START SELLING WITH BigBCC TODAY

Start your free trial with BigBCC today.

BLOG |

A Look At Barrett Business Services (BBSI) Valuation After New HR Document Repository Launch

A Look At Barrett Business Services (BBSI) Valuation After New HR Document Repository Launch

Table of Contents

Barrett Business Services (BBSI) has rolled out a new Employee File Cabinet HRIS module inside its client portal, built with Box technology, centralizing HR documents in a secure, integrated repository for employers and staff.

See our latest analysis for Barrett Business Services.

This product rollout comes as Barrett Business Services trades at US$39.20, with a 30 day share price return of 8.23% and a year to date share price return of 7.72%. The 1 year total shareholder return decline of 8.23% contrasts with a 3 year total shareholder return of 68.94% and a 5 year total shareholder return of 143.31%, indicating that longer term momentum has been stronger than the recent pullback.

If you are looking for other ideas in business services and adjacent areas, this could be a good moment to broaden your watchlist with fast growing stocks with high insider ownership.

With Barrett Business Services trading at US$39.20 and indicators such as a value score of 6, a price target of US$51.00 and an estimated intrinsic discount of 52.32%, you have to ask: is this a genuine opportunity, or is the market already pricing in future growth?

The most followed narrative for Barrett Business Services points to a fair value of US$51.50 against the last close of US$39.20, framing the current set up as materially discounted on projected fundamentals.

Analysts expect earnings to reach $75.8 million (and earnings per share of $2.88) by about September 2028, up from $53.9 million today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

Curious what kind of revenue path and margin profile are baked into that view, and how a lower future P/E still supports a higher value? The narrative leans on steady compounding, tighter profitability, and a premium, yet not extreme, earnings multiple. Want to see how those moving parts fit together and what has to go right to reach that fair value?

Result: Fair Value of $51.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this story can break if client hiring stays weak or if competition in PEO and staffing squeezes margins more than analysts currently factor in.

Find out about the key risks to this Barrett Business Services narrative.

If you see the numbers differently or would rather weigh the assumptions yourself, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your Barrett Business Services research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

If Barrett Business Services caught your attention, do not stop here. Fresh opportunities across sectors could suit your watchlist and help refine your portfolio thinking.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BBSI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Source link

Share Article:

The newsletter for entrepreneurs

Join millions of self-starters in getting business resources, tips, and inspiring stories in your inbox.

Unsubscribe anytime. By entering your email, you agree to receive
emails from BigBCC.

The newsletter for entrepreneurs

Join millions of self-starters in getting business resources, tips, and inspiring stories in your inbox.

Unsubscribe anytime. By entering your email, you agree to receive marketing emails from BigBCC. By proceeding, you agree to the Terms and Conditions and Privacy Policy.

SELL ANYWHERE
WITH BigBCC

Learn on the go. Try BigBCC for free, and explore all the tools you need to
start, run, and grow your business.