CBIZ INC (CBZ) Stock Fundamental Analysis
NYSE:CBZ - New York Stock Exchange, Inc. - US1248051021 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CBZ. CBZ was compared to 82 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year CBZ was profitable.
CBZ had a positive operating cash flow in the past year.
CBZ had positive earnings in each of the past 5 years.
In the past 5 years CBZ always reported a positive cash flow from operatings.
1.2 Ratios
CBZ has a Return On Assets (1.90%) which is in line with its industry peers.
The Return On Equity of CBZ (4.54%) is comparable to the rest of the industry.
CBZ has a Return On Invested Capital (4.10%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for CBZ is significantly below the industry average of 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 4.54% | ||
| ROIC | 4.1% |
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
With a Profit Margin value of 4.03%, CBZ perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Profit Margin of CBZ has declined.
CBZ has a Operating Margin of 10.37%. This is in the better half of the industry: CBZ outperforms 74.39% of its industry peers.
CBZ's Operating Margin has declined in the last couple of years.
The Gross Margin of CBZ (13.80%) is worse than 84.15% of its industry peers.
In the last couple of years the Gross Margin of CBZ has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.37% | ||
| PM (TTM) | 4.03% | ||
| GM | 13.8% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CBZ is destroying value.
The number of shares outstanding for CBZ has been increased compared to 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
An Altman-Z score of 1.93 indicates that CBZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
CBZ has a Altman-Z score of 1.93. This is in the lower half of the industry: CBZ underperforms 63.41% of its industry peers.
CBZ has a debt to FCF ratio of 17.74. This is a negative value and a sign of low solvency as CBZ would need 17.74 years to pay back of all of its debts.
CBZ's Debt to FCF ratio of 17.74 is on the low side compared to the rest of the industry. CBZ is outperformed by 63.41% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that CBZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, CBZ is doing worse than 63.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 17.74 | ||
| Altman-Z | 1.93 |
ROIC/WACC0.5
WACC8.21%
2.3 Liquidity
CBZ has a Current Ratio of 1.52. This is a normal value and indicates that CBZ is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.52, CBZ perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
CBZ has a Quick Ratio of 1.52. This is a normal value and indicates that CBZ is financially healthy and should not expect problems in meeting its short term obligations.
CBZ has a Quick ratio (1.52) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
CBZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.41%, which is quite impressive.
Measured over the past years, CBZ shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.05% on average per year.
CBZ shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.27%.
The Revenue has been growing by 13.84% on average over the past years. This is quite good.
EPS 1Y (TTM)34.41%
EPS 3Y16%
EPS 5Y15.05%
EPS Q2Q%49.67%
Revenue 1Y (TTM)32.27%
Revenue growth 3Y17.96%
Revenue growth 5Y13.84%
Sales Q2Q%69.54%
3.2 Future
Based on estimates for the next years, CBZ will show a very strong growth in Earnings Per Share. The EPS will grow by 26.87% on average per year.
CBZ is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 30.84% yearly.
EPS Next Y41.11%
EPS Next 2Y26.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year61.9%
Revenue Next 2Y30.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
The Price/Earnings ratio is 21.60, which indicates a rather expensive current valuation of CBZ.
The rest of the industry has a similar Price/Earnings ratio as CBZ.
The average S&P500 Price/Earnings ratio is at 26.03. CBZ is around the same levels.
The Price/Forward Earnings ratio is 17.40, which indicates a rather expensive current valuation of CBZ.
CBZ's Price/Forward Earnings ratio is in line with the industry average.
CBZ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 17.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CBZ.
CBZ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.27 | ||
| EV/EBITDA | 19.24 |
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 26.87% in the coming years.
PEG (NY)0.53
PEG (5Y)1.44
EPS Next 2Y26.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CBZ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
71.72
-1.88 (-2.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.53%
Inst Owner Change-1.5%
Ins Owners4.04%
Ins Owner Change-1.9%
Market Cap3.90B
Analysts85.71
Price Target96.9 (35.11%)
Short Float %3.7%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.56%
Min EPS beat(2)7.63%
Max EPS beat(2)17.49%
EPS beat(4)3
Avg EPS beat(4)-2.12%
Min EPS beat(4)-43.49%
Max EPS beat(4)17.49%
EPS beat(8)6
Avg EPS beat(8)-1.43%
EPS beat(12)9
Avg EPS beat(12)2.47%
EPS beat(16)12
Avg EPS beat(16)1.07%
Revenue beat(2)1
Avg Revenue beat(2)4.27%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)12.08%
Revenue beat(4)1
Avg Revenue beat(4)1.3%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)12.08%
Revenue beat(8)4
Avg Revenue beat(8)1.65%
Revenue beat(12)8
Avg Revenue beat(12)3.22%
Revenue beat(16)12
Avg Revenue beat(16)3.91%
PT rev (1m)-3.55%
PT rev (3m)-2.06%
EPS NQ rev (1m)-13.06%
EPS NQ rev (3m)8.12%
EPS NY rev (1m)-1.11%
EPS NY rev (3m)16.31%
Revenue NQ rev (1m)-4.44%
Revenue NQ rev (3m)56.96%
Revenue NY rev (1m)-2.47%
Revenue NY rev (3m)28.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.6 | ||
| Fwd PE | 17.4 | ||
| P/S | 1.81 | ||
| P/FCF | 45.27 | ||
| P/OCF | 39.35 | ||
| P/B | 2.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.24 |
EPS(TTM)3.32
EY4.63%
EPS(NY)4.12
Fwd EY5.75%
FCF(TTM)1.58
FCFY2.21%
OCF(TTM)1.82
OCFY2.54%
SpS39.65
BVpS35.2
TBVpS-18.23
PEG (NY)0.53
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.9% | ||
| ROE | 4.54% | ||
| ROCE | 5.7% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 15.92% | ||
| OM | 10.37% | ||
| PM (TTM) | 4.03% | ||
| GM | 13.8% | ||
| FCFM | 3.99% |
ROA(3y)4.15%
ROA(5y)4.39%
ROE(3y)10.79%
ROE(5y)10.71%
ROIC(3y)6.53%
ROIC(5y)6.32%
ROICexc(3y)6.56%
ROICexc(5y)6.34%
ROICexgc(3y)21.85%
ROICexgc(5y)20.77%
ROCE(3y)9.09%
ROCE(5y)8.79%
ROICexcg growth 3Y-18.93%
ROICexcg growth 5Y-6.45%
ROICexc growth 3Y-27.55%
ROICexc growth 5Y-15.96%
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%
F-Score3
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 17.74 | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 20.46% | ||
| Cap/Sales | 0.6% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 34.53% | ||
| Profit Quality | 99.14% | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 1.93 |
F-Score3
WACC8.21%
ROIC/WACC0.5
Cap/Depr(3y)38.86%
Cap/Depr(5y)40%
Cap/Sales(3y)0.92%
Cap/Sales(5y)0.96%
Profit Quality(3y)163.09%
Profit Quality(5y)166.86%
High Growth Momentum
Growth
EPS 1Y (TTM)34.41%
EPS 3Y16%
EPS 5Y15.05%
EPS Q2Q%49.67%
EPS Next Y41.11%
EPS Next 2Y26.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)32.27%
Revenue growth 3Y17.96%
Revenue growth 5Y13.84%
Sales Q2Q%69.54%
Revenue Next Year61.9%
Revenue Next 2Y30.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y32.52%
EBIT growth 3Y5.86%
EBIT growth 5Y8.74%
EBIT Next Year154.92%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.84%
FCF growth 3Y-3.22%
FCF growth 5Y5.61%
OCF growth 1Y-25.18%
OCF growth 3Y-1.95%
OCF growth 5Y4.72%