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CBRE Group Inc (CBRE)
NYSE:CBRE

CBRE Group (CBRE) AI Stock Analysis

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CBRE Group

(NYSE:CBRE)

Rating:76Outperform
Price Target:
$160.00
▲(12.27%Upside)
CBRE's overall stock score is driven by its strong financial performance and stable financial structure, supported by significant growth in key business segments. Technical indicators signal strong momentum, though nearing overbought conditions. High valuation metrics introduce potential risks, particularly if expected growth does not materialize. Recent corporate actions demonstrate strategic debt management, bolstering financial flexibility. Overall, the stock is positioned favorably within its industry, though macroeconomic uncertainties warrant caution.
Positive Factors
Earnings Growth
Core EBITDA of $540 million showed growth of 30% year-over-year in local currency, with margins of 10.6%, roughly 10% above estimate and 7% above consensus.
Financial Performance
CBRE reported strong first-quarter results with net revenue of $5.1 billion, which was 17% up year-over-year in constant currency and 2% above estimate and consensus.
Negative Factors
Earnings Estimates
Investment sales are slightly lower, leading to a minor reduction in earnings estimates for future fiscal years.
Market Challenges
The stock has declined by 15% from recent highs, indicating recent market challenges.

CBRE Group (CBRE) vs. SPDR S&P 500 ETF (SPY)

CBRE Group Business Overview & Revenue Model

Company DescriptionCBRE 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 MoneyCBRE Group generates revenue through multiple streams within the commercial real estate sector. The company's primary revenue sources include leasing services, where CBRE acts as an intermediary between property owners and tenants; property management services, which involve the operational oversight and maintenance of real estate assets; and investment management, where CBRE manages real estate investments on behalf of clients, earning fees based on asset performance. Additionally, CBRE derives income from sales and leasing commissions, valuation services, project management fees, and development services. Key factors contributing to its earnings include a robust global network, strategic acquisitions to expand service capabilities, and a strong client base across various industries. CBRE also benefits from partnerships with financial institutions and technology firms, enhancing its service offerings and operational efficiency.

CBRE Group Key Performance Indicators (KPIs)

Any
Any
Operating Profit by Segment
Operating Profit by Segment
Chart InsightsCBRE's Advisory Services segment shows a recovery in operating profit after a dip, while new segments like Building Operations and Project Management are emerging as significant contributors. The earnings call highlights strong growth in these areas, with Project Management showing robust performance. Despite macroeconomic uncertainties, CBRE's strategic focus on resilient segments is paying off, as evidenced by the 17% net revenue growth in these areas. However, the impact of tariffs and a slowdown in capital raising could pose risks to sustained growth.
Data provided by:Main Street Data

CBRE Group Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: 16.76%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted a strong start to 2025 with significant growth in revenue and key business segments. However, concerns about the impact of tariffs and potential economic slowdown were noted. The overall sentiment remains cautiously optimistic, with robust growth in certain areas offset by macroeconomic uncertainties.
Q1-2025 Updates
Positive Updates
Strong Start to 2025
CBRE had a strong start to 2025 across all lines of business and globally, with most businesses performing better than expected.
Significant Growth in Core EBITDA and EPS
First quarter core EBITDA increased by 27% and core EPS by 10% compared to last year's first quarter. Excluding a large one-time tax benefit from last year, core EPS grew by 39%.
Resilient Businesses Growth
Resilient businesses generated net revenue growth of 17% for the quarter, nearly matching the 18% increase in transactional businesses.
Record Leasing Revenue
Global leasing revenue growth accelerated to 19% in Q1, with U.S. leasing revenue increasing 24%, driven by a 38% increase in office leasing revenue.
Global Property Sales Increase
Global property sales revenue increased by 13%, led by a 26% gain in the U.S., with a significant uptick in multifamily and industrial asset sales.
Strong Performance in Project Management Segment
Project Management and Building Operations & Experience segments generated strong financial results, with net revenue growth of 22% in the BOE segment.
Negative Updates
Uncertainty Due to Tariff Situation
Uncertainty created by the tariff situation has made the outlook less clear, affecting business confidence and pipelines.
Slowdown in Capital Raising
Some slowdown in capital raising activities was noted, with some capital sources from around the world showing reduced enthusiasm.
Industrial Leasing Expectations Adjusted
Industrial leasing performance, which outperformed expectations in Q1, is expected to return to anticipated levels due to tariff uncertainty.
Company Guidance
During CBRE's first quarter 2025 earnings call, the company provided guidance reflecting a cautious yet optimistic outlook despite market uncertainties. CBRE reported a strong start to the year with core EBITDA increasing by 27% and core EPS growing by 10% year-over-year. The company maintained its full-year core EPS guidance of $5.80 to $6.10, citing strong new business pipelines and activity levels across both resilient and transactional segments. However, uncertainty from the tariff situation has introduced potential risks, making the outlook less clear. CBRE's resilient businesses, which now account for over 60% of total segment operating profit (SOP), achieved a 17% net revenue growth, closely matched by an 18% increase in transactional businesses. The company highlighted notable performances in project management and building operations, with the newly structured segments contributing significantly to financial results and strategic gains. Despite the macroeconomic headwinds, CBRE's strategic positioning, strong balance sheet, and capital allocation strategy are expected to support sustained growth and enable the company to capitalize on opportunities arising from market downturns.

CBRE Group Financial Statement Overview

Summary
CBRE demonstrates robust financial health with strong revenue growth, profitability, and effective equity utilization. The moderate leverage and solid cash generation capabilities further support its financial stability, despite a slight decrease in free cash flow growth.
Income Statement
85
Very Positive
CBRE Group's income statement shows a robust performance with a TTM total revenue of $36.74 billion, reflecting a steady revenue growth rate of 2.72% from the previous year. The gross profit margin stands at 19.86%, and the net profit margin is 2.74%, indicating efficient cost management. The EBIT margin is 4.04%, and the EBITDA margin is 5.54%, showing stable operating efficiency. Overall, the company exhibits consistent profitability and growth in a competitive industry.
Balance Sheet
78
Positive
The balance sheet highlights a solid capital structure with a debt-to-equity ratio of 0.46, reflecting moderate leverage and prudent financial management. The return on equity (ROE) is 12.13%, showcasing effective utilization of shareholder funds to generate profits. The equity ratio is 31.41%, indicating a balanced approach to financing with a healthy equity base. However, the increase in total debt over the recent period warrants monitoring.
Cash Flow
82
Very Positive
CBRE's cash flow statement reveals strong cash generation capabilities with an operating cash flow to net income ratio of 1.65, indicating robust operational efficiency. The free cash flow to net income ratio is 1.35, underscoring the company's ability to generate surplus cash after capital expenditures. Although the free cash flow experienced a slight decline of 3.07%, the solid cash flow ratios suggest resilient cash management practices.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue36.74B35.77B31.95B30.83B27.75B23.83B
Gross Profit7.30B6.96B6.27B6.59B6.17B4.78B
EBITDA2.05B1.97B1.74B1.94B2.91B1.47B
Net Income1.00B968.00M986.00M1.41B1.84B751.99M
Balance Sheet
Total Assets26.37B24.38B22.55B20.51B22.07B18.04B
Cash, Cash Equivalents and Short-Term Investments1.38B1.11B1.26B1.32B2.43B1.90B
Total Debt8.86B5.69B4.83B3.49B4.20B4.10B
Total Liabilities17.73B15.19B13.48B11.91B12.71B10.92B
Stockholders Equity8.28B8.41B8.27B7.85B8.53B7.08B
Cash Flow
Free Cash Flow1.36B1.40B175.00M1.37B2.15B1.56B
Operating Cash Flow1.66B1.71B480.00M1.63B2.36B1.83B
Investing Cash Flow-1.07B-1.51B-681.00M-832.46M-1.28B-341.58M
Financing Cash Flow-178.00M-221.00M154.00M-1.77B-490.63M-625.26M

CBRE Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price142.51
Price Trends
50DMA
128.90
Positive
100DMA
129.93
Positive
200DMA
130.58
Positive
Market Momentum
MACD
3.68
Negative
RSI
69.58
Neutral
STOCH
96.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBRE, the sentiment is Positive. The current price of 142.51 is above the 20-day moving average (MA) of 134.80, above the 50-day MA of 128.90, and above the 200-day MA of 130.58, indicating a bullish trend. The MACD of 3.68 indicates Negative momentum. The RSI at 69.58 is Neutral, neither overbought nor oversold. The STOCH value of 96.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBRE.

CBRE Group Risk Analysis

CBRE Group disclosed 33 risk factors in its most recent earnings report. CBRE Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

CBRE Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
JLJLL
78
Outperform
$12.20B23.428.16%13.63%78.40%
76
Outperform
$42.22B43.5212.15%13.14%1.70%
CWCWK
76
Outperform
$2.64B16.839.53%1.24%1205.18%
72
Outperform
$34.56B283.301.47%11.27%-60.22%
70
Outperform
$21.76B33.596.53%2.03%34.99%28.80%
63
Neutral
$6.96B18.86-1.16%6.91%4.65%-25.28%
60
Neutral
$2.27B31.295.32%0.97%13.87%90.42%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CBRE
CBRE Group
142.51
55.30
63.41%
CSGP
CoStar Group
81.42
8.27
11.31%
JLL
Jones Lang Lasalle
259.00
56.85
28.12%
NMRK
Newmark Group
12.49
2.51
25.15%
CWK
Cushman & Wakefield
11.65
1.24
11.91%
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.65
2.58
17.12%

CBRE Group Corporate Events

Private Placements and Financing
CBRE Group Secures New Revolving Credit Agreements
Neutral
Jun 24, 2025

On June 24, 2025, CBRE Group entered into two new revolving credit agreements: a 5-year senior unsecured revolving credit agreement with a facility of up to $3.5 billion and a 364-day senior unsecured revolving credit agreement with a facility of up to $1 billion, both facilitated by Wells Fargo. These agreements replace the previous revolving credit commitments and include various interest rate options based on the company’s credit ratings. The agreements are guaranteed by the company and its subsidiaries, and include financial covenants requiring the maintenance of a specified maximum leverage ratio. Additionally, an amendment was made to the Term Loan Credit Agreement to align its financial covenants with the new revolving credit agreements.

The most recent analyst rating on (CBRE) stock is a Buy with a $123.00 price target. To see the full list of analyst forecasts on CBRE Group stock, see the CBRE Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
CBRE Group Redeems $600M Senior Notes
Neutral
May 28, 2025

On May 28, 2025, CBRE Services, Inc., a wholly-owned subsidiary of CBRE Group, redeemed all of its outstanding $600 million 4.875% senior notes due 2026. This action discharged the obligations under these notes, potentially impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (CBRE) stock is a Buy with a $163.00 price target. To see the full list of analyst forecasts on CBRE Group stock, see the CBRE Stock Forecast page.

Executive/Board ChangesShareholder Meetings
CBRE Group Updates RSU Plan and Awards Bonus
Neutral
May 23, 2025

On May 23, 2025, CBRE Group‘s Compensation Committee approved new forms of grant notices and restricted stock unit (RSU) award agreements under the Amended and Restated 2019 Equity Incentive Plan. The changes eliminate the forfeiture provision for RSUs in the event of termination due to death, disability, or retirement, allowing a pro-rated portion of RSUs to vest or remain eligible based on performance goals. Additionally, a one-time cash retention bonus of $1.45 million was awarded to Vikram Kohli, the company’s COO and CEO of Advisory Services, with specific repayment conditions. During the annual meeting on May 21, 2025, all ten directors were re-elected, KPMG LLP’s appointment as the independent registered public accounting firm was ratified, and executive compensation for 2024 was approved.

The most recent analyst rating on (CBRE) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on CBRE Group stock, see the CBRE Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
CBRE Group Issues $1.1 Billion in Senior Notes
Positive
May 12, 2025

On May 12, 2025, CBRE Services, Inc., a subsidiary of CBRE Group, completed the issuance of $1.1 billion in senior notes, with maturities in 2030 and 2035, to refinance existing debt and support general corporate purposes. This strategic move is expected to enhance CBRE’s financial flexibility and strengthen its market position by optimizing its debt structure, potentially benefiting stakeholders through improved operational efficiency.

The most recent analyst rating on (CBRE) stock is a Buy with a $163.00 price target. To see the full list of analyst forecasts on CBRE Group stock, see the CBRE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 02, 2025