CBIZ INC (CBZ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CBZ - US1248051021 - Common Stock
39.88 USD
-1.05 (-2.57%)
CBZ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. There are concerns on the financial health of CBZ while its profitability can be described as average. CBZ is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- CBZ had positive earnings in the past year.
- In the past year CBZ had a positive cash flow from operations.
- CBZ had positive earnings in each of the past 5 years.
- Each year in the past 5 years CBZ had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of CBZ (2.29%) is comparable to the rest of the industry.
- CBZ's Return On Equity of 5.56% is in line compared to the rest of the industry. CBZ outperforms 48.28% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 4.91%, CBZ is in line with its industry, outperforming 48.28% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for CBZ is significantly below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.29% | ||
| ROE | 5.56% | ||
| ROIC | 4.91% |
ROA(3y)4.15%
ROA(5y)4.39%
ROE(3y)10.79%
ROE(5y)10.71%
ROIC(3y)6.53%
ROIC(5y)6.32%
1.3 Margins
- CBZ has a Profit Margin of 3.89%. This is comparable to the rest of the industry: CBZ outperforms 56.32% of its industry peers.
- CBZ's Profit Margin has declined in the last couple of years.
- The Operating Margin of CBZ (9.96%) is better than 70.11% of its industry peers.
- CBZ's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 13.02%, CBZ is not doing good in the industry: 79.31% of the companies in the same industry are doing better.
- In the last couple of years the Gross Margin of CBZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.96% | ||
| PM (TTM) | 3.89% | ||
| GM | 13.02% |
OM growth 3Y-10.26%
OM growth 5Y-4.48%
PM growth 3Y-29.35%
PM growth 5Y-21.21%
GM growth 3Y-10.5%
GM growth 5Y-4.73%
2. Health
2.1 Basic Checks
- CBZ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CBZ has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CBZ has less shares outstanding
- CBZ has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.71, we must say that CBZ is in the distress zone and has some risk of bankruptcy.
- CBZ's Altman-Z score of 1.71 is on the low side compared to the rest of the industry. CBZ is outperformed by 64.37% of its industry peers.
- The Debt to FCF ratio of CBZ is 18.23, which is on the high side as it means it would take CBZ, 18.23 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CBZ (18.23) is comparable to the rest of the industry.
- CBZ has a Debt/Equity ratio of 0.80. This is a neutral value indicating CBZ is somewhat dependend on debt financing.
- CBZ has a Debt to Equity ratio of 0.80. This is comparable to the rest of the industry: CBZ outperforms 40.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 18.23 | ||
| Altman-Z | 1.71 |
ROIC/WACC0.7
WACC6.99%
2.3 Liquidity
- A Current Ratio of 1.57 indicates that CBZ should not have too much problems paying its short term obligations.
- CBZ has a Current ratio of 1.57. This is comparable to the rest of the industry: CBZ outperforms 55.17% of its industry peers.
- A Quick Ratio of 1.57 indicates that CBZ should not have too much problems paying its short term obligations.
- CBZ's Quick ratio of 1.57 is in line compared to the rest of the industry. CBZ outperforms 56.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.57 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 54.58% over the past year.
- Measured over the past years, CBZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.11% on average per year.
- The Revenue has grown by 59.19% in the past year. This is a very strong growth!
- Measured over the past years, CBZ shows a quite strong growth in Revenue. The Revenue has been growing by 13.84% on average per year.
EPS 1Y (TTM)54.58%
EPS 3Y17.79%
EPS 5Y16.11%
EPS Q2Q%20.24%
Revenue 1Y (TTM)59.19%
Revenue growth 3Y17.96%
Revenue growth 5Y13.84%
Sales Q2Q%58.09%
3.2 Future
- Based on estimates for the next years, CBZ will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.81% on average per year.
- The Revenue is expected to grow by 20.45% on average over the next years. This is a very strong growth
EPS Next Y36.17%
EPS Next 2Y21.93%
EPS Next 3Y18.81%
EPS Next 5YN/A
Revenue Next Year58.86%
Revenue Next 2Y29.08%
Revenue Next 3Y20.45%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- CBZ is valuated reasonably with a Price/Earnings ratio of 9.85.
- Compared to the rest of the industry, the Price/Earnings ratio of CBZ indicates a rather cheap valuation: CBZ is cheaper than 85.06% of the companies listed in the same industry.
- CBZ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of CBZ.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CBZ indicates a rather cheap valuation: CBZ is cheaper than 86.21% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of CBZ to the average of the S&P500 Index (25.98), we can say CBZ is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.85 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CBZ indicates a rather cheap valuation: CBZ is cheaper than 80.46% of the companies listed in the same industry.
- CBZ's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CBZ is cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.21 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
- CBZ's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as CBZ's earnings are expected to grow with 18.81% in the coming years.
PEG (NY)0.27
PEG (5Y)0.61
EPS Next 2Y21.93%
EPS Next 3Y18.81%
5. Dividend
5.1 Amount
- CBZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CBIZ INC / CBZ FAQ
Can you provide the ChartMill fundamental rating for CBIZ INC?
ChartMill assigns a fundamental rating of 5 / 10 to CBZ.
What is the valuation status of CBIZ INC (CBZ) stock?
ChartMill assigns a valuation rating of 8 / 10 to CBIZ INC (CBZ). This can be considered as Undervalued.
What is the profitability of CBZ stock?
CBIZ INC (CBZ) has a profitability rating of 4 / 10.
What are the PE and PB ratios of CBIZ INC (CBZ) stock?
The Price/Earnings (PE) ratio for CBIZ INC (CBZ) is 9.85 and the Price/Book (PB) ratio is 1.16.
What is the expected EPS growth for CBIZ INC (CBZ) stock?
The Earnings per Share (EPS) of CBIZ INC (CBZ) is expected to grow by 36.17% in the next year.