CBIZ (CBZ) AI Stock Analysis

• Market Cap: $3.90B
• Dividend Yield: N/A
• Average Volume (3M): 424.76K
• Price to Earnings (P/E): 65.3
• Beta (1Y): 0.93
• Revenue Growth: 13.97%
• EPS Growth: -54.48%
• Country: US
• Employees: 10,000
• Sector: Industrials
• Sector Strength: 63
• Industry: Specialty Business Services
• EPS (TTM): 1.09
• Shares Outstanding: 54,058,220
• 10 Day Avg. Volume: 402,731
• 30 Day Avg. Volume: 424,756
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.16
• Price to Cash Flow (P/CF): 17.70
• P/FCF Ratio: 13.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

CBIZ's strong financial performance and positive earnings call guidance are significant strengths. However, technical analysis suggests bearish momentum, and the high P/E ratio raises valuation concerns. These factors result in a balanced overall score.

Positive Factors

Analyst rating

Analyst reiterates an Outperform rating for CBIZ Inc shares.

EPS guidance

Despite a lower-than-expected revenue outlook, the company's full-year EPS guidance was consistent with previous management commentary on EPS accretion.

Negative Factors

Management guidance

Share weakness is attributed to concerns about management's 2025 revenue guidance and organic growth commentary.

Revenue guidance

Shares traded lower primarily due to lighter-than-expected full-year revenue guidance.

CBIZ Business Overview & Revenue Model

Company Description

CBIZ, Inc. provides financial, insurance, and advisory services in the United States and Canada. The company operates through three segments: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services. The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services. The National Practices segment offers information technology managed networking and hardware, and health care consulting services. It primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises. The company was incorporated in 1987 and is headquartered in Cleveland, Ohio.

How the Company Makes Money

CBIZ makes money through a diversified revenue model based on its broad portfolio of professional services. The company's key revenue streams include fees for accounting and tax services, which involve audit, tax compliance, and consulting services. Additionally, CBIZ generates revenue from benefits and insurance services by providing employee benefits consulting, actuarial services, and risk management solutions. Another significant source of income is derived from its national practices, which include various consulting services in areas such as healthcare, real estate, and litigation support. Partnerships with various service providers and long-term client relationships also contribute to CBIZ's earnings, enhancing its ability to offer comprehensive, integrated solutions to its customers.

CBIZ Financial Statement Overview

Summary

CBIZ demonstrates strong financial health with consistent revenue and income growth. The balance sheet reflects strategic financial management despite increased debt in recent periods. Cash flow generation is stable, supporting ongoing operations and financial commitments.

Income Statement

CBIZ demonstrated robust revenue growth from 2020 to 2023, with a notable increase in net income. The company maintained a healthy net profit margin, as evidenced by a consistent increase in net income over the years. Despite a lack of data for certain metrics in 2024, the historical trend shows a strong performance in EBIT and EBITDA margins, highlighting operational efficiency.

Balance Sheet

The company has a solid equity base with a positive trajectory in stockholders' equity from 2019 to 2023. Debt levels increased in 2024 due to strategic financial activities, yet the debt-to-equity ratio remains manageable. The equity ratio has improved, indicating stable financial health and an ability to leverage assets effectively.

Cash Flow

CBIZ has consistently generated positive operating cash flow, supporting its free cash flow generation. While the free cash flow growth rate has fluctuated, the operating cash flow to net income ratio remained strong, indicating effective cash management. Free cash flow to net income ratio also reflects efficient conversion of income into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.81B	1.59B	1.41B	1.10B	963.90M
	Gross Profit
182.47M	225.10M	223.37M	159.29M	138.55M
	EBIT
73.72M	165.24M	168.34M	121.38M	92.48M
	EBITDA
140.25M	226.99M	211.14M	122.83M	115.62M
	Net Income Common Stockholders
41.04M	120.97M	105.35M	70.89M	78.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.83M	8.09M	4.70M	2.00M	4.65M
	Total Assets
2.13B	2.04B	1.88B	1.63B	1.51B
	Total Debt
172.79M	551.01M	474.47M	331.25M	279.69M
	Net Debt
172.79M	542.92M	469.77M	329.25M	275.04M
	Total Liabilities
356.28M	1.25B	1.17B	923.39M	811.13M
	Stockholders Equity
1.78B	791.62M	713.45M	704.55M	595.30M
Cash Flow		Free Cash Flow
123.69M	130.46M	117.49M	122.17M	135.27M
	Operating Cash Flow
123.69M	153.51M	126.13M	131.15M	146.84M
	Investing Cash Flow
-1.13B	-79.39M	-99.12M	-82.01M	-46.41M
	Financing Cash Flow
1.04B	-77.11M	-17.34M	-69.00M	-76.61M

CBIZ Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBZ, the sentiment is Negative. The current price of 70.99 is below the 20-day moving average (MA) of 72.84, below the 50-day MA of 78.98, and below the 200-day MA of 75.76, indicating a bearish trend. The MACD of -0.92 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 88.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBZ.

CBIZ Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	72 Outperform	$2.92B	20.31	7.17%	0.83%	5.04%	31.69%
CBZ	69 Neutral	$3.90B	65.31	3.19%	―	13.97%	-54.48%
MMS	69 Neutral	$3.89B	14.79	16.88%	1.75%	8.01%	53.64%
ABM	66 Neutral	$2.82B	35.74	4.46%	2.07%	2.81%	-67.57%
Sector *	62 Neutral	$7.24B	12.39	3.08%	3.39%	3.63%	-14.35%
FA	61 Neutral	$2.36B	549.40	-9.96%	―	12.63%	-364.02%

CBIZ Corporate Events

CBIZ Adjusts Executive Compensation Post-Marcum Acquisition

On February 12, 2025, CBIZ, Inc.’s Compensation and Human Capital Committee approved compensation adjustments for its executives, following the company’s acquisition of Marcum LLP. The adjustments were made to align executive pay with market medians, reflecting the company’s increased scale. Despite these changes, the company acknowledges that executive compensation remains below the median and plans further evaluations. The adjustments include maintaining target cash awards, splitting long-term equity incentives between time-based RSUs and PSUs, and increasing the maximum payout for PSUs to 300% to incentivize integration efforts post-acquisition.