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CSGP

CoStar Group NasdaqGS:CSGP Stock Report

Last Price

US$60.34

Market Cap

US$24.4b

7D

7.6%

1Y

-27.6%

Updated

28 Jun, 2022

Data

Company Financials +
CSGP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
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

Price History & Performance

Summary of all time highs, changes and price drops for CoStar Group
Historical stock prices
Current Share PriceUS$60.34
52 Week HighUS$101.05
52 Week LowUS$49.00
Beta0.90
1 Month Change-1.89%
3 Month Change-11.25%
1 Year Change-27.55%
3 Year Change7.68%
5 Year Change128.91%
Change since IPO6,467.26%

Recent News & Updates

Jun 29
Is Now An Opportune Moment To Examine CoStar Group, Inc. (NASDAQ:CSGP)?

Is Now An Opportune Moment To Examine CoStar Group, Inc. (NASDAQ:CSGP)?

CoStar Group, Inc. ( NASDAQ:CSGP ) saw a decent share price growth in the teens level on the NASDAQGS over the last few...

Jun 09

CoStar Group: Drastically Overpriced

CoStar Group has done a great job growing in recent years. Strength on its bottom line has been particularly impressive and the long-term outlook for the business is promising. But shares are too pricey right now and don't make sense to consider buying into.

May 06
CoStar Group, Inc.'s (NASDAQ:CSGP) Intrinsic Value Is Potentially 30% Above Its Share Price

CoStar Group, Inc.'s (NASDAQ:CSGP) Intrinsic Value Is Potentially 30% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of CoStar Group, Inc...

Shareholder Returns

CSGPUS Professional ServicesUS Market
7D7.6%2.9%1.7%
1Y-27.6%-17.8%-20.4%

Return vs Industry: CSGP underperformed the US Professional Services industry which returned -16.1% over the past year.

Return vs Market: CSGP underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is CSGP's price volatile compared to industry and market?
CSGP volatility
CSGP Average Weekly Movement6.1%
Professional Services Industry Average Movement6.5%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: CSGP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CSGP's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19874,742Andy 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 that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar COMPS, a robust database of comparable commercial real estate sales transactions; 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 Lease Comps and Analysis, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially-zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; 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 for the hospitality industry.

CoStar Group Fundamentals Summary

How do CoStar Group's earnings and revenue compare to its market cap?
CSGP fundamental statistics
Market CapUS$24.44b
Earnings (TTM)US$307.67m
Revenue (TTM)US$2.00b

77.7x

P/E Ratio

11.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CSGP income statement (TTM)
RevenueUS$2.00b
Cost of RevenueUS$363.97m
Gross ProfitUS$1.64b
Other ExpensesUS$1.33b
EarningsUS$307.67m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 26, 2022

Earnings per share (EPS)0.78
Gross Margin81.82%
Net Profit Margin15.37%
Debt/Equity Ratio17.0%

How did CSGP perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CSGP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CSGP?

Other financial metrics that can be useful for relative valuation.

CSGP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue10.8x
Enterprise Value/EBITDA36.3x
PEG Ratio3.3x

Price to Earnings Ratio vs Peers

How does CSGP's PE Ratio compare to its peers?

CSGP PE Ratio vs Peers
The above table shows the PE ratio for CSGP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average37.7x
EFX Equifax
28.7x20.0%US$22.6b
VRSK Verisk Analytics
26.6x-10.5%US$26.7b
TRU TransUnion
52.8x36.1%US$15.3b
J Jacobs Engineering Group
42.6x20.2%US$16.3b
CSGP CoStar Group
77.7x23.7%US$24.4b

Price-To-Earnings vs Peers: CSGP is expensive based on its Price-To-Earnings Ratio (77.7x) compared to the peer average (37.7x).


Price to Earnings Ratio vs Industry

How does CSGP's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: CSGP is expensive based on its Price-To-Earnings Ratio (77.7x) compared to the US Professional Services industry average (15.9x)


Price to Earnings Ratio vs Fair Ratio

What is CSGP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CSGP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio77.7x
Fair PE Ratio40.6x

Price-To-Earnings vs Fair Ratio: CSGP is expensive based on its Price-To-Earnings Ratio (77.7x) compared to the estimated Fair Price-To-Earnings Ratio (40.6x).


Share Price vs Fair Value

What is the Fair Price of CSGP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CSGP ($60.34) is trading below our estimate of fair value ($81.62)

Significantly Below Fair Value: CSGP is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: CSGP is poor value based on its PEG Ratio (3.3x)


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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGP's forecast earnings growth (23.7% per year) is above the savings rate (1.9%).

Earnings vs Market: CSGP's earnings (23.7% per year) are forecast to grow faster than the US market (13.8% per year).

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

Revenue vs Market: CSGP's revenue (15% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: CSGP's revenue (15% 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 (7.7%).


Discover growth companies

Past Performance

How has CoStar Group performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CSGP has high quality earnings.

Growing Profit Margin: CSGP's current net profit margins (15.4%) are higher than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: CSGP's earnings have grown by 16% per year over the past 5 years.

Accelerating Growth: CSGP's earnings growth over the past year (34.6%) exceeds its 5-year average (16% per year).

Earnings vs Industry: CSGP earnings growth over the past year (34.6%) exceeded the Professional Services industry 33.1%.


Return on Equity

High ROE: CSGP's Return on Equity (5.3%) is considered low.


Discover strong past performing companies

Financial Health

How is CoStar Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: CSGP's short term assets ($4.1B) exceed its short term liabilities ($370.2M).

Long Term Liabilities: CSGP's short term assets ($4.1B) 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 18.1% to 17% over the past 5 years.

Debt Coverage: CSGP's debt is well covered by operating cash flow (51.9%).

Interest Coverage: CSGP's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CSGP has not reported any payouts.


Discover strong dividend paying companies

Management

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

4.4yrs

Average management tenure


CEO

Andy Florance (57 yo)

35.42yrs

Tenure

US$22,164,341

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 ($USD22.16M) is above average for companies of similar size in the US market ($USD13.41M).

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 (4.4 years average tenure).


Board Members

Experienced Board: CSGP's board of directors are seasoned and experienced ( 11.9 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
  • Implied Market Cap: US$24.439b
  • Shares outstanding: 396.23m
  • 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 Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.