Cushman & Wakefield plc
Cushman & Wakefield plc Fundamental Analysis
Cushman & Wakefield plc (CWK) shows weak financial fundamentals with a PE ratio of 34.23, profit margin of 0.86%, and ROE of 4.65%. The company generates $10.3B in annual revenue with weak year-over-year growth of -0.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CWK's fundamental strength across five key dimensions:
Efficiency Score
WeakCWK struggles to generate sufficient returns from assets.
Valuation Score
ModerateCWK shows balanced valuation metrics.
Growth Score
WeakCWK faces weak or negative growth trends.
Financial Health Score
ModerateCWK shows balanced financial health with some risks.
Profitability Score
WeakCWK struggles to sustain strong margins.
Key Financial Metrics
Is CWK Expensive or Cheap?
P/E Ratio
CWK trades at 34.23 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CWK's PEG of -0.56 indicates potential undervaluation.
Price to Book
The market values Cushman & Wakefield plc at 1.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.33 times EBITDA. This is generally considered low.
How Well Does CWK Make Money?
Net Profit Margin
For every $100 in sales, Cushman & Wakefield plc keeps $0.86 as profit after all expenses.
Operating Margin
Core operations generate 4.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.65 in profit for every $100 of shareholder equity.
ROA
Cushman & Wakefield plc generates $1.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cushman & Wakefield plc generates limited operating cash flow of $83.10M, signaling weaker underlying cash strength.
Free Cash Flow
Cushman & Wakefield plc generates weak or negative free cash flow of $72.60M, restricting financial flexibility.
FCF Per Share
Each share generates $0.31 in free cash annually.
FCF Yield
CWK converts 2.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.23
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
22.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CWK Stacks Against Its Sector Peers
| Metric | CWK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.23 | 24.42 | Worse (Expensive) |
| ROE | 4.65% | 679.00% | Weak |
| Net Margin | 0.86% | 4598.00% | Weak |
| Debt/Equity | 1.66 | -22.07 (disorted) | Distorted |
| Current Ratio | 22.76 | 14.99 | Strong Liquidity |
| ROA | 1.15% | -1369.00% (disorted) | Weak |
CWK 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 Cushman & Wakefield plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.67%
Industry Style: Income, Inflation Hedge, REIT
GrowingEPS CAGR
62337.77%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
-26.54%
Industry Style: Income, Inflation Hedge, REIT
Declining