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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

Breaking News: CBIZ Inc reported Q1 2026 earnings of $2.5 per share beating estimates of $2.28 per share. This represents a increase from $2.29 per share a year ago. The company reported year-over-year growth in revenue earnings and cash flow. CBIZ also increased its adjusted diluted EPS outlook and completed share repurchases as part of its capital allocation priorities. The company released its Q1 2026 earnings call transcript on April 30. Analysts recommend a hold rating for CBIZ Inc.

1.c. Company Highlights

2. CBIZ Q1 2026: Steady Growth, AI Acceleration

CBIZ posted a modest 1.3% year‑over‑year revenue rise to $849 million, with organic growth at 1%. Adjusted EBITDA climbed to $244 million, a 10‑basis‑point margin lift, and free cash flow surged to $270‑$290 million, underscoring robust cash generation. Share repurchases of $63 million and a 2.6 million‑share decline reinforce a disciplined capital allocation strategy. Brad Lakhia highlighted the $53 million proceeds from the final purchase price adjustment as a key driver of free‑cash‑flow improvement.

Publication Date: May -01

📋 Highlights
  • Revenue Growth:: Consolidated revenue rose 1.3% YoY to $849M, with organic growth at 1%.
  • Adjusted EPS Outlook Raised:: Raised adjusted EPS guidance to $4–$4.10/share, reflecting improved profitability.
  • AI Advancements:: Shift to agentic AI workflows aims to boost win rates, time-to-market, and differentiated offerings.
  • Share Repurchases:: $63M in share repurchases since year-end, reducing shares by 2.6M YoY and improving capital allocation.
  • Benefits and Insurance Segment:: Revenue declined 4% YoY ($108M), but recurring business grew 4% post-producer departure, with 15% producer growth expected.

Revenue and Margin Dynamics

The incremental revenue bump was largely driven by the tax and advisory segments, while the Benefits & Insurance arm slipped 4% due to a producer departure. Despite this, adjusted EBITDA margin edged up, reflecting disciplined cost management and higher‑margin advisory work. The company’s 72% recurring revenue base remains stable, providing a cushion for margin expansion.

AI & Automation Momentum

CBIZ is accelerating its AI roadmap, transitioning from AI‑assisted workflows to agentic solutions. This shift is expected to improve win rates, shorten time‑to‑market, and enhance differentiation across services. Peter Scavuzzo emphasized that AI‑driven data extraction will accelerate insight delivery, positioning CBIZ as a technology‑savvy middle‑market leader.

Strategic Growth Initiatives

The firm is executing four growth priorities: winning new business, deepening client relationships, elevating talent, and leveraging technology partners. Industry‑focused managed services are gaining traction, providing integrated tax, advisory, and benefits solutions that increase cross‑sell opportunities and client retention during critical periods.

Benefits & Insurance Segment Outlook

Although the segment saw a 4% revenue dip, the recurring portion rebounded 4% once producer impact was normalized. CBIZ plans to grow its producer base by 15% YoY, expecting this to restore historical growth rates and support the overall earnings outlook for the year.

Capital Allocation & Shareholder Return

With free cash flow exceeding $270 million, CBIZ will continue aggressive share repurchases, deeming them highly accretive. The company maintains a net debt/EBITDA ratio of 1.02, providing flexibility for maintenance capital and deleveraging while preserving a healthy ROIC of 4.54%.

Guidance & Market Position

CBIZ projects 2026 revenue of $2.8‑$2.9 billion (2‑5% YoY growth) and adjusted EBITDA of $465‑$475 million, with EPS between $4.00 and $4.10. The EV/EBITDA of 4.58 and P/S of 0.60 suggest a modest valuation, positioning CBIZ as a defensible investment in the middle‑market services space.

3. NewsRoom

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Wall Street Analysts See a 34.43% Upside in CBIZ (CBZ): Can the Stock Really Move This High?

May -01

Source: zacks.com

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CBIZ, Inc. (CBZ) Q1 2026 Earnings Call Transcript

Apr -30

Source: seekingalpha.com

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CBIZ (CBZ) Q1 Earnings Surpass Estimates

Apr -29

Source: zacks.com

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CBIZ Reports First-Quarter 2026 Financial Results

Apr -29

Source: globenewswire.com

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Is It Too Late to Buy CBIZ Inc (CBZ) After 5.9% Rally? GF Value Says Undervalued

Apr -28

Source: gurufocus.com

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CBIZ, Inc. (NYSE:CBZ) Given Average Rating of “Hold” by Brokerages

Apr -24

Source: defenseworld.net

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CBIZ to Announce First-Quarter 2026 Results on April 29, 2026

Apr -15

Source: globenewswire.com

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CBIZ Elevates Peter Scavuzzo to Oversee Unified Technology Organization

Apr -14

Source: globenewswire.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

Strength

Weaknesses

Opportunities

Threats

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

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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Worthington Industries

A-Score: 5.3/10

Value: 3.9

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 8.5

Volatility: 6.3

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ABM Industries

A-Score: 5.1/10

Value: 6.1

Growth: 5.7

Quality: 5.4

Yield: 4.0

Momentum: 1.5

Volatility: 7.7

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Aramark

A-Score: 4.9/10

Value: 4.6

Growth: 5.9

Quality: 3.4

Yield: 2.0

Momentum: 5.0

Volatility: 8.3

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UniFirst

A-Score: 4.6/10

Value: 5.7

Growth: 5.2

Quality: 6.2

Yield: 1.0

Momentum: 2.5

Volatility: 7.0

1-Year Total Return ->

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CBIZ

A-Score: 3.8/10

Value: 4.9

Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.16$

Current Price

32.16$

Potential

-0.00%

Expected Cash-Flows