CBIZ Inc. Stock Upgraded (CBZ)

NEW YORK ( TheStreet) -- CBIZ (NYSE: CBZ) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 12.2%. Since the same quarter one year prior, revenues slightly increased by 0.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CBIZ INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CBIZ INC reported lower earnings of $0.45 versus $0.52 in the prior year. This year, the market expects an improvement in earnings ($0.57 versus $0.45).
  • The gross profit margin for CBIZ INC is rather low; currently it is at 15.90%. Regardless of CBZ's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.70% trails the industry average.
  • Net operating cash flow has declined marginally to $14.62 million or 7.13% when compared to the same quarter last year. Despite a decrease in cash flow CBIZ INC is still fairing well by exceeding its industry average cash flow growth rate of -17.78%.

CBIZ, Inc. provides professional business services, products, and solutions to businesses, individuals, governmental entities, and not-for-profit enterprises in the United States and Canada. The company has a P/E ratio of 10.9, above the average diversified services industry P/E ratio of 10.7 and below the S&P 500 P/E ratio of 17.7. CBIZ has a market cap of $309.3 million and is part of the services sector and diversified services industry. Shares are up 7.4% year to date as of the close of trading on Thursday.

You can view the full CBIZ Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff