Latest Ratios: P/E Ratio 23.4x · EV/EBITDA 11.5x · ROE 23.5%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $735M | $933M | $1.2B | $793M | $674M | $526M | $524M | $697M | $438M | $487M | $473M |
| Enterprise Value | $664M | $863M | $1.1B | $743M | $604M | $482M | $483M | $681M | $407M | $431M | $427M |
| P/E Ratio → | 23.40 | 17.33 | 21.94 | 15.65 | 14.22 | 13.82 | 15.50 | 14.41 | 11.54 | 19.42 | 25.03 |
| P/S Ratio | 0.57 | 0.75 | 1.01 | 0.74 | 0.64 | 0.55 | 0.60 | 0.74 | 0.47 | 0.53 | 0.56 |
| P/B Ratio | 3.20 | 3.87 | 5.24 | 3.98 | 3.79 | 2.52 | 2.64 | 4.05 | 3.68 | 5.48 | 6.78 |
| P/FCF | 244.53 | 19.78 | — | 14.32 | 57.10 | — | — | 10.50 | 6.83 | 4.46 | 6.46 |
| P/OCF | 11.14 | 14.15 | 115.02 | 11.80 | 24.27 | — | — | 9.03 | 6.27 | 4.31 | 5.89 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.70 | 0.98 | 0.69 | 0.57 | 0.50 | 0.55 | 0.72 | 0.43 | 0.47 | 0.51 |
| EV / EBITDA | 11.48 | 12.25 | 16.71 | 10.97 | 9.26 | 9.79 | 11.79 | 12.52 | 9.86 | 12.19 | 13.25 |
| EV / EBIT | 10.68 | 12.01 | 15.94 | 10.75 | 9.23 | 9.45 | 11.02 | 10.81 | 10.99 | 14.41 | 14.74 |
| EV / FCF | — | 18.29 | — | 13.42 | 51.15 | — | — | 10.26 | 6.34 | 3.95 | 5.83 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 21.0% | 21.0% | 22.1% | 22.7% | 22.3% | 21.4% | 20.8% | 22.1% | 19.8% | 17.2% | 17.3% |
| Operating Margin | 5.0% | 5.0% | 5.2% | 5.7% | 5.6% | 4.6% | 4.1% | 5.4% | 3.9% | 3.3% | 3.4% |
| Net Profit Margin | 4.4% | 4.4% | 4.6% | 4.7% | 4.5% | 4.0% | 3.8% | 5.1% | 4.0% | 2.7% | 2.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.5% | 23.5% | 25.2% | 26.9% | 24.5% | 18.7% | 18.2% | 33.2% | 36.6% | 31.8% | 30.3% |
| ROA | 7.1% | 7.1% | 7.2% | 7.2% | 6.6% | 5.0% | 4.1% | 6.0% | 5.3% | 3.9% | 3.4% |
| ROIC | 26.1% | 26.1% | 26.6% | 35.4% | 32.5% | 20.5% | 17.3% | 31.1% | 45.8% | 78.9% | 59.7% |
| ROCE | 16.4% | 16.4% | 15.6% | 16.6% | 15.0% | 9.6% | 7.2% | 10.6% | 9.4% | 8.8% | 9.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.12 | 0.14 | 0.17 | 0.04 | 0.05 | 0.07 |
| Debt / EBITDA | 0.35 | 0.35 | 0.32 | 0.31 | 0.32 | 0.51 | 0.68 | 0.52 | 0.10 | 0.12 | 0.14 |
| Net Debt / Equity | — | -0.29 | -0.15 | -0.25 | -0.39 | -0.21 | -0.21 | -0.09 | -0.26 | -0.62 | -0.66 |
| Net Debt / EBITDA | -1.00 | -1.00 | -0.50 | -0.74 | -1.08 | -0.90 | -1.00 | -0.30 | -0.76 | -1.57 | -1.43 |
| Debt / FCF | — | -1.50 | — | -0.90 | -5.95 | — | — | -0.24 | -0.49 | -0.51 | -0.63 |
| Interest Coverage | 165.14 | 165.14 | 396.88 | 416.59 | 464.14 | 137.19 | 35.24 | 35.17 | 35.16 | 95.66 | 35.86 |
Net cash position: cash ($95M) exceeds total debt ($24M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.29 | 1.29 | 1.32 | 1.30 | 1.36 | 1.29 | 1.40 | 1.24 | 0.98 | 0.96 | 0.95 |
| Quick Ratio | 1.29 | 1.29 | 1.32 | 1.30 | 1.36 | 1.29 | 1.40 | 1.24 | 0.62 | 0.63 | 0.68 |
| Cash Ratio | 0.39 | 0.39 | 0.34 | 0.44 | 0.48 | 0.53 | 0.58 | 0.37 | 0.11 | 0.19 | 0.21 |
| Asset Turnover | — | 1.59 | 1.54 | 1.48 | 1.53 | 1.28 | 1.14 | 1.09 | 1.24 | 1.35 | 1.41 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 6.26 | 7.35 | 9.42 |
| Days Sales Outstanding | — | 74.04 | 75.64 | 61.23 | 56.72 | 59.50 | 51.79 | 63.87 | 58.82 | 54.86 | 54.92 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.1% | 0.9% | 0.7% | 1.0% | 1.3% | 1.7% | 1.7% | 1.2% | 1.7% | 1.5% | 1.3% |
| Payout Ratio | 15.0% | 15.0% | 15.3% | 16.0% | 18.0% | 23.8% | 27.0% | 17.0% | 19.3% | 28.9% | 33.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 5.8% | 4.6% | 6.4% | 7.0% | 7.2% | 6.5% | 6.9% | 8.7% | 5.1% | 4.0% |
| FCF Yield | 0.4% | 5.1% | — | 7.0% | 1.8% | — | — | 9.5% | 14.6% | 22.4% | 15.5% |
| Buyback Yield | 6.5% | 5.1% | 2.5% | 4.3% | 7.0% | 3.3% | 1.5% | 0.0% | 0.7% | 0.3% | 0.1% |
| Total Shareholder Yield | 7.6% | 6.0% | 3.2% | 5.3% | 8.3% | 5.0% | 3.3% | 1.2% | 2.4% | 1.8% | 1.4% |
| Shares Outstanding | — | $26M | $27M | $27M | $29M | $30M | $31M | $31M | $31M | $30M | $30M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying BBSI stock.
Barrett Business Services, Inc.'s current P/E ratio is 23.4x. The historical average is 18.5x. This places it at the 88th percentile of its historical range.
Barrett Business Services, Inc.'s current EV/EBITDA is 11.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.6x.
Barrett Business Services, Inc.'s return on equity (ROE) is 23.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 15.9%.
Based on historical data, Barrett Business Services, Inc. is trading at a P/E of 23.4x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Barrett Business Services, Inc.'s current dividend yield is 1.06% with a payout ratio of 15.0%.
Barrett Business Services, Inc. has 21.0% gross margin and 5.0% operating margin.
Barrett Business Services, Inc.'s Debt/EBITDA ratio is 0.3x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Workers' compensation reserve volatility
Metrics are mathematically derived from official filings.
Valuation Premium Rests on Earnings Recovery
Based on reported figures, BBSI trades at a trailing P/E of 14.31 but a forward P/E of 22.66, implying the market expects earnings to recover from recent volatility while the 1.04 PEG suggests growth is roughly priced in fairly.
The gap between trailing and forward P/E suggests investors are capitalizing a normalization of workers' compensation-driven earnings rather than the depressed trailing figures, which warrants monitoring. Compared with the peer set, BBSI's 3.20 price-to-book and 9.43 EV/EBITDA sit below the staffing-oriented names but above the value-priced HCI Group, indicating a moderate rather than deep discount. Investors should monitor whether the forward estimates hold, since a miss would leave the multiple looking elevated against a 5.0% operating margin.
Margin Compression Outpaces Revenue Growth
As reported in financial statements, BBSI's operating margin fell from 7.8% in 3Q25 to 6.4% in 3Q26 despite top-line expansion, indicating overhead and reserve dynamics are absorbing growth rather than amplifying it.
The gross margin range of 13.4% to 24.1% over the period shows profitability tied closely to reserve activity rather than to steady underlying operations. Relative to TriNet's 3.1% net margin, BBSI's roughly 5.0% net margin appears comparable within the PEO group, but it remains well below Kforce's 18.4% ROIC-supported economics. The results suggest operating leverage is currently absent and that headline margins may overstate durable earning power.
Returns Compressing From Peak Levels
Based on BBSI's reported figures, ROIC declined from roughly 9.0% in 2Q24 to 6.5% in 3Q26, a trajectory that suggests capital efficiency is weakening even as the balance sheet remains lightly levered.
The decline in ROIC is consistent with margin pressure rather than capital deployment, since the asset base is largely working-capital and insurance-related rather than physical plant. Versus the 28.4% ROIC reported for TriNet and 18.4% for Kforce, BBSI's returns look modest, though its low leverage limits the distortion from equity-based ratios. Investors should treat the quarterly ROE swings from -6.6% to 8.9% as partly reflecting reserve estimates instead of a stable compounding trend.
Minimal Leverage Keeps Solvency Comfortable
As reported in financial statements, BBSI's debt-to-equity ratio has stayed between 0.07 and 0.12 with total debt near $21M to $26M, suggesting that financial leverage is unlikely to constrain near-term operations.
Interest coverage figures are distorted by the very small interest expense base, so the extreme readings above 500x should be treated as uninformative rather than as evidence of unusual strength. Debt-to-EBITDA has hovered near one times where measurable, which points to a conservative capital structure. The main solvency consideration is therefore not borrowing but the contingent obligations embedded in workers' compensation reserves, which are outside the scope of conventional leverage metrics.
Gross Margin Overstates Economic Take-Rate
Based on reported figures, BBSI's 21.8% gross margin in 3Q26 is calculated on net-reported PEO revenue, which may make the headline margin look more substantial than the underlying fee economics warrant.
Because PEO revenue is recognized net of worksite employee wages, gross margin is a poor proxy for pricing power in this business model, and the more informative lens is the service-fee take-rate against gross billings. Operating margin on reported revenue is similarly distorted by reserve development, so analysts should separate reserve-driven swings from recurring fee income before drawing conclusions about durable profitability. Investors should monitor whether the take-rate holds steady over the next several quarters rather than relying on the headline gross margin trend.