CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - GB00BFZ4N465 - Common Stock
16.75 USD
-0.12 (-0.71%)
16.75 USD
0 (0%)
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
In the past year CWK was profitable.
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
Looking at the Return On Assets, with a value of 2.91%, CWK is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
CWK has a Return On Equity of 11.42%. This is amongst the best in the industry. CWK outperforms 87.50% 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 82.81% 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 6.42%.
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
CWK has a Profit Margin of 2.23%. This is in the better half of the industry: CWK outperforms 60.94% of its industry peers.
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.
In the last couple of years the Operating Margin of CWK has grown nicely.
CWK has a Gross Margin (18.33%) which is in line with 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
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.
The number of shares outstanding for CWK has been increased compared to 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.
CWK's Altman-Z score of 1.77 is in line compared to the rest of the industry. CWK outperforms 54.69% of its industry peers.
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.
With a decent Debt to FCF ratio value of 17.31, CWK is doing good in 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's Debt to Equity ratio of 1.39 is on the low side compared to the rest of the industry. CWK is outperformed by 71.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.77 |
ROIC/WACC0.83
WACC7.96%
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.
With a Current ratio value of 1.07, CWK is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
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.
CWK has a worse Quick ratio (1.07) than 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.
The earnings per share for CWK have been decreasing by -11.11% on average. This is quite bad
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 15.35% 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 Y35.39%
EPS Next 2Y27.48%
EPS Next 3Y23.57%
EPS Next 5Y15.35%
Revenue Next Year6.3%
Revenue Next 2Y5.7%
Revenue Next 3Y5.55%
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
Based on the Price/Earnings ratio of 14.44, the valuation of CWK can be described as correct.
85.94% of the companies in the same industry are more expensive than CWK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CWK is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.33, the valuation of CWK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, CWK is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWK is valued cheaper than 89.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWK indicates a somewhat cheap valuation: CWK is cheaper than 79.69% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.56 | ||
| EV/EBITDA | 10.75 |
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 23.57% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y27.48%
EPS Next 3Y23.57%
5. Dividend
5.1 Amount
CWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.75
-0.12 (-0.71%)
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 Change1.72%
Ins Owners0.5%
Ins Owner Change0.05%
Market Cap3.88B
Revenue(TTM)10.00B
Net Income(TTM)223.50M
Analysts74.29
Price Target18.54 (10.69%)
Short Float %4.88%
Short Ratio6.03
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)-3.11%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)-0.35%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)6.41%
Revenue NQ rev (3m)9.22%
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.33 | ||
| P/S | 0.39 | ||
| P/FCF | 23.56 | ||
| P/OCF | 19.56 | ||
| P/B | 1.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.75 |
EPS(TTM)1.16
EY6.93%
EPS(NY)1.48
Fwd EY8.83%
FCF(TTM)0.71
FCFY4.24%
OCF(TTM)0.86
OCFY5.11%
SpS43.21
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
WACC7.96%
ROIC/WACC0.83
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 5Y15.35%
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 5Y17.71%
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.