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CBIZ (CBZ)
NYSE:CBZ
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CBIZ (CBZ) AI Stock Analysis

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CBZ

CBIZ

(NYSE:CBZ)

Rating:65Neutral
Price Target:
$67.00
▲(11.93% Upside)
CBIZ's overall stock score is driven primarily by its strong financial performance and positive earnings call, which highlight robust revenue and EBITDA growth. However, the stock's technical indicators suggest bearish momentum, and its high P/E ratio raises valuation concerns. These factors collectively result in a moderate overall score.
Positive Factors
Business Strategy
The company's steady, highly recurring business model and limited fundamental downside contribute to its favorable outlook.
Cost Management
Strong cost control measures led to meaningful upside to the model on adjusted EBITDA margin and adjusted EPS.
Mergers and Acquisitions
The strategic and financial benefits that derive from the Marcum acquisition are significant for the company.
Negative Factors
Earnings
CBIZ shares declined 20% following second-quarter earnings.
Economic Environment
Management lowered the bottom end of its 2025 revenue guidance, noting the uncertainty in the current economic and geopolitical environment has already begun to impact non-recurring service lines.
Revenue Expectations
The second straight quarter of reduced full-year expectations contributed to the decline.

CBIZ (CBZ) vs. SPDR S&P 500 ETF (SPY)

CBIZ Business Overview & Revenue Model

Company DescriptionCBIZ, Inc. (CBZ) is a leading provider of financial, insurance, and advisory services in the United States. The company operates in various sectors, including accounting, tax, payroll, employee benefits, and risk management. CBIZ serves a diverse clientele ranging from small businesses to large corporations, offering tailored solutions that help organizations improve their operational efficiency and financial performance.
How the Company Makes MoneyCBIZ generates revenue primarily through its service offerings, which include accounting services, tax preparation, employee benefits consulting, and risk management solutions. The company's revenue model is built on a fee-for-service basis, where clients pay for the specific services rendered. Key revenue streams include consulting fees from advisory services, commissions from insurance products, and recurring revenue from ongoing client relationships in payroll and employee benefits. Additionally, CBIZ has established strategic partnerships with various organizations to enhance its service offerings, which further contributes to its earnings through expanded market reach and client acquisition.

CBIZ Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong revenue and EBITDA growth driven by the Marcum acquisition and solid performance in the Benefits and Insurance segment. However, challenges such as reduced rate increases, declines in nonrecurring revenue, and higher interest and tax expenses balanced the positive aspects.
Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Second quarter revenue was $684 million, and first half revenue was $1.5 billion, reflecting increases of 63% and 66%, respectively. Adjusted EBITDA increased by 128% in the quarter and more than doubled to $356 million in the first half, with a margin increase of nearly 500 basis points year-over-year.
Successful Marcum Acquisition
The Marcum acquisition has been a critical strategic decision, enhancing the company's scale, resiliency, and service breadth. Marcum's integration is on schedule and has strengthened CBIZ's presence in key U.S. markets, providing significant cross-serving opportunities and margin improvements.
Benefits and Insurance Segment Performance
The Benefits and Insurance segment delivered revenue of $102 million in Q2, up nearly $5 million or 5% compared to last year. The segment's adjusted EBITDA was up 21% with margin improvements driven by nearly all service lines.
Negative Updates
Pressure on Rate Increases
Year-to-date rate increases averaged about 4%, which is 200 to 300 basis points below expectations, creating a projected $75 million headwind for the year. Increased client pushback on pricing aligns with survey data indicating clients are prioritizing cost controls.
Nonrecurring Revenue Decline
Revenue for nonrecurring project-based services, excluding SEC-related practice, is down low single digits year-over-year. This decline is attributed to clients delaying discretionary spending due to economic uncertainties.
Increased Interest and Tax Expenses
Second quarter interest expense was higher by $22 million compared to last year, and $43 million higher year-to-date due to higher outstanding debt from the acquisition. Tax expense also increased by $30 million due to higher pretax income.
Company Guidance
During the CBIZ Second Quarter 2025 Results Conference Call, the company provided several key metrics and guidance updates. Year-to-date, organic revenue for core services in the Benefits and Insurance segment, and core accounting and tax services grew by low single digits, while the National Practice segment saw a 13% increase. Adjusted EBITDA more than doubled compared to the previous year, underscoring the strength of the business model and the accretive impact of the Marcum acquisition. The company maintained its full-year revenue guidance, expecting it to be at the lower end of $2.8 billion to $2.95 billion, due to ongoing market uncertainties. Adjusted EBITDA margin increased by nearly 500 basis points year-over-year, reaching 17% for the quarter and 23% year-to-date. Despite facing headwinds with a 200 to 300 basis points decline in expected rate increases, CBIZ anticipates these challenges to be partially offset by revenue and cost control initiatives, supporting the achievement of their adjusted EBITDA and EPS guidance.

CBIZ Financial Statement Overview

Summary
CBIZ demonstrates strong financial health with solid revenue growth and efficient operational margins. The company has improved its leverage position while maintaining a strong balance sheet. Cash flows are positive, but the company should monitor cash outflows from investing activities. While there are some fluctuations in net income and free cash flow growth, CBIZ is positioned well within its industry.
Income Statement
82
Very Positive
CBIZ has shown a strong revenue growth trajectory with the TTM revenue increasing significantly from the previous annual period. The gross profit margin is healthy, and the net profit margin has improved over the periods, indicating efficient cost management. The EBIT and EBITDA margins are also robust, showing good operational efficiency. However, the net income fluctuates, which could be a potential risk.
Balance Sheet
75
Positive
The company's debt-to-equity ratio has improved in the TTM, indicating better leverage management. The return on equity is strong, reflecting efficient use of shareholder capital. The equity ratio indicates a healthy balance between equity and total assets. However, the high total liabilities could pose risks if not managed properly.
Cash Flow
78
Positive
CBIZ's operating cash flow is consistently positive and covers net income effectively. There is a positive free cash flow, which is crucial for future investments. However, the free cash flow growth rate shows some volatility, and investing activities have seen significant cash outflows, which might be a concern if it continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.42B1.81B1.59B1.41B1.10B963.90M
Gross Profit327.02M182.47M225.10M223.37M159.29M138.55M
EBITDA312.99M144.76M226.99M211.14M122.83M115.62M
Net Income109.08M41.04M120.97M105.35M70.89M78.30M
Balance Sheet
Total Assets4.54B4.47B2.04B1.88B1.63B1.51B
Cash, Cash Equivalents and Short-Term Investments39.82M13.83M8.09M4.70M2.00M4.65M
Total Debt1.96B1.83B551.01M474.47M331.25M279.69M
Total Liabilities2.65B2.69B1.25B1.17B923.39M811.13M
Stockholders Equity1.89B1.78B791.62M713.45M704.55M595.30M
Cash Flow
Free Cash Flow105.07M110.78M130.46M117.49M122.17M135.27M
Operating Cash Flow124.13M123.69M153.51M126.13M131.15M146.84M
Investing Cash Flow-1.11B-1.13B-79.39M-99.12M-82.01M-46.41M
Financing Cash Flow1.01B1.04B-77.11M-17.34M-69.00M-76.61M

CBIZ Technical Analysis

Technical Analysis Sentiment
Negative
Last Price59.86
Price Trends
50DMA
68.26
Negative
100DMA
70.15
Negative
200DMA
75.02
Negative
Market Momentum
MACD
-1.73
Positive
RSI
33.50
Neutral
STOCH
10.07
Positive
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 59.86 is below the 20-day moving average (MA) of 63.44, below the 50-day MA of 68.26, and below the 200-day MA of 75.02, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 33.50 is Neutral, neither overbought nor oversold. The STOCH value of 10.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBZ.

CBIZ Risk Analysis

CBIZ disclosed 43 risk factors in its most recent earnings report. CBIZ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CBIZ Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$4.99B16.3217.61%1.36%3.40%13.75%
76
Outperform
$3.19B21.537.15%0.79%4.18%18.93%
70
Outperform
$2.99B38.516.32%2.11%4.27%-24.06%
65
Neutral
$3.24B34.597.84%46.49%-25.62%
64
Neutral
$10.73B15.747.56%2.01%2.76%-15.10%
58
Neutral
$57.42M13.15
52
Neutral
$2.78B549.40-13.57%65.34%-633.72%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CBZ
CBIZ
59.86
-8.86
-12.89%
ABM
ABM Industries
48.26
-1.99
-3.96%
MMS
Maximus
88.25
2.46
2.87%
UNF
UniFirst
177.77
-3.07
-1.70%
FA
First Advantage
16.06
-2.88
-15.21%
YSXT
YSX Tech Co., Ltd Class A
2.36
-1.67
-41.44%

CBIZ Corporate Events

Executive/Board ChangesShareholder Meetings
CBIZ Holds Annual Stockholders Meeting, Key Decisions Made
Neutral
May 16, 2025

On May 15, 2025, CBIZ, Inc. held its annual stockholders meeting where key decisions were made, including the election of directors and the ratification of KPMG LLP as the independent accounting firm for the year ending December 31, 2025. Additionally, stockholders approved the compensation of the company’s Named Executive Officers, reflecting continued support for the current leadership and strategic direction.

The most recent analyst rating on (CBZ) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on CBIZ stock, see the CBZ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025