Latest Ratios: P/E Ratio 18.0x · EV/EBITDA 12.1x · 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 | $924M | $933M | $1.2B | $793M | $674M | $526M | $524M | $697M | $438M | $487M | $473M |
| Enterprise Value | $853M | $863M | $1.1B | $743M | $604M | $482M | $483M | $681M | $407M | $431M | $427M |
| P/E Ratio → | 18.00 | 17.33 | 21.94 | 15.65 | 14.22 | 13.82 | 15.50 | 14.41 | 11.54 | 19.42 | 25.03 |
| P/S Ratio | 0.74 | 0.75 | 1.01 | 0.74 | 0.64 | 0.55 | 0.60 | 0.74 | 0.47 | 0.53 | 0.56 |
| P/B Ratio | 4.02 | 3.87 | 5.24 | 3.98 | 3.79 | 2.52 | 2.64 | 4.05 | 3.68 | 5.48 | 6.78 |
| P/FCF | 19.58 | 19.78 | — | 14.32 | 57.10 | — | — | 10.50 | 6.83 | 4.46 | 6.46 |
| P/OCF | 14.00 | 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 | 12.11 | 12.25 | 16.71 | 10.97 | 9.26 | 9.79 | 11.79 | 12.52 | 9.86 | 12.19 | 13.25 |
| EV / EBIT | 13.72 | 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 | 0.8% | 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 | 5.6% | 5.8% | 4.6% | 6.4% | 7.0% | 7.2% | 6.5% | 6.9% | 8.7% | 5.1% | 4.0% |
| FCF Yield | 5.1% | 5.1% | — | 7.0% | 1.8% | — | — | 9.5% | 14.6% | 22.4% | 15.5% |
| Buyback Yield | 5.2% | 5.1% | 2.5% | 4.3% | 7.0% | 3.3% | 1.5% | 0.0% | 0.7% | 0.3% | 0.1% |
| Total Shareholder Yield | 6.0% | 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 |
Workers' compensation reserve volatility
Based on current market data, BBSI trades at a forward P/E of 23.53, which appears to incorporate a significant risk premium compared to its historical averages and peer group, suggesting investors remain cautious regarding the sustainability of earnings amidst ongoing regional economic and regulatory headwinds in California.
The valuation gap between the trailing P/E of 17.25 and the forward multiple suggests that the market anticipates a contraction in earnings power or a normalization of actuarial benefits. This pricing implies that investors are discounting the firm as a cyclical staffing entity rather than a stable HCM provider, warranting further investigation into whether the current multiple adequately compensates for the volatility inherent in the blue-collar client base.
As reported in recent financial statements, BBSI's ROIC has experienced significant degradation, falling from 8.9% in 2023Q4 to a negative 4.0% in 2026Q1, which highlights the difficulty of compounding returns when operating margins are periodically compressed by actuarial adjustments and seasonal revenue fluctuations.
The sharp decline in return on capital suggests that the company's decentralized business unit model, while effective for client retention, may be struggling to generate sufficient incremental returns on invested capital during periods of economic softness. Investors should monitor whether this trend is a temporary byproduct of insurance reserve adjustments or a structural decay in the efficiency of the firm's localized consulting approach.
According to quarterly filings, BBSI's asset turnover has remained stagnant near 0.40, indicating that the firm's ability to generate revenue from its asset base is constrained by the pass-through nature of its PEO model and the inherent limitations of its current geographic footprint.
The consistency of the DSO metric, hovering around 70-80 days, suggests that while the company maintains stable relationships with its small-business clients, it lacks the leverage to significantly accelerate cash collection cycles. This operational rigidity implies that working capital management will remain a primary driver of liquidity, leaving little room for error during periods of client insolvency or regional economic downturns.
Based on the most recent balance sheet, BBSI maintains a current ratio of 1.16, which provides an adequate, albeit modest, cushion to manage the inherent volatility of workers' compensation liabilities and the seasonal cash flow requirements typical of the professional employer organization industry.
The company's reliance on equity financing, evidenced by a near-zero debt-to-equity ratio, serves as a critical defensive mechanism against the unpredictable nature of insurance-related cash outflows. While this fortress-like balance sheet structure limits financial distress risk, it also suggests that management prioritizes capital preservation over aggressive expansion, which may limit future growth potential in a competitive landscape.
As noted in institutional research, the P/E ratio is frequently misapplied to BBSI because it fails to account for the non-cash actuarial adjustments that distort net income, making the EV/EBITDA or a cash-flow-based metric a more reliable indicator of the firm's true underlying economic performance.
Using P/E as the primary valuation tool obscures the impact of workers' compensation reserve development, which can artificially inflate or deflate earnings in any given quarter. Analysts should instead focus on adjusted EBITDA or free cash flow to better capture the actual cash-generating capacity of the business, as these metrics are less susceptible to the accounting noise inherent in the PEO model.
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 18.0x. The historical average is 18.5x. This places it at the 58th percentile of its historical range.
Barrett Business Services, Inc.'s current EV/EBITDA is 12.1x. 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 18.0x. This is at the 58th 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 0.84% 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.