CBRE GROUP INC - A (CBRE) Stock Fundamental Analysis
NYSE:CBRE - US12504L1098 - Common Stock
162.12 USD
+0.13 (+0.08%)
162.12 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to CBRE. CBRE was compared to 65 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! This makes CBRE very considerable for growth investing!
1. Profitability
1.1 Basic Checks
CBRE had positive earnings in the past year.
CBRE had a positive operating cash flow in the past year.
In the past 5 years CBRE has always been profitable.
In the past 5 years CBRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CBRE (3.94%) is better than 87.69% of its industry peers.
CBRE has a Return On Equity of 13.21%. This is amongst the best in the industry. CBRE outperforms 95.38% of its industry peers.
With an excellent Return On Invested Capital value of 6.77%, CBRE belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CBRE is in line with the industry average of 6.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 13.21% | ||
| ROIC | 6.77% |
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
Looking at the Profit Margin, with a value of 2.86%, CBRE is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
CBRE's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.26%, CBRE perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
CBRE's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 19.42%, CBRE perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
CBRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.26% | ||
| PM (TTM) | 2.86% | ||
| GM | 19.42% |
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
The number of shares outstanding for CBRE has been reduced compared to 5 years ago.
Compared to 1 year ago, CBRE has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.59 indicates that CBRE is not in any danger for bankruptcy at the moment.
The Altman-Z score of CBRE (3.59) is better than 78.46% of its industry peers.
CBRE has a debt to FCF ratio of 6.64. This is a slightly negative value and a sign of low solvency as CBRE would need 6.64 years to pay back of all of its debts.
CBRE's Debt to FCF ratio of 6.64 is fine compared to the rest of the industry. CBRE outperforms 70.77% of its industry peers.
CBRE has a Debt/Equity ratio of 0.88. This is a neutral value indicating CBRE is somewhat dependend on debt financing.
CBRE's Debt to Equity ratio of 0.88 is in line compared to the rest of the industry. CBRE outperforms 43.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 6.64 | ||
| Altman-Z | 3.59 |
ROIC/WACC0.71
WACC9.6%
2.3 Liquidity
CBRE has a Current Ratio of 1.13. This is a normal value and indicates that CBRE is financially healthy and should not expect problems in meeting its short term obligations.
CBRE's Current ratio of 1.13 is on the low side compared to the rest of the industry. CBRE is outperformed by 60.00% of its industry peers.
CBRE has a Quick Ratio of 1.13. This is a normal value and indicates that CBRE is financially healthy and should not expect problems in meeting its short term obligations.
CBRE has a worse Quick ratio (1.13) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
CBRE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.95%, which is quite impressive.
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 14.96%.
The Revenue has been growing by 8.40% on average over the past years. This is quite good.
EPS 1Y (TTM)50.95%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%46.91%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.24%
3.2 Future
The Earnings Per Share is expected to grow by 18.49% on average over the next years. This is quite good.
CBRE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.64% yearly.
EPS Next Y21.9%
EPS Next 2Y20%
EPS Next 3Y18.89%
EPS Next 5Y18.49%
Revenue Next Year12.55%
Revenue Next 2Y11.32%
Revenue Next 3Y10.72%
Revenue Next 5Y8.64%
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
The Price/Earnings ratio is 29.11, which means the current valuation is very expensive for CBRE.
78.46% of the companies in the same industry are more expensive than CBRE, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.13, CBRE is valued at the same level.
With a Price/Forward Earnings ratio of 22.03, CBRE is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CBRE is valued cheaper than 83.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, CBRE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 22.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CBRE is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CBRE indicates a somewhat cheap valuation: CBRE is cheaper than 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.3 | ||
| EV/EBITDA | 21.99 |
4.3 Compensation for Growth
CBRE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CBRE has a very decent profitability rating, which may justify a higher PE ratio.
CBRE's earnings are expected to grow with 18.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)4.4
EPS Next 2Y20%
EPS Next 3Y18.89%
5. Dividend
5.1 Amount
No dividends for CBRE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
162.12
+0.13 (+0.08%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners99.39%
Inst Owner Change-3.15%
Ins Owners0.52%
Ins Owner Change1.33%
Market Cap48.24B
Analysts81.05
Price Target166.27 (2.56%)
Short Float %1.35%
Short Ratio2.62
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)9.5%
Min EPS beat(2)8.58%
Max EPS beat(2)10.42%
EPS beat(4)4
Avg EPS beat(4)8.04%
Min EPS beat(4)2.25%
Max EPS beat(4)10.89%
EPS beat(8)8
Avg EPS beat(8)8.61%
EPS beat(12)11
Avg EPS beat(12)6.47%
EPS beat(16)14
Avg EPS beat(16)9.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.41%
Min Revenue beat(2)-1.96%
Max Revenue beat(2)1.13%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-1.96%
Max Revenue beat(4)1.13%
Revenue beat(8)4
Avg Revenue beat(8)0.47%
Revenue beat(12)7
Avg Revenue beat(12)0.5%
Revenue beat(16)9
Avg Revenue beat(16)0.15%
PT rev (1m)7.66%
PT rev (3m)12.66%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)1.73%
EPS NY rev (1m)2.25%
EPS NY rev (3m)2.79%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 22.03 | ||
| P/S | 1.27 | ||
| P/FCF | 43.3 | ||
| P/OCF | 33.88 | ||
| P/B | 5.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.99 |
EPS(TTM)5.57
EY3.44%
EPS(NY)7.36
Fwd EY4.54%
FCF(TTM)3.74
FCFY2.31%
OCF(TTM)4.79
OCFY2.95%
SpS128.06
BVpS27.74
TBVpS-2.16
PEG (NY)1.33
PEG (5Y)4.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.94% | ||
| ROE | 13.21% | ||
| ROCE | 9.52% | ||
| ROIC | 6.77% | ||
| ROICexc | 7.28% | ||
| ROICexgc | 14.04% | ||
| OM | 4.26% | ||
| PM (TTM) | 2.86% | ||
| GM | 19.42% | ||
| FCFM | 2.92% |
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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.88 | ||
| Debt/FCF | 6.64 | ||
| Debt/EBITDA | 3.11 | ||
| Cap/Depr | 43.42% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 60.88% | ||
| Profit Quality | 102.2% | ||
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 3.59 |
F-Score6
WACC9.6%
ROIC/WACC0.71
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)50.95%
EPS 3Y-1.88%
EPS 5Y6.61%
EPS Q2Q%46.91%
EPS Next Y21.9%
EPS Next 2Y20%
EPS Next 3Y18.89%
EPS Next 5Y18.49%
Revenue 1Y (TTM)14.96%
Revenue growth 3Y8.83%
Revenue growth 5Y8.4%
Sales Q2Q%16.24%
Revenue Next Year12.55%
Revenue Next 2Y11.32%
Revenue Next 3Y10.72%
Revenue Next 5Y8.64%
EBIT growth 1Y26.13%
EBIT growth 3Y-0.86%
EBIT growth 5Y2.79%
EBIT Next Year56.39%
EBIT Next 3Y24.27%
EBIT Next 5Y17.91%
FCF growth 1Y116.68%
FCF growth 3Y-13.36%
FCF growth 5Y8.54%
OCF growth 1Y75.25%
OCF growth 3Y-10.27%
OCF growth 5Y6.9%