
BBSI Stock Forecast & Price Target
BBSI Analyst Ratings
Bulls say
Barrett Business Services Inc. demonstrated a solid financial performance, with total revenue growth of 10% year-over-year (YOY) in Q4/24 and continued growth in the preceding quarters. The company experienced a 3% increase in the number of worksite employees (WSEs), rising from 128,448 to 132,698, signaling a healthy demand for its staffing and payroll solutions. Looking ahead, projections indicate that gross billings, Professional Employer Organization (PEO) revenue, and overall revenue growth rates are expected to improve in 2024 and 2025, bolstered by a favorable demand environment and promising health benefits product offerings.
Bears say
Barrett Business Services exhibited a concerning decline in financial performance, highlighted by an adjusted EBITDA margin that remained flat year-over-year at 8.1% for both Q4/23 and Q4/24, accompanied by a notable sequential drop from 9.4% in Q4/24. The company's gross margins also decreased, falling from 25.3% to 23.4% sequentially and down from 23.7% year-over-year, reflecting increased costs that outpaced revenue growth. Additionally, the staffing services segment, contributing only 7% to total revenue, experienced a 9% decline year-over-year and cash flow metrics revealed significant losses, indicating substantial challenges ahead for the firm.
This aggregate rating is based on analysts' research of Barrett Business Services and is not a guaranteed prediction by Public.com or investment advice.
BBSI Analyst Forecast & Price Prediction
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