NYSE:CWK

Stock Analysis Report

Executive Summary

Cushman & Wakefield plc provides commercial real estate services under the Cushman & Wakefield brand in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.

Snowflake

Fundamentals

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Cushman & Wakefield's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.9%

CWK

2.1%

US Real Estate

0.4%

US Market


1 Year Return

13.6%

CWK

6.8%

US Real Estate

6.9%

US Market

Return vs Industry: CWK exceeded the US Real Estate industry which returned 6.8% over the past year.

Return vs Market: CWK exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

CWKIndustryMarket
7 Day2.9%2.1%0.4%
30 Day-3.0%-0.5%-1.1%
90 Day-2.9%0.3%-0.5%
1 Year13.6%13.6%7.9%6.8%9.3%6.9%
3 Yearn/a30.6%27.0%45.8%36.4%
5 Yearn/a12.1%7.8%62.9%45.1%

Price Volatility Vs. Market

How volatile is Cushman & Wakefield's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

15.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CWK ($18.16) is trading below our estimate of fair value ($21.41)

Significantly Undervalued: CWK is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CWK is unprofitable, so we can't compare its PE Ratio to the Real Estate industry average.

PE vs Market: CWK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CWK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CWK is overvalued based on its PB Ratio (3.1x) compared to the US Real Estate industry average (1.5x).


Next Steps

Future Growth

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

57.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CWK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CWK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CWK's revenue (5.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CWK's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CWK's Return on Equity is forecast to be high in 3 years time (25.2%)


Next Steps

Past Performance

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

52.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CWK is unprofitable, but has reduced losses over the past 5 years at a rate of 52.5% per year.

Accelerating Growth: Unable to compare CWK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CWK is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-20%).


Return on Equity

High ROE: CWK has a negative Return on Equity (-5.75%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CWK is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CWK is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Cushman & Wakefield's financial position?


Financial Position Analysis

Short Term Liabilities: CWK's short term assets ($2.3B) exceeds its short term liabilities ($1.9B)

Long Term Liabilities: CWK's short term assets (2.3B) do not cover its long term liabilities (3.5B)


Debt to Equity History and Analysis

Debt Level: CWK's debt to equity ratio (213.4%) is considered high

Reducing Debt: Insufficient data to determine if CWK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CWK's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CWK has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if CWK has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

High Dividend: Unable to evaluate CWK'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 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.


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 CWK'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 Cushman & Wakefield's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Brett White (59yo)

4.8yrs

Tenure

US$49,239,960

Compensation

Mr. Brett White serves as Executive Chairman and Chief Executive Officer at DTZ Jersey Holdings Limited and he also serves as its Director. Mr. White served as President of DTZ Jersey Holdings Limited. He  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Brett's total compensation is reasonable compared to companies of similar size in the US market.

Compensation vs Earnings: Brett's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: CWK's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

54yo

Average Age

Experienced Board: CWK's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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$231,92116 Apr 19
W. White
EntityIndividual
Shares13,575
Max PriceUS$17.08
SellUS$3,992,31716 Apr 19
Ontario Teachers' Pension Plan Board
EntityCompany
Shares233,682
Max PriceUS$17.08
SellUS$32,623,63616 Apr 19
TPG Capital, L.P.
EntityCompany
Shares1,909,557
Max PriceUS$17.08
SellUS$247,720,75926 Mar 19
TPG Capital, L.P.
EntityCompany
Shares14,499,822
Max PriceUS$17.08
SellUS$445,56126 Mar 19
Dtz Investment Holdings Genpar Llp
EntityCompany
Shares26,080
Max PriceUS$17.08
SellUS$30,107,25726 Mar 19
Ontario Teachers' Pension Plan Board
EntityCompany
Shares1,762,266
Max PriceUS$17.08
SellUS$026 Mar 19
PAGAC Drone Holding GP I Ltd
EntityCompany
Shares0
Max PriceUS$17.08
SellUS$1,275,52126 Mar 19
PAG Asia Capital
EntityCompany
Shares74,660
Max PriceUS$17.08
SellUS$3,416,88026 Mar 19
DTZ Investment Holdings LP
EntityCompany
Shares200,000
Max PriceUS$17.08
SellUS$1,770,71326 Mar 19
W. White
EntityIndividual
Shares103,645
Max PriceUS$17.08

Ownership Breakdown


Management Team

  • Duncan Palmer (54yo)

    Executive VP & CFO

    • Tenure: 5.8yrs
    • Compensation: US$5.69m
  • John Forrester (56yo)

    Executive VP & Global President

    • Tenure: 1.8yrs
    • Compensation: US$7.80m
  • Nate Robinson

    Executive VP of Strategic Planning & Chief Investment Officer

    • Tenure: 1.8yrs
  • Matthew Bouw

    Chief Executive Officer of Asia Pacific

    • Tenure: 0yrs
    • Compensation: US$806.70k
  • Adam Stanley

    Chief Information Officer & Chief Digital Officer

    • Tenure: 0yrs
  • Brett Soloway (50yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$1.82m
  • Brad Kreiger

    Chief Marketing & Communications Officer

    • Tenure: 1.8yrs
  • Michelle Hay (50yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.59m
  • Brett White (59yo)

    Executive Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$49.24m
  • Bill Knightly

    Executive VP of Investor Relations & Treasurer

    • Tenure: 0yrs

Board Members

  • Rich McGinn (73yo)

    Independent Director

    • Tenure: 0.3yrs
  • Jonathan Coslet (55yo)

    Independent Director

    • Tenure: 1.8yrs
  • Jodie McLean (50yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$110.44k
  • Tim Dattels (55yo)

    Lead Director

    • Tenure: 0yrs
  • Lincoln Pan (42yo)

    Independent Director

    • Tenure: 2.8yrs
  • Michelle MacKay (53yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$91.51k
  • Billie Williamson (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$182.92k
  • Raju Ruparelia (43yo)

    Independent Director

    • Tenure: 5.8yrs
  • Elaine Qi (42yo)

    Independent Director

    • Tenure: 5.8yrs
  • Brett White (59yo)

    Executive Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: US$49.24m

Company Information

Cushman & Wakefield plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cushman & Wakefield plc
  • Ticker: CWK
  • Exchange: NYSE
  • Founded: 1784
  • Industry: Real Estate Services
  • Sector: Real Estate
  • Market Cap: US$3.941b
  • Shares outstanding: 217.02m
  • Website: https://www.cushmanwakefield.com

Number of Employees


Location

  • Cushman & Wakefield plc
  • 225 West Wacker Drive
  • Suite 3000
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWKNYSE (New York Stock Exchange)YesNew Ordinary sharesUSUSDAug 2018

Biography

Cushman & Wakefield plc provides commercial real estate services under the Cushman & Wakefield brand in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers integrated facilities  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 00:44
End of Day Share Price2019/10/18 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.