NYSE:CBZ

Stock Analysis Report

Executive Summary

CBIZ, Inc. provides professional business services, products, and solutions that help its clients in managing finances and employees.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has CBIZ's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

CBZ

2.3%

US Professional Services

2.0%

US Market


1 Year Return

35.4%

CBZ

33.6%

US Professional Services

23.6%

US Market

Return vs Industry: CBZ exceeded the US Professional Services industry which returned 33.3% over the past year.

Return vs Market: CBZ exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CBZIndustryMarket
7 Day2.4%2.3%2.0%
30 Day-1.5%6.3%3.9%
90 Day12.1%9.1%12.0%
1 Year35.4%35.4%34.8%33.6%26.2%23.6%
3 Year111.0%111.0%66.8%61.5%53.2%43.3%
5 Year222.7%222.7%90.4%80.0%75.7%56.3%

Price Volatility Vs. Market

How volatile is CBIZ's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CBIZ undervalued compared to its fair value and its price relative to the market?

40.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBZ ($27.18) is trading below our estimate of fair value ($46.03)

Significantly Below Fair Value: CBZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CBZ is poor value based on its PE Ratio (20.7x) compared to the Professional Services industry average (20.5x).

PE vs Market: CBZ is poor value based on its PE Ratio (20.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CBZ is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CBZ is good value based on its PB Ratio (2.3x) compared to the US Professional Services industry average (2.9x).


Next Steps

Future Growth

How is CBIZ forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBZ's forecast earnings growth (10.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CBZ's earnings (10.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CBZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBZ's revenue (4.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CBZ's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBZ's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has CBIZ performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBZ has high quality earnings.

Growing Profit Margin: CBZ's current net profit margins (7.5%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: CBZ's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: CBZ's earnings growth over the past year (5.9%) is below its 5-year average (18.7% per year).

Earnings vs Industry: CBZ earnings growth over the past year (5.9%) underperformed the Professional Services industry 23.5%.


Return on Equity

High ROE: CBZ's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CBIZ's financial position?


Financial Position Analysis

Short Term Liabilities: CBZ's short term assets ($447.9M) exceed its short term liabilities ($310.1M).

Long Term Liabilities: CBZ's short term assets ($447.9M) exceed its long term liabilities ($430.7M).


Debt to Equity History and Analysis

Debt Level: CBZ's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: CBZ's debt to equity ratio has reduced from 50.6% to 24.3% over the past 5 years.

Debt Coverage: CBZ's debt is well covered by operating cash flow (57.3%).

Interest Coverage: CBZ's interest payments on its debt are well covered by EBIT (16.3x coverage).


Balance Sheet

Inventory Level: CBZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: CBZ's debt is covered by short term assets (assets are 2.8x debt).


Next Steps

Dividend

What is CBIZ's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CBZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CBZ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CBZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CBZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CBZ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of CBIZ's salary, the management and board of directors tenure and is there insider trading?

6.0yrs

Average management tenure


CEO

Jerome Grisko (57yo)

3.8yrs

Tenure

US$4,094,381

Compensation

Mr. Jerome P. Grisko, Jr., also known as Jerry, has been the President and Chief Executive Officer of CBIZ, Inc. (formerly, Century Business Services Inc.) at CBIZ HealthCare Solutions Group, Inc. since Fe ...


CEO Compensation Analysis

Compensation vs Market: Jerome's total compensation ($USD4.09M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Jerome's compensation has increased by more than 20% in the past year.


Management Age and Tenure

6.0yrs

Average Tenure

60yo

Average Age

Experienced Management: CBZ's management team is seasoned and experienced (6 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CBZ's board of directors are seasoned and experienced ( 14.8 years average tenure).


Insider Trading

Insider Buying: CBZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$871,50623 Dec 19
Gina France
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares32,280
Max PriceUS$27.06
SellUS$1,734,40010 Dec 19
Steven Gerard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares64,000
Max PriceUS$27.10
SellUS$43,91405 Nov 19
Benaree Wiley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,600
Max PriceUS$27.45
SellUS$794,11330 Sep 19
P2 Capital Partners, LLC
EntityCompany
Shares33,980
Max PriceUS$23.37
BuyUS$7,813,71030 Sep 19
P2 Capital Partners, LLC
EntityCompany
Shares325,945
Max PriceUS$24.51
SellUS$1,617,00013 Sep 19
Steven Gerard
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares70,000
Max PriceUS$23.10
SellUS$40,81617 Jun 19
Todd Slotkin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$20.41
SellUS$319,98717 Jun 19
Benaree Wiley
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,684
Max PriceUS$20.40
SellUS$70,95326 Apr 19
Joseph DiMartino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$20.27
SellUS$70,49719 Mar 19
Todd Slotkin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$20.14
SellUS$71,95705 Mar 19
Joseph DiMartino
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,488
Max PriceUS$20.63

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael DeGroote (85yo)

    • Jerome Grisko (57yo)

      President

      • Tenure: 3.8yrs
      • Compensation: US$4.09m
    • Chris Spurio (53yo)

      President of Financial Services

      • Tenure: 6yrs
      • Compensation: US$1.95m
    • Ware Grove (68yo)

      Senior VP & CFO

      • Tenure: 19.1yrs
      • Compensation: US$1.93m
    • Michael Gleespen (60yo)

      Corporate Secretary & General Counsel

      • Tenure: 18.6yrs
    • Mark Waxman (62yo)

      Senior VP & Chief Marketing Officer

      • Tenure: 19yrs
    • Michael Kouzelos (50yo)

      President of Benefits & Insurance Services

      • Tenure: 3.5yrs
      • Compensation: US$1.74m
    • Daniel Clark (64yo)

      Investor Relations Officer

      • John Fleischer (57yo)

        Senior VP & Chief Information Officer

        • Tenure: 5.4yrs
      • Fred Winkler

        Chief Operating Officer

        • Compensation: US$1.04m

      Board Members

      • Sherrill Hudson (76yo)

        Independent Director

        • Tenure: 4.9yrs
        • Compensation: US$192.83k
      • Rick Burdick (67yo)

        Lead Director & Vice Chairman

        • Tenure: 17.3yrs
        • Compensation: US$190.33k
      • Joseph DiMartino (76yo)

        Independent Director

        • Tenure: 22.2yrs
        • Compensation: US$200.33k
      • Jerome Grisko (57yo)

        President

        • Tenure: 3.8yrs
        • Compensation: US$4.09m
      • Steven Gerard (73yo)

        Non-Executive Chairman

        • Tenure: 17.3yrs
        • Compensation: US$276.07k
      • Bennie Wiley (72yo)

        Independent Director

        • Tenure: 11.7yrs
        • Compensation: US$179.33k
      • Gina France (60yo)

        Independent Director

        • Tenure: 4.9yrs
        • Compensation: US$173.33k
      • Todd Slotkin (66yo)

        Independent Director

        • Tenure: 16.3yrs
        • Compensation: US$191.33k
      • Donald Weir (77yo)

        Independent Director

        • Tenure: 16.3yrs
        • Compensation: US$200.33k
      • Mike DeGroote (58yo)

        Independent Director

        • Tenure: 13.2yrs
        • Compensation: US$173.33k

      Company Information

      CBIZ, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: CBIZ, Inc.
      • Ticker: CBZ
      • Exchange: NYSE
      • Founded: 1987
      • Industry: Research and Consulting Services
      • Sector: Commercial Services
      • Market Cap: US$1.490b
      • Shares outstanding: 54.33m
      • Website: https://www.cbiz.com

      Number of Employees


      Location

      • CBIZ, Inc.
      • 6050 Oak Tree Boulevard South
      • Suite 500
      • Cleveland
      • Ohio
      • 44131
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CBZNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1995
      XC4DB (Deutsche Boerse AG)YesCommon StockDEEURApr 1995
      0HQILSE (London Stock Exchange)YesCommon StockGBUSDApr 1995

      Biography

      CBIZ, Inc. provides professional business services, products, and solutions that help its clients in managing finances and employees. It offers its services through three groups: Financial Services, Benefits and Insurance Services, and National Practices. The Financial Services group provides accounting and tax, government healthcare consulting, financial advisory, valuation, and risk and advisory services. The Benefits and Insurance Services group offers group health benefits consulting, payroll, property and casualty, and retirement plan services. The National Practices group provides managed networking and hardware, and health care consulting services. The company primarily serves small and midsized businesses, as well as individuals, governmental entities, and not-for-profit enterprises in the United States and parts of Canada. CBIZ, Inc. was founded in 1987 and is headquartered in Cleveland, Ohio. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 23:57
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.