Cbre Group, Inc. (NYSE: CBRE)

Sector: Real Estate Industry: Real Estate Services CIK: 0001138118
Market Cap 51.14 Bn
P/B 5.99
P/E 41.65
P/S 1.30
ROIC (Qtr) 6.88
Div Yield % 0.00
Rev 1y % (Qtr) 13.52
Total Debt (Qtr) 9.48 Bn
Debt/Equity (Qtr) 1.11

About

CBRE Group, Inc., known by its ticker symbol CBRE, is a dominant player in the commercial real estate services and investments industry. The company's operations span over 100 countries, providing a comprehensive range of services that include property leasing, capital markets, mortgage servicing, property management, and valuation. CBRE's competitive edge lies in its significant scale, enabling it to offer integrated solutions and drive growth in the real estate market. The company's main business activities revolve around commercial real estate,...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 1.68B provides strong 11.65x coverage of stock compensation 144M, indicating sustainable incentive practices.
  • Operating cash flow of 1.68B provides exceptional 16.95x coverage of minority interest expenses 99M, showing strong core operations.
  • Tangible assets of 19.74B provide exceptional 51.66x coverage of deferred revenue 382M, showing strong service capability backing.
  • Robust tangible asset base of 19.74B provides 13.89x coverage of working capital 1.42B, indicating strong operational backing.
  • Operating cash flow of 1.68B provides strong 4.39x coverage of deferred revenue 382M, indicating service delivery capability.

Bear case

  • Operating cash flow of 1.68B barely covers its investment activities of (684M), with a coverage ratio of -2.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 1.81B provide limited coverage of acquisition spending of (329M), which is -5.50x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 1.75B show weak coverage of depreciation charges of 869M, with a 2.02 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 869M relative to operating cash flow of 1.68B, which is 0.52x suggests significant maintenance capital requirements affecting free cash flow.
  • Retained earnings of 9.77B provide limited buffer against comprehensive income items of (1.28B), which is -7.63x, indicating elevated exposure to market risks.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Real Estate Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CBRE Cbre Group, Inc. 51.14 Bn 41.65 1.30 9.48 Bn
2 CSGP Costar Group, Inc. 26.47 Bn 1,304.00 8.66 1.18 Bn
3 BEKE KE Holdings Inc. 21.08 Bn 43.29 1.45 2.96 Bn
4 JLL Jones Lang Lasalle Inc 16.90 Bn 26.75 0.67 3.48 Bn
5 FSV FirstService Corp 7.01 Bn 56.92 1.78 1.51 Bn
6 COMP Compass, Inc. 6.69 Bn -118.64 1.01 0.48 Bn
7 CIGI Colliers International Group Inc. 5.39 Bn 69.70 2.00 2.50 Bn
8 OPEN Opendoor Technologies Inc. 4.15 Bn -13.09 0.88 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.07 1.34
EV to Cash from Ops. EV/CFO 35.25 2.97
EV to Debt EV to Debt 6.24 6.15
EV to EBIT EV/EBIT 33.70 5.23
EV to EBITDA EV/EBITDA 24.55 18.71
EV to Free Cash Flow [EV/FCF] EV/FCF 62.53 -9.39
EV to Market Cap EV to Market Cap 1.16 4.27
EV to Revenue EV/Rev 1.50 3.62
Price to Book Value [P/B] P/B 5.99 2.10
Price to Earnings [P/E] P/E 41.65 45.45
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.38
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -6.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.42
Interest Coverage Int. cover (Qtr) 8.32 -2.22
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -24.49 -12,525.88
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 56.35 23.84
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 24.16 4.69
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.99 26.73
EBIT Growth (1y) % EBIT 1y % (Qtr) 28.48 12.80
EBT Growth (1y) % EBT 1y % (Qtr) 32.65 21.27
EPS Growth (1y) % EPS 1y % (Qtr) 30.45 22.42
FCF Growth (1y) % FCF 1y % (Qtr) 49.45 54.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.31 39.11
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.38 1.45
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.01
Cash Ratio Cash Ratio (Qtr) 0.16 1.45
Current Ratio Curr Ratio (Qtr) 1.13 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.11 -0.06
Interest Cover Ratio Int Coverage (Qtr) 8.32 -2.22
Times Interest Earned Times Interest Earned (Qtr) 8.32 -2.22
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.70 -121.98
EBIT Margin % EBIT Margin % (Qtr) 4.46 -136.76
EBT Margin % EBT Margin % (Qtr) 3.93 -144.54
Gross Margin % Gross Margin % (Qtr) 19.10 32.87
Net Profit Margin % Net Margin % (Qtr) 3.10 -139.89