Colliers International Group Inc. (NASDAQ: CIGI)

Sector: Real Estate Industry: Real Estate Services CIK: 0000913353
Market Cap 5.59 Bn
P/B 3.65
P/E 54.27
P/S 1.01
ROIC (Qtr) 6.34
Div Yield % 0.27
Rev 1y % (Qtr) 6.99
Total Debt (Qtr) 2.29 Bn
Debt/Equity (Qtr) 1.49
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About

Investment thesis

Bull case

  • Robust free cash flow of 251.44M exceeds capital expenditure of 78.70M by 3.19x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 2.93B provides 17.57x coverage of working capital 166.98M, indicating strong operational backing.
  • Strong cash position of 256.88M provides 1.75x coverage of other current liabilities 146.64M, indicating excellent liquidity.
  • Tangible assets of 2.93B provide robust 20x coverage of other current liabilities 146.64M, indicating strong asset backing.
  • Cash position of 256.88M represents healthy 1.54x of working capital 166.98M, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of 330.14M barely covers its investment activities of (334.64M), with a coverage ratio of -0.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 330.14M provides thin coverage of dividend payments of (15.21M) with a -21.70 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 256.88M provide limited coverage of acquisition spending of (97.91M), which is -2.62x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 265.63M show weak coverage of depreciation charges of 256.01M, with a 1.04 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 256.01M relative to operating cash flow of 330.14M, which is 0.78x suggests significant maintenance capital requirements affecting free cash flow.

Segments 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. 42.12 Bn 36.40 1.04 9.99 Bn
2 BEKE KE Holdings Inc. 19.37 Bn 39.77 1.33 2.96 Bn
3 CSGP Costar Group, Inc. 18.57 Bn 914.80 6.08 1.18 Bn
4 JLL Jones Lang Lasalle Inc 13.60 Bn 21.53 0.54 3.48 Bn
5 FSV FirstService Corp 7.02 Bn 48.37 1.28 1.38 Bn
6 CIGI Colliers International Group Inc. 5.59 Bn 54.27 1.01 2.29 Bn
7 COMP Compass, Inc. 5.18 Bn -91.82 0.78 0.48 Bn
8 OPEN Opendoor Technologies Inc. 3.12 Bn -9.84 0.66 1.79 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.15 1.18
EV to Cash from Ops. EV/CFO 23.75 -6.57
EV to Debt EV to Debt 3.43 5.19
EV to EBIT EV/EBIT 29.52 4.86
EV to EBITDA EV/EBITDA 12.49 13.56
EV to Free Cash Flow [EV/FCF] EV/FCF 31.18 -11.14
EV to Market Cap EV to Market Cap 1.40 7.70
EV to Revenue EV/Rev 1.41 3.49
Price to Book Value [P/B] P/B 3.65 1.76
Price to Earnings [P/E] P/E 54.27 40.59
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 6.78 0.36
Dividend Payout Ratio % Div Payout % (Qtr) 14.80 -7.05
Dividend per Basic Share Div per Share (Qtr) 0.30 0.22
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 6.06 0.46
Interest Coverage Int. cover (Qtr) 3.22 -2.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -20.92 -12,527.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 17.85 24.62
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 1.26
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -32.23 10.86
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.76 33.08
EBIT Growth (1y) % EBIT 1y % (Qtr) -17.43 19.37
EBT Growth (1y) % EBT 1y % (Qtr) -22.32 28.48
EPS Growth (1y) % EPS 1y % (Qtr) -37.35 29.29
FCF Growth (1y) % FCF 1y % (Qtr) -3.64 67.74
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.82 33.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 1.44
Cash Payout Ratio Cash Payout (Qtr) 0.04 -0.01
Cash Ratio Cash Ratio (Qtr) 0.16 1.45
Current Ratio Curr Ratio (Qtr) 1.10 2.16
Debt to Equity Ratio Debt/Equity (Qtr) 1.49 -0.07
Interest Cover Ratio Int Coverage (Qtr) 3.22 -2.20
Times Interest Earned Times Interest Earned (Qtr) 3.22 -2.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.40 -120.34
EBIT Margin % EBIT Margin % (Qtr) 4.78 -135.17
EBT Margin % EBT Margin % (Qtr) 3.30 -142.98
Gross Margin % Gross Margin % (Qtr) 40.00 32.99
Net Profit Margin % Net Margin % (Qtr) 1.90 -138.31