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Market Cap

US$32.9b

Last Updated

2021/05/07 03:46 UTC

Data Sources

Company Financials +

Executive Summary

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CSGP's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.6%

CSGP

-0.7%

US Professional Services

-1.7%

US Market


1 Year Return

28.4%

CSGP

41.3%

US Professional Services

51.8%

US Market

Return vs Industry: CSGP underperformed the US Professional Services industry which returned 41.3% over the past year.

Return vs Market: CSGP underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

CSGPIndustryMarket
7 Day-6.6%-0.7%-1.7%
30 Day-4.7%4.9%1.5%
90 Day-9.6%7.8%3.1%
1 Year28.4%28.4%42.4%41.3%54.4%51.8%
3 Year108.6%108.6%67.2%62.6%63.0%52.8%
5 Year309.5%309.5%143.2%126.6%127.2%101.9%

Long-Term 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?

139.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CSGP ($820.61) is trading above our estimate of fair value ($668.55)

Significantly Below Fair Value: CSGP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CSGP is poor value based on its PE Ratio (139.1x) compared to the US Professional Services industry average (28x).

PE vs Market: CSGP is poor value based on its PE Ratio (139.1x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: CSGP is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: CSGP is overvalued based on its PB Ratio (5.9x) compared to the US Professional Services industry average (3.2x).


Future Growth

How is CoStar Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

27.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGP's forecast earnings growth (27.7% per year) is above the savings rate (2%).

Earnings vs Market: CSGP's earnings (27.7% per year) are forecast to grow faster than the US market (15.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CSGP's revenue (14.9% per year) is forecast to grow faster than the US market (9.2% per year).

High Growth Revenue: CSGP's revenue (14.9% 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 (10.3%).


Past Performance

How has CoStar Group performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGP has high quality earnings.

Growing Profit Margin: CSGP's current net profit margins (13.3%) are lower than last year (20.7%).


Past Earnings Growth Analysis

Earnings Trend: CSGP's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: CSGP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CSGP had negative earnings growth (-24.5%) over the past year, making it difficult to compare to the Professional Services industry average (11%).


Return on Equity

High ROE: CSGP's Return on Equity (4.2%) is considered low.


Financial Health

How is CoStar Group's financial position?


Financial Position Analysis

Short Term Liabilities: CSGP's short term assets ($3.8B) exceed its short term liabilities ($290.1M).

Long Term Liabilities: CSGP's short term assets ($3.8B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CSGP's debt to equity ratio (18.1%) is considered satisfactory.

Reducing Debt: CSGP's debt to equity ratio has reduced from 22.4% to 18.1% over the past 5 years.

Debt Coverage: CSGP's debt is well covered by operating cash flow (44.8%).

Interest Coverage: CSGP's interest payments on its debt are well covered by EBIT (11.7x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Andy Florance (56 yo)

26.33yrs

Tenure

US$21,304,754

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 ($USD21.30M) is above average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: CSGP's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: CSGP's board of directors are seasoned and experienced ( 10.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

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$32.937b
  • Shares outstanding: 39.49m
  • Website: https://www.costargroup.com

Number of Employees


Location

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

Listings


Biography

CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canad...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 03:46
End of Day Share Price2021/05/06 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.