NYSE:CBRE

Stock Analysis Report

Executive Summary

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

CBRE

-0.6%

US Real Estate

0.5%

US Market


1 Year Return

25.4%

CBRE

8.3%

US Real Estate

20.3%

US Market

Return vs Industry: CBRE exceeded the US Real Estate industry which returned 8.3% over the past year.

Return vs Market: CBRE exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

CBREIndustryMarket
7 Day-1.1%-0.6%0.5%
30 Day3.8%2.0%2.0%
90 Day15.5%9.6%9.4%
1 Year25.4%25.4%9.2%8.3%22.8%20.3%
3 Year77.6%77.6%28.7%25.6%50.1%40.4%
5 Year84.0%84.0%15.5%11.7%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBRE ($63.4) is trading below our estimate of fair value ($78.46)

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


Price To Earnings Ratio

PE vs Industry: CBRE is good value based on its PE Ratio (20.6x) compared to the Real Estate industry average (21.8x).

PE vs Market: CBRE is poor value based on its PE Ratio (20.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CBRE is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CBRE is overvalued based on its PB Ratio (3.8x) compared to the US Real Estate industry average (1.4x).


Next Steps

Future Growth

How is CBRE Group forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBRE's forecast earnings growth (10.1% per year) is above the savings rate (1.7%).

Earnings vs Market: CBRE's earnings (10.1% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CBRE's revenue (7.3% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CBRE's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBRE's Return on Equity is forecast to be high in 3 years time (20%)


Next Steps

Past Performance

How has CBRE Group performed over the past 5 years?

18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBRE has high quality earnings.

Growing Profit Margin: CBRE's current net profit margins (4.5%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: CBRE's earnings have grown by 18.4% per year over the past 5 years.

Accelerating Growth: CBRE's earnings growth over the past year (25.3%) exceeds its 5-year average (18.4% per year).

Earnings vs Industry: CBRE earnings growth over the past year (25.3%) exceeded the Real Estate industry -31.1%.


Return on Equity

High ROE: CBRE's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CBRE Group's financial position?


Financial Position Analysis

Short Term Liabilities: CBRE's short term assets ($7.1B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: CBRE's short term assets ($7.1B) exceed its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: CBRE's debt to equity ratio (56.8%) is considered high.

Reducing Debt: CBRE's debt to equity ratio has reduced from 135.3% to 56.8% over the past 5 years.

Debt Coverage: CBRE's debt is well covered by operating cash flow (24.4%).

Interest Coverage: CBRE's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: CBRE's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CBRE'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 CBRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CBRE'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 CBRE'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?

1.7yrs

Average management tenure


CEO

Bob Sulentic (63yo)

7.2yrs

Tenure

US$10,334,821

Compensation

Mr. Robert E. Sulentic, also known as Bob, has been the Chief Executive Officer and President of CBRE Group, Inc. (known as CB Richard Ellis Group Inc) since December 1, 2012 and since March 2009 respectiv ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD10.33M) is about average for companies of similar size in the US market ($USD10.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Sulentic
President7.2yrsUS$10.33m0.13% $26.4m
James Groch
Global Group President & Chief Investment Officer1.1yrsUS$5.18m0.024% $5.0m
Michael Lafitte
Global Chief Executive Officer of Real Estate Investments1.5yrsUS$4.76m0.042% $8.8m
William Concannon
Global Group President of Clients and Business Partner7.6yrsUS$4.30m0.081% $16.8m
John Durburg
Global Chief Executive Officer of Global Workplace Solutions0.08yrsUS$4.10m0.042% $8.8m
Leah Stearns
Chief Financial Officer0.8yrsno datano data
J. Kirk
Global Chief Operating Officer0.08yrsno data0.037% $7.8m
Dara Bazzano
Senior VP of Global Finance & Chief Accounting Officer1.8yrsno data0.0065% $1.3m
Chandra Dhandapani
Chief Digital & Technology Officer3.6yrsno data0.024% $4.9m
Bradley Burke
Head of Investor Relations2.7yrsno datano data

1.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CBRE's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Sulentic
President7.2yrsUS$10.33m0.13% $26.4m
Curtis Feeny
Independent Director13.2yrsUS$331.97k0.012% $2.4m
Raymond Wirta
Independent Director18.4yrsUS$300.97k0.34% $71.3m
Laura Tyson
Independent Director9.9yrsUS$303.97k0.011% $2.3m
Gerardo Lopez
Independent Director4.3yrsUS$303.97k0.0080% $1.7m
Christopher Jenny
Independent Director4.1yrsUS$320.97k0.014% $2.8m
Beth Cobert
Independent Director2.8yrsUS$325.46k0.0027% $550.3k
Sanjiv Yajnik
Independent Director2.3yrsUS$302.97k0.0018% $382.1k
Brandon Boze
Independent Chairman of the Board1.8yrsUS$303.97kno data
Anshuman Magazine
Chairman of India3.6yrsno datano data

4.2yrs

Average Tenure

62yo

Average Age

Experienced Board: CBRE's board of directors are considered experienced (4.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CBRE 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

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


Key Information

  • Name: CBRE Group, Inc.
  • Ticker: CBRE
  • Exchange: NYSE
  • Founded: 1906
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: US$20.768b
  • Shares outstanding: 327.57m
  • Website: https://www.cbre.com

Number of Employees


Location

  • CBRE Group, Inc.
  • 400 South Hope Street
  • 25th Floor
  • Los Angeles
  • California
  • 90071
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBRENYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2004
RF6DB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2004
0HQPLSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2004
C1BR34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 SHS UNSPONBRBRLJan 2020

Biography

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through Americas; Europe, Middle East and Africa; Asia Pacific; Global Investment Management; and Development Services segments. The company offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; integrated property sales, and mortgage and structured financing services under the CBRE Capital Markets brand; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. It also provides facilities management, project management, transaction management, and strategic consulting services to occupiers of real estate; and property management services comprising construction management, marketing, building engineering, accounting, and financial services for owners of and investors in office, industrial, and retail properties. In addition, the company provides investment management services under the CBRE Global Investors brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services under the Trammell Crow Company brand name primarily to users of and investors in commercial real estate. CBRE Group, Inc. was founded in 1906 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 02:20
End of Day Share Price2020/02/19 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.