CBIZ, Inc. (CBZ) | Investment Case

1. Company Snapshot

1.a. Company Description

CBIZ, Inc.provides financial, insurance, and advisory services in the United States and Canada.The company operates through three segments: Financial Services, Benefits and Insurance Services, and National Practices.

The Financial Services segment offers accounting and tax, financial advisory, valuation, risk and advisory, and government healthcare consulting services.The Benefits and Insurance Services provides employee benefits consulting, payroll/human capital management, property and casualty insurance, and retirement and investment services.The National Practices segment offers information technology managed networking and hardware, and health care consulting services.

It primarily serves small and medium-sized businesses, as well as individuals, governmental entities, and not-for-profit enterprises.The company was incorporated in 1987 and is headquartered in Cleveland, Ohio.

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1.b. Last Insights on CBZ

CBIZ, Inc.'s recent performance was negatively impacted by a decline in net income, which fell 14.1% to $30.1 million, despite a 58.1% increase in total revenue to $693.8 million. The company's GAAP EPS decreased 31.4% to $0.48. Additionally, Granite Investment Partners sold 137,812 shares of CBZ for an estimated $15.4 million in the third quarter, which may have put downward pressure on the stock. The company's 2026 strategy is focused on addressing cost pressures, including healthcare, tariffs, and financing costs.

1.c. Company Highlights

Last Price	52.44
Change Percentage	-2.11%
Open	52.48
Previous Close	53.57
Market Cap ( Millions)	2853
Volume	552416
Year High	90.13
Year Low	47.89
M A 50	52.7
M A 200	65.53

FCF Yield	3.54%
Dividend Yield	0.00%
ROE	5.59%
Debt / Equity	23.93%
Net Debt / EBIDTA	96.71%
Price To Book	1.78
Price Earnings Ratio	32.03
Price To FCF	28.22
Price To sales	1.07
EV / EBITDA	7.37

2. CBIZ Delivers Strong Q3 Results, Bolstering Full-Year Outlook

CBIZ reported Q3 revenue of $694 million, a significant increase driven by the Marcum acquisition, with year-to-date revenue standing at $2.2 billion, up 64%. Adjusted EBITDA margin was 17.3% in the quarter and 21.5% year-to-date. The company's EPS came in at $0.4739, below analyst estimates of $0.94. Despite this, the company's financial performance was robust, driven by the successful integration of Marcum.

Publication Date: Oct -31

                                    📋 Highlights
                                    Recurring Revenue Stability:
                                                Core accounting and tax business maintained consistent organic growth, aligning with first-half performance.
Marcum Integration Progress:
                                                Teams co-located in 60+ cities, standardized processes, and a dedicated innovation team with 60+ members driving efficiency.
Q3 Revenue & EBITDA Growth:
                                                Revenue hit $694M (58% YoY), total 2025 revenue at $2.2B, while EBITDA reached $476M (21.5% margin year-to-date).
Share Buybacks & Guidance:
                                                $56M spent repurchasing 800,000 shares; 2025 revenue guidance unchanged at $2.8B–$2.95B.

                                

Revenue Growth and Margin Expansion

The Financial Services segment saw revenue growth of 85% to $1.9 billion, with adjusted EBITDA nearly doubling to $463 million. The company's core accounting and tax business delivered organic revenue growth consistent with the first half of the year. CBIZ maintained its revenue and earnings guidance for the year, expecting to deliver the low end of the revenue guidance of $2.8 billion to $2.95 billion.

Integration Progress and Future Outlook

The integration of Marcum is progressing well, with the company having aligned teams under a common reporting structure, adopted standardized operating processes, and invested in transformation and innovation. Looking ahead to 2026, CBIZ expects increased momentum as it transitions to the next phase of growth. Analysts estimate next year's revenue growth at 6.2%.

Valuation and Key Metrics

With a P/E Ratio of 32.32 and EV/EBITDA of 31.61, CBIZ's valuation suggests that the market is pricing in significant growth expectations. The company's ROE is 5.59%, and ROIC is 4.19%. The Net Debt / EBITDA ratio is 4.14, indicating a relatively high level of debt. As CBIZ continues to execute on its growth strategy, investors will be watching to see if the company can deliver on its promises.

Pricing and Client Retention

CBIZ reported mid-single digit pricing growth in Q3, reflecting the strong relationship the company has with its clients. Jerry Grisko noted that there have been no notable losses of rainmaking partners, and the company is pleased with client retention rates. The company's industry groups are generating significant energy and opportunities for growth.

3. NewsRoom

Advantage Alpha Capital Partners LP Decreases Stock Holdings in CBIZ, Inc. $CBZ

Nov -28

Source: defenseworld.net

Critical Contrast: The Hackett Group (NASDAQ:HCKT) vs. CBIZ (NYSE:CBZ)

Nov -17

Source: defenseworld.net

CBIZ's 2026 Tax Planning Guide Offers a Roadmap for Smart, Strategic Tax Planning

Nov -12

Source: globenewswire.com

Granite Sells $15 Million in CBIZ Amid Stock's 40% Slide Since February

Nov -11

Source: fool.com

CBIZ Q4 2025 Mid-Market Pulse: Cost Pressures Define 2026 Strategy

Nov -04

Source: globenewswire.com

State of New Jersey Common Pension Fund D Boosts Stake in CBIZ, Inc. $CBZ

Nov -02

Source: defenseworld.net

CBIZ, Inc. (CBZ) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

CBIZ (CBZ) Tops Q3 Earnings Estimates

Oct -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Financial Services

Expected Growth: 4.5%

CBIZ, Inc.'s Financial Services segment growth of 4.5% is driven by increasing demand for advisory services, expansion of existing client relationships, and strategic acquisitions. Additionally, the segment benefits from a strong economy, low unemployment, and rising interest rates, leading to increased financial activity and consulting needs.

Benefits and Insurance Services

Expected Growth: 4.8%

CBIZ's Benefits and Insurance Services segment growth of 4.8% is driven by increasing demand for employee benefits consulting, expansion of existing client relationships, and strategic acquisitions. Additionally, the rising need for compliance with Affordable Care Act regulations and growing awareness of the importance of employee benefits in attracting and retaining talent are contributing to the segment's growth.

National Practices

Expected Growth: 5.2%

CBIZ, Inc.'s National Practices segment growth of 5.2% is driven by increasing demand for financial advisory services, expansion of existing client relationships, and strategic acquisitions. Additionally, the company's focus on providing specialized services, such as tax and accounting, has contributed to its growth. Furthermore, the segment has benefited from the increasing complexity of financial regulations, leading to higher demand for compliance and risk management services.

7. Detailed Products

Financial Services

CBIZ provides financial services including accounting, tax, and advisory services to help businesses and individuals manage their financial resources.

Employee Benefits

CBIZ offers employee benefits services, including health insurance, retirement planning, and other benefits to help businesses attract and retain top talent.

Property and Casualty Insurance

CBIZ provides property and casualty insurance services to help businesses and individuals manage risk and protect their assets.

Retirement Plan Services

CBIZ offers retirement plan services, including plan design, administration, and compliance, to help businesses and individuals plan for retirement.

HR Consulting

CBIZ provides HR consulting services, including HR outsourcing, recruitment, and compliance, to help businesses manage their human resources.

Payroll Services

CBIZ offers payroll services, including payroll processing, tax compliance, and benefits administration, to help businesses manage their payroll.

8. CBIZ, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for CBIZ, Inc. is medium due to the presence of alternative financial services providers, but the company's diversified services and strong brand reputation mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for CBIZ, Inc. due to the company's specialized services and expertise, which limits customers' ability to negotiate prices or demand customized services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for CBIZ, Inc. due to the company's dependence on a few key suppliers for certain services, but the company's size and reputation help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low for CBIZ, Inc. due to the company's established brand reputation, regulatory barriers, and the need for specialized expertise in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry is high for CBIZ, Inc. due to the competitive nature of the financial services industry, with many established players and a high level of competition for clients and market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.48%
Debt Cost	6.09%
Equity Weight	69.52%
Equity Cost	8.32%
WACC	7.64%
Leverage	43.85%

11. Quality Control: CBIZ, Inc. passed 5 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

Worthington Industries

A-Score: 5.0/10

Value: 3.6

Growth: 3.1

Quality: 5.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

ABM Industries

A-Score: 4.9/10

Value: 5.6

Growth: 4.1

Quality: 5.2

Yield: 4.0

Momentum: 2.5

Volatility: 8.0

1-Year Total Return ->

Aramark

A-Score: 4.6/10

Value: 4.3

Growth: 4.3

Quality: 3.4

Yield: 2.0

Momentum: 5.0

Volatility: 8.7

1-Year Total Return ->

UniFirst

A-Score: 4.6/10

Value: 5.8

Growth: 4.6

Quality: 6.2

Yield: 1.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

CBIZ

A-Score: 3.6/10

Value: 3.2

Growth: 5.2

Quality: 5.3

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

10.73%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.64%

CBIZ, Inc. - US1248051021

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CBZ

1.c. Company Highlights

Expensive

Less Volatile

Strong Momentum

Earnings Beats

Average Growth

Earnings Miss

Revenues Miss

Average Yield

Fairly Valued

Stable Momentum

Revenues Beats

Medium Volatility

Lower Quality

Average Quality

Weak Momentum

2. CBIZ Delivers Strong Q3 Results, Bolstering Full-Year Outlook

Revenue Growth and Margin Expansion

Integration Progress and Future Outlook

Valuation and Key Metrics

Pricing and Client Retention

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.59%)

6. Segments

Financial Services

Expected Growth: 4.5%

Benefits and Insurance Services

Expected Growth: 4.8%

National Practices

Expected Growth: 5.2%

7. Detailed Products

Financial Services

Employee Benefits

Property and Casualty Insurance

Retirement Plan Services

HR Consulting

Payroll Services

8. CBIZ, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: CBIZ, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

52.44$

Current Price

52.44$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA