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%)
Overall CWK gets a fundamental rating of 5 out of 10. We evaluated CWK against 63 industry peers in the Real Estate Management & Development industry. There are concerns on the financial health of CWK while its profitability can be described as average. 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.
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.
Looking at the Return On Equity, with a value of 10.81%, CWK belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
With an excellent Return On Invested Capital value of 6.33%, CWK belongs to the best of the industry, outperforming 84.13% 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 6.23%.
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
Looking at the Profit Margin, with a value of 2.11%, CWK is in line with its industry, outperforming 58.73% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CWK is destroying value.
Compared to 1 year ago, CWK has more shares outstanding
The number of shares outstanding for CWK has been increased compared to 5 years ago.
The debt/assets ratio for CWK has been reduced compared to a year ago.
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.
The Debt to FCF ratio of CWK is 23.71, which is on the high side as it means it would take CWK, 23.71 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 23.71, CWK is doing good in the industry, outperforming 63.49% of the companies in the same industry.
CWK has a Debt/Equity ratio of 1.48. This is a high value indicating a heavy dependency on external financing.
CWK has a worse Debt to Equity ratio (1.48) 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.
CWK's Current ratio of 1.13 is on the low side compared to the rest of the industry. CWK is outperformed by 65.08% of its industry peers.
A Quick Ratio of 1.13 indicates that CWK should not have too much problems paying its short term obligations.
The Quick ratio of CWK (1.13) is worse than 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.
Measured over the past years, CWK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.11% on average per year.
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.
Based on estimates for the next years, CWK will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
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
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.
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
The Price/Earnings ratio is 14.33, which indicates a correct valuation of CWK.
Based on the Price/Earnings ratio, CWK is valued cheaper than 84.13% of the companies in the same industry.
When comparing the Price/Earnings ratio of CWK to the average of the S&P500 Index (27.29), we can say CWK is valued slightly cheaper.
CWK is valuated reasonably with a Price/Forward Earnings ratio of 10.60.
Based on the Price/Forward Earnings ratio, CWK is valued cheaper than 95.24% of the companies in the same industry.
CWK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.85, 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
Based on the Enterprise Value to EBITDA ratio, CWK is valued cheaper than 88.89% of the companies in the same industry.
CWK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CWK is cheaper than 74.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.89 | ||
| EV/EBITDA | 10.88 |
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.
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
CWK does not give a dividend.
| 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-0.02%
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)27.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)0.01%
EPS NY rev (3m)8.51%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)-4%
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 | 10.88 |
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%