We assign a fundamental rating of 5 out of 10 to CBRE. 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make CBRE a good candidate for growth investing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year CBRE was profitable.
CBRE had a positive operating cash flow in the past year.
Each year in the past 5 years CBRE has been profitable.
Each year in the past 5 years CBRE had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 4.30%, CBRE belongs to the top of the industry, outperforming 88.71% of the companies in the same industry.
With an excellent Return On Equity value of 14.39%, CBRE belongs to the best 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 has a Profit Margin of 3.12%. This is in the better half of the industry: CBRE outperforms 67.74% of its industry peers.
In the last couple of years the Profit Margin of CBRE has declined.
CBRE has a Operating Margin of 4.18%. This is comparable to the rest of the industry: CBRE outperforms 59.68% of its industry peers.
In the last couple of years the Operating Margin of CBRE has declined.
CBRE has a Gross Margin of 19.22%. This is comparable to the rest of the industry: CBRE outperforms 45.16% of its industry peers.
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.
CBRE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CBRE has been reduced compared to 5 years ago.
CBRE has a worse debt/assets ratio than last year.

2.2 Solvency

CBRE has an Altman-Z score of 3.62. This indicates that CBRE is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.62, CBRE is doing good in the industry, outperforming 70.97% of the companies in the same industry.
The Debt to FCF ratio of CBRE is 5.36, which is a neutral value as it means it would take CBRE, 5.36 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.36, CBRE is doing good in the industry, outperforming 70.97% of the companies in the same industry.
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 comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.84
Debt/FCF	5.36
Altman-Z	3.62

ROIC/WACC0.77

WACC8.83%

2.3 Liquidity

CBRE has a Current 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.
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.
CBRE's Quick ratio of 1.13 is on the low side compared to the rest of the industry. CBRE is outperformed by 67.74% of its industry peers.

		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.
Looking at the last year, CBRE shows a quite strong growth in Revenue. The Revenue has grown by 14.61% in the last year.
CBRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.40% yearly.

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.
CBRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.04% yearly.

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

A Price/Earnings ratio of 28.34 indicates a quite expensive valuation of CBRE.
Based on the Price/Earnings ratio, CBRE is valued a bit cheaper than 72.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of CBRE to the average of the S&P500 Index (28.60), we can say CBRE is valued inline with the index average.
A Price/Forward Earnings ratio of 22.56 indicates a rather expensive valuation of CBRE.
82.26% of the companies in the same industry are more expensive than CBRE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CBRE to the average of the S&P500 Index (25.83), we can say CBRE is valued inline with the index average.

		Industry Rank	Sector Rank
PE	28.34
Fwd PE	22.56

4.2 Price Multiples

67.74% of the companies in the same industry are more expensive than CBRE, based on the Enterprise Value to EBITDA ratio.
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	21.23

4.3 Compensation for Growth

CBRE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CBRE has a very decent profitability rating, which 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.