Cushman & Wakefield (NYSE:CWK) - Share price, News & Analysis

CWK fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	3/6
Financial Health	3/6
Dividends	0/6

CWK Stock Overview

Rewards

Trading at 50% below our estimate of its fair value

Earnings are forecast to grow 12.79% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Cushman & Wakefield Competitors

CBRE Group

NYSE:CBRE

US$25.9b

Jones Lang LaSalle

NYSE:JLL

US$9.6b

Newmark Group

NasdaqGS:NMRK

US$2.4b

Marcus & Millichap

NYSE:MMI

US$1.6b

Price History & Performance

Summary of all time highs, changes and price drops for Cushman & Wakefield
Historical stock prices
Current Share Price	US$18.20
52 Week High	US$23.54
52 Week Low	US$15.97
Beta	1.37
1 Month Change	-2.67%
3 Month Change	-15.35%
1 Year Change	-2.57%
3 Year Change	-1.52%
5 Year Change	n/a
Change since IPO	2.19%

Recent News & Updates

May 09

These 4 Measures Indicate That Cushman & Wakefield (NYSE:CWK) Is Using Debt Reasonably Well

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	CWK	US Real Estate	US Market
7D	-0.1%	-0.1%	-2.5%
1Y	-2.6%	-47.7%	-10.4%

Return vs Industry: CWK exceeded the US Real Estate industry which returned -47.7% over the past year.

Return vs Market: CWK exceeded the US Market which returned -10.4% over the past year.

Price Volatility

Is CWK's price volatile compared to industry and market?
CWK volatility
CWK Average Weekly Movement	5.1%
Real Estate Industry Average Movement	9.3%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.7%
10% least volatile stocks in US Market	2.8%

Stable Share Price: CWK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CWK's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1784	50,000	John Forrester	https://www.cushmanwakefield.com

Cushman & Wakefield plc, together with its subsidiaries, provides commercial real estate services under the Cushman & Wakefield brand in the United States, Australia, the United Kingdom, and internationally. The company operates through Americas; Europe, Middle East, and Africa; and Asia Pacific segments. It offers integrated facilities management, project and development, portfolio administration, transaction management, and strategic consulting services; property management services, including client accounting, engineering and operations, lease compliance administration, project and development, and sustainability services; and self-performed facilities services, which include janitorial, maintenance, critical environment management, landscaping, and office services.

Cushman & Wakefield Fundamentals Summary

How do Cushman & Wakefield's earnings and revenue compare to its market cap?
CWK fundamental statistics
Market Cap	US$4.10b
Earnings (TTM)	US$312.70m
Revenue (TTM)	US$9.80b

13.1x

P/E Ratio

0.4x

P/S Ratio

Is CWK overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CWK income statement (TTM)
Revenue	US$9.80b
Cost of Revenue	US$7.72b
Gross Profit	US$2.08b
Other Expenses	US$1.76b
Earnings	US$312.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.39
Gross Margin	21.20%
Net Profit Margin	3.19%
Debt/Equity Ratio	211.2%

How did CWK perform over the long term?

See historical performance and comparison

Valuation

Is Cushman & Wakefield undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CWK ($18.2) is trading below our estimate of fair value ($36.42)

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

Price To Earnings Ratio

PE vs Industry: CWK is poor value based on its PE Ratio (13.1x) compared to the US Real Estate industry average (10.1x).

PE vs Market: CWK is good value based on its PE Ratio (13.1x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: CWK is poor value based on its PEG Ratio (1x)

Price to Book Ratio

PB vs Industry: CWK is overvalued based on its PB Ratio (2.7x) compared to the US Real Estate industry average (1.4x).

Future Growth

How is Cushman & Wakefield forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

12.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK's forecast earnings growth (12.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CWK's earnings (12.8% per year) are forecast to grow faster than the US market (12.6% per year).

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

Revenue vs Market: CWK's revenue (6.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: CWK's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: CWK's Return on Equity is forecast to be high in 3 years time (32.5%)

Past Performance

How has Cushman & Wakefield performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

53.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CWK has high quality earnings.

Growing Profit Margin: CWK became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: CWK has become profitable over the past 5 years, growing earnings by 53.9% per year.

Accelerating Growth: CWK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CWK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Real Estate industry (132%).

Return on Equity

High ROE: Whilst CWK's Return on Equity (20.32%) is high, this metric is skewed due to their high level of debt.

Financial Health

How is Cushman & Wakefield's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CWK's short term assets ($2.7B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: CWK's short term assets ($2.7B) do not cover its long term liabilities ($3.9B).

Debt to Equity History and Analysis

Debt Level: CWK's net debt to equity ratio (171.4%) is considered high.

Reducing Debt: CWK's debt to equity ratio has reduced from 477.3% to 211.2% over the past 5 years.

Debt Coverage: CWK's debt is not well covered by operating cash flow (12.5%).

Interest Coverage: CWK's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

Dividend

What is Cushman & Wakefield 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 CWK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if CWK'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 CWK has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Real Estate industry.

Management

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

1.3yrs

Average management tenure

CEO

John Forrester (59 yo)

0.33

Tenure

US$8,206,533

Compensation

Mr. John Forrester has been the Chief Executive Officer and Director of Cushman & Wakefield plc since January 01, 2022. He had been Global President and Executive Vice President of Cushman & Wakefield plc...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD8.21M) is about average for companies of similar size in the US market ($USD6.90M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.

Leadership Team

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

Board Members

Experienced Board: CWK's board of directors are considered experienced (3.6 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/15 00:00
End of Day Share Price	2022/05/13 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31