CBIZ INC (CBZ) Stock Fundamental Analysis
NYSE:CBZ - New York Stock Exchange, Inc. - US1248051021 - Common Stock - Currency: USD
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 a medium profitability rating, but doesn't score so well on its financial health evaluation. CBZ is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
In the past 5 years CBZ has always been profitable.
CBZ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CBZ's Return On Assets of 2.40% is in line compared to the rest of the industry. CBZ outperforms 46.25% of its industry peers.
The Return On Equity of CBZ (5.77%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.75%, CBZ perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CBZ is significantly below the industry average of 12.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 5.77% | ||
| ROIC | 4.75% |
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
The Profit Margin of CBZ (4.51%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CBZ has declined.
Looking at the Operating Margin, with a value of 10.75%, CBZ is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
CBZ's Operating Margin has declined in the last couple of years.
CBZ has a worse Gross Margin (13.70%) than 85.00% of its industry peers.
CBZ's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.75% | ||
| PM (TTM) | 4.51% | ||
| GM | 13.7% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CBZ is destroying value.
The number of shares outstanding for CBZ has been increased compared to 1 year ago.
CBZ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CBZ has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that CBZ is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.95, CBZ is doing worse than 62.50% of the companies in the same industry.
The Debt to FCF ratio of CBZ is 14.94, which is on the high side as it means it would take CBZ, 14.94 years of fcf income to pay off all of its debts.
CBZ has a worse Debt to FCF ratio (14.94) than 63.75% of its industry peers.
CBZ has a Debt/Equity ratio of 0.79. This is a neutral value indicating CBZ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, CBZ is doing worse than 63.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 14.94 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.62
WACC7.63%
2.3 Liquidity
CBZ has a Current Ratio of 1.60. 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 Current ratio (1.60) which is in line with its industry peers.
CBZ has a Quick Ratio of 1.60. 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 (1.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
CBZ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.52%, which is quite impressive.
The Earnings Per Share has been growing by 15.05% on average over the past years. This is quite good.
The Revenue has grown by 46.49% 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)66.52%
EPS 3Y16%
EPS 5Y15.05%
EPS Q2Q%143.59%
Revenue 1Y (TTM)46.49%
Revenue growth 3Y17.96%
Revenue growth 5Y13.84%
Sales Q2Q%62.73%
3.2 Future
The Earnings Per Share is expected to grow by 26.87% on average over the next years. This is a very strong growth
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CBZ is valuated correctly with a Price/Earnings ratio of 16.13.
Based on the Price/Earnings ratio, CBZ is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
CBZ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.93.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of CBZ.
61.25% of the companies in the same industry are more expensive than CBZ, based on the Price/Forward Earnings ratio.
CBZ is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
CBZ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CBZ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.41 | ||
| EV/EBITDA | 14.94 |
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.
CBZ's earnings are expected to grow with 26.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)1.07
EPS Next 2Y26.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for CBZ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62.6
-2.43 (-3.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners85.12%
Inst Owner Change1.05%
Ins Owners3.47%
Ins Owner Change7.56%
Market Cap3.41B
Analysts85.71
Price Target96.9 (54.79%)
Short Float %5.92%
Short Ratio5.84
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)9.58%
Min EPS beat(2)7.63%
Max EPS beat(2)11.53%
EPS beat(4)4
Avg EPS beat(4)11.64%
Min EPS beat(4)7.63%
Max EPS beat(4)17.49%
EPS beat(8)7
Avg EPS beat(8)2.5%
EPS beat(12)9
Avg EPS beat(12)1.73%
EPS beat(16)12
Avg EPS beat(16)-0.39%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-3.55%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)0.85%
Min Revenue beat(4)-3.55%
Max Revenue beat(4)12.08%
Revenue beat(8)3
Avg Revenue beat(8)1.14%
Revenue beat(12)7
Avg Revenue beat(12)2.19%
Revenue beat(16)11
Avg Revenue beat(16)3.24%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)1.86%
EPS NQ rev (3m)8.73%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)-0.46%
Revenue NQ rev (3m)56.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.13 | ||
| Fwd PE | 15.19 | ||
| P/S | 1.41 | ||
| P/FCF | 32.41 | ||
| P/OCF | 27.43 | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.94 |
EPS(TTM)3.88
EY6.2%
EPS(NY)4.12
Fwd EY6.58%
FCF(TTM)1.93
FCFY3.09%
OCF(TTM)2.28
OCFY3.65%
SpS44.5
BVpS34.78
TBVpS-18.53
PEG (NY)0.39
PEG (5Y)1.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.4% | ||
| ROE | 5.77% | ||
| ROCE | 6.61% | ||
| ROIC | 4.75% | ||
| ROICexc | 4.8% | ||
| ROICexgc | 18.78% | ||
| OM | 10.75% | ||
| PM (TTM) | 4.51% | ||
| GM | 13.7% | ||
| FCFM | 4.34% |
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-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 14.94 | ||
| Debt/EBITDA | 4.43 | ||
| Cap/Depr | 24.16% | ||
| Cap/Sales | 0.79% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 36.6% | ||
| Profit Quality | 96.32% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 1.95 |
F-Score5
WACC7.63%
ROIC/WACC0.62
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)66.52%
EPS 3Y16%
EPS 5Y15.05%
EPS Q2Q%143.59%
EPS Next Y41.11%
EPS Next 2Y26.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)46.49%
Revenue growth 3Y17.96%
Revenue growth 5Y13.84%
Sales Q2Q%62.73%
Revenue Next Year61.9%
Revenue Next 2Y30.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y61.52%
EBIT growth 3Y5.86%
EBIT growth 5Y8.74%
EBIT Next Year155.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.03%
FCF growth 3Y-3.22%
FCF growth 5Y5.61%
OCF growth 1Y-2.53%
OCF growth 3Y-1.95%
OCF growth 5Y4.72%