Barrett Business ServicesBBSI -0.25%77 Gross Margin % is 14.07% as of Mar. 2026, which is 34% below its 10-year median of 21.23. GuruFocus rates BBSI with a GF Score™ of 77/100 and a GF Value™ of $40.38 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,007 Business Services companies, Barrett Business Services ranks worse than 75.57% on this metric.
Barrett Business Services (NAS:BBSI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Barrett Business Services had a gross margin of 14.07% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Barrett Business Services Gross Margin % Related Terms
Barrett Business Services Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BBSI vs KFRC, KELYA, TBI: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Barrett Business Services's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Barrett Business Services Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Barrett Business Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Barrett Business Services's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Barrett Business Services (BBSI) has a Gross Margin % of 14.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Barrett Business Services and its competitors. This is 34% below median its historical median of 21.23. Over the past decade, Barrett Business Services' Gross Margin % has ranged from 17.22 to 22.68. According to the industry distribution chart, Barrett Business Services ranks #761 out of 1007 companies in the Business Services industry, placing it in the top 75.6%.
Is Barrett Business Services' Gross Margin % too high?
Barrett Business Services' current Gross Margin % of 14.07% is 34% below median its 10-year median of 21.23. Over the past 10 years, this metric has ranged from a low of 17.22 to a high of 22.68. The Business Services industry median Gross Margin % is 34.50. Barrett Business Services' value of 14.07% is 59.2% below this industry median. Based on the distribution chart, Barrett Business Services ranks #761 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Barrett Business Services has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Barrett Business Services' Gross Margin % compare to KFRC and KELYA?
According to the Business Services industry distribution chart, Barrett Business Services ranks #761 out of 1007 companies for Gross Margin %. This places Barrett Business Services in the lower half of its industry. The industry median Gross Margin % is 34.50. Barrett Business Services' value of 14.07% is 59.2% below this benchmark. Historically, Barrett Business Services' own Gross Margin % has ranged from 17.22 to 22.68 over the past decade. While the company's 10-year median is 21.23 vs. the industry median of 34.50, Barrett Business Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Barrett Business Services's current Gross Margin % of 14.07% is 59.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Barrett Business Services and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barrett Business Services's current Gross Margin % is 14.07%, which is 34% below median its own 10-year median of 21.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Barrett Business Services stock overvalued right now?
Based on GuruFocus' analysis, Barrett Business Services (BBSI) is currently considered Modestly Undervalued. The stock's GF Value™ is $40.38, compared to a current price of $35.92 — trading 11% below its estimated fair value. The current Gross Margin % is 14.07%, which is 34% below median its 10-year median of 21.23 and 59.2% below the Business Services industry median of 34.50. Barrett Business Services' overall GF Score™ is 77/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Barrett Business Services (BBSI), the current Gross Margin % is 14.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Barrett Business Services (BBSI) Overvalued in 2026?
Based on GuruFocus' analysis, Barrett Business Services stock appears to be undervalued.
The current stock price of $35.92 is trading 11% below its estimated GF Value™ of $40.38.
GuruFocus considers Barrett Business Services to be Modestly Undervalued.
Key valuation signals for BBSI:
Gross Margin %: 14.07% (34% below median its 10-year median of 21.23)
GF Value™: $40.38 vs. price of $35.92 (11% below fair value)
Industry Position: 59.2% below the Business Services median (#761 of 1007)
No single metric tells the full story. See the BBSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Barrett Business Services Inc is a provider of business management solutions for small and mid-sized companies through a platform that combines management consulting expertise with human resource tools to help business owners manage and operate their businesses more effectively. The company has two categories of services: Professional Employer Services (PEO) and Staffing. The majority of revenue is derived from the Professional Employer Services segment, which provides clients with human resource advisory services, HRIS access, retirement plans, a learning management system, and a web-based technology platform, myBBSI.
77GF Score
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