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.


Snowflake Analysis

Flawless balance sheet with proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.0%

CSGP

13.5%

US Professional Services

12.5%

US Market


1 Year Return

21.2%

CSGP

-8.5%

US Professional Services

-12.7%

US Market

Return vs Industry: CSGP exceeded the US Professional Services industry which returned -8.5% over the past year.

Return vs Market: CSGP exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

CSGPIndustryMarket
7 Day11.0%13.5%12.5%
30 Day-13.0%-17.1%-14.7%
90 Day-2.9%-18.8%-21.5%
1 Year21.2%21.2%-7.8%-8.5%-10.9%-12.7%
3 Year180.1%180.1%19.1%15.4%12.6%5.4%
5 Year190.4%190.4%34.5%27.2%31.9%17.5%

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?

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSGP ($580.99) is trading below our estimate of fair value ($815.32)

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


Price To Earnings Ratio

PE vs Industry: CSGP is poor value based on its PE Ratio (67x) compared to the Professional Services industry average (12.3x).

PE vs Market: CSGP is poor value based on its PE Ratio (67x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CSGP is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: CSGP is overvalued based on its PB Ratio (6.3x) compared to the US Professional Services industry average (1.7x).


Next Steps

Future Growth

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

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CSGP's forecast earnings growth (17.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CSGP's earnings (17.4% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: CSGP's revenue (14.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CSGP's revenue (14.1% 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 (13.5%).


Next Steps

Past Performance

How has CoStar Group performed over the past 5 years?

51.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSGP has high quality earnings.

Growing Profit Margin: CSGP's current net profit margins (22.5%) are higher than last year (20%).


Past Earnings Growth Analysis

Earnings Trend: CSGP's earnings have grown significantly by 51.2% per year over the past 5 years.

Accelerating Growth: CSGP's earnings growth over the past year (32.2%) is below its 5-year average (51.2% per year).

Earnings vs Industry: CSGP earnings growth over the past year (32.2%) exceeded the Professional Services industry 13.9%.


Return on Equity

High ROE: CSGP's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is CoStar Group's financial position?


Financial Position Analysis

Short Term Liabilities: CSGP's short term assets ($1.2B) exceed its short term liabilities ($207.1M).

Long Term Liabilities: CSGP's short term assets ($1.2B) exceed its long term liabilities ($241.3M).


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 24.6%.

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

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

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

5.0yrs

Average management tenure


CEO

Andy Florance (55yo)

25.17s

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 ($USD14.64M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Florance
Founder25.17yrsUS$14.64m0.29% $62.6m
Scott Wheeler
Chief Financial Officer4.17yrsUS$5.32m0.071% $15.1m
Matthew F. Linnington
Executive Vice President of Sales5.75yrsUS$3.19m0.063% $13.5m
Lisa Ruggles
Senior Vice President of Portfolio Researchno dataUS$3.61m0.047% $10.1m
Frank Simuro
Chief Technology Officer5yrsno datano data
Jason Butler
Chief Information Officer0.42yrno datano data
Richard Simonelli
Vice President of Investor Relations & Public Relationsno datano datano data
Jaye Campbell
General Counsel & Secretaryno datano datano data
Jeannette Koonce
Chief Compliance Officerno datano datano data
Timothy Trainor
Communications Directorno datano datano data

5.0yrs

Average Tenure

52yo

Average Age

Experienced Management: CSGP's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Florance
Founder25.17yrsUS$14.64m0.29% $62.6m
Christopher Nassetta
Independent Director17.75yrsUS$248.31k0.072% $15.3m
Michael Klein
Chairman of the Board33.17yrsUS$316.21k0.68% $144.0m
Louise Sams
Independent Director0.25yrno datano data
John Hill
Independent Director7.5yrsUS$255.03k0.0093% $2.0m
Michael Glosserman
Independent Director11.75yrsUS$246.21k0.024% $5.1m
Robert Musslewhite
Independent Director0.25yrno datano data
David Steinberg
Independent Director8.75yrsUS$240.33k0.018% $3.8m
Laura Kaplan
Independent Director3.92yrsUS$231.09k0.0046% $970.8k

8.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CSGP's board of directors are considered experienced (8.8 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 not been meaningfully diluted in the past year.


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$21.290b
  • Shares outstanding: 36.64m
  • 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 Professional service that offers inventory of office, industrial, retail, and multifamily properties and land. It also provides CoStar COMPS Professional that covers comparable commercial real estate sales information; CoStar Tenant, an online business-to-business prospecting and analytical tool; CoStar Lease Comps, a solution to capture, manage, and maintain lease data; CoStar Lease Analysis, a workflow tool; CoStar Advertising to market a space for lease or a property for sale; CoStar Private Sale Network, which provides custom-designed and branded Websites; and CoStar and CoStar Go CoStar mobile apps. In addition, the company offers CoStar Real Estate Manager, a real estate and asset management, and lease accounting software; CoStar Risk Analytics, a commercial real estate risk management tool; CoStar Brokerage Applications; CoStar Investment Analysis Request, a business intelligence software; and CoStar Investment Analysis Portfolio Maximizer, a real estate portfolio management software. Further, it provides apartment marketing sites, such as Apartments.com, ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, Apartamentos.com, WestsideRentals.com, and Cozy.co; LoopNet Premium Lister and LoopNet Power Listings for commercial real estate professionals; LoopLink, an online real estate marketing and database services suite; Listing Manager, an online listing tool; Realla, a commercial property listings and data management platform; LandsofAmerica, LandAndFarm, and LandWatch online marketplaces for rural land for sale; and BizBuySell and BizQuest online marketplaces for operating businesses for sale. The company has a strategic relationship with Buxton Company. The company was founded in 1987 and is headquartered in Washington, the District of Columbia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.