CUSHMAN & WAKEFIELD PLC (CWK) Stock Fundamental Analysis
NYSE:CWK - New York Stock Exchange, Inc. - GB00BFZ4N465 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CWK. CWK was compared to 65 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
With a decent Return On Assets value of 2.19%, CWK is doing good in the industry, outperforming 73.85% of the companies in the same industry.
With an excellent Return On Equity value of 9.12%, CWK belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With an excellent Return On Invested Capital value of 5.86%, CWK belongs to the best of the industry, outperforming 83.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CWK is in line with the industry average of 5.47%.
The last Return On Invested Capital (5.86%) for CWK is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 9.12% | ||
| ROIC | 5.86% |
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's Profit Margin of 1.70% is fine compared to the rest of the industry. CWK outperforms 64.62% of its industry peers.
In the last couple of years the Profit Margin of CWK has declined.
CWK's Operating Margin of 4.27% is fine compared to the rest of the industry. CWK outperforms 63.08% of its industry peers.
CWK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.42%, CWK is in line with its industry, outperforming 41.54% of the companies in the same industry.
CWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.27% | ||
| PM (TTM) | 1.7% | ||
| GM | 18.42% |
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.
Compared to 1 year ago, CWK has more shares outstanding
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 1.64. This is a bad value and indicates that CWK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CWK (1.64) is comparable to the rest of the industry.
The Debt to FCF ratio of CWK is 22.20, which is on the high side as it means it would take CWK, 22.20 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CWK (22.20) is better than 69.23% of its industry peers.
A Debt/Equity ratio of 1.64 is on the high side and indicates that CWK has dependencies on debt financing.
With a Debt to Equity ratio value of 1.64, CWK is not doing good in the industry: 73.85% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 22.2 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.77
WACC7.65%
2.3 Liquidity
A Current Ratio of 1.18 indicates that CWK should not have too much problems paying its short term obligations.
CWK has a Current ratio of 1.18. This is comparable to the rest of the industry: CWK outperforms 44.62% of its industry peers.
CWK has a Quick Ratio of 1.18. 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 (1.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.64% 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.
The Revenue has been growing slightly by 1.24% in the past year.
The Revenue has been growing slightly by 1.54% on average over the past years.
EPS 1Y (TTM)13.64%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%106.49%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%4.57%
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 15.48% yearly.
CWK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.95% yearly.
EPS Next Y23.71%
EPS Next 2Y22.86%
EPS Next 3Y19.62%
EPS Next 5Y15.48%
Revenue Next Year4.15%
Revenue Next 2Y4.9%
Revenue Next 3Y5.06%
Revenue Next 5Y4.95%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.85, the valuation of CWK can be described as very reasonable.
Based on the Price/Earnings ratio, CWK is valued cheaper than 89.23% of the companies in the same industry.
CWK is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.63, the valuation of CWK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CWK indicates a rather cheap valuation: CWK is cheaper than 95.38% of the companies listed in the same industry.
CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CWK is valued cheaper than 89.23% of the companies in the same industry.
CWK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. CWK is cheaper than 84.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.15 | ||
| EV/EBITDA | 9.8 |
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 19.62% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y22.86%
EPS Next 3Y19.62%
5. Dividend
5.1 Amount
No dividends for CWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.85
+0.2 (+1.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change-5.1%
Ins Owners1.19%
Ins Owner Change1.17%
Market Cap2.74B
Analysts70.77
Price Target12.24 (3.29%)
Short Float %3.77%
Short Ratio4.31
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)209.47%
Min EPS beat(2)1.47%
Max EPS beat(2)417.47%
EPS beat(4)4
Avg EPS beat(4)108.79%
Min EPS beat(4)1.47%
Max EPS beat(4)417.47%
EPS beat(8)7
Avg EPS beat(8)71.7%
EPS beat(12)9
Avg EPS beat(12)37.41%
EPS beat(16)13
Avg EPS beat(16)50.51%
Revenue beat(2)1
Avg Revenue beat(2)-1.11%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)0.29%
Revenue beat(4)1
Avg Revenue beat(4)-2.44%
Min Revenue beat(4)-4.55%
Max Revenue beat(4)0.29%
Revenue beat(8)3
Avg Revenue beat(8)-2.72%
Revenue beat(12)6
Avg Revenue beat(12)7.71%
Revenue beat(16)10
Avg Revenue beat(16)19.25%
PT rev (1m)3.9%
PT rev (3m)-14.72%
EPS NQ rev (1m)1.23%
EPS NQ rev (3m)-12.3%
EPS NY rev (1m)1.21%
EPS NY rev (3m)3.2%
Revenue NQ rev (1m)1.47%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.85 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.29 | ||
| P/FCF | 20.15 | ||
| P/OCF | 16.02 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.8 |
EPS(TTM)1
EY8.44%
EPS(NY)1.37
Fwd EY11.59%
FCF(TTM)0.59
FCFY4.96%
OCF(TTM)0.74
OCFY6.24%
SpS41.27
BVpS7.68
TBVpS-4.01
PEG (NY)0.5
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 9.12% | ||
| ROCE | 7.84% | ||
| ROIC | 5.86% | ||
| ROICexc | 6.65% | ||
| ROICexgc | 16.23% | ||
| OM | 4.27% | ||
| PM (TTM) | 1.7% | ||
| GM | 18.42% | ||
| FCFM | 1.42% |
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-Score8
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 22.2 | ||
| Debt/EBITDA | 5.55 | ||
| Cap/Depr | 30.15% | ||
| Cap/Sales | 0.37% | ||
| Interest Coverage | 1.59 | ||
| Cash Conversion | 32.63% | ||
| Profit Quality | 83.95% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.64 |
F-Score8
WACC7.65%
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)13.64%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%106.49%
EPS Next Y23.71%
EPS Next 2Y22.86%
EPS Next 3Y19.62%
EPS Next 5Y15.48%
Revenue 1Y (TTM)1.24%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%4.57%
Revenue Next Year4.15%
Revenue Next 2Y4.9%
Revenue Next 3Y5.06%
Revenue Next 5Y4.95%
EBIT growth 1Y46.45%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year50.59%
EBIT Next 3Y21.99%
EBIT Next 5Y17.13%
FCF growth 1Y342.86%
FCF growth 3Y-30.42%
FCF growth 5Y-2.44%
OCF growth 1Y1304.93%
OCF growth 3Y-27.66%
OCF growth 5Y-5.03%