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Why CBIZ INC (NYSE:CBZ) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Dec 5, 2024

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.


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Key Considerations for Quality Investors.

  • CBIZ INC has achieved substantial revenue growth over the past 5 years, with a 11.53% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • CBIZ INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 18.51% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 2.24, CBIZ INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • The Profit Quality (5-year) of CBIZ INC stands at 137.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
  • With a robust 5-year EBIT growth of 12.74%, CBIZ INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • CBIZ INC has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

What is the full fundamental picture of NYSE:CBZ telling us.

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Taking everything into account, CBZ scores 5 out of 10 in our fundamental rating. CBZ was compared to 80 industry peers in the Professional Services industry. CBZ has an average financial health and profitability rating. CBZ is valued quite expensively, but it does show have an excellent growth rating. These ratings could make CBZ a good candidate for growth investing.

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

This article should in no way be interpreted as advice. 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.

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