News Image

Why the quality investor may take a look at NYSE:CBZ.

By Mill Chart

Last update: Sep 15, 2023

In this article we will dive into CBIZ INC (NYSE:CBZ) as a possible candidate for quality investing. Investors should always do their own research, but we noticed CBIZ INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NYSE:CBZ highlighted

  • Over the past 5 years, CBIZ INC has experienced impressive revenue growth, with 10.55% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 21.65%, CBIZ INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • CBIZ INC maintains a healthy Debt/Free Cash Flow Ratio of 3.71, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
  • With a favorable Profit Quality (5-year) ratio of 145.0%, CBIZ INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • CBIZ INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 21.7%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • CBIZ INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CBZ scores 5 out of 10 in our fundamental rating. CBZ was compared to 77 industry peers in the Professional Services industry. While CBZ has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, CBZ is valued expensive at the moment.

Our latest full fundamental report of CBZ contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

Back