Barrett Business Services Inc. Common Stock (BBSI)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business that earns good returns on capital without heavy debt, and Barrett has some of that. It supplies HR outsourcing and professional employer services to small and midsized firms, a recurring, compliance-heavy niche with modest switching costs. Debt is low: the data show D/E of 0.12, and ROE is a respectable 16.33% on FairStock calculations. But ROCE is only 4.58%, so returns on total capital are not wonderful. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $319.3M and net income was $12.9M, or $0.52 diluted EPS. That compares weakly with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $307.7M but net income was $18.5M, or $0.70 diluted EPS. Fiscal Q1 2026, the quarter ended 2026-03-31, even produced a net loss of $14.8M, or -$0.59 diluted EPS, showing quarterly lumpiness. Longer term, FY2025, the year ended 2025-12-31, had $1.2B revenue, $54.4M net income, and $2.08 diluted EPS, versus FY2024, the year ended 2024-12-31, with $1.1B revenue, $53.0M net income, and $1.98 diluted EPS. Growth is steady but unspectacular, and FairStock shows profit growth of -30.26%. At the $31.90 close on 2026-10-13, FairStock calculates P/E of 23.81, P/B of 3.77, EV/EBITDA of 11.11, FCF yield of 2.0%, and a Graham Number of $15.98, leaving no margin of safety. The Lynch category is STALWART, but quality is only fair. I would watch whether margins and free cash flow recover before calling this a bargain.

In plain English: Barrett Business Services helps small and mid-sized companies with human resources, payroll, and employee management services. The business is profitable and has grown slowly over recent years, but its latest quarterly profit was lower than a year earlier and it had a loss in the prior quarter. At $31.90, the price looks expensive relative to the company's profits and net assets, so it does not look like a bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer