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Upturn AI Summary - About
Barrett Business Services Inc(BBSI)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for BBSI
10/23/2026: BBSI (1-star) is currently NOT-A-BUY. Pass it for now.
Barrett Business Services Inc is a provider of professional employer organization (PEO) and staffing solutions for small to mid-sized businesses. Its main strength lies in a decentralized, relationship-focused branch model that historically drives high client retention. The primary growth opportunity is the continued expansion of this model into new geographic markets as SMEs increasingly outsource complex HR functions. Risks include fierce competition from national HR giants, economic sensitivity to small-business cycles, and potential regional concentration risks. The stock may suit value-oriented investors seeking stable, recurring business-service revenue, though interested parties should monitor the effectiveness of branch-level management and competitive pricing pressure.
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 style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | BBSI offers steady growth but is limited by the scalability of its high-touch service model. |
| Momentum investor | Mixed fit | The stock tends to follow moderate trends; momentum is contingent on broad economic health and client additions. |
| Value investor | Strong fit | BBSI often trades at reasonable valuation multiples relative to its earnings stability and cash flow generation. |
| Dividend investor | Mixed fit | While the company has initiated dividends, it remains more focused on share buybacks for capital return. |
| Low-risk investor | Mixed fit | Exposure to small-business cycle volatility and workers' comp risks makes it less suitable for highly risk-averse investors. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can experience swings based on macro-economic sentiment regarding the small-business sector. |
| Valuation risk | Low | BBSI generally maintains disciplined valuation metrics. |
| Competition risk (HR/PEO giants) | High | Large competitors have greater scale and technological resources to capture market share. |
| Business quality | Strong | The high-touch, recurring revenue model creates strong, sticky client relationships. |
| Dividend income | Low | Income is not the primary driver of the investment thesis. |
| Execution risk | Medium | Success depends on the effectiveness of decentralized branch managers. |
Price Behavior

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

Choppy
The stock has experienced frequent reversals and pronounced short-term price swings.
Analysis of Past Performance
Type Stock | Historic Profit 33.25% | Avg. Invested days 97 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 795.16M USD | Price to earnings Ratio 24.49 | 1Y Target Price 40.75 |
Price to earnings Ratio 24.49 | 1Y Target Price 40.75 | ||
Volume (30-day avg) 213.8K shares | Beta 0.94 | 52 Weeks Range 25.13 - 42.15 | Updated Date 10/22/2026 |
52 Weeks Range 25.13 - 42.15 | Updated Date 10/22/2026 | ||
Dividends yield (FY) 1.01% | Basic EPS (TTM) 1.34 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| PEO Services | Service fees derived from the co-employment of client staff, including payroll and insurance administration. | This is the primary engine of the company and generates recurring, predictable revenue. |
| Staffing | Margins on temporary staffing placements and fees from direct-hire services. | This provides supplemental revenue and helps attract new clients to the PEO platform. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Valuation
Trailing PE 24.49 | Forward PE 16.61 | Enterprise Value 748.13M | Price to Sales(TTM) 0.63 |
Enterprise Value 748.13M | Price to Sales(TTM) 0.63 | ||
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 88.69 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
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)
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)
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)
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)
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)
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)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
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)
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)
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)
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)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
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)
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)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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