CBIZ (CBZ): Reassessing Valuation After a 34% Year-to-Date Share Price Decline

CBIZ (CBZ) has quietly slipped this year, with the stock down about 34% year to date even as revenue and net income continue to grow. This has raised fresh questions about how the market is valuing its advisory platform.

See our latest analysis for CBIZ.

Despite that year to date share price return of about negative 34 percent, recent trading has shown a tentative shift. A 7 day share price return of just over 9 percent suggests sentiment might be stabilising, while the 5 year total shareholder return of around 111 percent shows the longer term story has still rewarded patient investors.

If CBIZ’s valuation reset has you rethinking what quality growth looks like, this could be a good moment to explore fast growing stocks with high insider ownership.

With earnings still climbing and the shares trading at a sizable discount to analyst targets, is CBIZ now trading below its true worth, or is the market already correctly pricing in its future growth potential?

Most Popular Narrative Narrative: 41.5% Undervalued

Compared to CBIZ’s last close at $53.57, the most followed narrative implies a markedly higher fair value, hinging on sustained growth and richer future earnings multiples.

The Marcum acquisition has significantly expanded CBIZ's client base, increased scale, and strengthened capabilities in core tax, accounting, and advisory services, enabling the firm to leverage cross-selling, deepen client relationships, and improve its competitive position in target middle-market segments; this is expected to fuel higher future revenue growth and structural margin expansion as integration synergies are realized.

Read the complete narrative.

Want to see what kind of revenue trajectory and margin jump are needed to back this valuation, and how the earnings multiple is expected to evolve? Dive into the full narrative to uncover the assumptions driving that gap between today’s price and the projected fair value.

Result: Fair Value of $91.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer pricing power and ongoing integration risks from the Marcum deal could still derail the bullish case if margins fail to expand as expected.

Find out about the key risks to this CBIZ narrative.

Build Your Own CBIZ Narrative

If you would rather challenge these assumptions and dig into the numbers yourself, you can build a personalised view of CBIZ in just a few minutes: Do it your way.

A great starting point for your CBIZ research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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