CBIZ Operating Margin vs. Return On Asset

CBZ Stock  USD 78.01  0.89  1.13%   
Based on the key profitability measurements obtained from CBIZ's financial statements, CBIZ Inc is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess CBIZ's ability to earn profits and add value for shareholders.

CBIZ Operating Profit Margin

0.0599

Sales General And Administrative To Revenue is likely to rise to 0.05 in 2024, whereas Price To Sales Ratio is likely to drop 1.45 in 2024. At this time, CBIZ's Accumulated Other Comprehensive Income is fairly stable compared to the past year. Operating Income is likely to rise to about 173.5 M in 2024, whereas Total Other Income Expense Net is likely to drop slightly above 1 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.150.1415
Notably Up
Pretty Stable
Net Profit Margin0.07980.076
Sufficiently Up
Slightly volatile
Operating Profit Margin0.05990.1038
Way Down
Slightly volatile
Return On Assets0.06220.0592
Sufficiently Up
Pretty Stable
Return On Equity0.160.1528
Sufficiently Up
Slightly volatile
For CBIZ profitability analysis, we use financial ratios and fundamental drivers that measure the ability of CBIZ to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well CBIZ Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between CBIZ's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of CBIZ Inc over time as well as its relative position and ranking within its peers.
  

CBIZ's Revenue Breakdown by Earning Segment

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Is Research & Consulting Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of CBIZ. If investors know CBIZ will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about CBIZ listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.044
Earnings Share
2.37
Revenue Per Share
33.599
Quarterly Revenue Growth
0.069
Return On Assets
0.046
The market value of CBIZ Inc is measured differently than its book value, which is the value of CBIZ that is recorded on the company's balance sheet. Investors also form their own opinion of CBIZ's value that differs from its market value or its book value, called intrinsic value, which is CBIZ's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because CBIZ's market value can be influenced by many factors that don't directly affect CBIZ's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between CBIZ's value and its price as these two are different measures arrived at by different means. Investors typically determine if CBIZ is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, CBIZ's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

CBIZ Inc Return On Asset vs. Operating Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining CBIZ's current stock value. Our valuation model uses many indicators to compare CBIZ value to that of its competitors to determine the firm's financial worth.
CBIZ Inc is rated fifth in operating margin category among its peers. It is rated fourth in return on asset category among its peers reporting about  0.40  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for CBIZ Inc is roughly  2.49 . At this time, CBIZ's Operating Profit Margin is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the CBIZ's earnings, one of the primary drivers of an investment's value.

CBIZ Return On Asset vs. Operating Margin

Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

CBIZ

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.11 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

CBIZ

Return On Asset

 = 

Net Income

Total Assets

 = 
0.046
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

CBIZ Return On Asset Comparison

CBIZ is currently under evaluation in return on asset category among its peers.

CBIZ Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in CBIZ, profitability is also one of the essential criteria for including it into their portfolios because, without profit, CBIZ will eventually generate negative long term returns. The profitability progress is the general direction of CBIZ's change in net profit over the period of time. It can combine multiple indicators of CBIZ, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income1.8 M1.9 M
Operating Income165.2 M173.5 M
Income Before Tax166.3 M174.6 M
Total Other Income Expense Net1.1 MM
Net Income121 M127 M
Income Tax Expense45.3 M47.6 M
Net Income Applicable To Common Shares121.2 M127.2 M
Net Income From Continuing Ops122.2 M67.4 M
Non Operating Income Net Other-16.9 M-16.1 M
Interest Income7.2 M5.1 M
Net Interest Income-17.9 M-17 M
Change To Netincome34.4 M36.1 M
Net Income Per Share 2.42  2.54 
Income Quality 1.27  0.86 
Net Income Per E B T 0.73  0.44 

CBIZ Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on CBIZ. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of CBIZ position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the CBIZ's important profitability drivers and their relationship over time.

Use CBIZ in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if CBIZ position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CBIZ will appreciate offsetting losses from the drop in the long position's value.

CBIZ Pair Trading

CBIZ Inc Pair Trading Analysis

The ability to find closely correlated positions to CBIZ could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CBIZ when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back CBIZ - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling CBIZ Inc to buy it.
The correlation of CBIZ is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as CBIZ moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CBIZ Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for CBIZ can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your CBIZ position

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Additional Tools for CBIZ Stock Analysis

When running CBIZ's price analysis, check to measure CBIZ's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CBIZ is operating at the current time. Most of CBIZ's value examination focuses on studying past and present price action to predict the probability of CBIZ's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CBIZ's price. Additionally, you may evaluate how the addition of CBIZ to your portfolios can decrease your overall portfolio volatility.