CUSHMAN & WAKEFIELD PLC (CWK) Stock Fundamental Analysis
NYSE:CWK - New York Stock Exchange, Inc. - GB00BFZ4N465 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CWK. CWK was compared to 64 industry peers in the Real Estate Management & Development industry. CWK has a medium profitability rating, but doesn't score so well on its financial health evaluation. CWK has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year CWK was profitable.
In the past year CWK had a positive cash flow from operations.
In multiple years CWK reported negative net income over the last 5 years.
In multiple years CWK reported negative operating cash flow during the last 5 years.
1.2 Ratios
CWK has a better Return On Assets (1.17%) than 70.00% of its industry peers.
Looking at the Return On Equity, with a value of 5.18%, CWK is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CWK has a Return On Invested Capital of 4.86%. This is in the better half of the industry: CWK outperforms 80.00% of its industry peers.
CWK had an Average Return On Invested Capital over the past 3 years of 6.39%. This is in line with the industry average of 4.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 5.18% | ||
| ROIC | 4.86% |
ROA(3y)1.73%
ROA(5y)0.43%
ROE(3y)8.99%
ROE(5y)1.35%
ROIC(3y)6.39%
ROIC(5y)4.49%
1.3 Margins
CWK has a better Profit Margin (0.94%) than 61.67% of its industry peers.
With a decent Operating Margin value of 3.48%, CWK is doing good in the industry, outperforming 63.33% of the companies in the same industry.
CWK's Operating Margin has improved in the last couple of years.
CWK has a worse Gross Margin (17.89%) than 65.00% of its industry peers.
In the last couple of years the Gross Margin of CWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.48% | ||
| PM (TTM) | 0.94% | ||
| GM | 17.89% |
OM growth 3Y269.23%
OM growth 5Y55.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.55%
GM growth 5Y-1.94%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWK is destroying value.
CWK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
CWK has an Altman-Z score of 1.54. This is a bad value and indicates that CWK is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.54, CWK perfoms like the industry average, outperforming 53.33% of the companies in the same industry.
The Debt to FCF ratio of CWK is 12.51, which is on the high side as it means it would take CWK, 12.51 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CWK (12.51) is better than 71.67% of its industry peers.
A Debt/Equity ratio of 1.76 is on the high side and indicates that CWK has dependencies on debt financing.
The Debt to Equity ratio of CWK (1.76) is worse than 78.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 12.51 | ||
| Altman-Z | 1.54 |
ROIC/WACC0.68
WACC7.19%
2.3 Liquidity
CWK has a Current Ratio of 1.18. This is a normal value and indicates that CWK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CWK (1.18) is worse than 63.33% of its industry peers.
CWK has a Quick Ratio of 1.18. This is a normal value and indicates that CWK is financially healthy and should not expect problems in meeting its short term obligations.
CWK has a Quick ratio of 1.18. This is comparable to the rest of the industry: CWK outperforms 43.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
Measured over the past years, CWK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.11% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%6.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.02%
3.2 Future
Based on estimates for the next years, CWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.06% on average per year.
CWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.81% yearly.
EPS Next Y30.55%
EPS Next 2Y24.6%
EPS Next 3Y18.91%
EPS Next 5Y9.06%
Revenue Next Year6.43%
Revenue Next 2Y5.99%
Revenue Next 3Y6.44%
Revenue Next 5Y5.81%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.79, the valuation of CWK can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of CWK indicates a rather cheap valuation: CWK is cheaper than 83.33% of the companies listed in the same industry.
CWK is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.80, which indicates a very decent valuation of CWK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWK indicates a rather cheap valuation: CWK is cheaper than 95.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CWK to the average of the S&P500 Index (22.68), we can say CWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
CWK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CWK is cheaper than 86.67% of the companies in the same industry.
CWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CWK is cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.8 | ||
| EV/EBITDA | 11.27 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CWK's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)0.42
PEG (5Y)N/A
EPS Next 2Y24.6%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
No dividends for CWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.64
-0.6 (-4.9%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change5.26%
Ins Owners1.12%
Ins Owner Change0%
Market Cap2.67B
Analysts70.77
Price Target15.52 (33.33%)
Short Float %6.54%
Short Ratio9.99
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)8.12%
Min EPS beat(2)5.89%
Max EPS beat(2)10.34%
EPS beat(4)4
Avg EPS beat(4)32.07%
Min EPS beat(4)5.89%
Max EPS beat(4)100%
EPS beat(8)6
Avg EPS beat(8)4.44%
EPS beat(12)9
Avg EPS beat(12)15.54%
EPS beat(16)13
Avg EPS beat(16)172.68%
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-4.55%
Max Revenue beat(2)-3.01%
Revenue beat(4)2
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)3.88%
Revenue beat(8)3
Avg Revenue beat(8)0.85%
Revenue beat(12)7
Avg Revenue beat(12)16.69%
Revenue beat(16)11
Avg Revenue beat(16)23.99%
PT rev (1m)-0.46%
PT rev (3m)8.41%
EPS NQ rev (1m)2.49%
EPS NQ rev (3m)2.97%
EPS NY rev (1m)-0.41%
EPS NY rev (3m)3.12%
Revenue NQ rev (1m)0.3%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 9.8 | ||
| P/S | 0.29 | ||
| P/FCF | 10.8 | ||
| P/OCF | 9.05 | ||
| P/B | 1.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.27 |
EPS(TTM)0.91
EY7.82%
EPS(NY)1.19
Fwd EY10.21%
FCF(TTM)1.08
FCFY9.26%
OCF(TTM)1.29
OCFY11.05%
SpS40.83
BVpS7.42
TBVpS-4.58
PEG (NY)0.42
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.17% | ||
| ROE | 5.18% | ||
| ROCE | 6.15% | ||
| ROIC | 4.86% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 14.57% | ||
| OM | 3.48% | ||
| PM (TTM) | 0.94% | ||
| GM | 17.89% | ||
| FCFM | 2.64% |
ROA(3y)1.73%
ROA(5y)0.43%
ROE(3y)8.99%
ROE(5y)1.35%
ROIC(3y)6.39%
ROIC(5y)4.49%
ROICexc(3y)7.35%
ROICexc(5y)5.21%
ROICexgc(3y)19.47%
ROICexgc(5y)14.9%
ROCE(3y)8.08%
ROCE(5y)5.69%
ROICexcg growth 3Y239.73%
ROICexcg growth 5Y34.12%
ROICexc growth 3Y281.41%
ROICexc growth 5Y52.7%
OM growth 3Y269.23%
OM growth 5Y55.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.55%
GM growth 5Y-1.94%
F-Score7
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.76 | ||
| Debt/FCF | 12.51 | ||
| Debt/EBITDA | 6.59 | ||
| Cap/Depr | 37.02% | ||
| Cap/Sales | 0.51% | ||
| Interest Coverage | 1.22 | ||
| Cash Conversion | 64.88% | ||
| Profit Quality | 280.39% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.54 |
F-Score7
WACC7.19%
ROIC/WACC0.68
Cap/Depr(3y)33.6%
Cap/Depr(5y)28.68%
Cap/Sales(3y)0.54%
Cap/Sales(5y)0.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%6.67%
EPS Next Y30.55%
EPS Next 2Y24.6%
EPS Next 3Y18.91%
EPS Next 5Y9.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%3.02%
Revenue Next Year6.43%
Revenue Next 2Y5.99%
Revenue Next 3Y6.44%
Revenue Next 5Y5.81%
EBIT growth 1Y38.02%
EBIT growth 3Y293.49%
EBIT growth 5Y60.33%
EBIT Next Year64.91%
EBIT Next 3Y28.62%
EBIT Next 5Y20.05%
FCF growth 1Y547.38%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y182.22%
OCF growth 3YN/A
OCF growth 5YN/A