CUSHMAN & WAKEFIELD LTD (CWK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CWK - BMG2717C1064 - Common Stock
15.29 USD
-0.3 (-1.92%)
15.29 USD
0 (0%)
Taking everything into account, CWK scores 5 out of 10 in our fundamental rating. CWK was compared to 63 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
CWK had positive earnings in the past year.
CWK had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CWK reported negative net income in multiple 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 2.91%. This is in the better half of the industry: CWK outperforms 77.78% of its industry peers.
CWK's Return On Equity of 11.42% is amongst the best of the industry. CWK outperforms 87.30% of its industry peers.
The Return On Invested Capital of CWK (6.64%) is better than 84.13% of its industry peers.
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 6.28%.
The last Return On Invested Capital (6.64%) for CWK is above the 3 year average (5.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 11.42% | ||
| ROIC | 6.64% |
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
The Profit Margin of CWK (2.23%) is better than 60.32% of its industry peers.
CWK's Profit Margin has declined in the last couple of years.
The Operating Margin of CWK (4.61%) is better than 60.32% 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 18.33%, CWK is in line with its industry, outperforming 44.44% of the companies in the same industry.
CWK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.61% | ||
| PM (TTM) | 2.23% | ||
| GM | 18.33% |
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
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 1.74. 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 1.74. This is comparable to the rest of the industry: CWK outperforms 52.38% of its industry peers.
The Debt to FCF ratio of CWK is 17.31, which is on the high side as it means it would take CWK, 17.31 years of fcf income to pay off all of its debts.
CWK has a Debt to FCF ratio of 17.31. This is in the better half of the industry: CWK outperforms 63.49% of its industry peers.
CWK has a Debt/Equity ratio of 1.39. This is a high value indicating a heavy dependency on external financing.
CWK's Debt to Equity ratio of 1.39 is on the low side compared to the rest of the industry. CWK is outperformed by 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.84
WACC7.89%
2.3 Liquidity
CWK has a Current Ratio of 1.07. This is a normal value and indicates that CWK is financially healthy and should not expect problems in meeting its short term obligations.
CWK has a worse Current ratio (1.07) than 71.43% of its industry peers.
CWK has a Quick Ratio of 1.07. This is a normal value and indicates that CWK is financially healthy and should not expect problems in meeting its short term obligations.
CWK has a worse Quick ratio (1.07) than 68.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
CWK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 31.82%, which is quite impressive.
The earnings per share for CWK have been decreasing by -11.11% on average. This is quite bad
The Revenue has been growing slightly by 6.77% in the past year.
CWK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.54% yearly.
EPS 1Y (TTM)31.82%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%26.09%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
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 17.87% yearly.
The Revenue is expected to grow by 5.28% on average over the next years.
EPS Next Y34.9%
EPS Next 2Y27.06%
EPS Next 3Y22.26%
EPS Next 5Y17.87%
Revenue Next Year6.66%
Revenue Next 2Y6.17%
Revenue Next 3Y5.9%
Revenue Next 5Y5.28%
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
CWK is valuated correctly with a Price/Earnings ratio of 13.18.
CWK's Price/Earnings ratio is rather cheap when compared to the industry. CWK is cheaper than 87.30% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.54. CWK is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.41, the valuation of CWK can be described as very reasonable.
95.24% of the companies in the same industry are more expensive than CWK, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.78. CWK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
CWK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CWK is cheaper than 90.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CWK is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.51 | ||
| EV/EBITDA | 10.23 |
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 22.26% in the coming years.
PEG (NY)0.38
PEG (5Y)N/A
EPS Next 2Y27.06%
EPS Next 3Y22.26%
5. Dividend
5.1 Amount
No dividends for CWK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.29
-0.3 (-1.92%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners97.69%
Inst Owner Change1.72%
Ins Owners0.5%
Ins Owner Change0.09%
Market Cap3.54B
Revenue(TTM)10.00B
Net Income(TTM)223.50M
Analysts73.85
Price Target18 (17.72%)
Short Float %4.59%
Short Ratio5.64
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)19.27%
Min EPS beat(2)2.83%
Max EPS beat(2)35.7%
EPS beat(4)4
Avg EPS beat(4)114.37%
Min EPS beat(4)1.47%
Max EPS beat(4)417.47%
EPS beat(8)8
Avg EPS beat(8)73.22%
EPS beat(12)10
Avg EPS beat(12)41.08%
EPS beat(16)13
Avg EPS beat(16)40.25%
Revenue beat(2)2
Avg Revenue beat(2)6.02%
Min Revenue beat(2)3.45%
Max Revenue beat(2)8.58%
Revenue beat(4)3
Avg Revenue beat(4)2.45%
Min Revenue beat(4)-2.5%
Max Revenue beat(4)8.58%
Revenue beat(8)5
Avg Revenue beat(8)0.78%
Revenue beat(12)6
Avg Revenue beat(12)1.39%
Revenue beat(16)10
Avg Revenue beat(16)13.13%
PT rev (1m)4.66%
PT rev (3m)14.88%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-0.34%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)7.45%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)1.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.18 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.35 | ||
| P/FCF | 21.51 | ||
| P/OCF | 17.86 | ||
| P/B | 1.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.23 |
EPS(TTM)1.16
EY7.59%
EPS(NY)1.47
Fwd EY9.61%
FCF(TTM)0.71
FCFY4.65%
OCF(TTM)0.86
OCFY5.6%
SpS43.19
BVpS8.45
TBVpS-3.29
PEG (NY)0.38
PEG (5Y)N/A
Graham Number14.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.91% | ||
| ROE | 11.42% | ||
| ROCE | 8.89% | ||
| ROIC | 6.64% | ||
| ROICexc | 7.57% | ||
| ROICexgc | 18.81% | ||
| OM | 4.61% | ||
| PM (TTM) | 2.23% | ||
| GM | 18.33% | ||
| FCFM | 1.65% |
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%
ROICexgc growth 3Y-12.14%
ROICexgc 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 Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.39 | ||
| Debt/FCF | 17.31 | ||
| Debt/EBITDA | 4.78 | ||
| Cap/Depr | 31.12% | ||
| Cap/Sales | 0.34% | ||
| Interest Coverage | 2.03 | ||
| Cash Conversion | 34.82% | ||
| Profit Quality | 73.65% | ||
| Current Ratio | 1.07 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.74 |
F-Score6
WACC7.89%
ROIC/WACC0.84
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)31.82%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%26.09%
EPS Next Y34.9%
EPS Next 2Y27.06%
EPS Next 3Y22.26%
EPS Next 5Y17.87%
Revenue 1Y (TTM)6.77%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%11.16%
Revenue Next Year6.66%
Revenue Next 2Y6.17%
Revenue Next 3Y5.9%
Revenue Next 5Y5.28%
EBIT growth 1Y41.65%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year57.1%
EBIT Next 3Y23.68%
EBIT Next 5Y16.82%
FCF growth 1Y8.01%
FCF growth 3Y-30.42%
FCF growth 5Y-2.44%
OCF growth 1Y2.48%
OCF growth 3Y-27.66%
OCF growth 5Y-5.03%
CUSHMAN & WAKEFIELD LTD / CWK FAQ
What is the fundamental rating for CWK stock?
ChartMill assigns a fundamental rating of 5 / 10 to CWK.
What is the valuation status for CWK stock?
ChartMill assigns a valuation rating of 8 / 10 to CUSHMAN & WAKEFIELD LTD (CWK). This can be considered as Undervalued.
What is the profitability of CWK stock?
CUSHMAN & WAKEFIELD LTD (CWK) has a profitability rating of 6 / 10.
What is the financial health of CUSHMAN & WAKEFIELD LTD (CWK) stock?
The financial health rating of CUSHMAN & WAKEFIELD LTD (CWK) is 3 / 10.
What is the earnings growth outlook for CUSHMAN & WAKEFIELD LTD?
The Earnings per Share (EPS) of CUSHMAN & WAKEFIELD LTD (CWK) is expected to grow by 34.9% in the next year.