CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - GB00BFZ4N465 - Common Stock
15.24 USD
+0.22 (+1.46%)
15.24 USD
0 (0%)
CWK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year CWK was profitable.
CWK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CWK reported negative net income in multiple years.
Of the past 5 years CWK 4 years had a positive operating cash flow.
1.2 Ratios
CWK has a Return On Assets of 2.91%. This is in the better half of the industry: CWK outperforms 77.78% of its industry peers.
CWK has a Return On Equity of 11.42%. This is amongst the best in the industry. CWK outperforms 87.30% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.64%, CWK belongs to the top of the industry, outperforming 84.13% of the companies in the same industry.
CWK had an Average Return On Invested Capital over the past 3 years of 5.38%. This is in line with the industry average of 6.28%.
The last Return On Invested Capital (6.64%) for CWK is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 11.42% | ||
| ROIC | 6.64% |
ROA(3y)1.25%
ROA(5y)0.78%
ROE(3y)5.72%
ROE(5y)2.85%
ROIC(3y)5.38%
ROIC(5y)4.72%
1.3 Margins
Looking at the Profit Margin, with a value of 2.23%, CWK is in the better half of the industry, outperforming 60.32% of the companies in the same industry.
CWK's Profit Margin has declined in the last couple of years.
CWK has a Operating Margin of 4.61%. This is in the better half of the industry: CWK outperforms 60.32% of its industry peers.
In the last couple of years the Operating Margin of CWK has grown nicely.
CWK has a Gross Margin (18.33%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CWK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 2.23% | ||
| GM | 18.33% |
OM growth 3Y-11.34%
OM growth 5Y12.08%
PM growth 3Y-19.48%
PM growth 5YN/A
GM growth 3Y-4.01%
GM growth 5Y-2%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWK is destroying value.
The number of shares outstanding for CWK has been increased compared to 1 year ago.
CWK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWK has been reduced compared to a year ago.
2.2 Solvency
CWK has an Altman-Z score of 1.73. 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 1.73, CWK perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
The Debt to FCF ratio of CWK is 17.31, which is on the high side as it means it would take CWK, 17.31 years of fcf income to pay off all of its debts.
CWK's Debt to FCF ratio of 17.31 is fine compared to the rest of the industry. CWK outperforms 63.49% of its industry peers.
CWK has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
CWK has a Debt to Equity ratio of 1.39. This is in the lower half of the industry: CWK underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.73 |
ROIC/WACC0.84
WACC7.89%
2.3 Liquidity
CWK has a Current Ratio of 1.07. 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 (1.07) is worse than 71.43% of its industry peers.
A Quick Ratio of 1.07 indicates that CWK should not have too much problems paying its short term obligations.
CWK has a Quick ratio of 1.07. This is in the lower half of the industry: CWK underperforms 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
CWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.82%, which is quite impressive.
The earnings per share for CWK have been decreasing by -11.11% on average. This is quite bad
Looking at the last year, CWK shows a small growth in Revenue. The Revenue has grown by 6.77% in the last year.
The Revenue has been growing slightly by 1.54% on average over the past years.
EPS 1Y (TTM)31.82%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%26.09%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
3.2 Future
The Earnings Per Share is expected to grow by 17.87% on average over the next years. This is quite good.
Based on estimates for the next years, CWK will show a small growth in Revenue. The Revenue will grow by 5.28% on average per year.
EPS Next Y34.9%
EPS Next 2Y27.06%
EPS Next 3Y22.26%
EPS Next 5Y17.87%
Revenue Next Year6.66%
Revenue Next 2Y6.17%
Revenue Next 3Y5.9%
Revenue Next 5Y5.28%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CWK is valuated correctly with a Price/Earnings ratio of 13.14.
CWK's Price/Earnings ratio is rather cheap when compared to the industry. CWK is cheaper than 87.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. CWK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.37, 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 95.24% 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 (23.80), we can say CWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
90.48% of the companies in the same industry are more expensive than CWK, based on the Enterprise Value to EBITDA ratio.
77.78% of the companies in the same industry are more expensive than CWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.44 | ||
| EV/EBITDA | 10.09 |
4.3 Compensation for Growth
CWK'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 CWK may justify a higher PE ratio.
CWK's earnings are expected to grow with 22.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y27.06%
EPS Next 3Y22.26%
5. Dividend
5.1 Amount
CWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.24
+0.22 (+1.46%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change1.72%
Ins Owners0.5%
Ins Owner Change0.09%
Market Cap3.53B
Revenue(TTM)10.00B
Net Income(TTM)223.50M
Analysts73.85
Price Target18 (18.11%)
Short Float %4.59%
Short Ratio5.64
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)19.27%
Min EPS beat(2)2.83%
Max EPS beat(2)35.7%
EPS beat(4)4
Avg EPS beat(4)114.37%
Min EPS beat(4)1.47%
Max EPS beat(4)417.47%
EPS beat(8)8
Avg EPS beat(8)73.22%
EPS beat(12)10
Avg EPS beat(12)41.08%
EPS beat(16)13
Avg EPS beat(16)40.25%
Revenue beat(2)2
Avg Revenue beat(2)6.02%
Min Revenue beat(2)3.45%
Max Revenue beat(2)8.58%
Revenue beat(4)3
Avg Revenue beat(4)2.45%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)8.58%
Revenue beat(8)5
Avg Revenue beat(8)0.78%
Revenue beat(12)6
Avg Revenue beat(12)1.39%
Revenue beat(16)10
Avg Revenue beat(16)13.13%
PT rev (1m)4.66%
PT rev (3m)14.88%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 10.37 | ||
| P/S | 0.35 | ||
| P/FCF | 21.44 | ||
| P/OCF | 17.8 | ||
| P/B | 1.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.09 |
EPS(TTM)1.16
EY7.61%
EPS(NY)1.47
Fwd EY9.64%
FCF(TTM)0.71
FCFY4.66%
OCF(TTM)0.86
OCFY5.62%
SpS43.19
BVpS8.45
TBVpS-3.29
PEG (NY)0.38
PEG (5Y)N/A
Graham Number14.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 11.42% | ||
| ROCE | 8.89% | ||
| ROIC | 6.64% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 18.81% | ||
| OM | 4.61% | ||
| PM (TTM) | 2.23% | ||
| GM | 18.33% | ||
| FCFM | 1.65% |
ROA(3y)1.25%
ROA(5y)0.78%
ROE(3y)5.72%
ROE(5y)2.85%
ROIC(3y)5.38%
ROIC(5y)4.72%
ROICexc(3y)6.21%
ROICexc(5y)5.47%
ROICexgc(3y)15.83%
ROICexgc(5y)14.37%
ROCE(3y)7.2%
ROCE(5y)6.32%
ROICexgc growth 3Y-12.14%
ROICexgc growth 5Y1.82%
ROICexc growth 3Y-9.46%
ROICexc growth 5Y11.68%
OM growth 3Y-11.34%
OM growth 5Y12.08%
PM growth 3Y-19.48%
PM growth 5YN/A
GM growth 3Y-4.01%
GM growth 5Y-2%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 31.12% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 2.03 | ||
| Cash Conversion | 34.82% | ||
| Profit Quality | 73.65% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.73 |
F-Score6
WACC7.89%
ROIC/WACC0.84
Cap/Depr(3y)34.36%
Cap/Depr(5y)29.98%
Cap/Sales(3y)0.49%
Cap/Sales(5y)0.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)31.82%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%26.09%
EPS Next Y34.9%
EPS Next 2Y27.06%
EPS Next 3Y22.26%
EPS Next 5Y17.87%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
Revenue Next Year6.66%
Revenue Next 2Y6.17%
Revenue Next 3Y5.9%
Revenue Next 5Y5.28%
EBIT growth 1Y41.65%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year57.1%
EBIT Next 3Y23.68%
EBIT Next 5Y16.82%
FCF growth 1Y8.01%
FCF growth 3Y-30.42%
FCF growth 5Y-2.44%
OCF growth 1Y2.48%
OCF growth 3Y-27.66%
OCF growth 5Y-5.03%
CUSHMAN & WAKEFIELD LTD / CWK FAQ
What is the fundamental rating for CWK stock?
ChartMill assigns a fundamental rating of 5 / 10 to CWK.
What is the valuation status for CWK stock?
ChartMill assigns a valuation rating of 8 / 10 to CUSHMAN & WAKEFIELD LTD (CWK). This can be considered as Undervalued.
What is the profitability of CWK stock?
CUSHMAN & WAKEFIELD LTD (CWK) has a profitability rating of 6 / 10.
What is the financial health of CUSHMAN & WAKEFIELD LTD (CWK) stock?
The financial health rating of CUSHMAN & WAKEFIELD LTD (CWK) is 3 / 10.
What is the earnings growth outlook for CUSHMAN & WAKEFIELD LTD?
The Earnings per Share (EPS) of CUSHMAN & WAKEFIELD LTD (CWK) is expected to grow by 34.9% in the next year.