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CSGP

CoStar GroupNasdaqGS:CSGP Stock Report

Market Cap

US$30.5b

7D

-3.3%

1Y

-12.5%

Updated

07 Dec, 2021

Data

Company Financials +
CSGP fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance2/6
Financial Health6/6
Dividends0/6

CSGP Stock Overview

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.

CoStar Group Competitors

IHS Markit

NYSE:INFO

US$51.1b

Nielsen Holdings

NYSE:NLSN

US$7.2b

Microsoft

NasdaqGS:MSFT

US$2.4t

Meta Platforms

NasdaqGS:FB

US$884.2b

Price History & Performance

Summary of all time highs, changes and price drops for CoStar Group
Historical stock prices
Current Share PriceUS$77.35
52 Week HighUS$101.05
52 Week LowUS$74.31
Beta0.81
1 Month Change-7.09%
3 Month Change-11.81%
1 Year Change-12.46%
3 Year Change113.04%
5 Year Change302.84%
Change since IPO8,318.59%

Recent News & Updates

Oct 20

CoStar Group Intensifies Its Real Estate E-Commerce Operations

Despite the pandemic, CoStar Group has grown through acquisitions without jeopardizing its liquidity. Its core business is gaining traction as the economy picks up and more people accept digital real estate transactions. International operations have increased by 29% year over year and are likely to continue to grow as the company expands its global presence. Revenue increased by 20% year over year, while ROS improved by 18%.

Oct 14
Calculating The Fair Value Of CoStar Group, Inc. (NASDAQ:CSGP)

Calculating The Fair Value Of CoStar Group, Inc. (NASDAQ:CSGP)

Today we will run through one way of estimating the intrinsic value of CoStar Group, Inc. ( NASDAQ:CSGP ) by taking the...

Sep 23
Here's Why CoStar Group (NASDAQ:CSGP) Can Manage Its Debt Responsibly

Here's Why CoStar Group (NASDAQ:CSGP) Can Manage Its Debt Responsibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

CSGPUS Professional ServicesUS Market
7D-3.3%-0.9%-2.7%
1Y-12.5%14.6%16.5%

Return vs Industry: CSGP underperformed the US Professional Services industry which returned 14.6% over the past year.

Return vs Market: CSGP underperformed the US Market which returned 16.5% over the past year.

Price Volatility

Is CSGP's price volatile compared to industry and market?
CSGP volatility
CSGP Average Weekly Movement4.4%
Professional Services Industry Average Movement6.3%
Market Average Movement6.2%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

Stable Share Price: CSGP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CSGP's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19874,752Andy Florancehttps://www.costargroup.com

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. It offers CoStar Property Professional that provides inventory of office, industrial, retail, and multifamily, and student housing properties and land; CoStar COMPS Professional, which covers comparable commercial real estate sales information; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. The company also provides CoStar Lease Comps, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis, a workflow tool; CoStar Public Record, a searchable database of commercially-zoned parcels; CoStar Real Estate Manager, a real estate and asset management, and lease accounting software; and CoStar Risk Analytics and CoStar Investment Analysis that provides market research, consulting and analysis, portfolio and debt analysis, and management and reporting services, as well as STAR Report that offers benchmarking and analytics services.

CoStar Group Fundamentals Summary

How do CoStar Group's earnings and revenue compare to its market cap?
CSGP fundamental statistics
Market CapUS$30.55b
Earnings (TTM)US$235.45m
Revenue (TTM)US$1.88b

129.7x

P/E Ratio

16.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSGP income statement (TTM)
RevenueUS$1.88b
Cost of RevenueUS$349.07m
Gross ProfitUS$1.53b
ExpensesUS$1.30b
EarningsUS$235.45m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)0.60
Gross Margin81.45%
Net Profit Margin12.51%
Debt/Equity Ratio17.6%

How did CSGP perform over the long term?

See historical performance and comparison

Valuation

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

5.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGP ($77.35) is trading below our estimate of fair value ($81.8)

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 (129.7x) compared to the US Professional Services industry average (22.4x).

PE vs Market: CSGP is poor value based on its PE Ratio (129.7x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: CSGP is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: CSGP is overvalued based on its PB Ratio (5.5x) compared to the US Professional Services industry average (2.8x).


Future Growth

How is CoStar Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

29.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGP's forecast earnings growth (29.5% per year) is above the savings rate (2%).

Earnings vs Market: CSGP's earnings (29.5% per year) are forecast to grow faster than the US market (13.8% per year).

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

Revenue vs Market: CSGP's revenue (14.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: CSGP's revenue (14.6% 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 (10.9%).


Past Performance

How has CoStar Group performed over the past 5 years?

20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGP has high quality earnings.

Growing Profit Margin: CSGP's current net profit margins (12.5%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: CSGP's earnings have grown significantly by 20.4% 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 (-15.7%) over the past year, making it difficult to compare to the Professional Services industry average (30.2%).


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 ($3.9B) exceed its short term liabilities ($321.5M).

Long Term Liabilities: CSGP's short term assets ($3.9B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: CSGP has more cash than its total debt.

Reducing Debt: CSGP's debt to equity ratio has reduced from 20.8% to 17.6% over the past 5 years.

Debt Coverage: CSGP's debt is well covered by operating cash flow (45.6%).

Interest Coverage: CSGP's interest payments on its debt are well covered by EBIT (11x 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?

2.9yrs

Average management tenure


CEO

Andy Florance (57 yo)

34.92yrs

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 (2.9 years average tenure).


Board Members

Experienced Board: CSGP's board of directors are seasoned and experienced ( 11.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CoStar Group, Inc.'s 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$30.548b
  • Shares outstanding: 394.94m
  • Website: https://www.costargroup.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/07 00:21
End of Day Share Price2021/12/06 00:00
Earnings2021/09/30
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.