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 64 industry peers in the Real Estate Management & Development industry. CWK has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 2.19%. This is in the better half of the industry: CWK outperforms 73.44% of its industry peers.
CWK has a better Return On Equity (9.12%) than 84.38% of its industry peers.
CWK has a better Return On Invested Capital (5.86%) than 82.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CWK is in line with the industry average of 5.67%.
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
Looking at the Profit Margin, with a value of 1.70%, CWK is in the better half of the industry, outperforming 64.06% of the companies in the same industry.
CWK's Profit Margin has declined in the last couple of years.
CWK has a better Operating Margin (4.27%) than 64.06% of its industry peers.
In the last couple of years the Operating Margin of CWK has grown nicely.
The Gross Margin of CWK (18.42%) is comparable to the rest of the 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
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
CWK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CWK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that CWK is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CWK (1.68) 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.
With a decent Debt to FCF ratio value of 22.20, CWK is doing good in the industry, outperforming 68.75% of the companies in the same industry.
CWK has a Debt/Equity ratio of 1.64. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.64, CWK is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.64 | ||
| Debt/FCF | 22.2 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.76
WACC7.72%
2.3 Liquidity
CWK has a Current 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.
CWK has a Current ratio (1.18) which is comparable to the rest of the industry.
A Quick Ratio of 1.18 indicates that CWK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.18, CWK is in line with its industry, outperforming 46.88% of the companies in the same 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 impressive 27.91% 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 decreased by -0.50% in the past year.
Measured over the past years, CWK shows a small growth in Revenue. The Revenue has been growing by 1.54% on average per year.
EPS 1Y (TTM)27.91%
EPS 3Y-23.47%
EPS 5Y-11.11%
EPS Q2Q%50%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%8.56%
3.2 Future
Based on estimates for the next years, CWK will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.48% on average per year.
Based on estimates for the next years, CWK will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y24.75%
EPS Next 2Y22.52%
EPS Next 3Y19.3%
EPS Next 5Y15.48%
Revenue Next Year3.94%
Revenue Next 2Y4.79%
Revenue Next 3Y4.99%
Revenue Next 5Y4.95%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.43, CWK is valued correctly.
Based on the Price/Earnings ratio, CWK is valued cheaper than 87.50% of the companies in the same industry.
CWK is valuated cheaply when we compare the Price/Earnings ratio to 26.99, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.01 indicates a reasonable valuation of CWK.
Based on the Price/Forward Earnings ratio, CWK is valued cheaply inside the industry as 95.31% of the companies are valued more expensively.
CWK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CWK indicates a rather cheap valuation: CWK is cheaper than 89.06% of the companies listed in the same industry.
84.38% of the companies in the same industry are more expensive than CWK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.27 | ||
| EV/EBITDA | 10.48 |
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.
The decent profitability rating of CWK may justify a higher PE ratio.
CWK's earnings are expected to grow with 19.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y22.52%
EPS Next 3Y19.3%
5. Dividend
5.1 Amount
CWK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.67
+0.28 (+2.09%)
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 Change1.63%
Ins Owners1.19%
Ins Owner Change1.28%
Market Cap3.16B
Analysts71.43
Price Target13.15 (-3.8%)
Short Float %4.65%
Short Ratio5.9
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)4.51%
PT rev (3m)8.59%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-7.08%
EPS NY rev (1m)0.85%
EPS NY rev (3m)6.25%
Revenue NQ rev (1m)-0.62%
Revenue NQ rev (3m)1.01%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.43 | ||
| Fwd PE | 10.01 | ||
| P/S | 0.33 | ||
| P/FCF | 23.27 | ||
| P/OCF | 18.49 | ||
| P/B | 1.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.48 |
EPS(TTM)1.1
EY8.05%
EPS(NY)1.37
Fwd EY9.99%
FCF(TTM)0.59
FCFY4.3%
OCF(TTM)0.74
OCFY5.41%
SpS41.24
BVpS7.67
TBVpS-4
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 | 1.68 |
F-Score8
WACC7.72%
ROIC/WACC0.76
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 Y24.75%
EPS Next 2Y22.52%
EPS Next 3Y19.3%
EPS Next 5Y15.48%
Revenue 1Y (TTM)-0.5%
Revenue growth 3Y0.2%
Revenue growth 5Y1.54%
Sales Q2Q%8.56%
Revenue Next Year3.94%
Revenue Next 2Y4.79%
Revenue Next 3Y4.99%
Revenue Next 5Y4.95%
EBIT growth 1Y46.45%
EBIT growth 3Y-11.16%
EBIT growth 5Y13.81%
EBIT Next Year49.81%
EBIT Next 3Y21.47%
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%