CoStar Group, Inc.
CoStar Group, Inc. Fundamental Analysis
CoStar Group, Inc. (CSGP) shows weak financial fundamentals with a PE ratio of 1030.72, profit margin of 0.66%, and ROE of 0.24%. The company generates $3.1B in annual revenue with strong year-over-year growth of 11.45%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.9/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CSGP's fundamental strength across five key dimensions:
Efficiency Score
WeakCSGP struggles to generate sufficient returns from assets.
Valuation Score
ModerateCSGP shows balanced valuation metrics.
Growth Score
ModerateCSGP shows steady but slowing expansion.
Financial Health Score
ExcellentCSGP maintains a strong and stable balance sheet.
Profitability Score
ModerateCSGP maintains healthy but balanced margins.
Key Financial Metrics
Is CSGP Expensive or Cheap?
P/E Ratio
CSGP trades at 1030.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CSGP's PEG of -13.08 indicates potential undervaluation.
Price to Book
The market values CoStar Group, Inc. at 2.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 145.36 times EBITDA. This signals the market has high growth expectations.
How Well Does CSGP Make Money?
Net Profit Margin
For every $100 in sales, CoStar Group, Inc. keeps $0.66 as profit after all expenses.
Operating Margin
Core operations generate -2.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.24 in profit for every $100 of shareholder equity.
ROA
CoStar Group, Inc. generates $0.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CoStar Group, Inc. produces operating cash flow of $365.89M, showing steady but balanced cash generation.
Free Cash Flow
CoStar Group, Inc. produces free cash flow of $286.35M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.68 in free cash annually.
FCF Yield
CSGP converts 1.34% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1030.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-13.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How CSGP Stacks Against Its Sector Peers
| Metric | CSGP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1030.72 | 24.23 | Worse (Expensive) |
| ROE | 0.24% | 659.00% | Weak |
| Net Margin | 0.66% | 4497.00% | Weak |
| Debt/Equity | 0.13 | -22.14 (disorted) | Distorted |
| Current Ratio | 3.12 | 13.87 | Strong Liquidity |
| ROA | 0.19% | -1390.00% (disorted) | Weak |
CSGP outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CoStar Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.70%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
-60.65%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-23.36%
Industry Style: Income, Inflation Hedge, REIT
Declining