CBRE Group (CBRE) AI Stock Analysis

• Market Cap: $48.11B
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 46.1
• Beta (1Y): 1.10
• Revenue Growth: 14.96%
• EPS Growth: 19.11%
• Country: US
• Employees: 140,000
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1.19
• Shares Outstanding: 297,554,320
• 10 Day Avg. Volume: 1,719,697
• 30 Day Avg. Volume: 1,747,479
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 3.46
• Enterprise Value/Ebitda: 22.03
• 1Y Price Target: $169.86
• Price Target Upside: 3.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $177.00 ▲(7.68% Upside)

CBRE's overall stock score is driven by strong earnings performance and positive technical indicators, reflecting robust growth and operational efficiency. However, the high P/E ratio and lack of dividend yield suggest valuation concerns. Challenges in European sales and corporate client spending also pose risks, but the company's strategic focus on resilient revenue streams and increased EPS guidance provide a positive outlook.

Positive Factors

Advisory Services

Advisory Services segment revenue grew 15% year-over-year with strong acceleration in global property sales.

Earnings

CBRE reported strong second-quarter results and raised its core EPS outlook for the year.

Financial Performance

CBRE delivered impressive results in a difficult operating environment, with significant growth in its recurring and transactional businesses.

Negative Factors

Investment Sales

Investment sales are slightly lower, leading to a minor reduction in earnings estimates for future fiscal years.

Real Estate Investments

Trends in the Real Estate Investments segment came in below expectations.

Stock Performance

The stock has declined by 15% from recent highs, indicating recent market challenges.

CBRE Group Business Overview & Revenue Model

Company Description

CBRE Group, Inc. is a global leader in commercial real estate services and investments. The company operates in various sectors, including real estate services, property management, investment sales, and advisory services. Its core products encompass brokerage services, property management, facilities management, project management, and capital markets services, catering to a diverse clientele ranging from corporate clients to institutional investors and property owners.

How the Company Makes Money

CBRE generates revenue through multiple streams, primarily from service fees and commissions earned on real estate transactions, property management services, and advisory services. Key revenue streams include brokerage commissions from lease and sale transactions, fees from property management and facilities management services, and income from capital markets services including investment sales and debt financing. The company benefits from long-term relationships with major clients, including corporations, investors, and government entities, which contribute to consistent revenue generation. Additionally, CBRE's strategic partnerships with technology firms enhance its service offerings and operational efficiency, further bolstering its revenue potential.

CBRE Group Financial Statement Overview

Summary

CBRE Group demonstrates robust revenue growth and operational efficiency, as evidenced by improved gross profit margins. However, the company faces challenges with its net profit margin and increasing leverage, which could impact financial stability. Cash flow metrics show a decline in free cash flow, highlighting potential liquidity concerns. Overall, CBRE maintains a solid financial position with areas for improvement in profitability and debt management.

Income Statement

CBRE Group shows a solid revenue growth rate of 3.71% TTM, with a consistent increase in total revenue over the years. The gross profit margin has improved significantly to 39.36% TTM, indicating strong operational efficiency. However, the net profit margin remains relatively low at 2.86% TTM, suggesting room for improvement in cost management. The EBIT and EBITDA margins are stable, reflecting steady core earnings performance.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.16 TTM, indicating higher leverage, which could pose a risk if not managed properly. Return on equity is healthy at 12.96% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 29.81% TTM, reflecting a balanced capital structure but with a slight tilt towards debt financing.

Cash Flow

Free cash flow has decreased by 17.18% TTM, which is a concern for liquidity and future investments. The operating cash flow to net income ratio is 0.13 TTM, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 82.74% TTM, suggesting good cash conversion from profits despite the recent decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.10B	35.77B	31.95B	30.83B	27.75B	23.83B
Gross Profit	14.71B	7.02B	6.30B	6.62B	6.17B	4.82B
EBITDA	2.31B	2.15B	1.83B	2.03B	2.09B	1.63B
Net Income	1.09B	968.00M	986.00M	1.41B	1.84B	751.99M
Balance Sheet
Total Assets	27.69B	24.38B	22.55B	20.51B	22.07B	18.04B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.11B	1.26B	1.32B	2.43B	1.90B
Total Debt	9.54B	5.69B	4.83B	3.49B	4.20B	4.10B
Total Liabilities	19.11B	15.19B	13.48B	11.91B	12.71B	10.53B
Stockholders Equity	8.25B	8.41B	8.27B	7.85B	8.53B	7.08B
Cash Flow
Free Cash Flow	1.18B	1.49B	229.00M	1.46B	2.23B	1.65B
Operating Cash Flow	1.49B	1.80B	534.00M	1.72B	2.44B	1.92B
Investing Cash Flow	-753.00M	-1.60B	-729.00M	-917.20M	-1.56B	-34.48M
Financing Cash Flow	-286.00M	-221.00M	148.00M	-1.77B	-286.38M	-1.02B

CBRE Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 164.38 is above the 20-day moving average (MA) of 160.23, above the 50-day MA of 151.28, and above the 200-day MA of 136.57, indicating a bullish trend. The MACD of 3.17 indicates Positive momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 60.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBRE.

CBRE Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JLL	78 Outperform	$14.58B	26.77	8.40%	―	13.47%	47.52%
CWK	75 Outperform	$3.67B	18.01	11.62%	―	4.63%	887.64%
CBRE	74 Outperform	$48.11B	46.05	13.13%	―	14.96%	19.11%
CSGP	73 Outperform	$37.75B	350.96	1.30%	―	12.18%	-51.21%
BEKE	72 Outperform	$22.16B	40.22	5.60%	1.90%	32.76%	-2.01%
NMRK	66 Neutral	$3.17B	40.80	6.00%	0.65%	16.29%	69.89%
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%

CBRE Group Corporate Events

CBRE Group Appoints New Chief Accounting Officer

Lindsey Caplan will step down as Chief Accounting Officer of CBRE Group on August 31, 2025, and will leave the company by the end of the year to pursue other opportunities. Andrew Horn, currently the Deputy Chief Financial Officer, will take over as principal accounting officer starting September 1, 2025. Horn has extensive experience within the company, having served in various financial leadership roles since 2019, and his appointment is expected to ensure continuity in the company’s financial operations.

CBRE Group Secures New Revolving Credit Agreements

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.

CBRE Group Redeems $600M Senior Notes

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.

CBRE Group Updates RSU Plan and Awards Bonus

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.