Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 10.0x · 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 | $776M | $933M | $1.2B | $793M | $674M | $526M | $524M | $697M | $438M | $487M | $473M |
| Enterprise Value | $706M | $863M | $1.1B | $743M | $604M | $482M | $483M | $681M | $407M | $431M | $427M |
| P/E Ratio → | 15.12 | 17.33 | 21.94 | 15.65 | 14.22 | 13.82 | 15.50 | 14.41 | 11.54 | 19.42 | 25.03 |
| P/S Ratio | 0.63 | 0.75 | 1.01 | 0.74 | 0.64 | 0.55 | 0.60 | 0.74 | 0.47 | 0.53 | 0.56 |
| P/B Ratio | 3.38 | 3.87 | 5.24 | 3.98 | 3.79 | 2.52 | 2.64 | 4.05 | 3.68 | 5.48 | 6.78 |
| P/FCF | 16.45 | 19.78 | — | 14.32 | 57.10 | — | — | 10.50 | 6.83 | 4.46 | 6.46 |
| P/OCF | 11.77 | 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 | 10.02 | 12.25 | 16.71 | 10.97 | 9.26 | 9.79 | 11.79 | 12.52 | 9.86 | 12.19 | 13.25 |
| EV / EBIT | 11.35 | 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 | 1.0% | 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 | 6.6% | 5.8% | 4.6% | 6.4% | 7.0% | 7.2% | 6.5% | 6.9% | 8.7% | 5.1% | 4.0% |
| FCF Yield | 6.1% | 5.1% | — | 7.0% | 1.8% | — | — | 9.5% | 14.6% | 22.4% | 15.5% |
| Buyback Yield | 6.2% | 5.1% | 2.5% | 4.3% | 7.0% | 3.3% | 1.5% | 0.0% | 0.7% | 0.3% | 0.1% |
| Total Shareholder Yield | 7.2% | 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 15.1x. The historical average is 18.5x. This places it at the 35th percentile of its historical range.
Barrett Business Services, Inc.'s current EV/EBITDA is 10.0x. 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 15.1x. This is at the 35th 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 1.00% 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' comp reserve volatility
Metrics are mathematically derived from official filings.
Margin Volatility Masks Underlying Stability
Gross margin swung from 24.1% in Q3 2025 to 20.3% in Q2 2026, reflecting workers' compensation reserve adjustments, as reported in quarterly filings, while operating margin recovered to 4.8% from a seasonal loss.
The 21.04% gross margin is structurally constrained by the pass-through nature of worksite employee wages and the inherent volatility of insurance-related liabilities. Operating margins of 5.01% suggest lean corporate overhead but remain vulnerable to prior-year development in workers' compensation reserves, where actuarial adjustments can cause sudden fluctuations. Investors should monitor whether the recent client additions translate into margin expansion or simply sustain the current growth rate.
ROIC Cyclicality Tied to Reserve Timing
ROIC swung from -4.0% in Q1 2026 to 8.5% in Q2 2026, per reported figures, reflecting seasonal and reserve-driven volatility rather than a structural change in capital efficiency.
Over the past ten quarters, ROIC has ranged from -4.0% to 9.0%, with the negative quarters coinciding with Q1 seasonal losses and adverse reserve developments. The average ROIC of approximately 5.5% suggests a modest return on invested capital, consistent with a service-oriented, asset-light model. The drivers are primarily margin volatility rather than asset turnover, which has remained stable near 0.4x.
Working Capital Swings Dominate Cash Flow
DSO rose from 66 days in Q1 2024 to 85 days in Q2 2026, per financial statements, while DPO remained near 2 days, indicating a widening cash conversion cycle that pressures liquidity.
The cash conversion cycle is not calculable due to missing DIO data, but the combination of rising DSO and minimal DPO suggests that BBSI is financing its receivables without supplier credit. This is typical for a PEO where payroll is paid before client collections, but the trend warrants monitoring as it may indicate slower collections or a shift in client mix. The seasonal working capital swings, with changes ranging from -$78.4M to +$51.7M, highlight the extreme cash flow volatility inherent in the model.
Minimal Debt Masks Reserve Liabilities
Debt-to-equity remains low at 0.12 with interest coverage above 400x, per reported figures, but workers' compensation liabilities are not fully captured in this metric, suggesting hidden balance sheet risk.
The near-zero leverage and high interest coverage indicate a conservative capital structure, but the balance sheet's apparent strength is undermined by the volatility of workers' compensation reserves, which are not separately disclosed. The D/EBITDA ratio of 1.39 in Q2 2026 is slightly elevated due to depressed EBITDA, but remains manageable. Investors should monitor whether reserve developments could strain liquidity despite the low debt levels.
Seasonal Liquidity Buffer Thins
Current ratio fell to 1.14 in Q2 2026 from 1.29 in Q4 2025, while cash dropped to $27.0M from $95.0M, per balance sheet data, indicating seasonal working capital strain.
The quick ratio equals the current ratio at 1.14, suggesting no inventory dependence, which is typical for a service business. However, the sharp decline in cash and current ratio from Q4 to Q2 reflects the seasonal pattern of payroll and benefit payments, which typically peak in Q2. Under severe stress, such as an adverse workers' comp development, the liquidity buffer could be tested, but the low debt and access to restricted cash provide some cushion.
P/E Misapplied to Cyclical Earnings
The trailing P/E of 15.79 is distorted by reserve-driven earnings volatility, while the forward P/E of 24.01 better reflects normalized earnings, per valuation data, suggesting the market may misprice cyclicality.
The most commonly misapplied ratio for BBSI is the P/E ratio, because earnings are heavily influenced by non-cash workers' compensation reserve adjustments and seasonal swings. A more appropriate metric is EV/EBITDA, which at 10.51x (or 8.58x forward) better captures the underlying cash-generating ability of the business. Investors should also consider the price-to-gross-billings ratio, as the net revenue reporting understates the true scale of the business. The low P/S of 0.65 reflects the net revenue recognition, which may mislead those comparing to gross-billing peers.