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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 no recent earnings release. Blair William & Co IL sold 81786 shares of CBIZ Inc reducing its holdings by 18.8% in the quarter. The fund now owns 352712 shares. No analyst recommendation is available. CBIZ Inc recent news indicates a change in institutional investor holdings. No earnings guidance or revisions have been reported. Analysts at various firms have not provided recent recommendations on CBIZ Inc. The company operates as a business services provider. Institutional investors continue to adjust their positions in CBIZ Inc.

1.c. Company Highlights

2. CBIZ Delivers Strong Profitability and Cash Flow Despite Tempered Top-Line Growth

CBIZ reported revenue of $543 million for the fourth quarter, up 18% year-over-year, driven by the acquisition. For the full year, revenue grew 52% to $2.3 billion, with approximately 2% organic growth. Adjusted EBITDA margin expanded 530 basis points, driven by synergies, lower incentive compensation expense, and scale benefits. The company reported an adjusted EBITDA loss of $29 million for the fourth quarter and $447 million for the full year. Actual EPS came out at '-0.7' relative to estimates at '-0.66'.

Publication Date: Feb -27

📋 Highlights
  • 2025 Organic Revenue Growth:: Delivered 2% organic revenue growth amid soft market conditions and productivity losses.
  • Full-Year Adjusted EBITDA:: $447 million loss for 2025, but EBITDA margin expanded by 530 bps due to synergies and lower incentive costs.
  • 2026 Revenue Guidance:: Projected $2.8B–$2.9B (2–5% growth) with mid-single-digit pricing increases and $450M–$460M adjusted EBITDA target.
  • AI and Automation Investment:: Positioned AI as a key growth driver, enhancing workflows while maintaining the "trusted adviser" client relationship model.
  • Share Repurchase Program:: $160 million spent in 2025 repurchasing 2.4 million shares, with $5 million remaining in authorization for future buybacks.

Financial Performance and Guidance

The company's financial performance was characterized by strong recurring essential revenue and high client retention. Operating expense declined as a percentage of revenue, reflecting lower incentive compensation tied to top-line performance and the acceleration of synergies. For 2026, CBIZ expects year-over-year growth in revenue, profitability, and free cash flow, with revenue expected to be between $2.8 billion to $2.9 billion, representing 2% to 5% year-over-year growth. Analysts estimate next year's revenue growth at 4.1%.

Valuation and Growth Prospects

CBIZ's current valuation metrics indicate a P/S Ratio of 0.63 and an EV/EBITDA of 3.57. With a ROE of 6.21% and ROIC of 4.88%, the company demonstrates a reasonable return on equity and invested capital. As the company focuses on reigniting its growth engine and leveraging its scale, the expected mid-single-digit rate increases for 2026 and the potential for expanding client relationships and new logos could drive future growth.

Operational Highlights and Strategic Priorities

CBIZ is focused on attracting and retaining top talent, elevating its national brand, utilizing industry specialization, and delivering value through its enhanced breadth and depth of service offerings. The company is also investing in automation, including artificial intelligence, to drive efficiency and growth. As Jerry Grisko noted, "the core role of the trusted adviser remains indispensable, and AI will increasingly automate routine manual tasks and reshape workflows across our service offerings."

Outlook and Conclusion

With a strong foundation in place, CBIZ is poised for growth in 2026. The company's guidance suggests a return to mid-single-digit rate increases, and its focus on expanding client relationships and new logos could drive future growth. As the company continues to leverage its scale and invest in talent and technology, it is well-positioned to deliver long-term value to shareholders.

3. NewsRoom

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Blair William & Co. IL Sells 81,786 Shares of CBIZ, Inc. $CBZ

Mar -09

Source: defenseworld.net

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CBIZ, Inc. (CBZ) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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CBIZ Reports Fourth-Quarter and Full-Year 2025 Financial Results

Feb -25

Source: globenewswire.com

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Granite Investment Partners LLC Has $15.69 Million Stock Position in CBIZ, Inc. $CBZ

Feb -23

Source: defenseworld.net

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CBIZ Releases Q1 2026 Mid-Market Pulse Report: Business Leaders Prioritize Cost, Talent, and Tech Strategy

Feb -19

Source: globenewswire.com

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CBIZ to Announce Fourth-Quarter and Full-Year 2025 Results on February 25, 2026

Feb -11

Source: globenewswire.com

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Chuck Royce's Strategic Moves: Significant Reduction in Haemonetics Corp

Feb -09

Source: gurufocus.com

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BloombergSen Inc. Sells 11,512 Shares of CBIZ, Inc. $CBZ

Jan -20

Source: defenseworld.net

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

1-Year Total Return ->

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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

1-Year Total Return ->

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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

1-Year Total Return ->

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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

1-Year Total Return ->

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Stock-Card
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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Stock-Card
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

27.54$

Current Price

27.54$

Potential

-0.00%

Expected Cash-Flows