Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if CBIZ INC (NYSE:CBZ) is suited for quality investing. Investors should of couse do their own research, but we spotted CBIZ INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Looking into the quality metrics of CBIZ INC
CBIZ INC has shown strong performance in revenue growth over the past 5 years, with a 10.55% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
CBIZ INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 21.65% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
With a Debt/Free Cash Flow Ratio of 3.71, CBIZ INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
With a robust Profit Quality (5-year) ratio of 145.0%, CBIZ INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
The 5-year EBIT growth of CBIZ INC has been remarkable, with 21.7% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
The EBIT 5-year growth of CBIZ INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
What is the full fundamental picture of NYSE:CBZ telling us.
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
We assign a fundamental rating of 5 out of 10 to CBZ. CBZ was compared to 77 industry peers in the Professional Services industry. While CBZ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CBZ is quite expensive at the moment. It does show a decent growth rate.
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.