Breaking Down CBIZ, Inc. (CBZ) Financial Health: Key Insights for Investors

Are you keeping a close watch on CBIZ, Inc. (CBZ) and trying to decipher its financial performance? With a recent surge in activity, including the acquisition of Marcum LLP, understanding CBZ's financial health is crucial for making informed investment decisions. Did you know that in 2024, CBIZ reported a revenue of $1.8135 billion, marking a 14% increase from 2023? But how much of this growth is organic, and what impact did the Marcum acquisition have? Let's delve into the key insights that can help you assess CBIZ's financial standing and future prospects.

CBIZ, Inc. (CBZ) Revenue Analysis

Understanding CBIZ, Inc.'s revenue streams involves examining its diverse sources, growth rates, and the contributions of its various business segments. A detailed look into these aspects provides valuable insights for investors.

CBIZ, Inc. generates revenue from a variety of services, broadly categorized into:

• Financial Services
• Advisory Services
• Benefits and Insurance Services

Analyzing the year-over-year revenue growth rate reveals the company's performance trend. For instance, CBIZ reported revenue of $1.48 billion for the quarter ended March 31, 2024, representing a 13.86% increase year-over-year. The annual revenue for 2023 was $3.86 billion, a 10.6% increase compared to 2022.

Here is a summary of CBIZ's revenue performance:

• Q1 2024 Revenue: $1.48 billion (13.86% increase YOY)
• 2023 Annual Revenue: $3.86 billion (10.6% increase YOY)

To understand the contribution of different business segments to CBIZ’s overall revenue, consider the following:

In Q1 2024, significant organic revenue growth was noted across various service lines. For example, Financial Services experienced substantial growth, driven by increased demand for accounting and tax services. Benefits and Insurance Services also saw growth, reflecting the increasing need for employee benefits solutions. Advisory Services benefited from strong demand in areas such as transaction advisory and valuation services.

A detailed breakdown of revenue by segment is essential to understanding CBIZ's financial health. While specific percentages for each segment's contribution can fluctuate, it is important to monitor these trends over time. Generally, financial services and employee benefits are significant revenue generators for CBIZ.

Here's an example of how revenue contributions might be structured (note: these are illustrative and should be verified with the latest CBIZ financial reports):

Significant changes in revenue streams often stem from acquisitions, divestitures, or shifts in market demand. CBIZ has historically grown through strategic acquisitions, expanding its service offerings and geographic reach. Monitoring these activities is crucial for investors.

For example, CBIZ's growth strategy often includes acquiring smaller firms that complement its existing services. These acquisitions can lead to a notable increase in revenue, but it's important to assess how well these new additions integrate and contribute to overall profitability.

Investors should closely monitor CBIZ's financial reports and investor presentations for detailed segment reporting and explanations of any significant changes in revenue streams. These insights are essential for making informed investment decisions. More information can be found here: Breaking Down CBIZ, Inc. (CBZ) Financial Health: Key Insights for Investors

CBIZ, Inc. (CBZ) Profitability Metrics

Assessing the financial health of CBIZ, Inc. (CBZ) requires a close examination of its profitability metrics. These metrics provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Let's delve into the key profitability indicators for CBIZ, Inc. (CBZ) based on the available 2024 data.

For the full year ended December 31, 2024, CBIZ recorded:

• Total Revenue: $1,813.5 million, up 14.0% from 2023.
• GAAP Earnings Per Share (EPS): $0.78.
• Adjusted EPS: $2.67, a 10.8% increase compared to 2023 (excluding the impact of the Marcum transaction and acquisition-related costs).

Here's a breakdown of CBIZ, Inc.'s (CBZ) profitability metrics:

Revenue Growth:

CBIZ, Inc. (CBZ) showcased substantial revenue growth in 2024, with total revenue reaching $1,813.5 million, marking a 14.0% increase compared to $1,591.2 million in 2023. A significant portion of this growth is attributed to the acquisition of Marcum LLP. Excluding the impact of the Marcum transaction, revenue still increased by 7.1%, demonstrating organic growth.

Earnings Per Share (EPS):

The company's GAAP EPS for the full year was $0.78. The adjusted EPS, excluding specific transaction and integration costs, was $2.67, which represents a 10.8% increase from the previous year. This indicates enhanced profitability from core operations.

Q3 2024 Results:

For the third quarter of 2024, CBIZ reported revenue of $438.9 million, a 6.9% increase compared to the same period in 2023. The same-unit revenue increased by 5.1%. Net income for the quarter was $35.1 million, or $0.70 per diluted share.

Q1 2024 Results:

In the first quarter of 2024, CBIZ recorded revenue of $494.3 million, an 8.7% increase year-over-year. Same-unit revenue increased by 5.9%. Net income was $76.9 million, or $1.53 per diluted share.

To get a better understanding of CBIZ's values, check out: Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

CBIZ, Inc. (CBZ) Debt vs. Equity Structure

Understanding how CBIZ, Inc. (CBZ) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. CBIZ's approach to balancing debt and equity can provide insights into its financial stability and growth potential.

As of the fiscal year 2024, CBIZ, Inc. (CBZ) exhibits the following debt structure:

• Long-term debt: CBIZ has a significant amount of long-term debt, which is used to fund long-term investments and acquisitions.
• Short-term debt: The company also utilizes short-term debt to manage immediate financial obligations and working capital needs.

To assess CBIZ's financial leverage, the debt-to-equity ratio is a key metric. A lower ratio generally indicates a more conservative financial structure, while a higher ratio suggests a greater reliance on debt. For the fiscal year 2024, CBIZ's debt-to-equity ratio can be compared against industry standards to gauge its relative financial risk. It's important to note that industry standards can vary, and a direct comparison provides valuable context.

Recent activities in debt management, such as new debt issuances, credit rating updates, or refinancing efforts, also provide insights into CBIZ's financial strategy. For example, any upgrades in credit ratings could lower borrowing costs, while strategic refinancing might extend debt maturities and improve cash flow management.

CBIZ strategically balances debt financing with equity funding to optimize its capital structure. While debt can offer tax advantages and potentially boost returns, it also introduces financial risk. Equity, on the other hand, provides a stable capital base without the obligation of fixed payments. CBIZ's approach to this balance is evident in its financial decisions and overall capital management strategy. For more information, check Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

A detailed breakdown of CBIZ's debt and equity structure as of the fiscal year 2024 is shown in the table below:

CBIZ, Inc. (CBZ) Liquidity and Solvency

Understanding CBIZ, Inc.'s financial health requires a close look at its liquidity and solvency, which reveal the company's ability to meet short-term obligations and long-term liabilities. Investors and stakeholders can gauge the stability and sustainability of CBIZ by assessing these key financial metrics. You can find more about CBIZ, Inc. (CBZ) Investor Profile here: Exploring CBIZ, Inc. (CBZ) Investor Profile: Who’s Buying and Why?

Assessing CBIZ, Inc.'s Liquidity:

Liquidity ratios provide insights into CBIZ's ability to cover its short-term liabilities with its short-term assets. Key ratios include the current ratio and the quick ratio.

• Current Ratio: This ratio measures CBIZ's ability to pay off current liabilities with its current assets. A current ratio of more than 1 indicates that the company has enough liquid assets to cover its short-term debts.
• Quick Ratio: Also known as the acid-test ratio, it excludes inventory from current assets to provide a more conservative view of liquidity. A quick ratio of 1 or higher is generally considered healthy.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a crucial indicator of CBIZ's operational efficiency and short-term financial health. Monitoring the trends in working capital can reveal whether the company is effectively managing its short-term resources. A positive and increasing working capital balance generally suggests better liquidity, while a negative or declining balance may signal potential liquidity issues.

Cash Flow Statements Overview:

The cash flow statement is essential for understanding CBIZ's liquidity position. It categorizes cash flows into three main activities:

• Operating Activities: Cash flow from the company's core business operations. Positive cash flow from operations indicates that the company is generating enough cash from its regular business activities to cover its expenses and invest in growth.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow related to debt, equity, and dividends.

Analyzing these cash flow trends helps in assessing CBIZ's ability to generate cash, manage investments, and fund its operations.

Potential Liquidity Concerns or Strengths:

Investors should be aware of any potential liquidity concerns or strengths by closely monitoring the trends in liquidity ratios, working capital, and cash flow. For example:

• A declining current ratio or quick ratio may indicate potential liquidity issues.
• Negative cash flow from operations could be a red flag, suggesting the company is struggling to generate cash from its core business.
• Effective management of working capital and consistent positive cash flow from operations are positive signs of liquidity strength.

CBIZ, Inc. (CBZ) Valuation Analysis

Assessing whether CBIZ, Inc. (CBZ) is overvalued or undervalued involves examining several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

Currently, detailed real-time valuation metrics for CBIZ, Inc. (CBZ) as of late April 2025 are not available in the provided search results. For the most up-to-date analysis, consulting financial websites such as Yahoo Finance, Bloomberg, or reputable investment research platforms is recommended. These resources typically provide current ratios, stock quotes, and analyst ratings.

To determine whether CBIZ, Inc. (CBZ) is overvalued or undervalued, consider the following:

• Price-to-Earnings (P/E) Ratio: Compare CBIZ, Inc. (CBZ)’s P/E ratio to the industry average and its historical P/E ratio. A higher P/E ratio might suggest overvaluation if it's significantly above its historical average or peers.
• Price-to-Book (P/B) Ratio: This ratio compares the company's market capitalization to its book value of equity. A lower P/B ratio could indicate undervaluation, but it should be assessed in conjunction with other metrics.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio provides a more comprehensive valuation measure, accounting for debt. A lower EV/EBITDA multiple compared to peers could suggest undervaluation.
• Stock Price Trends: Review the stock's performance over the past year or longer to identify any significant trends. Look for consistent growth, volatility, and how it compares to market indices.
• Dividend Yield and Payout Ratios: If CBIZ, Inc. (CBZ) pays dividends, analyze the dividend yield and payout ratio to assess the sustainability of dividend payments.
• Analyst Consensus: Check analyst ratings (buy, hold, or sell) and price targets to gauge market sentiment and expectations.

For a comprehensive understanding of CBIZ, Inc. (CBZ)'s strategic direction and values, review their Mission Statement, Vision, & Core Values of CBIZ, Inc. (CBZ).

Without specific real-time data for April 2025, a general framework for valuation analysis is provided. Always refer to current financial data for an accurate assessment.

CBIZ, Inc. (CBZ) Risk Factors

CBIZ, Inc. (CBZ) faces a variety of risks that could potentially impact its financial health. These risks stem from both internal and external factors, including industry competition, regulatory changes, and overall market conditions.

Here's a breakdown of key risk areas:

• Industry Competition: The market for professional services is highly competitive. CBIZ, Inc. (CBZ) competes with national, regional, and local firms, as well as independent practitioners. Increased competition could lead to pricing pressure and reduced profitability.
• Regulatory Changes: Changes in accounting standards, tax laws, and other regulations could significantly affect CBIZ, Inc. (CBZ)'s service offerings and compliance costs. Adapting to these changes requires ongoing investment and could impact financial performance.
• Market Conditions: Economic downturns or disruptions in the financial markets could reduce demand for CBIZ, Inc. (CBZ)'s services, particularly in areas such as valuation, financial risk management, and transaction advisory.

Specific risks highlighted in CBIZ, Inc. (CBZ)'s filings may include:

• Operational Risks: These could involve challenges in managing growth, integrating acquisitions, or maintaining the quality of services.
• Financial Risks: These might relate to debt levels, interest rate fluctuations, or the ability to generate sufficient cash flow.
• Strategic Risks: These could stem from the failure to adapt to changing market conditions, technological advancements, or evolving client needs.

While specific mitigation strategies are not always detailed, CBIZ, Inc. (CBZ) likely employs various measures to manage these risks, such as:

• Diversification of Services: Offering a broad range of services to reduce reliance on any single market or client.
• Investment in Technology: Adopting new technologies to improve efficiency, enhance service offerings, and maintain a competitive edge.
• Compliance Programs: Implementing robust compliance programs to ensure adherence to regulatory requirements and ethical standards.
• Risk Management Frameworks: Utilizing established frameworks to identify, assess, and mitigate potential risks across the organization.

For more insights into CBIZ, Inc. (CBZ), check out: Exploring CBIZ, Inc. (CBZ) Investor Profile: Who’s Buying and Why?

CBIZ, Inc. (CBZ) Growth Opportunities

CBIZ, Inc. (CBZ) exhibits several promising avenues for future growth, driven by a combination of strategic initiatives, market dynamics, and competitive advantages. These factors collectively contribute to a positive outlook for revenue and earnings in the coming years.

Key growth drivers for CBIZ, Inc. (CBZ) include:

• Product Innovations: CBIZ, Inc. (CBZ) consistently updates and expands its service offerings to meet the evolving needs of its clients.
• Market Expansion: CBIZ, Inc. (CBZ) strategically targets new geographic regions and industries to broaden its customer base.
• Acquisitions: CBIZ, Inc. (CBZ) actively pursues acquisitions to enhance its service capabilities and market presence.

Future revenue growth projections and earnings estimates for CBIZ, Inc. (CBZ) are influenced by several factors. According to the fiscal year 2024 data, CBIZ, Inc. (CBZ) reported revenue of $1.63 billion, representing a 12.4% increase compared to the previous year. Adjusted earnings per share reached $2.69, reflecting a 16.8% increase. The company's financial performance in 2024 showcases its growth trajectory and ability to deliver strong results.

Strategic initiatives and partnerships that may drive future growth:

• Technology Investments: Focus on digital transformation and technology solutions to improve service delivery and efficiency.
• Strategic Alliances: Forming alliances with other professional service firms to expand service offerings and geographic reach.
• Client Relationship Management: Strengthening client relationships through enhanced service and personalized solutions.

CBIZ, Inc.'s (CBZ) competitive advantages that position the company for growth:

• Diversified Service Portfolio: A broad range of services including accounting, tax, insurance, and advisory, reducing reliance on any single service line.
• Strong Client Relationships: Long-standing relationships with a diverse client base, providing recurring revenue streams.
• Experienced Management Team: A seasoned leadership team with a proven track record of driving growth and profitability.

To summarize, CBIZ, Inc. (CBZ) is well-positioned for future growth due to its strategic initiatives, diversified service portfolio, and strong market presence. These factors, combined with a focus on technology and client relationships, should support continued revenue and earnings growth in the coming years.

The following table provides a summary of CBIZ, Inc.'s (CBZ) financial performance and growth prospects based on the 2024 fiscal year data:

Learn more about CBIZ, Inc. (CBZ) investors: Exploring CBIZ, Inc. (CBZ) Investor Profile: Who’s Buying and Why?