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CBIZ
(NYSE:CBZ)
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Rating:72Outperform
Price Target:
$61.00
▲(43.09% Upside)
Action:Reiterated
Date:07/30/26
CBZ scores 72 primarily due to solid underlying financial performance (strong cash generation but tempered by leverage and a recent TTM revenue dip) and strong technical trend (price materially above key moving averages). The earnings call adds support via reaffirmed guidance and raised adjusted EPS, while valuation is reasonable on P/E but lacks dividend support. Corporate events are a net mixed influence, with the takeout providing upside clarity but internal-control weaknesses weighing on risk perception.
Positive Factors
Free Cash Flow Generation
Consistent, high free cash flow (FCF ≈$286M; FCF/net income ~0.94) provides durable funding for buybacks, debt reduction, and reinvestment. Strong cash conversion supports strategic flexibility and resilience through business cycles over the next 2–6 months.
Negative Factors
Elevated Leverage
Higher leverage (net ≈3.4x) limits financial flexibility for M&A, investment, and protection against macro stress. Deleveraging targets extend into 2027, meaning interest and covenant sensitivity remain elevated and could constrain strategic options in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent, high free cash flow (FCF ≈$286M; FCF/net income ~0.94) provides durable funding for buybacks, debt reduction, and reinvestment. Strong cash conversion supports strategic flexibility and resilience through business cycles over the next 2–6 months.
Read all positive factors
CBIZ (CBZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.95B
Dividend YieldN/A
Average Volume (3M)641.89K
Price to Earnings (P/E)25.1
Beta (1Y)1.06
Revenue Growth14.32%
EPS Growth22.34%
CountryUS
Employees9,500
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.19
Shares Outstanding53,648,730
10 Day Avg. Volume591,514
30 Day Avg. Volume641,893
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.81
Price to Sales (P/S)1.16
P/FCF Ratio18.18
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$50.00Price Target Upside17.29% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)4.07
Revenue Forecast (FY)$2.84B
CBIZ Business Overview & Revenue Model
Company Description
CBIZ, Inc. is a professional services firm that delivers a broad spectrum of financial, insurance, and advisory solutions across the United States and Canada. The company's operations are organized into three principal divisions: Financial Service...
How the Company Makes Money
CBIZ primarily makes money by charging fees for professional services and outsourced solutions delivered through its operating practices. Its revenue model is largely fee-for-service, including (1) recurring and project-based fees for accounting, ...
CBIZ Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call communicated a predominantly constructive operational and financial picture: revenue, EPS and adjusted EBITDA improved year-over-year, the company reaffirmed full-year revenue, adjusted EBITDA and free cash flow targets while raising its adjusted EPS outlook, and management highlighted strategic progress on AI, offshoring and integration with tangible efficiency targets (e.g., 20%→40% AI efficiency potential). Key near-term challenges include a 4% decline in Benefits & Insurance revenue driven by a producer departure and contingent commission declines, temporary integration-related client exits that reduced organic growth by ~200 basis points in Q1, and a portion of the free cash flow improvement tied to a one-time purchase price adjustment. Management emphasized improving pipeline, mid-single-digit pricing, active share repurchases and a path to deleverage, supporting a favorable bias despite a few transitory headwinds.Positive Updates
Consolidated Revenue and Organic Growth
Consolidated revenue increased 1.3% year-over-year to $849 million in Q1 FY2026, with reported organic revenue growth of 1%. Management reiterated full-year revenue guidance of $2.8B–$2.9B, implying 2%–5% year-over-year growth.
Negative Updates
Benefits & Insurance Revenue Decline and Producer Exit
Benefits & Insurance revenue was $108 million in Q1, down 4% year-over-year. Declines were driven by tough comps on project-related work, contingent commission declines from 2025 client attrition, and an unexpected departure of a single producer and his team in February (isolated event). Management said recurring B&I revenue, normalized for the producer departure, was up ~4%.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Organic Growth
Consolidated revenue increased 1.3% year-over-year to $849 million in Q1 FY2026, with reported organic revenue growth of 1%. Management reiterated full-year revenue guidance of $2.8B–$2.9B, implying 2%–5% year-over-year growth.
Read all positive updates
Company Guidance
CBIZ reaffirmed 2026 targets while raising its adjusted EPS view: revenue $2.8–$2.9B (2%–5% YoY), adjusted EBITDA $465–$475M, adjusted EPS $4.00–$4.10 (assumes ~60.5M weighted average diluted shares), and free cash flow $270–$290M (≈60% conversion at midpoint). In Q1 the company reported $849M revenue (+1.3% YoY; organic +1%), adjusted EBITDA $244M (+$3M YoY; margin +10 bps), adjusted diluted EPS $2.50 (+7% YoY), free cash flow improvement of $64M (including $53M purchase-price adjustment), net leverage ~3.4x (vs ~3.9x a year ago), ~2M shares repurchased YTD (~$63M through April), and targets to lift offshore hours from ~6% (2025) to 10% (2026) and >20% over time; management expects to exit 2026 at mid-single-digit organic growth and to reach <2.5x leverage in 2027.CBIZ Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.77B | 2.76B | 1.81B | 1.59B | 1.41B | 1.10B |
| Gross Profit | 337.84M | 355.39M | 182.47M | 223.20M | 223.37M | 159.29M |
| EBITDA | 472.40M | 366.32M | 140.25M | 222.70M | 182.41M | 123.96M |
| Net Income | 122.12M | 115.44M | 41.04M | 120.97M | 105.35M | 70.89M |
Balance Sheet | ||||||
| Total Assets | 4.57B | 4.41B | 4.47B | 2.04B | 1.93B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 20.90M | 18.29M | 13.83M | 8.09M | 33.18M | 32.38M |
| Total Debt | 1.47B | 1.83B | 1.83B | 551.01M | 474.47M | 331.25M |
| Total Liabilities | 2.71B | 2.65B | 2.69B | 1.25B | 1.21B | 968.17M |
| Stockholders Equity | 1.87B | 1.76B | 1.78B | 791.62M | 713.45M | 704.55M |
Cash Flow | ||||||
| Free Cash Flow | 286.00M | 175.53M | 110.78M | 130.46M | 117.49M | 122.17M |
| Operating Cash Flow | 289.83M | 192.49M | 123.69M | 153.51M | 126.13M | 131.15M |
| Investing Cash Flow | -25.01M | -15.85M | -1.13B | -79.39M | -99.12M | -82.01M |
| Financing Cash Flow | -270.78M | -145.71M | 1.04B | -77.11M | -17.34M | -69.00M |
CBIZ Technical Analysis
Positive
42.63
Price Trends
37.16
Positive
33.01
Positive
39.35
Positive
Market Momentum
5.01
Negative
84.21
Negative
97.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBZ, the sentiment is Positive. The current price of 42.63 is below the 20-day moving average (MA) of 43.65, above the 50-day MA of 37.16, and above the 200-day MA of 39.35, indicating a bullish trend. The MACD of 5.01 indicates Negative momentum. The RSI at 84.21 is Negative, neither overbought nor oversold. The STOCH value of 97.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.95B | 25.15 | 6.60% | ― | 14.32% | 22.34% | |
72 Outperform | $3.17B | 8.95 | 21.75% | 2.11% | -1.44% | 33.09% | |
70 Outperform | $1.35B | 123.16 | 6.38% | ― | 12.87% | -63.11% | |
68 Neutral | $3.40B | 403.25 | 0.66% | ― | 53.53% | ― | |
67 Neutral | $2.81B | 18.36 | 8.94% | 2.38% | 6.53% | 107.41% | |
67 Neutral | $5.09B | 44.26 | 5.32% | 0.49% | 1.41% | -22.01% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
CBZ
CBIZ
55.07
-7.61
-12.14%
ABM
ABM Industries
48.74
2.99
6.54%
MMS
Maximus
62.21
-12.54
-16.78%
UNF
UniFirst
291.44
120.73
70.72%
FA
First Advantage
20.39
4.34
27.04%
LZ
LegalZoom
8.25
-0.05
-0.60%
CBIZ Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
CBIZ Announces ESPP Rescission Offer, Control Remediation Plans
Negative
Jul 29, 2026
CBIZ, Inc. disclosed that between October 16, 2023 and April 15, 2026 it inadvertently purchased and delivered up to 481,049 shares under its employee stock purchase plan in excess of authorized and registered amounts. On July 28, 2026, its board ...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
CBIZ to be acquired by Grant Thornton Advisors
Positive
Jul 29, 2026
On July 28, 2026, CBIZ entered into a merger agreement under which Grant Thornton Advisors will acquire the company in an all-cash deal valuing CBIZ at $5 billion, with shareholders receiving $55 per share, a roughly 54% premium to the 30‑da...
Executive/Board ChangesShareholder Meetings
CBIZ Shareholders Back Directors, Auditor and Executive Pay
Positive
May 15, 2026
At its annual meeting of stockholders held on May 14, 2026, CBIZ, Inc. shareholders elected Richard T. Marabito and Rodney A. Young to the board of directors, with both nominees receiving strong majority support despite a modest level of oppositio...
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.