CUSHMAN & WAKEFIELD PLC (CWK) Stock Fundamental Analysis
USA - NYSE:CWK - GB00BFZ4N465 - Common Stock
15.76 USD
-0.02 (-0.13%)
15.76 USD
0 (0%)
Taking everything into account, CWK scores 5 out of 10 in our fundamental rating. CWK was compared to 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year CWK was profitable.
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
CWK has a Return On Assets of 2.72%. This is in the better half of the industry: CWK outperforms 77.78% of its industry peers.
CWK has a Return On Equity of 10.81%. This is amongst the best in the industry. CWK outperforms 87.30% of its industry peers.
CWK's Return On Invested Capital of 6.33% is amongst the best of the industry. CWK outperforms 82.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CWK is in line with the industry average of 6.26%.
The last Return On Invested Capital (6.33%) for CWK is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.81% | ||
| ROIC | 6.33% |
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 (2.11%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CWK has declined.
CWK has a Operating Margin of 4.55%. This is in the better half of the industry: CWK outperforms 61.90% of its industry peers.
CWK's Operating Margin has improved in the last couple of years.
CWK has a Gross Margin (18.60%) 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 | 4.55% | ||
| PM (TTM) | 2.11% | ||
| GM | 18.6% |
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.
CWK has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CWK has more shares outstanding
Compared to 1 year ago, CWK has an improved debt to assets ratio.
2.2 Solvency
CWK has an Altman-Z score of 1.75. 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 of 1.75. This is comparable to the rest of the industry: CWK outperforms 53.97% of its industry peers.
CWK has a debt to FCF ratio of 23.71. This is a negative value and a sign of low solvency as CWK would need 23.71 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.71, CWK is in the better half of the industry, outperforming 63.49% of the companies in the same industry.
A Debt/Equity ratio of 1.48 is on the high side and indicates that CWK has dependencies on debt financing.
The Debt to Equity ratio of CWK (1.48) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 23.72 | ||
| Altman-Z | 1.75 |
ROIC/WACC0.8
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.13 indicates that CWK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.13, CWK is not doing good in the industry: 65.08% of the companies in the same industry are doing better.
A Quick Ratio of 1.13 indicates that CWK should not have too much problems paying its short term obligations.
CWK has a Quick ratio of 1.13. This is in the lower half of the industry: CWK underperforms 63.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 27.91% over the past year.
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 4.63%.
The Revenue has been growing slightly by 1.54% on average over the past years.
EPS 1Y (TTM)27.91%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%50%
Revenue 1Y (TTM)4.63%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%8.56%
3.2 Future
CWK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.72% yearly.
CWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.21% yearly.
EPS Next Y35.36%
EPS Next 2Y27.85%
EPS Next 3Y24.88%
EPS Next 5Y14.72%
Revenue Next Year5.59%
Revenue Next 2Y5.66%
Revenue Next 3Y5.65%
Revenue Next 5Y5.21%
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
With a Price/Earnings ratio of 14.33, CWK is valued correctly.
84.13% 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 27.42, CWK is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.60 indicates a reasonable valuation of CWK.
Based on the Price/Forward Earnings ratio, CWK is valued cheaply inside the industry as 95.24% of the companies are valued more expensively.
CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 10.6 |
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.
76.19% 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 | 28.89 | ||
| EV/EBITDA | 10.87 |
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.
CWK has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CWK's earnings are expected to grow with 24.88% in the coming years.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y27.85%
EPS Next 3Y24.88%
5. Dividend
5.1 Amount
No dividends for CWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.76
-0.02 (-0.13%)
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 Change-0.04%
Ins Owners0.5%
Ins Owner Change0.35%
Market Cap3.65B
Analysts74.29
Price Target15.66 (-0.63%)
Short Float %4.88%
Short Ratio4.79
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)226.59%
Min EPS beat(2)35.7%
Max EPS beat(2)417.47%
EPS beat(4)4
Avg EPS beat(4)116.25%
Min EPS beat(4)1.47%
Max EPS beat(4)417.47%
EPS beat(8)7
Avg EPS beat(8)72.73%
EPS beat(12)9
Avg EPS beat(12)39.1%
EPS beat(16)13
Avg EPS beat(16)44.27%
Revenue beat(2)2
Avg Revenue beat(2)1.87%
Min Revenue beat(2)0.29%
Max Revenue beat(2)3.45%
Revenue beat(4)2
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-3.01%
Max Revenue beat(4)3.45%
Revenue beat(8)4
Avg Revenue beat(8)-0.86%
Revenue beat(12)6
Avg Revenue beat(12)4.08%
Revenue beat(16)10
Avg Revenue beat(16)15.75%
PT rev (1m)0%
PT rev (3m)22.45%
EPS NQ rev (1m)0.8%
EPS NQ rev (3m)3.17%
EPS NY rev (1m)0.01%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)-4.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.33 | ||
| Fwd PE | 10.6 | ||
| P/S | 0.37 | ||
| P/FCF | 28.89 | ||
| P/OCF | 22.96 | ||
| P/B | 1.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.87 |
EPS(TTM)1.1
EY6.98%
EPS(NY)1.49
Fwd EY9.44%
FCF(TTM)0.55
FCFY3.46%
OCF(TTM)0.69
OCFY4.35%
SpS42.08
BVpS8.22
TBVpS-3.59
PEG (NY)0.41
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 10.81% | ||
| ROCE | 8.47% | ||
| ROIC | 6.33% | ||
| ROICexc | 7.17% | ||
| ROICexgc | 17.62% | ||
| OM | 4.55% | ||
| PM (TTM) | 2.11% | ||
| GM | 18.6% | ||
| FCFM | 1.3% |
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%
ROICexcg growth 3Y-12.14%
ROICexcg 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 Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 23.72 | ||
| Debt/EBITDA | 5.09 | ||
| Cap/Depr | 29.26% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 28.66% | ||
| Profit Quality | 61.37% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.75 |
F-Score6
WACC7.88%
ROIC/WACC0.8
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)27.91%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%50%
EPS Next Y35.36%
EPS Next 2Y27.85%
EPS Next 3Y24.88%
EPS Next 5Y14.72%
Revenue 1Y (TTM)4.63%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%8.56%
Revenue Next Year5.59%
Revenue Next 2Y5.66%
Revenue Next 3Y5.65%
Revenue Next 5Y5.21%
EBIT growth 1Y46.16%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year56.76%
EBIT Next 3Y24.41%
EBIT Next 5Y17.31%
FCF growth 1Y674.85%
FCF growth 3Y-30.42%
FCF growth 5Y-2.44%
OCF growth 1Y178.28%
OCF growth 3Y-27.66%
OCF growth 5Y-5.03%