic sales and strategic acquisitions over the past years.
Future Projections: Analyst estimates regarding revenue growth, EPS targets, and market share increase will be reviewed and presented.
Recent Initiatives: Recent initiatives may include technology investments, market expansion, and new service launches. Further information will be presented.
Summary
BBSI demonstrates strength in its niche PEO services for SMBs, particularly in workers' compensation. Its high-touch approach fosters customer loyalty. Challenges include navigating economic cycles, competing with larger PEOs, and managing workers' compensation claim volatility. Expansion and technology investments present growth opportunities for BBSI.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Industry Reports
- Analyst Reports
Disclaimers:
The data and analysis provided are for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Barrett Business Services Inc
Exchange NASDAQ | Headquaters Vancouver, WA, United States | ||
IPO Launch date 1993-06-11 | President, CEO & Director Mr. Gary Edward Kramer Jr. | ||
Sector Industrials | Industry Staffing & Employment Services | Full time employees 135727 | Website https://www.bbsi.com |
Full time employees 135727 | Website https://www.bbsi.com |
Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. It develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. The company also 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. In addition, it 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. The company serves customers in various industries, including construction, manufacturing, transportation and warehousing, waste management and remediation services, retail, leisure and hospitality, and wholesale trade. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.

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