Barrett Business Services, Inc. (BBSI) AI Stock Analysis

Barrett Business Services, Inc. delivers business management solutions for small and mid-sized enterprises across the United States. Its core offering provides professional employer services through co-employment relationships, assuming client administrative responsibilities including payroll management, payroll taxes, and workers' compensation coverage. The company also offers staffing and recruiting solutions, covering on-demand assignments, contract placements, direct hiring, and long-term on-site management services. BBSI serves clients across diverse industries such as electronics manufacturing, agriculture, transportation, food processing, telecommunications, utilities, construction-related fields, and professional services firms.

Between FY2021 and FY2025, revenue expanded at a 5-year CAGR of 7.1%, rising from $955.2M in FY2021 to $1.24B in FY2025. Annual revenue growth was 8.4% in FY2021, 10.4% in FY2022, 1.4% in FY2023, 7.0% in FY2024, and 8.4% in FY2025. Net income increased from $38.1M in FY2021 to $54.4M in FY2025, while gross margin shifted from 21.4% to 21.0% and operating margin moved from 4.6% to 5.0%. Diluted EPS was $2.09 in FY2025, compared to $1.97 in FY2024 and $3.50 in FY2023. For the latest quarter ended June 30, 2026, revenue increased 3.8% year-over-year, while quarterly earnings declined 25.7%.

As of June 30, 2026, BBSI held $67.9M in cash and short-term investments against $24.5M in total debt, yielding net cash of $43.4M. Its debt-to-equity ratio stood at 0.12, with a current ratio of 1.14 and shareholders' equity of $203.8M across $711.3M in total assets. In FY2025, operating cash flow reached $66.0M, supporting capital expenditures of $18.8M and free cash flow of $47.2M. Capital returns in FY2025 included $48.0M for share buybacks and $8.2M in dividends paid, contributing to an 18.3% reduction in share count over 5 years.

At a last close of $32.55 on October 16, 2026, BBSI has a market cap of $788.9M and an enterprise value of $748.1M. The stock trades at a trailing P/E of 24.3x and a forward P/E of 16.6x, compared to medians of 24.8x and 17.2x for its US-listed Industrials peers. Its price-to-sales of 0.6x and EV/EBITDA of 10.8x also compare with peer medians of 1.5x and 13.9x. Over the past year, BBSI shares fell 22.0%, while the S&P 500 (SPY) returned 16.8%.

BBSI pays a quarterly dividend with an annualized forward payout of $0.32 per share, representing a dividend yield of 0.98%. The company has paid consecutive dividends for 21 years and maintains a payout ratio of 17.6%. Its 5-year annualized dividend growth rate is 1.3%, with its most recent ex-dividend date on August 21, 2026.

Three analysts track BBSI, consisting of 2 Buy ratings and 1 Hold rating. The mean price target is $40.75, representing a 25.2% premium over the last close of $32.55. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $1.29B and EPS of $1.71, reflecting an EPS decrease of 17.8%. BBSI has beaten EPS estimates in 1 of the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Barrett Business Services, Inc. (BBSI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: BBSI income statement, BBSI balance sheet, BBSI key metrics, BBSI analyst forecast, BBSI chart. See the BBSI stock overview for the latest quote and news.