CBIZ (CBZ) AI Stock Analysis

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CBIZ

(NYSE:CBZ)

73Outperform

CBIZ's overall stock score reflects strong financial performance and promising earnings call highlights, such as successful acquisition integration and maintained guidance. However, technical analysis shows a bearish trend, and a high P/E ratio suggests overvaluation. Addressing leverage and enhancing profitability could improve future performance.

Positive Factors

Earnings

The strategic and financial benefits from the Marcum acquisition are highlighted as significant earnings opportunities.

Financial Performance

Adjusted EBITDA margin of 28.4% and adjusted EPS of $2.29 comfortably outperformed estimates of 26.1% and $2.13, respectively.

Negative Factors

Revenue Guidance

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

Revenue Performance

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

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

Market Cap

$3.60B

Dividend YieldN/A

Average Volume (3M)486.31K

Price to Earnings (P/E)45.1

Beta (1Y)0.76

Revenue Growth32.27%

EPS Growth-40.50%

CountryUS

Employees10,000

SectorIndustrials

Sector Strength75

IndustrySpecialty Business Services

Share Statistics

EPS (TTM)1.47

Shares Outstanding54,395,610

10 Day Avg. Volume615,005

30 Day Avg. Volume486,315

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.88

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit37.08

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$102.00

Price Target Upside51.74% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

CBIZ Business Overview & Revenue Model

Company DescriptionCBIZ, 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 MoneyCBIZ 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 showcases a strong financial performance, characterized by robust revenue growth, improving profit margins, and a solid balance sheet. The company has effectively managed its debt levels while maintaining positive cash flow, supporting its operations and growth initiatives. Continued focus on enhancing net profit margins and further reducing leverage could bolster financial stability and shareholder returns.

Income Statement

Very Positive

The company demonstrates strong revenue growth with a notable increase from $963.9M in 2020 to $2.16B in TTM 2025, reflecting a robust growth trajectory. Gross profit margin has shown an improvement over the years, indicating effective cost management. The TTM EBIT margin stands at a healthy 8.11%, and the EBITDA margin is impressive at 10.20%, suggesting operational efficiency. Net profit margin in TTM is at 4.03%, showing a consistent upward trend. However, the company needs to continue improving its net profit margins to enhance overall profitability.

Balance Sheet

Positive

The balance sheet reflects a solid equity base, with stockholders' equity increasing from $595M in 2020 to $1.91B in TTM 2025. The debt-to-equity ratio has improved, signifying better leverage management, although it remains at a moderate level. The return on equity is moderate, reflecting steady but not exceptional profitability. The equity ratio has improved, indicating a stronger capital structure. While the company shows stability, focus on further reducing debt could enhance financial resilience.

Cash Flow

Very Positive

Operating cash flow remains strong, with a TTM figure of $99.1M, supporting the company's operational needs. Free cash flow has been positive, reflecting efficient cash management. The free cash flow to net income ratio is favorable, suggesting good cash conversion efficiency. The operating cash flow to net income ratio is healthy, although it has seen some fluctuations. Despite strong cash flow generation, the company should aim to maintain consistent free cash flow growth to support future investments.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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 Price67.22

Price Trends

50DMA

75.10

Negative

100DMA

79.17

Negative

200DMA

75.73

Negative

Market Momentum

MACD

-1.86

Positive

RSI

36.29

Neutral

STOCH

10.83

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 67.22 is below the 20-day moving average (MA) of 73.89, below the 50-day MA of 75.10, and below the 200-day MA of 75.73, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 36.29 is Neutral, neither overbought nor oversold. The STOCH value of 10.83 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 28 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNF	79 Outperform	$3.18B	22.18	7.17%	0.77%	5.04%	31.69%
MMS	74 Outperform	$3.82B	14.55	16.88%	1.77%	8.01%	53.64%
ABM	74 Outperform	$2.92B	37.03	4.46%	1.95%	2.81%	-67.57%
CBZ	73 Outperform	$3.60B	45.06	6.25%	―	32.27%	-40.50%
Sector *	63 Neutral	$4.29B	11.36	5.34%	214.53%	4.14%	-9.10%
FA	60 Neutral	$2.45B	549.40	-9.96%	―	12.63%	-364.02%

* Industrials Sector Average

Performance Comparison

CBZ

CBIZ

67.22

-3.96

-5.56%

ABM

ABM Industries

48.75

5.89

13.74%

MMS

Maximus

67.39

-11.69

-14.78%

UNF

UniFirst

179.90

20.94

13.17%

First Advantage

14.32

-1.98

-12.15%

YSXT

YSX Tech Co., Ltd Class A

4.65

0.62

15.38%

CBIZ Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -12.97%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

CBIZ delivered strong earnings and integration progress amidst a challenging economic environment, but faced revenue impacts from client conflicts, advisory services challenges, and increased expenses.

Q1-2025 Updates

Positive Updates

Strong First Quarter Performance

CBIZ reported a 70% increase in consolidated revenue, from $383 million to $494 million, primarily due to the Marcum acquisition. Adjusted EBITDA doubled from $119 million to $238 million.

Benefits and Insurance Segment Growth

The Benefits and Insurance segment delivered revenue of $113 million, up 4%, with adjusted EBITDA rising by 10% to $30 million. The segment also saw a 150 basis point increase in adjusted EBITDA margin.

Government Healthcare Consulting Success

The government healthcare consulting business posted strong revenue growth in Q1, contributing to a robust pipeline of new projects.

Integration Progress

Integration of Marcum is on schedule, with high retention and strong engagement reported. CBIZ is experiencing outstanding collaboration among teams.

Negative Updates

Revenue Impact from Client Conflicts

The anticipated loss of clients due to conflicts, particularly in the healthcare practice, affected revenue.

Capital Markets and Advisory Services Challenges

The economic and geopolitical environment impacted the capital markets and not-for-profit industries, leading to a slowdown in advisory services, which are more project-based.

Pacing and Timing of Revenue

Revenue was affected by the winding down of SPAC business, client conflicts, and the prior year's KA consulting business sale.

Higher Interest and Tax Expenses

Interest expense increased by $21 million due to acquisition funding, and the effective tax rate rose by 300 basis points, impacting EPS.

Company Guidance

During the CBIZ First Quarter 2025 Results Conference Call, the company provided guidance for the fiscal year, highlighting a revenue range of $2.8 billion to $2.95 billion. This adjustment reflects anticipated challenges in non-recurring service lines amid economic uncertainty, which represent approximately 23% of the company's revenue. Despite these challenges, CBIZ maintained its guidance for adjusted EBITDA and adjusted EPS, leveraging its strong cash flows, high client retention rates, and variable expenses to protect profitability. The company also reported a 70% increase in first-quarter revenue, driven by the Marcum acquisition, with adjusted EBITDA doubling to $238 million. The call emphasized the ongoing successful integration of Marcum, which is expected to yield $25 million in synergies primarily in the second year and beyond, while also outlining capital allocation priorities, including debt reduction and potential share repurchases.

CBIZ Corporate Events

Executive/Board ChangesM&A Transactions

CBIZ Adjusts Executive Compensation Post-Marcum Acquisition

Neutral

Feb 19, 2025

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.