Last Updated: 09 Nov 2024
Executive Summary
CBIZ Inc. (CBZ) is a provider of financial, insurance, and advisory services with a market capitalization of $3.91 billion. The company has a strong financial position with an EBITDA of $194.9 million and a profit margin of 7.08%. CBZ's stock price is currently trading at $77.81, below its 52-week high of $86.36. Analysts have a positive outlook on the company, with a consensus target price of $84.5 and a majority of analysts recommending a buy or strong buy rating.
Company Overview
CBIZ, Inc. is headquartered in Cleveland, Ohio, and provides a range of services, including accounting, tax, financial advisory, risk advisory, and insurance brokerage. The company operates through three segments: Accounting & Tax, Financial Advisory, and Risk & Insurance. CBZ has a strong presence in the United States and Canada, with over 100 offices and more than 5,000 employees.
Fundamental Analysis
CBZ has a strong financial performance, with revenue growing at a steady pace and profitability improving in recent years. The company's EBITDA margin has increased from 10.3% in 2019 to 11.3% in 2023. CBZ also has a strong balance sheet with low debt levels and ample liquidity.
The company's valuation metrics are slightly above the industry average. CBZ's trailing PE ratio of 32.83 is higher than the industry average of 25.64. However, the company's forward PE ratio of 16.53 is below the industry average, indicating that the stock may be undervalued.
Technical Analysis
CBZ's stock price has been trending sideways in recent months, with the 50-day moving average providing support around $68.04 and the 200-day moving average providing resistance around $72.76. The stock is currently trading above both moving averages, indicating a potential breakout to the upside.
The relative strength index (RSI) is currently at 55.73, indicating that the stock is neither overbought nor oversold. The moving average convergence divergence (MACD) is also trending positive, suggesting that the stock may be poised for further gains.
Short Term Outlook
In the short term, CBZ's stock price is likely to continue trading within the range of $68.04 and $72.76. However, a breakout above $72.76 could lead to further gains towards the analyst target price of $84.5.
Long Term Outlook
CBZ's long-term outlook is positive. The company has a strong financial position and a growing market share. The company's focus on providing value-added services to its clients is likely to continue to drive growth in the future.
Analyst Recommendations
Analysts have a positive outlook on CBZ, with a consensus target price of $84.5. Two analysts recommend a strong buy rating, one analyst recommends a buy rating, and no analysts recommend a hold, sell, or strong sell rating.
