Barrett Business Services Inc(BBSI)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$31.14
09/25/2026
(24-hour delay)

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*as per simulation (see disclosures)
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Upturn Advisory & Investor View for BBSI

09/25/2026: BBSI (1-star) is currently NOT-A-BUY. Pass it for now.

Barrett Business Services Inc (BBSI) is a professional services company specializing in the Professional Employer Organization (PEO) and staffing model for small and mid-sized businesses. The company distinguishes itself through a decentralized approach that relies on local branch managers to provide personalized human resource and risk management support. Its primary investment story centers on consistent, stable growth supported by strong client retention and efficient service delivery. Risks include potential economic headwinds affecting SMB hiring and increasing competition from automated HR technology providers. BBSI may appeal to value and dividend-focused investors seeking a stable, cash-generative business, provided they monitor labor market trends and the company’s ability to modernize its service platform.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company offers steady, predictable growth rather than rapid, high-multiple expansion.
Momentum investorMixed fitMomentum is often tied to broader labor market trends rather than specific technical breakouts.
Value investorStrong fitThe stock often trades at reasonable valuation multiples relative to its earnings stability.
Dividend investorStrong fitBBSI provides a consistent and reliable dividend stream suitable for income-focused portfolios.
Low-risk investorStrong fitThe company's manageable debt and consistent cash flows provide a defensive cushion.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock can experience swings based on economic data affecting SMB hiring.
Valuation riskLowCurrent pricing generally reflects historical earnings capacity without excessive speculation.
Competition risk (HR automation)Medium / highDigital-first HR platforms are increasing competition for the cost-conscious segment.
Business qualityStrongHigh client retention rates signal a resilient and valued service offering.
Dividend incomeLowThe dividend is supported by consistent cash flow and a healthy payout ratio.
Execution riskMediumSuccess depends on the effective management of decentralized branches and insurance claims.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Choppy
PRICE STABILITY

Choppy

The stock has experienced frequent reversals and pronounced short-term price swings.

Analysis of Past Performance

Type Stock
Historic Profit 36.02%
Avg. Invested days 97
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 5.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
BBSI receives a 3-star rating, supported by solid company fundamentals. The rating is constrained by soft unit economics, and weak price momentum.

Company Fundamentals

★★★★★
BBSI has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and strong ownership. In FY2025 versus FY2024, moderate earnings growth (+2.7%) is partially offset by soft cash generation (FCF margin 3.8%), moderate revenue growth (+8.4%), soft profitability (net margin 4.4%).

Financial Health Rating

★★★★★
BBSI's financial health is supported by solid cash strength, including free-cash-flow generation (3.8% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is BBSI's strongest growth driver at +1258.3% FY2025 versus FY2024 (strong, 5 stars). By comparison, while revenue growth (+8.4%, moderate) and earnings growth (+2.7%, moderate) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 90.3% and approximately 95.7% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 5.17% supports management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 7.87%
Thrivent Financial For Lutherans 7.04%
Royce & Associates, LP 5.66%
Mawer Investment Management Ltd 5.08%
Private Capital Management, LLC 4.99%

Unit Economics (Per $1K Revenue)

★★★★★
BBSI generates approximately $210 of gross profit, $50 of operating income, and $38 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Strong margins, cash conversion, and capital efficiency support the rating.

Economic Dimensions

★★★★★
Effective Tax Rate: 23.74%

Quantitative Style Profile

★★★★★
BBSI has a liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedSmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 765.83M USD
Price to earnings Ratio 24.31
1Y Target Price 40.75
Price to earnings Ratio 24.31
1Y Target Price 40.75
Volume (30-day avg) 197.9K shares
Beta 0.91
52 Weeks Range 25.13 - 45.06
Updated Date 09/24/2026
52 Weeks Range 25.13 - 45.06
Updated Date 09/24/2026
Dividends yield (FY) 0.98%
Basic EPS (TTM) 1.3

How Company Makes Money

Business areaWhat it includesRetail investor read
Professional Employer Organization (PEO)Administrative fees for payroll, benefits, and HR services.The primary engine of the company, generating recurring service fees.
StaffingRevenue from temporary and permanent job placements.Provides supplementary revenue that fluctuates with labor market demand.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 24.31
Forward PE 16.61
Enterprise Value 748.13M
Price to Sales(TTM) 0.6
Enterprise Value 748.13M
Price to Sales(TTM) 0.6
Enterprise Value to Revenue 0.59
Enterprise Value to EBITDA 10.79
Shares Outstanding 24.24M
Shares Floating 23.20M
Shares Outstanding 24.24M
Shares Floating 23.20M
Percent Insiders 5.17
Percent Institutions 90.33

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Barrett Business Services Inc

Exchange NASDAQ
Headquarters 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 141802
Full time employees 141802

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, waste management and remediation services, manufacturing, transportation and warehousing, health care, leisure and hospitality, retail, professional and advisory services, and wholesale trade industries. Barrett Business Services, Inc. was incorporated in 1965 and is headquartered in Vancouver, Washington.