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CBIZ
(NYSE:CBZ)
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Rating:69Neutral
Price Target:
$60.00
▲(9.59% Upside)
Action:Downgraded
Date:10/23/26
CBZ scores well primarily due to improving financial performance and strong cash generation, supported by a constructive earnings outlook with raised adjusted EPS guidance and ongoing efficiency initiatives. Technicals are positive with the stock above key moving averages, though momentum is somewhat stretched. The score is held back by meaningful leverage, moderate valuation support (P/E ~21.9 with no dividend yield provided), and mixed corporate events including internal-control/ESPP issues and one-time charges despite the positive acquisition agreement.
Positive Factors
Strong cash generation
Robust operating and free cash flow gives CBIZ internal funding for reinvestment, acquisitions, debt reduction, and shareholder returns. Strong conversion relative to net income supports financial resilience, although maintaining this performance remains important given the company’s debt burden.
Negative Factors
Meaningful leverage
Although leverage has improved, debt remains material relative to equity and net leverage is still above management’s less-than-2.5x target. This limits financial flexibility, makes sustained cash generation important, and can constrain acquisitions or investment if operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow gives CBIZ internal funding for reinvestment, acquisitions, debt reduction, and shareholder returns. Strong conversion relative to net income supports financial resilience, although maintaining this performance remains important given the company’s debt burden.
Read all positive factors
CBIZ (CBZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.02B
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)22.0
Beta (1Y)0.96
Revenue Growth3.74%
EPS Growth59.69%
CountryUS
Employees9,500
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)2.50
Shares Outstanding54,940,483
10 Day Avg. Volume1,834,977
30 Day Avg. Volume1,238,357
Financial Highlights & Ratios
PEG Ratio0.20
Price to Book (P/B)1.81
Price to Sales (P/S)1.16
P/FCF Ratio18.18
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit12.98
Enterprise Value/Ebitda13.45
Forecast
1Y Price Target
$55.00Price Target Upside0.46% Upside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)4.17
Revenue Forecast (FY)$2.83B
CBIZ Business Overview & Revenue Model
Company Description
CBIZ, Inc. is a professional services firm that delivers a broad spectrum of financial, insurance, and advisory solutions across the United States and Canada. The company's operations are organized into three principal divisions: Financial Service...
How the Company Makes Money
CBIZ makes money primarily by charging fees for professional services and commissions/fees related to insurance and employee benefits solutions. (1) Fees for advisory, accounting, and tax services: Through its Financial Services segment, CBIZ earn...
CBIZ Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 18, 2027
Earnings Call Sentiment Positive
The call communicated a predominantly constructive operational and financial picture: revenue, EPS and adjusted EBITDA improved year-over-year, the company reaffirmed full-year revenue, adjusted EBITDA and free cash flow targets while raising its adjusted EPS outlook, and management highlighted strategic progress on AI, offshoring and integration with tangible efficiency targets (e.g., 20%→40% AI efficiency potential). Key near-term challenges include a 4% decline in Benefits & Insurance revenue driven by a producer departure and contingent commission declines, temporary integration-related client exits that reduced organic growth by ~200 basis points in Q1, and a portion of the free cash flow improvement tied to a one-time purchase price adjustment. Management emphasized improving pipeline, mid-single-digit pricing, active share repurchases and a path to deleverage, supporting a favorable bias despite a few transitory headwinds.Positive Updates
Consolidated Revenue and Organic Growth
Consolidated revenue increased 1.3% year-over-year to $849 million in Q1 FY2026, with reported organic revenue growth of 1%. Management reiterated full-year revenue guidance of $2.8B–$2.9B, implying 2%–5% year-over-year growth.
Negative Updates
Benefits & Insurance Revenue Decline and Producer Exit
Benefits & Insurance revenue was $108 million in Q1, down 4% year-over-year. Declines were driven by tough comps on project-related work, contingent commission declines from 2025 client attrition, and an unexpected departure of a single producer and his team in February (isolated event). Management said recurring B&I revenue, normalized for the producer departure, was up ~4%.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated Revenue and Organic Growth
Consolidated revenue increased 1.3% year-over-year to $849 million in Q1 FY2026, with reported organic revenue growth of 1%. Management reiterated full-year revenue guidance of $2.8B–$2.9B, implying 2%–5% year-over-year growth.
Read all positive updates
Company Guidance
CBIZ reaffirmed 2026 targets while raising its adjusted EPS view: revenue $2.8–$2.9B (2%–5% YoY), adjusted EBITDA $465–$475M, adjusted EPS $4.00–$4.10 (assumes ~60.5M weighted average diluted shares), and free cash flow $270–$290M (≈60% conversion at midpoint). In Q1 the company reported $849M revenue (+1.3% YoY; organic +1%), adjusted EBITDA $244M (+$3M YoY; margin +10 bps), adjusted diluted EPS $2.50 (+7% YoY), free cash flow improvement of $64M (including $53M purchase-price adjustment), net leverage ~3.4x (vs ~3.9x a year ago), ~2M shares repurchased YTD (~$63M through April), and targets to lift offshore hours from ~6% (2025) to 10% (2026) and >20% over time; management expects to exit 2026 at mid-single-digit organic growth and to reach <2.5x leverage in 2027.CBIZ Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.78B | 2.76B | 1.81B | 1.59B | 1.41B | 1.10B |
| Gross Profit | 361.76M | 355.39M | 182.47M | 223.20M | 223.37M | 159.29M |
| EBITDA | 349.20M | 366.32M | 140.25M | 222.70M | 182.41M | 123.96M |
| Net Income | 148.03M | 115.44M | 41.04M | 120.97M | 105.35M | 70.89M |
Balance Sheet | ||||||
| Total Assets | 4.61B | 4.41B | 4.47B | 2.04B | 1.93B | 1.67B |
| Cash, Cash Equivalents and Short-Term Investments | 17.55M | 18.29M | 13.83M | 8.09M | 33.18M | 32.38M |
| Total Debt | 1.45B | 1.83B | 1.83B | 551.01M | 474.47M | 331.25M |
| Total Liabilities | 2.70B | 2.65B | 2.69B | 1.25B | 1.21B | 968.17M |
| Stockholders Equity | 1.91B | 1.76B | 1.78B | 791.62M | 713.45M | 704.55M |
Cash Flow | ||||||
| Free Cash Flow | 278.69M | 175.53M | 110.78M | 130.46M | 117.49M | 122.17M |
| Operating Cash Flow | 290.69M | 192.49M | 123.69M | 153.51M | 126.13M | 131.15M |
| Investing Cash Flow | -28.24M | -15.85M | -1.13B | -79.39M | -99.12M | -82.01M |
| Financing Cash Flow | -256.39M | -145.71M | 1.04B | -77.11M | -17.34M | -69.00M |
CBIZ Technical Analysis
Positive
54.75
Price Trends
54.70
Positive
47.69
Positive
40.09
Positive
Market Momentum
0.19
Positive
71.43
Negative
82.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBZ, the sentiment is Positive. The current price of 54.75 is below the 20-day moving average (MA) of 54.77, above the 50-day MA of 54.70, and above the 200-day MA of 40.09, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 71.43 is Negative, neither overbought nor oversold. The STOCH value of 82.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBZ.
CBIZ Risk Analysis
CBIZ disclosed 43 risk factors in its most recent earnings report. CBIZ reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CBIZ Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $3.30B | 9.24 | 21.72% | 2.05% | -3.32% | 24.98% | |
69 Neutral | $3.02B | 21.98 | 7.96% | ― | 3.74% | 59.69% | |
68 Neutral | $299.20M | 25.53 | 12.32% | 2.91% | 4.18% | 50.80% | |
66 Neutral | $1.07B | 10.32 | 14.63% | 5.15% | 0.30% | 71.14% | |
66 Neutral | $14.83B | 29.26 | 37.55% | 0.77% | 6.61% | 53.23% | |
65 Neutral | $3.65B | 144.17 | 1.93% | 11.11% | 32.89% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
CBZ
CBIZ
54.94
2.17
4.11%
DLX
Deluxe
23.32
5.38
29.97%
III
Information Services Group
6.18
0.81
15.15%
MMS
Maximus
63.02
-21.51
-25.45%
FA
First Advantage
21.25
7.03
49.44%
ULS
UL Solutions Inc. Class A
73.44
-6.37
-7.98%
CBIZ Corporate Events
Financial DisclosuresM&A TransactionsPrivate Placements and FinancingRegulatory Filings and Compliance
CBIZ Announces One-Time Legal Charges Impacting Earnings
Negative
Oct 22, 2026
On October 19, 2026, CBIZ reported financial results for the three and nine months ended September 30, 2026, and has since identified approximately $15 million in additional one-time legal expenses during its quarter-end closing and review. These ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
CBIZ Announces ESPP Rescission Offer, Control Remediation Plans
Negative
Jul 29, 2026
CBIZ, Inc. disclosed that between October 16, 2023 and April 15, 2026 it inadvertently purchased and delivered up to 481,049 shares under its employee stock purchase plan in excess of authorized and registered amounts. On July 28, 2026, its board ...
Business Operations and StrategyDelistings and Listing ChangesM&A TransactionsPrivate Placements and Financing
CBIZ to be acquired by Grant Thornton Advisors
Positive
Jul 29, 2026
On July 28, 2026, CBIZ entered into a merger agreement under which Grant Thornton Advisors will acquire the company in an all-cash deal valuing CBIZ at $5 billion, with shareholders receiving $55 per share, a roughly 54% premium to the 30‑da...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.