CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - GB00BFZ4N465 - Common Stock
16.32 USD
0 (0%)
16.2678 USD
-0.05 (-0.32%)
CWK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 64 industry peers in the Real Estate Management & Development industry. While CWK is still in line with the averages on profitability rating, there are concerns on its financial health. CWK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
CWK had positive earnings in the past year.
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.
CWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CWK has a Return On Assets of 2.91%. This is in the better half of the industry: CWK outperforms 76.56% of its industry peers.
The Return On Equity of CWK (11.42%) is better than 87.50% of its industry peers.
The Return On Invested Capital of CWK (6.64%) is better than 82.81% of its industry peers.
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 6.42%.
The 3 year average ROIC (5.38%) for CWK is below the current ROIC(6.64%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 2.23%, CWK is doing good in the industry, outperforming 60.94% of the companies in the same industry.
In the last couple of years the Profit Margin of CWK has declined.
Looking at the Operating Margin, with a value of 4.61%, CWK is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
CWK's Operating Margin has improved in the last couple of years.
CWK has a Gross Margin of 18.33%. This is comparable to the rest of the industry: CWK outperforms 43.75% of its industry peers.
CWK's Gross Margin has declined in the last couple of years.
| 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.
Compared to 5 years ago, CWK has more shares outstanding
CWK has a better debt/assets ratio than last year.
2.2 Solvency
CWK has an Altman-Z score of 1.76. This is a bad value and indicates that CWK is not financially healthy and even has some risk of bankruptcy.
CWK has a Altman-Z score (1.76) which is comparable to the rest of the 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.
The Debt to FCF ratio of CWK (17.31) is better than 64.06% of its industry peers.
A Debt/Equity ratio of 1.39 is on the high side and indicates that CWK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.39, CWK is doing worse than 71.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.84
WACC7.94%
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 68.75% 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 65.63% 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.
CWK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.11% yearly.
CWK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.77%.
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.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y35.39%
EPS Next 2Y27.48%
EPS Next 3Y23.57%
EPS Next 5Y17.87%
Revenue Next Year6.3%
Revenue Next 2Y5.7%
Revenue Next 3Y5.55%
Revenue Next 5Y5.28%
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.
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
The Price/Earnings ratio is 14.07, which indicates a correct valuation of CWK.
Compared to the rest of the industry, the Price/Earnings ratio of CWK indicates a rather cheap valuation: CWK is cheaper than 84.38% of the companies listed in the same industry.
CWK is valuated rather cheaply when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.04, 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 95.31% of the companies listed in the same industry.
CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 11.04 |
4.2 Price Multiples
CWK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CWK is cheaper than 89.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CWK is valued a bit cheaper than the industry average as 79.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.96 | ||
| EV/EBITDA | 10.53 |
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.
The decent profitability rating of CWK may justify a higher PE ratio.
CWK's earnings are expected to grow with 23.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)N/A
EPS Next 2Y27.48%
EPS Next 3Y23.57%
5. Dividend
5.1 Amount
No dividends for CWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.32
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners98.49%
Inst Owner Change1.71%
Ins Owners0.5%
Ins Owner Change0.09%
Market Cap3.78B
Revenue(TTM)10.00B
Net Income(TTM)223.50M
Analysts74.29
Price Target18.54 (13.6%)
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)18.37%
PT rev (3m)21.19%
EPS NQ rev (1m)-1.09%
EPS NQ rev (3m)-2.05%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)6.33%
Revenue NQ rev (3m)7.65%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 11.04 | ||
| P/S | 0.38 | ||
| P/FCF | 22.96 | ||
| P/OCF | 19.06 | ||
| P/B | 1.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.53 |
EPS(TTM)1.16
EY7.11%
EPS(NY)1.48
Fwd EY9.06%
FCF(TTM)0.71
FCFY4.35%
OCF(TTM)0.86
OCFY5.25%
SpS43.19
BVpS8.45
TBVpS-3.29
PEG (NY)0.4
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 | 1.76 |
F-Score6
WACC7.94%
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 Y35.39%
EPS Next 2Y27.48%
EPS Next 3Y23.57%
EPS Next 5Y17.87%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
Revenue Next Year6.3%
Revenue Next 2Y5.7%
Revenue Next 3Y5.55%
Revenue Next 5Y5.28%
EBIT growth 1Y41.65%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year56.76%
EBIT Next 3Y24.41%
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 35.39% in the next year.