CBRE GROUP INC - A (CBRE) Stock Fundamental Analysis
NYSE:CBRE - New York Stock Exchange, Inc. - US12504L1098 - Common Stock - Currency: USD
CBRE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 64 industry peers in the Real Estate Management & Development industry. While CBRE has a great profitability rating, there are some minor concerns on its financial health. CBRE has a decent growth rate and is not valued too expensively.
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.
CBRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 3.97%, CBRE belongs to the best of the industry, outperforming 88.33% of the companies in the same industry.
The Return On Equity of CBRE (11.51%) is better than 91.67% of its industry peers.
CBRE's Return On Invested Capital of 7.88% is amongst the best of the industry. CBRE outperforms 93.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBRE is above the industry average of 4.87%.
The 3 year average ROIC (7.46%) for CBRE is below the current ROIC(7.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.51% | ||
| ROIC | 7.88% |
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
The Profit Margin of CBRE (2.71%) is better than 71.67% of its industry peers.
CBRE's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.26%, CBRE is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CBRE has declined.
The Gross Margin of CBRE (19.63%) is worse than 63.33% of its industry peers.
CBRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 2.71% | ||
| GM | 19.63% |
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%
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.
Compared to 5 years ago, CBRE has less shares outstanding
CBRE has a worse debt/assets ratio than last year.
2.2 Solvency
CBRE has an Altman-Z score of 3.88. This indicates that CBRE is financially healthy and has little risk of bankruptcy at the moment.
CBRE has a better Altman-Z score (3.88) than 78.33% of its industry peers.
The Debt to FCF ratio of CBRE is 3.11, which is a good value as it means it would take CBRE, 3.11 years of fcf income to pay off all of its debts.
CBRE's Debt to FCF ratio of 3.11 is amongst the best of the industry. CBRE outperforms 83.33% of its industry peers.
CBRE has a Debt/Equity ratio of 0.51. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.51, CBRE is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.11 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.87
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.07 indicates that CBRE should not have too much problems paying its short term obligations.
The Current ratio of CBRE (1.07) is worse than 65.00% of its industry peers.
CBRE has a Quick Ratio of 1.07. 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 Quick ratio (1.07) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.07% over the past year.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
The Revenue has grown by 11.95% in the past year. This is quite good.
The Revenue has been growing by 8.40% on average over the past years. This is quite good.
EPS 1Y (TTM)33.07%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%68.12%
Revenue 1Y (TTM)11.95%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.25%
3.2 Future
The Earnings Per Share is expected to grow by 16.88% on average over the next years. This is quite good.
CBRE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.34% yearly.
EPS Next Y20.78%
EPS Next 2Y19.99%
EPS Next 3Y16.84%
EPS Next 5Y16.88%
Revenue Next Year10.9%
Revenue Next 2Y10.05%
Revenue Next 3Y7.56%
Revenue Next 5Y7.34%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 26.57, the valuation of CBRE can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 76.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. CBRE is around the same levels.
The Price/Forward Earnings ratio is 22.00, which indicates a rather expensive current valuation of CBRE.
Based on the Price/Forward Earnings ratio, CBRE is valued cheaply inside the industry as 81.67% of the companies are valued more expensively.
CBRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 22 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than CBRE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 78.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.66 | ||
| EV/EBITDA | 20.79 |
4.3 Compensation for Growth
The 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 16.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)4.02
EPS Next 2Y19.99%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
CBRE does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
135.78
-5.89 (-4.16%)
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-0.94%
Ins Owners0.57%
Ins Owner Change-1.34%
Market Cap41.55B
Analysts82.22
Price Target161.06 (18.62%)
Short Float %1.72%
Short Ratio2.76
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)6.57%
Min EPS beat(2)2.25%
Max EPS beat(2)10.89%
EPS beat(4)4
Avg EPS beat(4)7.53%
Min EPS beat(4)2.25%
Max EPS beat(4)11.89%
EPS beat(8)8
Avg EPS beat(8)7.58%
EPS beat(12)11
Avg EPS beat(12)9.47%
EPS beat(16)14
Avg EPS beat(16)14.14%
Revenue beat(2)1
Avg Revenue beat(2)-0.06%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)0.71%
Revenue beat(4)1
Avg Revenue beat(4)-0.8%
Min Revenue beat(4)-2.06%
Max Revenue beat(4)0.71%
Revenue beat(8)5
Avg Revenue beat(8)1.35%
Revenue beat(12)6
Avg Revenue beat(12)0.02%
Revenue beat(16)10
Avg Revenue beat(16)0.49%
PT rev (1m)5.04%
PT rev (3m)24.56%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.88%
EPS NY rev (1m)0.26%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.81%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 22 | ||
| P/S | 1.16 | ||
| P/FCF | 29.66 | ||
| P/OCF | 24.33 | ||
| P/B | 4.94 | ||
| P/tB | 84.45 | ||
| EV/EBITDA | 20.79 |
EPS(TTM)5.11
EY3.76%
EPS(NY)6.17
Fwd EY4.55%
FCF(TTM)4.58
FCFY3.37%
OCF(TTM)5.58
OCFY4.11%
SpS116.87
BVpS27.49
TBVpS1.61
PEG (NY)1.28
PEG (5Y)4.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.97% | ||
| ROE | 11.51% | ||
| ROCE | 10.1% | ||
| ROIC | 7.88% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 18.09% | ||
| OM | 4.26% | ||
| PM (TTM) | 2.71% | ||
| GM | 19.63% | ||
| FCFM | 3.92% |
ROA(3y)5.07%
ROA(5y)5.54%
ROE(3y)13.78%
ROE(5y)14.7%
ROIC(3y)7.46%
ROIC(5y)7.57%
ROICexc(3y)8.16%
ROICexc(5y)8.57%
ROICexgc(3y)18.67%
ROICexgc(5y)19.47%
ROCE(3y)9.51%
ROCE(5y)9.85%
ROICexcg growth 3Y-10.49%
ROICexcg growth 5Y-5.25%
ROICexc growth 3Y-6.39%
ROICexc growth 5Y-5.52%
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%
F-Score5
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.11 | ||
| Debt/EBITDA | 1.94 | ||
| Cap/Depr | 45.55% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 3.85 | ||
| Cash Conversion | 77.71% | ||
| Profit Quality | 144.73% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 3.88 |
F-Score5
WACC9.06%
ROIC/WACC0.87
Cap/Depr(3y)45.67%
Cap/Depr(5y)46.01%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.91%
Profit Quality(3y)86.59%
Profit Quality(5y)117.01%
High Growth Momentum
Growth
EPS 1Y (TTM)33.07%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%68.12%
EPS Next Y20.78%
EPS Next 2Y19.99%
EPS Next 3Y16.84%
EPS Next 5Y16.88%
Revenue 1Y (TTM)11.95%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.25%
Revenue Next Year10.9%
Revenue Next 2Y10.05%
Revenue Next 3Y7.56%
Revenue Next 5Y7.34%
EBIT growth 1Y39.82%
EBIT growth 3Y-0.86%
EBIT growth 5Y2.79%
EBIT Next Year56.49%
EBIT Next 3Y24.91%
EBIT Next 5Y15.56%
FCF growth 1Y700.57%
FCF growth 3Y-13.36%
FCF growth 5Y8.54%
OCF growth 1Y255.83%
OCF growth 3Y-10.27%
OCF growth 5Y6.9%