CBRE Group (CBRE) AI Stock Analysis

• Market Cap: $34.77B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.16
• Revenue Growth: 11.95%
• EPS Growth: -1.25%
• Country: US
• Employees: 140,000
• Sector: Real Estate
• Sector Strength: 71
• Industry: Real Estate - Services
• EPS (TTM): 3.15
• Shares Outstanding: 299,856,570
• 10 Day Avg. Volume: 2,589,695
• 30 Day Avg. Volume: 2,181,151
• PEG Ratio: 0.70
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.09
• Price to Cash Flow (P/CF): 7.30
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $145.00
• Price Target Upside: 25.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

CBRE Group scores well due to strong financial performance, characterized by significant revenue growth and efficient cash flow management. However, the technical analysis presents mixed signals, and the high P/E ratio suggests overvaluation. The positive sentiment from the earnings call, with strong growth projections and strategic acquisitions, enhances the overall score. Challenges remain in optimizing net profit margins and navigating uncertain capital markets.

Positive Factors

Business Segment Performance

Revenue, core earnings, and cash flow exceeded expectations led by outperformance in all 3 business segments.

Earnings Expectations

The adjusted EPS estimate for 2024 has been increased, indicating improved financial performance expectations.

Stock Valuation

The target price for CBRE has been increased significantly, reflecting a positive outlook on the stock's valuation.

Negative Factors

Capital Investments

Several sizable capital investments were consistent with explicit elements of the CBRE strategy.

Economic Outlook

Leasing continues to pick up globally, with office leasing revenue growing 26%, driven by greater certainty around the economic outlook, particularly in the US and Europe.

CBRE Group Business Overview & Revenue Model

Company Description

CBRE Group, Inc. operates as a commercial real estate services and investment company worldwide. It operates through three segments: Advisory Services, Global Workplace Solutions, and Real Estate Investments segments. The Advisory Services segment provides strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing; property sales and mortgage services under the CBRE Capital Markets brand; property and project management services, including construction management, marketing, building engineering, accounting, and financial services for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment offers facilities management, project management, and transaction management services. The Real Estate Investments segment provides investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; development services under the Trammell Crow Company brand primarily to users of and investors in commercial real estate; and flexible-space solutions under the CBRE Hana brand. The company was founded in 1906 and is headquartered in Dallas, Texas.

How the Company Makes Money

CBRE Group generates revenue through a diversified business model with key revenue streams including advisory services, global workplace solutions, and real estate investment. Advisory services encompass property management, leasing, and valuation, which provide recurring income from management fees and commissions. The global workplace solutions segment offers facilities management and project management services, generating revenue through long-term contracts with corporate clients. Additionally, CBRE earns from real estate investment through its subsidiary, CBRE Investment Management, which manages investment funds and provides asset management services, earning fees based on assets under management and performance. Significant partnerships with corporations and institutional investors, along with its strategic focus on innovation and technology, further contribute to CBRE's earnings by enhancing service delivery and expanding market reach.

CBRE Group Financial Statement Overview

Summary

CBRE Group exhibits strong financial health characterized by significant revenue growth, stable profitability, and efficient cash flow management. The company's low leverage and solid equity position provide a strong foundation for future growth. Opportunities for improvement include enhancing net profit margins and optimizing asset utilization to further increase returns.

Income Statement

CBRE Group has shown robust revenue growth, with a 11.95% increase in 2024 compared to 2023. The gross profit margin improved significantly to 58.35% in 2024, indicating efficient cost management. Net profit margin remained stable at 2.71%, suggesting consistent profitability. EBIT margin increased to 3.95%, while EBITDA margin was 5.70%, reflecting strong operational performance. Overall, the company demonstrates solid growth and stable profitability, although net margins could be higher.

Balance Sheet

The balance sheet shows a healthy debt-to-equity ratio of 0.21 in 2024, indicating low leverage and financial stability. Return on equity (ROE) is 11.51%, reflecting decent profitability relative to shareholder investment. The equity ratio is 34.49%, suggesting a conservative financial structure. While the company maintains a strong equity base, improvements in asset utilization could enhance returns.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth of 700% in 2024, driven by significant increases in operating cash flow. The operating cash flow to net income ratio is 1.77, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is 1.45, reflecting robust cash management. This strong cash flow position provides CBRE with flexibility for future investments and debt repayments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
35.77B	31.95B	30.83B	27.75B	23.83B
	Gross Profit
6.96B	6.27B	6.59B	6.17B	4.78B
	EBIT
1.41B	1.12B	1.51B	2.39B	969.76M
	EBITDA
1.95B	1.74B	1.94B	2.91B	1.47B
	Net Income Common Stockholders
968.00M	986.00M	1.41B	1.84B	751.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.11B	1.26B	1.32B	2.43B	1.90B
	Total Assets
24.38B	22.55B	20.51B	22.07B	18.04B
	Total Debt
1.73B	4.83B	3.49B	4.20B	4.10B
	Net Debt
615.00M	3.56B	2.17B	1.77B	2.20B
	Total Liabilities
15.19B	13.48B	11.91B	12.71B	10.92B
	Stockholders Equity
8.41B	8.27B	7.85B	8.53B	7.08B
Cash Flow		Free Cash Flow
1.40B	175.00M	1.37B	2.15B	1.56B
	Operating Cash Flow
1.71B	480.00M	1.63B	2.36B	1.83B
	Investing Cash Flow
-1.51B	-681.00M	-832.46M	-1.28B	-341.58M
	Financing Cash Flow
-221.00M	154.00M	-1.77B	-490.63M	-625.26M

CBRE Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBRE, the sentiment is Negative. The current price of 115.95 is below the 20-day moving average (MA) of 126.34, below the 50-day MA of 133.65, and below the 200-day MA of 124.34, indicating a bearish trend. The MACD of -1.42 indicates Negative momentum. The RSI at 47.13 is Neutral, neither overbought nor oversold. The STOCH value of 45.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CBRE.

CBRE Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSGP	79 Outperform	$32.64B	227.68	1.86%	―	11.45%	-63.09%
BEKE	71 Outperform	$22.58B	38.46	5.66%	1.68%	18.14%	-30.84%
CBRE	70 Outperform	$34.77B	36.87	11.61%	―	11.95%	-1.25%
JLL	66 Neutral	$10.00B	18.69	8.37%	―	12.87%	142.90%
Sector *	61 Neutral	$4.24B	15.87	-3.65%	12.20%	6.29%	-21.37%
NMRK	58 Neutral	$1.86B	29.92	4.92%	1.16%	10.67%	47.10%
CWK	58 Neutral	$1.86B	14.45	7.65%	―	-0.50%	―

CBRE Group Corporate Events

CBRE Group Restructures Business Segments for 2025

On March 20, 2025, CBRE Group announced a restructuring of its business segments, effective January 1, 2025, which includes the combination of its project management business with Turner & Townsend and the acquisition of the remaining equity interest in Industrious. This restructuring aims to enhance CBRE’s service offerings and market positioning by introducing new segments such as Project Management and Building Operations & Experience, reflecting the company’s strategic focus on flexible workplace solutions and comprehensive real estate services.

CBRE Group Expands with Industrious Acquisition and Leadership Changes

On January 14, 2025, CBRE Group announced a definitive agreement to acquire Industrious National Management Company, a leader in flexible office solutions. This strategic acquisition involves creating a new business segment, Building Operations & Experience (BOE), which will integrate CBRE’s existing facilities and property management services with Industrious’ offerings. The move is expected to enhance CBRE’s market position by delivering scalable, innovative building operations solutions globally. Additionally, changes in leadership roles were announced, with key executives stepping into new positions to drive growth and strategic alignment, reflecting CBRE’s commitment to evolving its business structure and leadership to capitalize on industry trends and opportunities.