CBIZ, Inc.
CBZ
$54.46
-0.26%
CBIZ, Inc. is a professional services firm providing financial services, benefits and insurance, and national practices to middle-market businesses and organizations across the United States. As a leading specialty business services provider, CBIZ differentiates itself through its integrated advisory model, combining accounting, tax, and consulting with employee benefits and insurance solutions. The current investor narrative centers on a dramatic stock price surge in late July 2026, likely driven by strong earnings or a strategic announcement, which has reignited interest in the company's growth trajectory and margin expansion potential. Despite a year-over-year decline, the recent momentum has made CBIZ a focal point for investors seeking exposure to the professional services sector.…
CBZ
CBIZ, Inc.
$54.46
CBZ 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on CBIZ, Inc.'s 12-month outlook, with a consensus price target around $51.67 and implied upside of -5.1% versus the current price.
Average Target
$51.67
0 analysts
Implied Upside
-5.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$45 - $55
Analyst target range
Analyst coverage is limited with only 3 analysts, and the consensus recommendation is 'buy' with a mean rating of 2.0 (where 1 is strong buy and 5 is sell). The average target price is $51.67, implying a downside of -5.1% from the current price of $54.46. The target range is $45.00 to $55.00, with the high target near the current price, suggesting limited upside potential as per analysts. The low target of $45.00 implies a potential 17.4% downside, reflecting uncertainty. The narrow spread between low and high targets ($10) indicates moderate conviction, but the fact that the current price exceeds the average target suggests the stock may be overvalued relative to analyst expectations, possibly due to the recent surge. Insufficient analyst coverage can lead to higher volatility and less efficient price discovery, which is evident in the stock's recent sharp movements.
Bulls vs Bears: CBZ Investment Factors
CBIZ presents a mixed picture: strong recent momentum and attractive forward valuation metrics are offset by the stock trading above analyst targets and a high debt load. The bull case is supported by a PEG ratio of 0.20 and a 95.6% six-month rally, while the bear case highlights the 13% year-over-year decline and limited upside per analysts. Currently, the bull side has stronger evidence due to the dramatic earnings growth expected (forward EPS of $6.64 vs. trailing $0.036), but the key tension is whether the company can deliver on these aggressive growth expectations. If earnings materialize, the stock is undervalued; if not, the recent surge could reverse sharply.
Bullish
- Exceptional 6-month momentum: The stock has surged 95.6% over the past six months, far outpacing the S&P 500's 13.87% gain, demonstrating strong market conviction and a potential inflection in fundamentals.
- Undervalued on forward earnings: With a forward P/E of 12.82x and a PEG ratio of 0.20, the stock trades at a significant discount to its growth prospects, implying the market expects EPS of $6.64 next year, a massive jump from the trailing $0.036.
- Healthy operating efficiency: Operating margin of 8.48% and net margin of 4.19% indicate solid cost control and profitability for a professional services firm, supporting the potential for margin expansion.
- Analyst consensus is Buy: The consensus recommendation is 'buy' with a mean rating of 2.0 (on a 1-5 scale), and the average target price of $51.67 is close to the current price, suggesting analysts see limited downside.
Bearish
- Stock trades above analyst target: At $54.46, the stock is 5.1% above the average analyst target of $51.67, implying limited upside and potential overvaluation after the recent surge.
- Sharp 1-year decline despite recovery: Despite the 6-month rally, the stock is still down 13.0% over the past year, underperforming the S&P 500's 20.37% gain, indicating persistent weakness earlier in the period.
- High debt-to-equity ratio: A debt-to-equity ratio of 1.04 suggests significant leverage, which could amplify financial risk if earnings growth disappoints or interest rates rise.
- Thin analyst coverage: With only 3 analysts covering the stock, price discovery is less efficient, and the narrow target range ($45-$55) reflects uncertainty, potentially leading to higher volatility.
CBZ Technical Analysis
CBIZ's price trend has been highly volatile over the past year, with the stock currently trading at $54.46, down 13.0% from a year ago but up 95.6% over the last six months. The stock sits at 81% of its 52-week range (between $24.29 and $67.24), indicating a strong recovery from lows but still below its peak. This positioning suggests a robust uptrend that has reclaimed significant ground, though the proximity to the 52-week high of $67.24 implies potential resistance ahead. The 1-year decline of 13.0% contrasts sharply with the 6-month gain of 95.6%, highlighting a dramatic turnaround in the latter half of the period.
Beta
0.93
0.93x market volatility
Max Drawdown
-67.7%
Largest decline past year
52-Week Range
$24-$67
Price range past year
Annual Return
-13.0%
Cumulative gain past year
| Period | CBZ Return | S&P 500 |
|---|---|---|
| 1m | +35.1% | +4.5% |
| 3m | +88.3% | +5.1% |
| 6m | +95.6% | +13.7% |
| 1y | -13.0% | +20.6% |
| ytd | +7.2% | +13.8% |
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CBZ Fundamental Analysis
CBIZ's revenue trajectory is not directly provided, but the estimated revenue for the next fiscal year is $3.17 billion, with a forward P/S ratio of 1.16, implying a market cap of ~$3.67 billion. The company's net margin is 4.19%, and gross margin is 12.89%, reflecting a services-heavy business with lower gross margins typical of professional services. The operating margin of 8.48% indicates healthy operational efficiency, and the ROE of 6.55% and ROA of 3.94% suggest moderate profitability. The company is profitable with a trailing EPS of $0.036, but the forward EPS estimate of $6.64 implies significant expected earnings growth, which is a key driver of the investment case.
Quarterly Revenue
N/A
N/A
Revenue YoY Growth
N/A
YoY Comparison
Gross Margin
N/A
Latest Quarter
Free Cash Flow
N/A
Last 12 Months
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Valuation Analysis: Is CBZ Overvalued?
Given positive net income, the PE ratio is the primary valuation metric. The trailing PE is 27.57x, while the forward PE is 12.82x, indicating the market expects substantial earnings growth (the PEG ratio is 0.20, suggesting undervaluation relative to growth). The PS ratio is 1.16x, and EV/Sales is 1.75x, both reasonable for a professional services firm. Compared to the industry average (not provided), CBIZ's forward PE of 12.82x appears attractive if the sector trades at higher multiples, but without explicit peer data, the premium/discount cannot be quantified. Historically, the current trailing PE of 27.57x is elevated, but the forward PE suggests the market is pricing in a significant earnings jump, which may be optimistic but is supported by the estimated EPS of $6.64.
PE
27.6x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
13.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are notable: CBIZ carries a debt-to-equity ratio of 1.04, indicating substantial leverage that could strain cash flows if interest rates rise or earnings falter. The company's net margin of 4.19% is thin, leaving limited buffer against cost increases, and the trailing EPS of $0.036 is extremely low, though forward estimates suggest a dramatic improvement. The current ratio of 1.22 provides some liquidity comfort, but the high debt load remains a key financial risk. Additionally, the stock's 67.69% max drawdown over the past year highlights its vulnerability to earnings disappointments or market shocks, and the low payout ratio (0%) means no dividend support during downturns.
Market and competitive risks include valuation compression: the trailing P/E of 27.57x is elevated, and if the market loses confidence in the forward EPS estimate of $6.64, the multiple could contract sharply. The stock's beta of 0.927 offers some protection, but its relative strength over the past year is negative (-33.4%), indicating underperformance versus the market. With only 3 analysts, coverage is thin, and the narrow target range suggests uncertainty; any negative news could trigger a sell-off. The professional services sector faces competitive pressures from larger players and potential regulatory changes, though no specific news is available. The recent price surge may have been driven by a one-time event, and if that proves unsustainable, the stock could revert to lower levels.
In a worst-case scenario, if the company fails to meet the aggressive forward EPS estimate of $6.64, the stock could fall to its 52-week low of $24.29, representing a -55.4% decline from the current price of $54.46. This could occur if the recent surge was based on speculative hype rather than fundamental improvement, or if macroeconomic conditions deteriorate, impacting demand for professional services. The max drawdown of -67.69% from the 52-week high suggests that such a decline is possible, and investors should be prepared for significant downside risk if the growth narrative unravels.