NYSE:CWK

Stock Analysis Report

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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. More Details

Rewards

Trading at 35.4% below our estimate of its fair value

Earnings are forecast to grow 70.97% per year

Risk Analysis

No risks detected for CWK from our risk checks.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


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

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


Market Performance


7 Day Return

-1.0%

CWK

-0.3%

US Real Estate

-5.3%

US Market


1 Year Return

-39.1%

CWK

-16.9%

US Real Estate

10.4%

US Market

Return vs Industry: CWK underperformed the US Real Estate industry which returned -14.8% over the past year.

Return vs Market: CWK underperformed the US Market which returned 12% over the past year.


Shareholder returns

CWKIndustryMarket
7 Day-1.0%-0.3%-5.3%
30 Day6.4%8.7%-2.1%
90 Day9.5%15.0%1.7%
1 Year-39.1%-39.1%-14.7%-16.9%12.9%10.4%
3 Yearn/a-10.5%-17.2%34.3%25.4%
5 Yearn/a-9.1%-19.2%73.7%54.3%

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?

35.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWK ($11.72) is trading below our estimate of fair value ($18.15)

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


Price To Earnings Ratio

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

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 (2.5x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

How is Cushman & Wakefield forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

71.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWK is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: CWK is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CWK's is expected to become profitable in the next 3 years.

Revenue vs Market: CWK's revenue (7.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CWK's revenue (7.4% 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 (23.6%)


Next Steps

Past Performance

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

60.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWK is currently unprofitable.

Growing Profit Margin: CWK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CWK is unprofitable, but has reduced losses over the past 5 years at a rate of 60% 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 (16.8%).


Return on Equity

High ROE: CWK has a negative Return on Equity (-13.7%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cushman & Wakefield's financial position?


Financial Position Analysis

Short Term Liabilities: CWK's short term assets ($2.6B) exceed its short term liabilities ($1.9B).

Long Term Liabilities: CWK's short term assets ($2.6B) do not cover its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: CWK's debt to equity ratio (335.4%) 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


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: Whilst unprofitable CWK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CWK is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 56.5% per year.


Next Steps

Dividend

What is Cushman & Wakefield current dividend yield, its reliability and sustainability?


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.


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

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

2.8yrs

Average management tenure


CEO

Brett White (60 yo)

5.75yrs

Tenure

US$9,252,912

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: Brett's total compensation ($USD9.25M) is above average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brett White
Executive Chairman & CEO5.75yrsUS$9.25m0.44%
$ 11.4m
John Forrester
Executive VP & Global President2.83yrsUS$4.51m0.075%
$ 2.0m
Duncan Palmer
Executive VP & CFO6.75yrsUS$4.18m0.042%
$ 1.1m
Michelle MacKay
Chief Operating Officer0.58yrUS$256.94k0.0021%
$ 53.9k
Nathaniel Robinson
Executive VP of Strategic Planning & Chief Investment Officer2.75yrsUS$1.33m0.025%
$ 645.2k
Brett Soloway
Executive VP6.75yrsUS$1.71m0.038%
$ 1.0m
Leonard Texter
Global Controller0.58yrno data0.0012%
$ 31.7k
Adam Stanley
Chief Information Officer & Chief Digital Officerno datano datano data
Brad Kreiger
Chief Marketing & Communications Officer2.75yrsno datano data
Michelle Hay
Executive VP & Chief Human Resources Officer3.75yrsUS$1.59m0.0066%
$ 173.2k
Matthew Bouw
Chief Executive Officer of Asia Pacificno dataUS$806.70kno data
Jeff Green
MD & Leader of Automotive Advisory Groupno datano datano data

2.8yrs

Average Tenure

54yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Brett White
Executive Chairman & CEO5.75yrsUS$9.25m0.44%
$ 11.4m
Richard McGinn
Independent Director1.25yrsUS$222.09k0.0044%
$ 115.9k
Jonathan Coslet
Independent Director2.25yrsno datano data
Jodie McLean
Independent Director2yrsUS$258.75k0.0068%
$ 177.7k
Timothy Dattels
Independent Lead Directorno datano datano data
LinFeng Pan
Independent Director3.75yrsno datano data
Billie Williamson
Independent Director2.25yrsUS$275.00k0.0078%
$ 203.3k
Rajeev Ruparelia
Independent Director6.75yrsno datano data
Angelique Brunner
Director0.17yrno datano data
Chen Qi
Independent Director6.75yrsno datano data

2.3yrs

Average Tenure

53.5yo

Average Age

Experienced Board: CWK's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

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$2.617b
  • Shares outstanding: 220.62m
  • 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. The company’s operating segments ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:46
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.