One-glance verdict
Within fair range
$41.66 our estimate vs market $34.27
Wall Street consensus: $41.80 (0.3% higher than our fair-value estimate)
18% below our estimate
Fundamentals snapshot
CBIZ, Inc.
CBZ · NYQ · Industrials · Specialty Business Services
Current price
$34.27
52-week range
$24.29 - $77.91
Market cap
$1.84B
Balance sheet
Stretched
2.18x Stretched
Net debt $1.96B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 52.1% last year.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 13.4x P/E vs peer median 17.8x (24.4% cheaper).
- Risk Net debt grew 285.3% over 3 years.
What this company does
CBIZ, Inc.
CBIZ acts like a professional services department for other companies, offering everything from accounting and tax help to employee benefits and insurance. It makes most of its money from small and medium-sized businesses that rely on it for these essential, year-round needs. This is important because its clients often need these services continuously, which can create a steady stream of predictable income for CBIZ.
How the company got here
Founded in 1987 as Century Business Services, the company's initial goal was to offer a wide range of business services. It became a publicly traded company in the mid-1990s and grew significantly by acquiring many other companies. A key part of its history is the use of a special business setup where it partners with independent certified public accountant (CPA) firms for certain accounting services. This structure allows CBIZ to offer a broad suite of services while following professional accounting regulations. The company officially changed its name to CBIZ, Inc. in 2005.
What it actually does
CBIZ provides a variety of professional services to small and medium-sized businesses, as well as individuals and non-profit organizations. Think of them as a one-stop shop for a company's financial and operational needs. Their services include things like accounting and tax preparation, helping companies manage their employee benefits and insurance, and offering advice on financial matters. Essentially, CBIZ helps other businesses manage their money and people so they can focus on their own growth.
Financial Services
This is the largest part of CBIZ's business and serves as the foundation for many client relationships. This segment helps businesses with their core financial needs, such as preparing tax returns and financial statements, which is known as accounting. They also provide financial advisory services, which is giving expert advice to help companies make smart financial decisions, like during a merger (when two companies join together) or an acquisition (when one company buys another). This segment generates dependable revenue because services like tax preparation are needed year after year.
Benefits and Insurance Services
This division focuses on helping businesses manage their employee-related programs. They act as a broker (an intermediary who finds the best deals) for things like group health insurance and property and casualty insurance (insurance that protects a business's physical assets). They also offer consulting on employee benefits, helping companies design attractive packages to attract and keep good employees. Additionally, this segment provides payroll services and helps manage retirement plans for employees.
National Practices
This segment offers more specialized services that are often tailored to specific industries or needs. A key offering is information technology (IT) services, where they help businesses manage their computer networks and hardware. This part of the company provides expert advice and solutions that might not be available at a local office, catering to clients with more complex challenges.
What management is betting on now
CBIZ is focused on growing by acquiring other companies, a strategy that has been central to its expansion. A major recent move was the acquisition of Marcum, a large accounting firm, which significantly increased CBIZ's size and capabilities. The company is also prioritizing cross-selling, which means encouraging existing clients who use one service (like tax preparation) to also buy other services they offer (like insurance or IT support). Additionally, they are investing in technology and artificial intelligence to improve their own efficiency and the quality of their services.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q1
$-68.84M
FY2024 Q2
$86.31M
FY2024 Q3
$41.05M
FY2024 Q4
$52.26M
FY2025 Q1
$-93.44M
FY2025 Q2
$105.20M
FY2025 Q3
$22.06M
FY2025 Q4
$141.72M
Revenue
$542.66M
Net income
$-79.42M
Diluted EPS
-1.22
Operating cash flow
$143.64M
Free cash flow
$141.72M
Fetching…
Sources
Revenue
$693.82M
Net income
$30.15M
Diluted EPS
0.48
Operating cash flow
$23.97M
Free cash flow
$22.06M
Fetching…
Sources
Revenue
$683.50M
Net income
$41.94M
Diluted EPS
0.66
Operating cash flow
$113.15M
Free cash flow
$105.20M
Fetching…
Sources
Revenue
$838.01M
Net income
$122.77M
Diluted EPS
1.91
Operating cash flow
$-88.27M
Free cash flow
$-93.44M
Fetching…
Sources
Revenue
$460.28M
Net income
$-90.72M
Diluted EPS
-1.84
Operating cash flow
$55.52M
Free cash flow
$52.26M
Fetching…
Sources
Revenue
$438.88M
Net income
$35.08M
Diluted EPS
0.70
Operating cash flow
$43.73M
Free cash flow
$41.05M
Fetching…
Sources
Revenue
$420.01M
Net income
$19.79M
Diluted EPS
0.39
Operating cash flow
$88.16M
Free cash flow
$86.31M
Fetching…
Sources
Revenue
$494.30M
Net income
$76.88M
Diluted EPS
1.53
Operating cash flow
$-63.72M
Free cash flow
$-68.84M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.66 vs current price $34.27
Wall Street consensus is the average analyst price target: $41.80 (0.3% higher than our fair-value estimate).
Our most-likely fair value is $41.66 a share — about 21.6% away from today's price of $34.27, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $2.0B. Interest coverage 2.2x.
Net debt
$1.96B
Interest coverage
2.18x
CBIZ, Inc.'s profit covers its interest bill about 2.2 times over. which is weaker than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
CBZ
BASELINE
CBIZ, Inc.
Total debt $1.99B Interest coverage 2.18x This is the baseline the peer rows are being compared against.
Total debt $889.76M Interest coverage 5.49x +151% vs CBZ Carries about 2.5x more debt cushion than CBZ.
Total debt $603.72M Interest coverage 4.72x +116% vs CBZ Carries about 2.2x more debt cushion than CBZ.
Total debt $280.13M Interest coverage 15.51x +611% vs CBZ Carries about 7.1x more debt cushion than CBZ.
Total debt $81.04M Interest coverage 12.87x +490% vs CBZ Carries about 5.9x more debt cushion than CBZ.
Total debt $1.01B Interest coverage 19.37x +787% vs CBZ Carries about 8.9x more debt cushion than CBZ.
What you should know
The case for and against CBZ
3 Rewards
1 Risk
Rewards
-
Revenue grew 52.1% last year.
-
Free cash flow was positive in 10/10 years.
-
Trades at 13.4x P/E vs peer median 17.8x (24.4% cheaper).
Risks
-
Net debt grew 285.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.44x
Forward P/E
7.63x
P/B
0.95x
P/S
0.66x
EV/EBITDA
8.84x
PEG ratio
0.79x
Profitability
How much profit each dollar creates
Gross margin
15.5%
Operating margin
25.6%
Net margin
5.6%
ROE
8.1%
ROA
4.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.05x
Current ratio
1.63x
Quick ratio
1.22x
Total debt
$1.99B
Total cash
$29.24M
Growth
How the business has been compounding
Revenue TTM
$2.76B
Revenue 5Y CAGR
25.7%
EPS TTM
2.55
EPS 5Y CAGR
-3.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$192.49M
Free CF TTM
$175.53M
FCF margin
6.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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