NasdaqGS:CSGP

Stock Analysis Report

Executive Summary

CoStar Group, Inc. provides information, analytics, and online marketplaces to the commercial real estate industry in the United States and the United Kingdom.

Rewards

Trading at 4.1% below its fair value

Earnings are forecast to grow 19.09% per year

Earnings grew by 56% over the past year

Risk Analysis

No risks detected for CSGP from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has CoStar Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CSGP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

CSGP

0.7%

US Professional Services

1.1%

US Market


1 Year Return

60.6%

CSGP

26.3%

US Professional Services

17.8%

US Market

Return vs Industry: CSGP exceeded the US Professional Services industry which returned 26.3% over the past year.

Return vs Market: CSGP exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

CSGPIndustryMarket
7 Day-1.8%0.7%1.1%
30 Day5.9%3.9%1.4%
90 Day1.8%0.4%3.9%
1 Year60.6%60.6%27.4%26.3%20.3%17.8%
3 Year198.8%198.8%55.3%50.3%44.8%35.4%
5 Year239.9%239.9%82.5%72.6%71.3%52.4%

Price Volatility Vs. Market

How volatile is CoStar Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CoStar Group undervalued compared to its fair value and its price relative to the market?

4.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGP ($581.69) is trading below our estimate of fair value ($606.48)

Significantly Below Fair Value: CSGP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CSGP is poor value based on its PE Ratio (67.9x) compared to the Professional Services industry average (20x).

PE vs Market: CSGP is poor value based on its PE Ratio (67.9x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CSGP is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: CSGP is overvalued based on its PB Ratio (6.5x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is CoStar Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGP's forecast earnings growth (19.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CSGP's earnings (19.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CSGP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CSGP's revenue (15.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CSGP's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CSGP's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has CoStar Group performed over the past 5 years?

51.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGP has high quality earnings.

Growing Profit Margin: CSGP's current net profit margins (23.2%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: CSGP's earnings have grown significantly by 51.4% per year over the past 5 years.

Accelerating Growth: CSGP's earnings growth over the past year (56%) exceeds its 5-year average (51.4% per year).

Earnings vs Industry: CSGP earnings growth over the past year (56%) exceeded the Professional Services industry 23.5%.


Return on Equity

High ROE: CSGP's Return on Equity (9.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CoStar Group's financial position?


Financial Position Analysis

Short Term Liabilities: CSGP's short term assets ($1.5B) exceed its short term liabilities ($198.0M).

Long Term Liabilities: CSGP's short term assets ($1.5B) exceed its long term liabilities ($218.2M).


Debt to Equity History and Analysis

Debt Level: CSGP is debt free.

Reducing Debt: CSGP has no debt compared to 5 years ago when its debt to equity ratio was 26.1%.

Debt Coverage: CSGP has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CSGP has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CSGP has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CSGP's debt is covered by short term assets.


Next Steps

Dividend

What is CoStar Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CSGP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CSGP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CSGP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CSGP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CSGP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of CoStar Group's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Andy Florance (55yo)

24.9yrs

Tenure

US$14,640,477

Compensation

Mr. Andrew C. Florance, also known as Andy, founded CoStar Group, Inc. in 1987. Mr. Florance serves as the Chief Executive Officer, President and Director at CoStar Group, Inc. He is a frequent speaker on  ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD14.64M) is above average for companies of similar size in the US market ($USD10.90M).

Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: CSGP's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

61yo

Average Age

Experienced Board: CSGP's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: CSGP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$340,76219 Nov 19
Laura Kaplan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares576
Max PriceUS$591.60
SellUS$231,82228 Oct 19
Christopher Nassetta
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares406
Max PriceUS$570.99
SellUS$998,93701 Aug 19
Matthew F. Linnington
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares1,618
Max PriceUS$617.39
SellUS$1,405,67430 Jul 19
Scott Wheeler
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares2,233
Max PriceUS$629.50
SellUS$15,219,37430 Jul 19
Andrew Florance
EntityIndividual
Role
Chief Executive Officer
Founder
Shares24,210
Max PriceUS$628.64
SellUS$174,26725 Jun 19
John Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares315
Max PriceUS$553.23
SellUS$717,66204 Mar 19
Lisa Ruggles
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Portfolio Research
Shares1,538
Max PriceUS$466.62
SellUS$1,997,54204 Mar 19
Matthew F. Linnington
EntityIndividual
Role
Head of Sales
Executive Vice President of Sales
Shares4,185
Max PriceUS$477.31
SellUS$2,569,09004 Mar 19
Scott Wheeler
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares5,396
Max PriceUS$476.11
SellUS$344,77728 Dec 18
John Hill
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,042
Max PriceUS$330.88

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Andy Florance (55yo)

    Founder

    • Tenure: 24.9yrs
    • Compensation: US$14.64m
  • Rich Simonelli

    Vice President of Investor Relations & Public Relations

    • Tenure: 0yrs
  • Frank Simuro (52yo)

    Chief Technology Officer

    • Tenure: 4.8yrs
  • Jonathan Coleman (54yo)

    General Counsel & Secretary

    • Tenure: 14.4yrs
  • Matt Blocher

    Vice President of Global Marketing & Communications

    • Tenure: 0.9yrs
  • Tim Trainor

    Communications Director

    • Tenure: 0yrs
  • Max Linnington (50yo)

    Executive Vice President of Sales

    • Tenure: 5.5yrs
    • Compensation: US$3.19m
  • Lisa Ruggles (52yo)

    Senior Vice President of Portfolio Research

    • Tenure: 0yrs
    • Compensation: US$3.61m
  • Scott Wheeler (55yo)

    Chief Financial Officer

    • Tenure: 3.9yrs
    • Compensation: US$5.32m
  • Jason Butler

    Chief Information Officer

    • Tenure: 0.2yrs

Board Members

  • Chris Nassetta (56yo)

    Independent Director

    • Tenure: 17.5yrs
    • Compensation: US$248.31k
  • Michael Klein (77yo)

    Chairman of the Board

    • Tenure: 32.9yrs
    • Compensation: US$316.21k
  • Andy Florance (55yo)

    Founder

    • Tenure: 24.9yrs
    • Compensation: US$14.64m
  • John Hill (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$255.03k
  • Michael Glosserman (73yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$246.21k
  • David Steinberg (61yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$240.33k
  • Laura Kaplan (49yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$231.09k

Company Information

CoStar Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CoStar Group, Inc.
  • Ticker: CSGP
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$21.795b
  • Shares outstanding: 36.63m
  • Website: https://www.costargroup.com

Number of Employees


Location

  • CoStar Group, Inc.
  • 1331 L Street, NW
  • Washington
  • District Of Columbia
  • 20005
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CSGPNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1998
RLGDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1998
CSGP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1998

Biography

CoStar Group, Inc. provides information, analytics, and online marketplaces to the commercial real estate industry in the United States and the United Kingdom. The company offers CoStar Property Profession ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:34
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.