CBRE GROUP INC - A (CBRE) Stock Fundamental Analysis
NYSE:CBRE - New York Stock Exchange, Inc. - US12504L1098 - Common Stock - Currency: USD
Taking everything into account, CBRE scores 5 out of 10 in our fundamental rating. CBRE was compared to 64 industry peers in the Real Estate Management & Development industry. CBRE has only an average score on both its financial health and profitability. CBRE is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year CBRE was profitable.
In the past year CBRE had a positive cash flow from operations.
Each year in the past 5 years CBRE has been profitable.
Each year in the past 5 years CBRE had a positive operating cash flow.
1.2 Ratios
CBRE has a better Return On Assets (3.81%) than 89.06% of its industry peers.
Looking at the Return On Equity, with a value of 12.13%, CBRE belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
CBRE has a Return On Invested Capital of 7.14%. This is amongst the best in the industry. CBRE outperforms 92.19% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CBRE is in line with the industry average of 5.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 12.13% | ||
| ROIC | 7.14% |
ROA(3y)5.07%
ROA(5y)5.54%
ROE(3y)13.78%
ROE(5y)14.7%
ROIC(3y)7.46%
ROIC(5y)7.57%
1.3 Margins
CBRE has a Profit Margin of 2.74%. This is in the better half of the industry: CBRE outperforms 71.88% of its industry peers.
In the last couple of years the Profit Margin of CBRE has declined.
CBRE has a Operating Margin of 4.29%. This is in the better half of the industry: CBRE outperforms 64.06% of its industry peers.
CBRE's Operating Margin has declined in the last couple of years.
CBRE has a Gross Margin (19.59%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CBRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 2.74% | ||
| GM | 19.59% |
OM growth 3Y-8.91%
OM growth 5Y-5.18%
PM growth 3Y-25.78%
PM growth 5Y-12.79%
GM growth 3Y-4.04%
GM growth 5Y-2.06%
2. Health
2.1 Basic Checks
CBRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CBRE has less shares outstanding
Compared to 5 years ago, CBRE has less shares outstanding
The debt/assets ratio for CBRE is higher compared to a year ago.
2.2 Solvency
CBRE has an Altman-Z score of 3.46. This indicates that CBRE is financially healthy and has little risk of bankruptcy at the moment.
CBRE has a Altman-Z score of 3.46. This is in the better half of the industry: CBRE outperforms 79.69% of its industry peers.
CBRE has a debt to FCF ratio of 5.05. This is a neutral value as CBRE would need 5.05 years to pay back of all of its debts.
CBRE has a Debt to FCF ratio of 5.05. This is in the better half of the industry: CBRE outperforms 79.69% of its industry peers.
CBRE has a Debt/Equity ratio of 0.74. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
CBRE has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: CBRE outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 5.05 | ||
| Altman-Z | 3.46 |
ROIC/WACC0.79
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.00 indicates that CBRE may have some problems paying its short term obligations.
CBRE's Current ratio of 1.00 is on the low side compared to the rest of the industry. CBRE is outperformed by 67.19% of its industry peers.
A Quick Ratio of 1.00 indicates that CBRE may have some problems paying its short term obligations.
CBRE's Quick ratio of 1.00 is on the low side compared to the rest of the industry. CBRE is outperformed by 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.27% over the past year.
The Earnings Per Share has been growing slightly by 6.61% on average over the past years.
CBRE shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.14%.
The Revenue has been growing by 8.40% on average over the past years. This is quite good.
EPS 1Y (TTM)40.27%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%10.26%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%12.29%
3.2 Future
Based on estimates for the next years, CBRE will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.71% on average per year.
Based on estimates for the next years, CBRE will show a quite strong growth in Revenue. The Revenue will grow by 8.68% on average per year.
EPS Next Y19.22%
EPS Next 2Y18.75%
EPS Next 3Y17.86%
EPS Next 5Y16.71%
Revenue Next Year12.56%
Revenue Next 2Y10.82%
Revenue Next 3Y9.3%
Revenue Next 5Y8.68%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.87, CBRE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 76.56% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CBRE to the average of the S&P500 Index (27.50), we can say CBRE is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 19.35, the valuation of CBRE can be described as rather expensive.
CBRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. CBRE is cheaper than 84.38% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. CBRE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
71.88% of the companies in the same industry are more expensive than CBRE, based on the Enterprise Value to EBITDA ratio.
73.44% of the companies in the same industry are more expensive than CBRE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.77 | ||
| EV/EBITDA | 19.39 |
4.3 Compensation for Growth
CBRE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CBRE may justify a higher PE ratio.
A more expensive valuation may be justified as CBRE's earnings are expected to grow with 17.86% in the coming years.
PEG (NY)1.4
PEG (5Y)4.06
EPS Next 2Y18.75%
EPS Next 3Y17.86%
5. Dividend
5.1 Amount
No dividends for CBRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
139.47
+0.7 (+0.5%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners99.11%
Inst Owner Change-0.01%
Ins Owners0.52%
Ins Owner Change7.89%
Market Cap41.58B
Analysts81.05
Price Target154.44 (10.73%)
Short Float %1.33%
Short Ratio2.49
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)6.34%
Min EPS beat(2)2.25%
Max EPS beat(2)10.42%
EPS beat(4)4
Avg EPS beat(4)7.16%
Min EPS beat(4)2.25%
Max EPS beat(4)10.89%
EPS beat(8)8
Avg EPS beat(8)8.24%
EPS beat(12)11
Avg EPS beat(12)8.13%
EPS beat(16)14
Avg EPS beat(16)13.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.39%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)-0.83%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)0.71%
Revenue beat(8)4
Avg Revenue beat(8)0.79%
Revenue beat(12)6
Avg Revenue beat(12)0.26%
Revenue beat(16)9
Avg Revenue beat(16)0.34%
PT rev (1m)0.68%
PT rev (3m)-5.6%
EPS NQ rev (1m)-2.22%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)0.53%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.56%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.87 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.13 | ||
| P/FCF | 30.77 | ||
| P/OCF | 25.14 | ||
| P/B | 5.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.39 |
EPS(TTM)5.19
EY3.72%
EPS(NY)7.21
Fwd EY5.17%
FCF(TTM)4.53
FCFY3.25%
OCF(TTM)5.55
OCFY3.98%
SpS123.25
BVpS27.78
TBVpS-1.59
PEG (NY)1.4
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 12.13% | ||
| ROCE | 10.18% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.73% | ||
| ROICexgc | 16.05% | ||
| OM | 4.29% | ||
| PM (TTM) | 2.74% | ||
| GM | 19.59% | ||
| FCFM | 3.68% |
ROA(3y)5.07%
ROA(5y)5.54%
ROE(3y)13.78%
ROE(5y)14.7%
ROIC(3y)7.46%
ROIC(5y)7.57%
ROICexc(3y)8.16%
ROICexc(5y)8.57%
ROICexgc(3y)18.67%
ROICexgc(5y)19.47%
ROCE(3y)9.51%
ROCE(5y)9.85%
ROICexcg growth 3Y-10.49%
ROICexcg growth 5Y-5.25%
ROICexc growth 3Y-6.39%
ROICexc growth 5Y-5.52%
OM growth 3Y-8.91%
OM growth 5Y-5.18%
PM growth 3Y-25.78%
PM growth 5Y-12.79%
GM growth 3Y-4.04%
GM growth 5Y-2.06%
F-Score6
Asset Turnover1.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 5.05 | ||
| Debt/EBITDA | 2.69 | ||
| Cap/Depr | 43.72% | ||
| Cap/Sales | 0.82% | ||
| Interest Coverage | 3.96 | ||
| Cash Conversion | 72.84% | ||
| Profit Quality | 134.43% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 3.46 |
F-Score6
WACC9.01%
ROIC/WACC0.79
Cap/Depr(3y)45.67%
Cap/Depr(5y)46.01%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.91%
Profit Quality(3y)86.59%
Profit Quality(5y)117.01%
High Growth Momentum
Growth
EPS 1Y (TTM)40.27%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%10.26%
EPS Next Y19.22%
EPS Next 2Y18.75%
EPS Next 3Y17.86%
EPS Next 5Y16.71%
Revenue 1Y (TTM)13.14%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%12.29%
Revenue Next Year12.56%
Revenue Next 2Y10.82%
Revenue Next 3Y9.3%
Revenue Next 5Y8.68%
EBIT growth 1Y23.47%
EBIT growth 3Y-0.86%
EBIT growth 5Y2.79%
EBIT Next Year54.59%
EBIT Next 3Y22.81%
EBIT Next 5Y17.36%
FCF growth 1Y35.17%
FCF growth 3Y-13.36%
FCF growth 5Y8.54%
OCF growth 1Y29.44%
OCF growth 3Y-10.27%
OCF growth 5Y6.9%