Barrett Business Services (NAS:BBSI) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Barrett Business Services Operating Margin % Related Terms
Barrett Business Services Operating 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.
Barrett Business Services Operating Margin % Chart
BBSI vs KFRC, KELYA, NSP: Operating Margin % Comparison
For the Staffing & Employment Services subindustry, Barrett Business Services's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Barrett Business Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Barrett Business Services's Operating Margin % falls into.
Barrett Business Services Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Barrett Business Services's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Barrett Business Services (BBSI) has a Operating Margin % of -2.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Barrett Business Services and its competitors. Over the past decade, Barrett Business Services' Operating Margin % has ranged from 3.25 to 5.67. According to the industry distribution chart, Barrett Business Services ranks #614 out of 1070 companies in the Business Services industry, placing it in the top 57.4%.
Is Barrett Business Services' Operating Margin % too high?
Barrett Business Services' current Operating Margin % is -2.11%. Over the past 10 years, this metric has ranged from a low of 3.25 to a high of 5.67. Based on the distribution chart, Barrett Business Services ranks #614 out of 1070 companies in the Business Services industry, which is below the industry midpoint. 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' Operating Margin % compare to KFRC and KELYA?
According to the Business Services industry distribution chart, Barrett Business Services ranks #614 out of 1070 companies for Operating Margin %. This places Barrett Business Services in the lower half of its industry. The industry median Operating Margin % is 6.33. Historically, Barrett Business Services' own Operating Margin % has ranged from 3.25 to 5.67 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Barrett Business Services and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Barrett Business Services's current Operating Margin % is -2.11%. 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 $36.06 — trading 10.7% below its estimated fair value. The current Operating Margin % is -2.11%. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Barrett Business Services (BBSI), the current Operating Margin % is -2.11% 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 $36.06 is trading 10.7% below its estimated GF Value™ of $40.38.
GuruFocus considers Barrett Business Services to be Modestly Undervalued.
Key valuation signals for BBSI:
Operating Margin %: -2.11%
GF Value™: $40.38 vs. price of $36.06 (10.7% below fair value)
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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