CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - BMG2717C1064 - Common Stock
16.53 USD
0 (0%)
16.53 USD
0 (0%)
Overall CWK gets a fundamental rating of 5 out of 10. We evaluated CWK against 63 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CWK.
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.
In multiple years CWK reported negative net income over the last 5 years.
Of the past 5 years CWK 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CWK (2.91%) is better than 78.13% of its industry peers.
CWK has a better Return On Equity (11.42%) than 89.06% of its industry peers.
CWK has a better Return On Invested Capital (6.64%) than 84.38% 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 5.35%.
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 60.94% of the companies in the same industry.
In the last couple of years the Profit Margin of CWK has declined.
With a decent Operating Margin value of 4.61%, CWK is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of CWK has grown nicely.
Looking at the Gross Margin, with a value of 18.33%, CWK is in line with its industry, outperforming 43.75% of the companies in the same 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CWK is destroying value.
CWK has more shares outstanding than it did 1 year ago.
CWK has more shares outstanding than it did 5 years ago.
CWK has a better debt/assets ratio than last year.
2.2 Solvency
CWK has an Altman-Z score of 1.77. 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 1.77, CWK perfoms like the industry average, outperforming 51.56% 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.
Looking at the Debt to FCF ratio, with a value of 17.31, CWK is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
CWK has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
CWK has a worse Debt to Equity ratio (1.39) than 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.77
WACC8.67%
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 70.31% of its industry peers.
CWK has a Quick 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 Quick ratio of CWK (1.07) is worse than 67.19% of 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 31.82% 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.
The Revenue has been growing slightly by 6.77% in the past year.
Measured over the past years, CWK shows a small growth in Revenue. The Revenue has been growing by 1.54% on average per year.
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.
CWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.28% yearly.
EPS Next Y34.64%
EPS Next 2Y27%
EPS Next 3Y22.93%
EPS Next 5Y17.87%
Revenue Next Year6.81%
Revenue Next 2Y4.39%
Revenue Next 3Y4.79%
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 14.25.
Based on the Price/Earnings ratio, CWK is valued cheaply inside the industry as 82.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.92, CWK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.26, the valuation of CWK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CWK is valued cheaper than 93.75% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CWK to the average of the S&P500 Index (23.46), we can say CWK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 11.26 |
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.
CWK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CWK is cheaper than 78.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 10.61 |
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 22.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y27%
EPS Next 3Y22.93%
5. Dividend
5.1 Amount
CWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
16.53
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 Owners97.69%
Inst Owner Change1.72%
Ins Owners0.5%
Ins Owner Change0.09%
Market Cap3.83B
Revenue(TTM)10.00B
Net Income(TTM)223.50M
Analysts73.85
Price Target18.52 (12.04%)
Short Float %3.43%
Short Ratio4.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-0.12%
PT rev (3m)18.23%
EPS NQ rev (1m)-1.66%
EPS NQ rev (3m)-3.35%
EPS NY rev (1m)-0.55%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)-7.18%
Revenue NQ rev (3m)-0.23%
Revenue NY rev (1m)0.48%
Revenue NY rev (3m)1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 11.26 | ||
| P/S | 0.38 | ||
| P/FCF | 23.26 | ||
| P/OCF | 19.31 | ||
| P/B | 1.96 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.61 |
EPS(TTM)1.16
EY7.02%
EPS(NY)1.47
Fwd EY8.88%
FCF(TTM)0.71
FCFY4.3%
OCF(TTM)0.86
OCFY5.18%
SpS43.19
BVpS8.45
TBVpS-3.29
PEG (NY)0.41
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 | 1.77 |
F-Score6
WACC8.67%
ROIC/WACC0.77
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 Y34.64%
EPS Next 2Y27%
EPS Next 3Y22.93%
EPS Next 5Y17.87%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
Revenue Next Year6.81%
Revenue Next 2Y4.39%
Revenue Next 3Y4.79%
Revenue Next 5Y5.28%
EBIT growth 1Y41.65%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year56.09%
EBIT Next 3Y23.92%
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 34.64% in the next year.