NYSE:CBRE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Outstanding 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


Market Performance


7 Day Return

1.3%

CBRE

2.1%

US Real Estate

0.5%

US Market


1 Year Return

34.1%

CBRE

7.4%

US Real Estate

6.8%

US Market

Return vs Industry: CBRE exceeded the US Real Estate industry which returned 7.4% over the past year.

Return vs Market: CBRE exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

CBREIndustryMarket
7 Day1.3%2.1%0.5%
30 Day-1.7%-0.4%-0.8%
90 Day0.2%-0.3%-0.9%
1 Year34.1%34.1%8.5%7.4%9.2%6.8%
3 Year86.0%86.0%30.4%27.0%45.6%36.2%
5 Year72.0%72.0%12.1%7.8%63.2%45.4%

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?

20.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CBRE ($52.65) is trading below our estimate of fair value ($65.93)

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 (16.6x) compared to the Real Estate industry average (20.8x).

PE vs Market: CBRE is good value based on its PE Ratio (16.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: CBRE is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: CBRE is overvalued based on its PB Ratio (3.2x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

How is CBRE Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBRE's forecast earnings growth (9.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CBRE's earnings (9.6% per year) are forecast to grow slower than the US market (14.6% per year).

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

Revenue vs Market: CBRE's revenue (6.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CBRE's revenue (6.3% 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 low in 3 years time (18.7%).


Next Steps

Past Performance

How has CBRE Group performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CBRE's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: CBRE's earnings growth over the past year (45.5%) exceeds its 5-year average (18.7% per year).

Earnings vs Industry: CBRE earnings growth over the past year (45.5%) exceeded the Real Estate industry -20%.


Return on Equity

High ROE: CBRE's Return on Equity (20%) is considered high.


Return on Assets

ROA vs Industry: CBRE has a higher Return on Assets than the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: CBRE has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is CBRE Group's financial position?


Financial Position Analysis

Short Term Liabilities: CBRE's short term assets ($6.9B) exceeds its short term liabilities ($5.9B)

Long Term Liabilities: CBRE's short term assets (6.9B) exceeds its long term liabilities (3.4B)


Debt to Equity History and Analysis

Debt Level: CBRE's debt to equity ratio (62.1%) is considered high

Reducing Debt: CBRE's debt to equity ratio has reduced from 138% to 62.1% over the past 5 years.

Debt Coverage: CBRE's debt is well covered by operating cash flow (27.1%).

Interest Coverage: CBRE's interest payments on its debt are well covered by EBIT (13.4x 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 2.055780x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of CBRE Group's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Bob Sulentic (63yo)

6.8yrs

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 ($USD10.33M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: CBRE's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CBRE's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$161,580,00016 Sep 19
ValueAct Capital Management L.P.
EntityCompany
Shares3,000,000
Max PriceUS$53.86
SellUS$213,51324 May 19
Curtis Feeny
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,514
Max PriceUS$47.31
SellUS$188,98621 May 19
Curtis Feeny
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,000
Max PriceUS$47.25
SellUS$59,47917 May 19
Dara Bazzano
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Global Finance & Chief Accounting Officer
Shares1,252
Max PriceUS$47.51
SellUS$904,56813 Mar 19
J. Kirk
EntityIndividual
Role
Chief Administrative Officer
Chief Executive Talent & Administrative Officer
Shares17,900
Max PriceUS$50.53
SellUS$2,523,30713 Mar 19
James Groch
EntityIndividual
Role
Chief Investment Officer
Global Group President & Chief Investment Officer
Shares50,000
Max PriceUS$50.50
SellUS$1,652,87313 Mar 19
Michael Lafitte
EntityIndividual
Role
Senior Key Executive
Global Chief Executive Officer of Advisory Services
Shares32,706
Max PriceUS$50.54
SellUS$698,41613 Mar 19
Laurence Midler
EntityIndividual
Shares13,848
Max PriceUS$50.43
SellUS$331,717,00013 Mar 19
ValueAct Capital Management L.P.
EntityCompany
Shares6,700,000
Max PriceUS$49.51
BuyUS$212,06606 Dec 18
Gerardo Lopez
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$42.41

Ownership Breakdown


Management Team

  • Bob Sulentic (63yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$10.33m
  • Bill Concannon (63yo)

    Global Group President & CEO of Global Workplace Solutions

    • Tenure: 7.3yrs
    • Compensation: US$4.30m
  • Jim Groch (57yo)

    Global Group President & Chief Investment Officer

    • Tenure: 0.8yrs
    • Compensation: US$5.18m
  • Mike Lafitte (58yo)

    Global Chief Executive Officer of Advisory Services

    • Tenure: 1.2yrs
    • Compensation: US$4.76m
  • Chris Kirk (53yo)

    Chief Executive Talent & Administrative Officer

    • Tenure: 7.3yrs
  • Cal Frese (62yo)

    Executive

    • Tenure: 1.2yrs
    • Compensation: US$9.27m
  • Jack Durburg (54yo)

    Global Chief Operating Officer

    • Tenure: 1.2yrs
    • Compensation: US$4.10m
  • Leah Stearns

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Chandra Dhandapani (51yo)

    Chief Digital & Technology Officer

    • Tenure: 3.3yrs
  • Dara Bazzano (50yo)

    Senior VP of Global Finance & Chief Accounting Officer

    • Tenure: 1.5yrs

Board Members

  • Curtis Feeny (62yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$331.97k
  • Ray Wirta (75yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$300.97k
  • Bob Sulentic (63yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$10.33m
  • Laura Tyson (72yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$303.97k
  • Gerry Lopez (60yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$303.97k
  • Chris Jenny (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$320.97k
  • Beth Cobert (60yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$325.46k
  • Sanjiv Yajnik (62yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$302.97k
  • Brandon Boze (39yo)

    Independent Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$303.97k
  • Anshuman Magazine

    Chairman of India

    • Tenure: 3.3yrs

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$17.330b
  • Shares outstanding: 329.15m
  • 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

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; an ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:51
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.