CBIZ, Inc. (CBZ)
OvervaluedFundamental
64
Price
$54.77
Market Cap
$3.00B
Part 1 · What the company is worth
Overview
CBIZ sells accounting, tax, benefits and consulting services to mid-sized businesses and organizations across the U.S. State law bars it from performing the actual audits itself, so it partners with separately owned CPA firms — mainly CBIZ CPAs, formerly Mayer Hoffman McCann — under long-term service agreements: CBIZ provides the staff, offices and systems, the CPA firm signs the audit opinion. It has grown heavily by acquisition, most recently absorbing the non-audit business of Marcum in 2023.
How it makes money
Revenue is mostly fees billed for professional hours worked, so profitability depends on keeping accountants, advisors and consultants staffed on paying engagements rather than sitting idle. A smaller slice comes from insurance brokerage commissions, which are contingent on the performance of policies placed with carriers. The 2025 jump in Financial Services revenue mainly reflects a full year of the acquired Marcum business rather than organic growth of the same size.
Revenue by segment
Accounting and tax, financial and transaction advisory, IT consulting and government healthcare compliance consulting.
Employee benefits consulting, payroll and HR administration, property and casualty insurance brokerage, and retirement plan services.
Managed networking and hardware services delivered to a single long-standing client under a cost-plus contract through 2028.
Key risks
- Structural dependence on affiliated CPA firms — Because state law bars CBIZ from performing audits itself, its ability to serve attest clients depends on renewing service agreements with independent CPA firms it does not control, chiefly CBIZ CPAs.
- Integration risk from the Marcum acquisition — The company states there is no assurance the acquired Marcum non-attest business will perform as expected, and that it may have underestimated liabilities assumed in the transaction.
- Dependence on retaining professional staff — The company states its primary asset is its people and that it cannot assure it will retain executives and key employees, some of whom are not bound by enforceable non-compete agreements.
- Goodwill and intangible asset impairment — Goodwill and intangible assets totaled about $2.87 billion combined at the end of 2025 after the Marcum transaction; the company states any impairment would be a material non-cash charge given this size.
- Slow or uncollectible client receivables — The company notes that professional services firms typically carry high accounts receivable balances, and that a weaker economy could slow client payments or make some receivables uncollectible.
Customer concentration
Top customers account for 1.7% of revenue
The company states its largest single client, served by the National Practices group, generated only about 1.7% of consolidated revenue in 2025 — management describes its client base as diversified across industries and geographies.
The case for
Buyers argue that CBIZ's client base is diversified enough that no single loss can move results, that the Marcum acquisition materially scaled up its accounting franchise, and that demand for outsourced accounting, benefits and IT consulting among mid-sized businesses is a durable, recurring need.
The case against
Sellers fear that the unusual structure of relying on separately owned CPA firms for audit work adds a layer of risk outside the company's control, that a large recent acquisition raises integration and impairment risk, and that a labor-intensive, people-dependent business has thin protection if key staff leave.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
Generated on September 18, 2026 with claude-haiku-4-5 — shared with all users
Gallagher is a direct rival to CBIZ's Benefits and Insurance Services segment, brokering property-casualty cover and employee benefit plans for US middle-market employers.
RSM sells the same bundle of audit, tax and advisory work to the same US middle-market private and PE-backed companies that make up the bulk of CBIZ's Financial Services revenue.
BDO USA competes for the same middle-market audit and tax mandates and for the same partners and staff in the same US metropolitan markets.
Grant Thornton Advisors serves the same middle-market client base with accounting, tax and advisory services, and in July 2026 agreed to acquire CBIZ outright for $55 per share.
Baker Tilly targets the same privately held and private-equity-owned US companies with a similar mix of assurance, tax and business consulting.
Forvis Mazars competes head-on for middle-market accounting, tax and risk advisory engagements across the same US regional markets.
Balance Sheet & Liquidity
Revenue
$2.76B
Fiscal year ended 12/31/2025
Net Income
$115M
Fiscal year ended 12/31/2025
Free Cash Flow
$176M
Total Equity
$1.76B
Total Liabilities
$2.65B
Current Ratio
1.47
Interest Coverage
2.18
Debt/EBITDA
5.74
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$44.92
Current Price
$54.77
Margin of Safety
-21.9%
Fair Value Range
$32.50 - $57.34
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
26.55
ROE
6.6%
P/B Ratio
1.59
P/FCF
16.90
Gross Margin
12.9%
ROIC
5.0%
Profitability Radar
Value Creation (Economic Moat)
ROIC
5.0%
WACC
7.5%
ROIC − WACC
-2.5 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (19)
- EPS shows upward trend
- EPS CAGR 8.31%
- Price CAGR 14.84%
- ROIC 5.0%
- P/FCF 16.90
- P/B Ratio 1.59
- Debt/Equity ratio
- Operating Margin 8.5%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Revenue Growth 5Y 23.4%
- Analyst Consensus 56% Buy
- Earnings Surprise avg 8.0%
- Earnings Quality (OCF/NI) 2.37
- Piotroski F-Score 8/9
Failed (7)
- Gross Margin 12.9%
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- ROE 7.1%
- PEG Ratio 4.37
- Share Dilution 19.9%
Unavailable (2)
- Dividend Payout NaN%
- Net Margin Trend (invalid data)
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Issuing new shares, diluting ownership
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Jerome P. Grisko Jr. | President, CEO & Director | 63 |
| Mr. Brad S. Lakhia | Senior VP & CFO | 53 |
Audit Risk
9
Board Risk
4
Compensation Risk
5
Shareholder Rights Risk
1
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-26
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-29
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for CBZ, sourced from Markets Gazette.
- 7/29/2026POSITIVEGrant Thornton to Buy Advisory Firm CBIZ in $5 Billion Deal
Grant Thornton's US division has announced its intention to acquire CBIZ Inc. for $5 billion, a significant move in the professional services sector. This acquisition, one of the largest in recent years, is expected to enhance Grant Thornton's capabilities and market presence. For CBIZ shareholders, the deal represents a substantial premium and a lucrative exit. Investors will be watching for integration progress and potential synergies that could benefit the combined entity's future performance and market share.
- 7/7/2026POSITIVEAccounting Firm CBIZ Urged by Activist Investor to Pursue M&A
An activist investor has sent a letter to CBIZ Inc., urging the accounting firm to shift its strategic focus towards mergers and acquisitions. The shareholder recommends abandoning the current share buyback program and re-evaluating capital allocation to prioritize growth through acquisitions. This call for a more aggressive M&A strategy could signal a potential for significant value creation if successful, potentially leading to a higher stock valuation for CBIZ Inc. Investors will be watching for management's response and any indication of a strategic pivot.
- 3/16/2026NEGATIVECBIZ Insider Sale: Trust Move or Warning Sign?
CBIZ, Inc. has experienced substantial insider selling, a move that raises questions for investors given the company's stock has already seen a significant decline over the past year. While insider selling can sometimes be attributed to personal financial planning or diversification, a notable volume of sales during a period of share price weakness can be interpreted as a lack of confidence from those closest to the company's operations and future prospects. This action may signal that insiders believe the stock is overvalued or that further headwinds are anticipated, potentially impacting investor sentiment and future price performance.
via Markets Gazette