Barrett Business Services, Inc.
$32.33
-4.3%Barrett Business Services, Inc. provides business management solutions for small and mid-sized companies in the United States. The company develops a management platform that integrates a knowledge-based approach from the management consulting industry with tools from the human resource outsourcing industry. It 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. The company also 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. It serves electronics manufacturers, light-manufacturing industries, agriculture-based companies, transportation and shipping enterprises, food processors, telecommunications companies, public utilities, general contractors in various construction-related fields, and professional services firms. The company was incorporated in 1965 and is headquartered in Vancouver, Washington.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 15.2).
Valuation inputs: P/E 15.2, earnings yield +6.6%, momentum -4.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +22.6%, ROIC +12.5%).
Profitability stack: net margin +4.4%, ROE +22.6%, ROIC +12.5%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +69.1%, momentum -4.3%, net margin +4.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Barrett Business Services, Inc. Market vs Earnings Trajectory
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Barrett Business Services, Inc. Fair Value Envelope
Barrett Business Services, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
Barrett Business Services, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Moderate working capital outflow. Typical for growing businesses, but ensure it's supporting revenue growth, not inefficiency.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Barrett Business Services, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Acceptable liquidity, but monitor closely. Current assets just barely cover current liabilities.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Positive working capital, but relatively tight. The company should monitor cash flow carefully.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Barrett Business Services, Inc. Street Expectations Map
Wall Street analysts project that BBSI stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 46.00, with estimates ranging from a low of 46.00 to a high of 46.00.
The consensus 1-year price target stands at 46.00, with estimates ranging from a low of 46.00 to a high of 46.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
Barrett Business Services, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.10M and sold $1.82M worth of BBSI shares, resulting in $286K of net buying activity.
3 Months
11.4K
310.96K
1.8K
51.71K
+259K
+$259K
3-6 Months
2.0K
55.31K
0
0.00
+55K
+$55K
6-9 Months
2.5K
92.75K
14.7K
680.83K
-588K
-$588K
9-12 Months
80.0K
1.64M
22.3K
1.08M
+560K
+$560K
Top Buyers
Kramer Gary
Officer: President & Ceo
$1.87M
Finn Mark Steven
Director
$199K
Clabby Joseph Stephen
Director
$35K
Top Sellers
Kramer Gary
Officer: President & Ceo
$1.08M
Blotz Gerald
Officer: Executive Vp & Coo
$537K
Meeker Anthony
Director
$143K
Potts James R
Officer: Evp Gen Counsel & Secretary
$52K
Insider Activity Analysis
Net Insider Sentiment
Moderately bullish with $286K net buying. Insiders show cautious optimism through measured share purchases.
Buy/Sell Ratio
Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.
Recent Trend (3 Months)
Very strong recent buying momentum. Recent insider purchases significantly outpace sales, suggesting near-term optimism.
Insider Participation
4 insider sellers vs. 3 buyers. More insiders selling than buying suggests cautious or negative sentiment.
Insider Activity Insight
Broad-based insider buying: When multiple insiders independently decide to purchase shares, it often reflects genuine confidence rather than coordinated optics. This pattern deserves attention, especially if buying followed a price decline.
bbsi Dividend History
Learning Layer
Related Guides
Build conviction on BBSI by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.