CBRE Group, Inc.
CBRE Group, Inc. Fundamental Analysis
CBRE Group, Inc. (CBRE) shows moderate financial fundamentals with a PE ratio of 33.14, profit margin of 3.11%, and ROE of 15.35%. The company generates $42.0B in annual revenue with strong year-over-year growth of 13.37%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CBRE's fundamental strength across five key dimensions:
Efficiency Score
WeakCBRE struggles to generate sufficient returns from assets.
Valuation Score
ModerateCBRE shows balanced valuation metrics.
Growth Score
ExcellentCBRE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCBRE maintains a strong and stable balance sheet.
Profitability Score
ModerateCBRE maintains healthy but balanced margins.
Key Financial Metrics
Is CBRE Expensive or Cheap?
P/E Ratio
CBRE trades at 33.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CBRE's PEG of 0.99 indicates potential undervaluation.
Price to Book
The market values CBRE Group, Inc. at 5.10 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.80 times EBITDA. This signals the market has high growth expectations.
How Well Does CBRE Make Money?
Net Profit Margin
For every $100 in sales, CBRE Group, Inc. keeps $3.11 as profit after all expenses.
Operating Margin
Core operations generate 3.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.35 in profit for every $100 of shareholder equity.
ROA
CBRE Group, Inc. generates $4.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CBRE Group, Inc. generates limited operating cash flow of $1.27B, signaling weaker underlying cash strength.
Free Cash Flow
CBRE Group, Inc. generates weak or negative free cash flow of $893.23M, restricting financial flexibility.
FCF Per Share
Each share generates $3.05 in free cash annually.
FCF Yield
CBRE converts 2.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.03
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.08
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How CBRE Stacks Against Its Sector Peers
| Metric | CBRE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.14 | 23.45 | Worse (Expensive) |
| ROE | 15.35% | 708.00% | Weak |
| Net Margin | 3.11% | -37558.00% (disorted) | Weak |
| Debt/Equity | 0.93 | -20.95 (disorted) | Distorted |
| Current Ratio | 1.08 | 16.52 | Neutral |
| ROA | 4.35% | -929.00% (disorted) | Weak |
CBRE outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CBRE Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
91.33%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
72.97%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-8.69%
Industry Style: Income, Inflation Hedge, REIT
Declining