CBRE GROUP INC - A (CBRE) Stock Fundamental Analysis
NYSE:CBRE - New York Stock Exchange, Inc. - US12504L1098 - Common Stock
Taking everything into account, CBRE scores 5 out of 10 in our fundamental rating. CBRE was compared to 65 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. With these ratings, CBRE could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
CBRE had positive earnings in the past year.
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
CBRE's Return On Assets of 3.86% is amongst the best of the industry. CBRE outperforms 88.52% of its industry peers.
Looking at the Return On Equity, with a value of 11.02%, CBRE belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
CBRE has a better Return On Invested Capital (6.88%) than 91.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBRE is above the industry average of 4.84%.
| 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 72.13% of its industry peers.
CBRE's Profit Margin has declined in the last couple of years.
CBRE has a better Operating Margin (4.23%) than 67.21% 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 19.61%, CBRE is doing worse than 60.66% 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 | 4.23% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CBRE 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
An Altman-Z score of 3.77 indicates that CBRE is not in any danger for bankruptcy at the moment.
The Altman-Z score of CBRE (3.77) is better than 80.33% of its industry peers.
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.
The Debt to FCF ratio of CBRE (6.08) is better than 81.97% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that CBRE is somewhat dependend on debt financing.
The Debt to Equity ratio of CBRE (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.08 | ||
| Altman-Z | 3.77 |
ROIC/WACC0.76
WACC9%
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 67.21% of its industry peers.
A Quick Ratio of 1.13 indicates that CBRE should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, CBRE is not doing good in the industry: 60.66% of the companies in the same industry are doing better.
| 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.
Looking at the last year, CBRE shows a quite strong growth in Revenue. The Revenue has grown by 10.00% in the last year.
Measured over the past years, CBRE shows a quite strong growth in Revenue. The Revenue has been growing by 8.41% on average per year.
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
The Earnings Per Share is expected to grow by 20.71% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.98% on average over the next years. This is quite good.
EPS Next Y32.91%
EPS Next 2Y27.03%
EPS Next 3Y23.62%
EPS Next 5Y20.71%
Revenue Next Year12.89%
Revenue Next 2Y12%
Revenue Next 3Y10.64%
Revenue Next 5Y8.98%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.80, which means the current valuation is very expensive for CBRE.
Compared to the rest of the industry, the Price/Earnings ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 73.77% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CBRE to the average of the S&P500 Index (28.29), we can say CBRE is valued inline with the index average.
With a Price/Forward Earnings ratio of 22.75, CBRE is valued on the expensive side.
CBRE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CBRE is cheaper than 78.69% of the companies in the same industry.
CBRE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 22.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBRE is valued a bit cheaper than the industry average as 72.13% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CBRE is valued a bit cheaper than 72.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.21 | ||
| EV/EBITDA | 21.64 |
4.3 Compensation for Growth
CBRE's 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.
A more expensive valuation may be justified as CBRE's earnings are expected to grow with 23.62% in the coming years.
PEG (NY)1.03
PEG (5Y)10.55
EPS Next 2Y27.03%
EPS Next 3Y23.62%
5. Dividend
5.1 Amount
No dividends for CBRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CBRE GROUP INC - A
NYSE:CBRE (1/21/2025, 8:04:00 PM)
After market: 140.94 0 (0%)140.94
+4.03 (+2.94%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners98.95%
Inst Owner Change-0.21%
Ins Owners0.57%
Ins Owner Change-1.54%
Market Cap43.13B
Analysts80
Price Target149.84 (6.31%)
Short Float %1.79%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.98%
Min EPS beat(2)5.07%
Max EPS beat(2)10.89%
EPS beat(4)4
Avg EPS beat(4)10.58%
Min EPS beat(4)5.07%
Max EPS beat(4)14.45%
EPS beat(8)8
Avg EPS beat(8)8.56%
EPS beat(12)10
Avg EPS beat(12)9.22%
EPS beat(16)14
Avg EPS beat(16)17.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.16%
Min Revenue beat(2)-1.04%
Max Revenue beat(2)0.71%
Revenue beat(4)2
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)3.9%
Revenue beat(8)6
Avg Revenue beat(8)1.55%
Revenue beat(12)7
Avg Revenue beat(12)0.32%
Revenue beat(16)11
Avg Revenue beat(16)0.97%
PT rev (1m)4.37%
PT rev (3m)20.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.25%
EPS NY rev (1m)0%
EPS NY rev (3m)3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.09%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.8 | ||
| Fwd PE | 22.75 | ||
| P/S | 1.26 | ||
| P/FCF | 47.21 | ||
| P/OCF | 35.31 | ||
| P/B | 4.96 | ||
| P/tB | 79.58 | ||
| EV/EBITDA | 21.64 |
EPS(TTM)4.17
EY2.96%
EPS(NY)6.2
Fwd EY4.4%
FCF(TTM)2.99
FCFY2.12%
OCF(TTM)3.99
OCFY2.83%
SpS112.12
BVpS28.4
TBVpS1.77
PEG (NY)1.03
PEG (5Y)10.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.86% | ||
| ROE | 11.02% | ||
| ROCE | 9.41% | ||
| ROIC | 6.88% | ||
| ROICexc | 7.31% | ||
| ROICexgc | 14.45% | ||
| OM | 4.23% | ||
| PM (TTM) | 2.79% | ||
| GM | 19.61% | ||
| FCFM | 2.66% |
ROA(3y)6.52%
ROA(5y)6.33%
ROE(3y)17.13%
ROE(5y)16.52%
ROIC(3y)7.76%
ROIC(5y)8.08%
ROICexc(3y)8.83%
ROICexc(5y)9.17%
ROICexgc(3y)21.16%
ROICexgc(5y)20.69%
ROCE(3y)9.96%
ROCE(5y)10.55%
ROICexcg growth 3Y-4.79%
ROICexcg growth 5Y-13.45%
ROICexc growth 3Y-6.45%
ROICexc growth 5Y-9.49%
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%
F-Score6
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 6.08 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 47.06% | ||
| Cap/Sales | 0.9% | ||
| Interest Coverage | 3.92 | ||
| Cash Conversion | 58.04% | ||
| Profit Quality | 95.36% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.77 |
F-Score6
WACC9%
ROIC/WACC0.76
Cap/Depr(3y)43.79%
Cap/Depr(5y)50.27%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.98%
Profit Quality(3y)77.44%
Profit Quality(5y)102.57%
High Growth Momentum
Growth
EPS 1Y (TTM)10.03%
EPS 3Y5.39%
EPS 5Y3.2%
EPS Q2Q%66.67%
EPS Next Y32.91%
EPS Next 2Y27.03%
EPS Next 3Y23.62%
EPS Next 5Y20.71%
Revenue 1Y (TTM)10%
Revenue growth 3Y10.27%
Revenue growth 5Y8.41%
Sales Q2Q%14.84%
Revenue Next Year12.89%
Revenue Next 2Y12%
Revenue Next 3Y10.64%
Revenue Next 5Y8.98%
EBIT growth 1Y77.48%
EBIT growth 3Y2.64%
EBIT growth 5Y0.31%
EBIT Next Year101.11%
EBIT Next 3Y38.85%
EBIT Next 5Y26.96%
FCF growth 1Y-47.17%
FCF growth 3Y-51.81%
FCF growth 5Y-27.98%
OCF growth 1Y-38.28%
OCF growth 3Y-36%
OCF growth 5Y-15.76%