CBRE GROUP INC - A (CBRE)
US12504L1098 - Common Stock
We assign a fundamental rating of 5 out of 10 to CBRE. CBRE was compared to 68 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CBRE was profitable.
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 3.86%, CBRE belongs to the best of the industry, outperforming 86.57% of the companies in the same industry.
CBRE's Return On Equity of 11.02% is amongst the best of the industry. CBRE outperforms 89.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.88%, CBRE belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CBRE is above the industry average of 5.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.02% | ||
| ROIC | 6.88% |
ROA(3y)6.52%
ROA(5y)6.33%
ROE(3y)17.13%
ROE(5y)16.52%
ROIC(3y)7.76%
ROIC(5y)8.08%
1.3 Margins
CBRE has a better Profit Margin (2.79%) than 73.13% of its industry peers.
CBRE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.23%, CBRE is doing good in the industry, outperforming 70.15% of the companies in the same industry.
In the last couple of years the Operating Margin of CBRE has declined.
With a Gross Margin value of 19.61%, CBRE perfoms like the industry average, outperforming 44.78% of the companies in the same industry.
CBRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.23% | ||
| PM (TTM) | 2.79% | ||
| GM | 19.61% |
OM growth 3Y-6.92%
OM growth 5Y-7.46%
PM growth 3Y-0.75%
PM growth 5Y-9.13%
GM growth 3Y-0.84%
GM growth 5Y-2.89%
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.
CBRE has a worse debt/assets ratio than last year.
2.2 Solvency
CBRE has an Altman-Z score of 3.67. This indicates that CBRE is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.67, CBRE belongs to the best of the industry, outperforming 80.60% of the companies in the same industry.
The Debt to FCF ratio of CBRE is 6.08, which is on the high side as it means it would take CBRE, 6.08 years of fcf income to pay off all of its debts.
CBRE has a Debt to FCF ratio of 6.08. This is in the better half of the industry: CBRE outperforms 79.10% of its industry peers.
CBRE has a Debt/Equity ratio of 0.63. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.63, CBRE is in line with its industry, outperforming 44.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 3.67 |
ROIC/WACC0.78
WACC8.8%
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 has a Current ratio (1.13) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that CBRE should not have too much problems paying its short term obligations.
CBRE has a Quick ratio of 1.13. This is comparable to the rest of the industry: CBRE outperforms 47.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
CBRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.03%, which is quite good.
CBRE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.20% yearly.
The Revenue has grown by 10.00% in the past year. This is quite good.
CBRE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.41% yearly.
EPS 1Y (TTM)10.03%
EPS 3Y5.39%
EPS 5Y3.2%
EPS Q2Q%66.67%
Revenue 1Y (TTM)10%
Revenue growth 3Y10.27%
Revenue growth 5Y8.41%
Sales Q2Q%14.84%
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 19.70% yearly.
Based on estimates for the next years, CBRE will show a quite strong growth in Revenue. The Revenue will grow by 9.11% on average per year.
EPS Next Y31.84%
EPS Next 2Y26.23%
EPS Next 3Y22.73%
EPS Next 5Y19.7%
Revenue Next Year12.47%
Revenue Next 2Y11.13%
Revenue Next 3Y9.54%
Revenue Next 5Y9.11%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.57, CBRE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 76.12% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CBRE to the average of the S&P500 Index (28.96), we can say CBRE is valued inline with the index average.
CBRE is valuated rather expensively with a Price/Forward Earnings ratio of 21.52.
82.09% of the companies in the same industry are more expensive than CBRE, based on the Price/Forward Earnings ratio.
CBRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.57 | ||
| Fwd PE | 21.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 76.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CBRE is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.1 | ||
| EV/EBITDA | 20.31 |
4.3 Compensation for Growth
CBRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of CBRE may justify a higher PE ratio.
A more expensive valuation may be justified as CBRE's earnings are expected to grow with 22.73% in the coming years.
PEG (NY)0.99
PEG (5Y)9.86
EPS Next 2Y26.23%
EPS Next 3Y22.73%
5. Dividend
5.1 Amount
No dividends for CBRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CBRE GROUP INC - A
NYSE:CBRE (11/21/2024, 8:17:51 PM)
After market: 131.65 0 (0%)131.65
-0.13 (-0.1%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.57 | ||
| Fwd PE | 21.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.99
PEG (5Y)9.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.23% | ||
| PM (TTM) | 2.79% | ||
| GM | 19.61% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.03%
EPS 3Y5.39%
EPS 5Y
EPS Q2Q%
EPS Next Y31.84%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10%
Revenue growth 3Y10.27%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
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EBIT Next 3Y
EBIT Next 5Y
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