CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - BMG2717C1064 - Common Stock
16.53 USD
+0.25 (+1.54%)
16.53 USD
0 (0%)
Taking everything into account, CWK scores 5 out of 10 in our fundamental rating. CWK was compared to 62 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.
- 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.
- CWK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.91%, CWK is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
- With an excellent Return On Equity value of 11.42%, CWK belongs to the best of the industry, outperforming 88.71% of the companies in the same industry.
- CWK's Return On Invested Capital of 6.64% is amongst the best of the industry. CWK outperforms 83.87% 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 5.44%.
- 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
- With a Profit Margin value of 2.23%, CWK perfoms like the industry average, outperforming 59.68% of the companies in the same industry.
- CWK's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 4.61%, CWK is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- 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.
- 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
- CWK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, CWK has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.77, we must say that CWK is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.77, CWK is in line with its industry, outperforming 50.00% 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 64.52% 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 72.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.77
WACC8.63%
2.3 Liquidity
- A Current Ratio of 1.07 indicates that CWK should not have too much problems paying its short term obligations.
- The Current ratio of CWK (1.07) is worse than 74.19% 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 worse Quick ratio (1.07) than 70.97% 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.
- 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.
- Looking at the last year, CWK shows a small growth in Revenue. The Revenue has grown by 6.77% in the last 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
- Based on estimates for the next years, CWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.87% on average per year.
- The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y34.64%
EPS Next 2Y26.89%
EPS Next 3Y23.23%
EPS Next 5Y17.87%
Revenue Next Year7.06%
Revenue Next 2Y4.67%
Revenue Next 3Y5.07%
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
- A Price/Earnings ratio of 14.25 indicates a correct valuation of CWK.
- 82.26% of the companies in the same industry are more expensive than CWK, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. CWK is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.28, which indicates a very decent valuation of CWK.
- Based on the Price/Forward Earnings ratio, CWK is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
- CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.25 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
- 88.71% of the companies in the same industry are more expensive than CWK, based on the Enterprise Value to EBITDA ratio.
- CWK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CWK is cheaper than 79.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 10.61 |
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.
- A more expensive valuation may be justified as CWK's earnings are expected to grow with 23.23% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y26.89%
EPS Next 3Y23.23%
5. Dividend
5.1 Amount
- CWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CUSHMAN & WAKEFIELD LTD / CWK FAQ
What is the fundamental rating for CWK stock?
ChartMill assigns a fundamental rating of 5 / 10 to CWK.
Can you provide the valuation status for CUSHMAN & WAKEFIELD LTD?
ChartMill assigns a valuation rating of 8 / 10 to CUSHMAN & WAKEFIELD LTD (CWK). This can be considered as Undervalued.
Can you provide the profitability details for CUSHMAN & WAKEFIELD LTD?
CUSHMAN & WAKEFIELD LTD (CWK) has a profitability rating of 6 / 10.
Can you provide the financial health for CWK stock?
The financial health rating of CUSHMAN & WAKEFIELD LTD (CWK) is 3 / 10.
Can you provide the expected EPS growth for CWK stock?
The Earnings per Share (EPS) of CUSHMAN & WAKEFIELD LTD (CWK) is expected to grow by 34.64% in the next year.