For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away.
So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Barrett Business Services (NASDAQ:BBSI). While this doesn’t necessarily speak to whether it’s undervalued, the profitability of the business is enough to warrant some appreciation – especially if its growing.
If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. That means EPS growth is considered a real positive by most successful long-term investors. Barrett Business Services managed to grow EPS by 10% per year, over three years. That’s a good rate of growth, if it can be sustained.
It’s often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company’s growth. EBIT margins for Barrett Business Services remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 9.6% to US$1.2b. That’s progress.
You can take a look at the company’s revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.
NasdaqGS:BBSI Earnings and Revenue History December 29th 2025
See our latest analysis for Barrett Business Services
While we live in the present moment, there’s little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Barrett Business Services?
It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Shareholders will be pleased by the fact that insiders own Barrett Business Services shares worth a considerable sum. To be specific, they have US$33m worth of shares. This considerable investment should help drive long-term value in the business. Even though that’s only about 3.6% of the company, it’s enough money to indicate alignment between the leaders of the business and ordinary shareholders.