CBRE Group (CBRE) AI Stock Analysis

• Market Cap: $48.73B
• Dividend Yield: N/A
• Average Volume (3M): 1.43M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.07
• 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): 1.61
• Shares Outstanding: 297,554,320
• 10 Day Avg. Volume: 1,397,688
• 30 Day Avg. Volume: 1,433,868
• 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: 1.15
• Enterprise Value/Revenue: 1.47
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: 24.17
• 1Y Price Target: $181.17
• Price Target Upside: 10.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: $180.00 ▲(9.62% Upside)

CBRE's overall stock score is driven by strong technical indicators and a solid financial performance, despite some valuation concerns. The company's robust revenue growth and operational efficiency are significant strengths, although challenges with net profit margins and increased leverage present risks. The technical analysis supports a bullish outlook, while the high P/E ratio suggests caution. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

The significant growth in the data center sector highlights CBRE's ability to capitalize on high-demand areas, ensuring sustained revenue expansion.

EPS and EBITDA Growth

Strong EPS and EBITDA growth reflect CBRE's operational efficiency and profitability, enhancing long-term shareholder value.

Advisory Services Outperformance

The robust performance in advisory services underscores CBRE's competitive edge in providing value-added services, driving sustained growth.

Negative Factors

Increasing Leverage

Rising leverage may constrain CBRE's financial flexibility, posing risks to its ability to invest in growth opportunities and manage economic downturns.

Decline in Free Cash Flow

The decline in free cash flow could impact CBRE's capacity to fund operations, invest in growth, and return capital to shareholders.

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies in cost management, which could hinder CBRE's profitability and competitiveness.

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: 164.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 164.2 is above the 20-day moving average (MA) of 156.45, above the 50-day MA of 159.78, and above the 200-day MA of 140.77, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 64.23 is Neutral, neither overbought nor oversold. The STOCH value of 82.87 is Negative, 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	$14.83B	27.19	8.40%	―	13.47%	47.52%
CWK	73 Outperform	$3.82B	19.08	11.62%	―	4.63%	887.64%
CBRE	70 Outperform	$48.73B	40.55	14.26%	―	14.96%	19.11%
NMRK	66 Neutral	$3.40B	45.37	6.00%	0.62%	16.29%	69.89%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CSGP	64 Neutral	$32.70B	304.67	1.30%	―	12.18%	-51.21%
BEKE	59 Neutral	$21.85B	40.07	5.60%	1.95%	32.76%	-2.01%

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.

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.

CBRE Group Reports Strong Q2 2025 Financial Results

CBRE Group, Inc., headquartered in Dallas, is the world’s largest commercial real estate services and investment firm, providing a wide range of services including leasing, sales, debt origination, and property management across more than 100 countries.

CBRE Group’s Earnings Call Highlights Record Growth

CBRE Group’s Earnings Call: A Positive Outlook with Record Growth