CBZ Stock Risk & Deep Value Analysis
CBIZ Inc
DVR Score
out of 10
What You Need to Know About CBZ Stock
We analyzed CBIZ Inc using our deep value framework. Sign in to see our full verdict and DVR Score.
We ran CBZ through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.
CBZ Risk Analysis & Red Flags
What Could Go Wrong
The primary risk is that CBIZ's core business relies on a mature professional services market characterized by low organic growth. A significant economic downturn could materially reduce client demand for their accounting, tax, and advisory services, directly impacting their already low-single-digit revenue growth (Q1 2026 was +1.3% YoY) and challenging their ability to sustain or grow the recently raised FY26 adjusted EBITDA guidance of $465 million–$475 million.
Risk Matrix
Overall
Moderate
Financial
Low
Market
Medium
Competitive
Medium
Execution
Medium
Regulatory
Low
Red Flags
- ⚠
Low organic revenue growth: Q1 2026 revenue growth of +1.3% YoY is indicative of a mature business, not a high-growth opportunity.
- ⚠
Major institutional investor exit: Capital Research Global Investors amended Schedule 13G/A on Apr. 30, 2026, reporting 0.0% ownership, indicating a significant lack of conviction from a sophisticated player.
- ⚠
Reliance on one-time gains for EPS boost: Q1 2026 GAAP EPS included a $58 million gain from acquisition-related adjustments, making the underlying operational profitability less robust than headline numbers suggest.
Upcoming Risk Events
- 📅
Q2 2026 Earnings Miss (Est. early Aug 2026): Failure to meet updated guidance or a significant deceleration in organic revenue growth below 1.0% YoY.
- 📅
Economic Downturn Impact (Ongoing): Prolonged recession reducing demand for discretionary advisory services, potentially impacting current adjusted EBITDA guidance of $465M-$475M.
When to Reconsider
- 🚪
Exit if quarterly organic revenue growth turns negative YoY or adjusted EBITDA margin falls below 25% for two consecutive quarters (Q1 2026 Adj. EBITDA margin was 28.8%).
- 🚪
Sell if management cuts full-year adjusted EPS guidance below $3.80 (current guidance $4.00-$4.10).
Unlock CBZ Risk Analysis & Red Flags
Create a free account to see the full analysis
Investment Thesis
If CBIZ continues its disciplined strategy of tuck-in acquisitions and efficient operational management, leading to sustained adjusted EPS growth to the $4.50-$5.00 range by FY2028 (from current FY26 guidance of $4.00-$4.10), then the stock could see modest appreciation to $72-$90 based on a stable 16-18x P/E multiple. This is attractive for investors seeking stable income and value, but not the exponential growth required for a 10x return, as the market is largely pricing in its low-growth, cash-generative nature.
Is CBZ Stock Undervalued?
Unlock the full AI analysis for CBZ
Get the complete DVR score, risk analysis, and more
Unlock the full report
Create a free account to see the DVR score, risk flags, and AI analysis.
CBZ Price Targets & Strategy
12-Month Target
$64.80
Bull Case
$72.90
Bear Case
$48.60
Valuation Basis
Based on 16x forward P/E applied to the mid-point of FY26 adjusted EPS guidance of $4.05.
Entry Strategy
Consider accumulation between $29.50-$31.00, near its established support zones and previous 52-week lows, for value-oriented investors.
Exit Strategy
Initiate profit-taking at $65.00, with a stop-loss order set if the price consistently trades below $29.00.
Portfolio Allocation
1-3% for moderate risk tolerance, primarily for income and stable growth portfolio segments, not high-growth.
Price Targets & Strategy
Sign up free to unlock price targets and entry/exit strategies
Is CBZ Financially Healthy?
Valuation
P/E Ratio
10.75
Forward P/E
25.60
EV/EBITDA
20.91
PEG Ratio
2.74
Price/Book
6.63
Price/Sales
4.61
Profitability
Gross Margin
12.76%
Operating Margin
10.29%
Net Margin
5.57%
Return on Equity
8.32%
Revenue Growth
28.34%
EPS
$2.48
Balance Sheet
Current Ratio
1.22
Quick Ratio
1.22
Debt/Equity
0.83
Other
Beta (Volatility)
0.99
Does CBZ Have a Competitive Moat?
Sign in to unlockMoat Rating
🛡️ Narrow
Moat Trend
Stable
Moat Sources
2 Identified
CBIZ's moat stems from client relationships that create switching costs and its brand reputation for reliable professional services. This provides some pricing power and recurring revenue, but the fragmented nature of the professional services market and constant competition from other firms and independent practitioners limit the expansion of this moat.
Moat Erosion Risks
- •Intense competition from larger accounting firms and niche consultants that could erode market share.
- •Talent retention challenges in a competitive labor market for skilled professionals, potentially impacting service quality and client relationships.
CBZ Competitive Moat Analysis
Sign up to see competitive advantages
CBZ Market Intelligence
Sentiment & Insider Activity
Social Sentiment
Neutral (Limited retail investor buzz, typical for a stable, low-growth professional services firm.)
Institutional Sentiment
Negative (Major institutional investor, Capital Research Global Investors, completely exited their position as of Apr. 30, 2026. No specific analyst upgrades/downgrades provided, but this exit is a strong signal.)
Insider Activity (Form 4)
Capital Research Global Investors, a significant institutional investor, reported 0 shares and 0.0% ownership of CBIZ common stock in an amended Schedule 13G/A on Apr. 30, 2026, signaling a complete exit from its position.
Options Flow
Normal options activity (No specific data provided, assume standard put/call ratios without unusual institutional positioning).
Earnings Intelligence
Next Earnings
Estimated early-August 2026 (for Q2 2026 results)
Surprise Probability
Medium (Q1 2026 revenue missed estimates, but EPS and guidance beat, suggesting mixed predictability.)
Historical Earnings Pattern
Unspecified in the provided research, but typically, stable professional services firms react to earnings based on guidance revisions and consistent execution rather than explosive growth.
Key Metrics to Watch
Competitive Position
Top Competitor
HURN (Huron Consulting Group)
Market Share Trend
Stable (Primarily maintains market share through organic growth and expands through tuck-in acquisitions in a fragmented market).
Valuation vs Peers
Likely trades at a P/E multiple comparable to other stable professional services firms, potentially at a discount to those with higher growth segments or larger scale.
Competitive Advantages
- •Broad service offering for mid-market clients (accounting, tax, advisory, benefits)
- •Established client relationships and reputation
- •Disciplined acquisition strategy for geographic and service line expansion
Market Intelligence
Sign up free to unlock sentiment, earnings intel, and peer analysis
What Could Drive CBZ Stock Higher?
Near-Term (0-6 months)
- •Q2 2026 Earnings Report (Est. early Aug 2026): Positive organic growth above 2% YoY and sustained margin expansion could signal operational efficiencies beyond acquisition gains.
- •Completion of Current Share Buyback Program (Est. Q2-Q3 2026): Further share count reduction, enhancing EPS, especially if executed below $30/share average.
Medium-Term (6-18 months)
- •Successful Integration of Recent Acquisitions (FY2026-FY2027): Proving accretive and driving consistent mid-single-digit revenue growth and improved adjusted EBITDA margins above 30%.
- •Strategic Expansion of Healthcare Services Division (FY2027): Capturing specific niche market share in complex benefits or compliance, leading to 5%+ segment revenue growth for 2 consecutive quarters.
Long-Term (18+ months)
- •Market Consolidation Leadership (FY2028-FY2029): If CBIZ becomes a dominant consolidator in regional middle-market professional services, achieving $5B+ in annual revenue and 15%+ net margins, it could warrant a higher valuation multiple.
- •Tech-Enabled Service Innovation (FY2028-FY2029): Development or acquisition of proprietary AI/automation tools that significantly reduce service delivery costs, enabling sustained adjusted EBITDA margins above 35% without impacting quality.
Catalysts & Growth Drivers
Sign up free to see growth catalysts
What's the Bull Case for CBZ?
- ✓
Watch for sustained organic revenue growth above 3% YoY, indicating a potential shift in market capture beyond acquisitions.
- ✓
Monitor for any change in the dividend policy or an acceleration of share repurchases, signaling management's confidence in free cash flow generation.
Bull Case Analysis
Sign up free to see the bull case
📊 Explore More Stock Analysis
Get comprehensive Deep Value Reports for thousands of stocks. Research risk, financial health, and investment potential with our AI-powered analysis.
How CBIZ Inc Makes Money
CBIZ Inc. is a leading provider of professional business services to clients across the United States. The company generates revenue by offering a comprehensive suite of financial services, including accounting, tax, and advisory, alongside benefits and HR consulting, and property and casualty insurance. They primarily serve middle-market companies, non-profits, and governmental entities. Their business model combines organic growth from existing client relationships with a strategic, disciplined approach to acquiring smaller professional services firms, integrating them to expand their geographic footprint and service offerings.
Read Full Business Model BreakdownFAQ
What is the DVR Score for CBIZ Inc (CBZ)?
As of May 19, 2026, CBIZ Inc has a DVR Score of 3.0 out of 10, placing it in the "Risk Trap" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.
What is the market capitalization of CBIZ Inc?
CBIZ Inc's market capitalization is approximately $1.7B..
What is the risk level for CBZ stock?
Our analysis rates CBIZ Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.
What is the P/E ratio of CBZ?
CBIZ Inc currently has a price-to-earnings (P/E) ratio of 10.8. This is below the market average, which could indicate the stock is undervalued or facing headwinds.
Is CBIZ Inc's revenue growing?
CBIZ Inc has reported revenue growth of 28.3%. The company is showing strong top-line momentum.
Is CBZ stock profitable?
CBIZ Inc has a profit margin of 5.6%. The company is profitable but margins are modest.
How often is the CBZ DVR analysis updated?
Our AI-powered analysis of CBIZ Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on May 19, 2026.
Important Disclaimer – Not Financial Advice
Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for CBZ (CBIZ Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.
All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.