CBRE GROUP INC - A (CBRE) Stock Fundamental Analysis
USA - NYSE:CBRE - US12504L1098 - Common Stock
164.14 USD
-1.59 (-0.96%)
164.14 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CBRE. CBRE was compared to 63 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! This makes CBRE very considerable for growth investing!
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.
Each year in the past 5 years CBRE had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.94%, CBRE belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Equity of CBRE (13.21%) is better than 95.24% of its industry peers.
CBRE's Return On Invested Capital of 6.77% is amongst the best of the industry. CBRE outperforms 87.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CBRE is in line with the industry average of 6.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 13.21% | ||
| ROIC | 6.77% |
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
With a decent Profit Margin value of 2.86%, CBRE is doing good in the industry, outperforming 69.84% of the companies in the same industry.
CBRE's Profit Margin has declined in the last couple of years.
CBRE's Operating Margin of 4.26% is fine compared to the rest of the industry. CBRE outperforms 60.32% of its industry peers.
In the last couple of years the Operating Margin of CBRE has declined.
CBRE has a Gross Margin (19.42%) which is comparable to the rest of the industry.
CBRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 2.86% | ||
| GM | 19.42% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CBRE is destroying value.
Compared to 1 year ago, CBRE has less shares outstanding
CBRE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CBRE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.62 indicates that CBRE is not in any danger for bankruptcy at the moment.
CBRE has a Altman-Z score of 3.62. This is in the better half of the industry: CBRE outperforms 77.78% of its industry peers.
CBRE has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as CBRE would need 6.64 years to pay back of all of its debts.
CBRE's Debt to FCF ratio of 6.64 is fine compared to the rest of the industry. CBRE outperforms 69.84% of its industry peers.
CBRE has a Debt/Equity ratio of 0.88. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
CBRE has a Debt to Equity ratio (0.88) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 3.62 |
ROIC/WACC0.7
WACC9.65%
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 worse Current ratio (1.13) than 63.49% of its industry peers.
A Quick Ratio of 1.13 indicates that CBRE should not have too much problems paying its short term obligations.
CBRE has a worse Quick ratio (1.13) than 63.49% 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 50.95%, which is quite impressive.
Measured over the past 5 years, CBRE shows a small growth in Earnings Per Share. The EPS has been growing by 6.61% on average per year.
Looking at the last year, CBRE shows a quite strong growth in Revenue. The Revenue has grown by 14.96% 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)50.95%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%46.91%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.24%
3.2 Future
Based on estimates for the next years, CBRE will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.49% on average per year.
The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
EPS Next Y21.9%
EPS Next 2Y20%
EPS Next 3Y18.89%
EPS Next 5Y18.49%
Revenue Next Year12.6%
Revenue Next 2Y11.35%
Revenue Next 3Y10.58%
Revenue Next 5Y8.64%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
CBRE is valuated quite expensively with a Price/Earnings ratio of 29.47.
Compared to the rest of the industry, the Price/Earnings ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 76.19% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. CBRE is around the same levels.
Based on the Price/Forward Earnings ratio of 22.31, the valuation of CBRE can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CBRE indicates a rather cheap valuation: CBRE is cheaper than 82.54% of the companies listed in the same industry.
CBRE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.47 | ||
| Fwd PE | 22.31 |
4.2 Price Multiples
CBRE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CBRE is cheaper than 68.25% 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 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.84 | ||
| EV/EBITDA | 22.45 |
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.
CBRE's earnings are expected to grow with 18.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)4.46
EPS Next 2Y20%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
No dividends for CBRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
164.14
-1.59 (-0.96%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners99.39%
Inst Owner Change-3.15%
Ins Owners0.52%
Ins Owner Change-0.1%
Market Cap48.84B
Analysts81.05
Price Target171.48 (4.47%)
Short Float %1.3%
Short Ratio2.49
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)9.5%
Min EPS beat(2)8.58%
Max EPS beat(2)10.42%
EPS beat(4)4
Avg EPS beat(4)8.04%
Min EPS beat(4)2.25%
Max EPS beat(4)10.89%
EPS beat(8)8
Avg EPS beat(8)8.61%
EPS beat(12)11
Avg EPS beat(12)6.47%
EPS beat(16)14
Avg EPS beat(16)9.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)9
Avg Revenue beat(16)0.15%
PT rev (1m)4.47%
PT rev (3m)14.13%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-1.03%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.4%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.47 | ||
| Fwd PE | 22.31 | ||
| P/S | 1.28 | ||
| P/FCF | 43.84 | ||
| P/OCF | 34.3 | ||
| P/B | 5.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.45 |
EPS(TTM)5.57
EY3.39%
EPS(NY)7.36
Fwd EY4.48%
FCF(TTM)3.74
FCFY2.28%
OCF(TTM)4.79
OCFY2.92%
SpS128.06
BVpS27.74
TBVpS-2.16
PEG (NY)1.35
PEG (5Y)4.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 13.21% | ||
| ROCE | 9.52% | ||
| ROIC | 6.77% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 14.04% | ||
| OM | 4.26% | ||
| PM (TTM) | 2.86% | ||
| GM | 19.42% | ||
| FCFM | 2.92% |
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-Score6
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 43.42% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 60.88% | ||
| Profit Quality | 102.2% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.62 |
F-Score6
WACC9.65%
ROIC/WACC0.7
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)50.95%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%46.91%
EPS Next Y21.9%
EPS Next 2Y20%
EPS Next 3Y18.89%
EPS Next 5Y18.49%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.24%
Revenue Next Year12.6%
Revenue Next 2Y11.35%
Revenue Next 3Y10.58%
Revenue Next 5Y8.64%
EBIT growth 1Y26.13%
EBIT growth 3Y-0.86%
EBIT growth 5Y2.79%
EBIT Next Year56.39%
EBIT Next 3Y24.27%
EBIT Next 5Y17.91%
FCF growth 1Y116.68%
FCF growth 3Y-13.36%
FCF growth 5Y8.54%
OCF growth 1Y75.25%
OCF growth 3Y-10.27%
OCF growth 5Y6.9%