Taking everything into account, CBRE scores 5 out of 10 in our fundamental rating. CBRE was compared to 62 industry peers in the Real Estate Management & Development industry. Both the profitability and the financial health of CBRE get a neutral evaluation. Nothing too spectacular is happening here. CBRE is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, CBRE could be worth investigating further for growth investing!.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CBRE had positive earnings in the past year.
In the past year CBRE had a positive cash flow from operations.
Each year in the past 5 years CBRE has been profitable.
In the past 5 years CBRE always reported a positive cash flow from operatings.

1.2 Ratios

With an excellent Return On Assets value of 4.30%, CBRE belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.39%, CBRE belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
CBRE has a Return On Invested Capital of 6.76%. This is amongst the best in the industry. CBRE outperforms 85.48% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CBRE is above the industry average of 5.44%.

		Industry Rank	Sector Rank
ROA	4.3%
ROE	14.39%
ROIC	6.76%

ROA(3y)5.07%

ROA(5y)5.54%

ROE(3y)13.78%

ROE(5y)14.7%

ROIC(3y)7.46%

ROIC(5y)7.57%

1.3 Margins

CBRE's Profit Margin of 3.12% is fine compared to the rest of the industry. CBRE outperforms 67.74% of its industry peers.
CBRE's Profit Margin has declined in the last couple of years.
CBRE's Operating Margin of 4.18% is in line compared to the rest of the industry. CBRE outperforms 59.68% of its industry peers.
CBRE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 19.22%, CBRE is in line with its industry, outperforming 45.16% of the companies in the same industry.
In the last couple of years the Gross Margin of CBRE has declined.

		Industry Rank	Sector Rank
OM	4.18%
PM (TTM)	3.12%
GM	19.22%

OM growth 3Y-8.91%

OM growth 5Y-5.18%

PM growth 3Y-25.78%

PM growth 5Y-12.79%

GM growth 3Y-4.04%

GM growth 5Y-2.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CBRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CBRE has been reduced compared to 1 year ago.
The number of shares outstanding for CBRE has been reduced compared to 5 years ago.
Compared to 1 year ago, CBRE has a worse debt to assets ratio.

2.2 Solvency

CBRE has an Altman-Z score of 3.61. This indicates that CBRE is financially healthy and has little risk of bankruptcy at the moment.
CBRE has a Altman-Z score of 3.61. This is in the better half of the industry: CBRE outperforms 70.97% of its industry peers.
CBRE has a debt to FCF ratio of 5.36. This is a neutral value as CBRE would need 5.36 years to pay back of all of its debts.
CBRE has a Debt to FCF ratio of 5.36. This is in the better half of the industry: CBRE outperforms 70.97% of its industry peers.
CBRE has a Debt/Equity ratio of 0.84. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
CBRE has a Debt to Equity ratio (0.84) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.84
Debt/FCF	5.36
Altman-Z	3.61

ROIC/WACC0.77

WACC8.83%

2.3 Liquidity

A Current Ratio of 1.13 indicates that CBRE should not have too much problems paying its short term obligations.
CBRE's Current ratio of 1.13 is on the low side compared to the rest of the industry. CBRE is outperformed by 70.97% of its industry peers.
CBRE has a Quick Ratio of 1.13. This is a normal value and indicates that CBRE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.13, CBRE is doing worse than 67.74% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.13
Quick Ratio	1.13

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

CBRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 43.41%, which is quite impressive.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
CBRE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.61%.
Measured over the past years, CBRE shows a quite strong growth in Revenue. The Revenue has been growing by 8.40% on average per year.

EPS 1Y (TTM)43.41%

EPS 3Y-1.88%

EPS 5Y6.61%

EPS Q2Q%34.17%

Revenue 1Y (TTM)14.61%

Revenue growth 3Y8.83%

Revenue growth 5Y8.4%

Sales Q2Q%13.52%

3.2 Future

CBRE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.98% yearly.
The Revenue is expected to grow by 9.04% on average over the next years. This is quite good.

EPS Next Y26.29%

EPS Next 2Y21.27%

EPS Next 3Y19.5%

EPS Next 5Y17.98%

Revenue Next Year14.36%

Revenue Next 2Y11.96%

Revenue Next 3Y10.77%

Revenue Next 5Y9.04%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 28.34, CBRE can be considered very expensive at the moment.
72.58% of the companies in the same industry are more expensive than CBRE, based on the Price/Earnings ratio.
CBRE's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.60.
CBRE is valuated rather expensively with a Price/Forward Earnings ratio of 22.56.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CBRE indicates a rather cheap valuation: CBRE is cheaper than 82.26% of the companies listed in the same industry.
CBRE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.

		Industry Rank	Sector Rank
PE	28.34
Fwd PE	22.56

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CBRE is valued a bit cheaper than 67.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CBRE is valued a bit cheaper than the industry average as 70.97% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	37.01
EV/EBITDA	21.22

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CBRE may justify a higher PE ratio.
CBRE's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.