I've been keeping an eye on CBIZ, Inc. (NYSE:CBZ) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe CBZ has a lot to offer. Basically, it is a company that has been able to sustain great financial health, trading at an attractive share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on CBIZ here.
Flawless balance sheet and good value
CBZ's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that CBZ has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. CBZ's has produced operating cash levels of 0.53x total debt over the past year, which implies that CBZ's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings. CBZ's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of CBZ's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the commercial services industry, CBZ is also trading below its peers, relative to earnings generated. This supports the theory that CBZ is potentially underpriced.
For CBIZ, I've compiled three relevant aspects you should further research:
- Future Outlook: What are well-informed industry analysts predicting for CBZ’s future growth? Take a look at our free research report of analyst consensus for CBZ’s outlook.
- Historical Performance: What has CBZ's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CBZ? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.