CBRE Group (CBRE) AI Stock Analysis

• Market Cap: $35.99B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 36.9
• Beta (1Y): 1.13
• Revenue Growth: 13.14%
• EPS Growth: 1.70%
• Country: US
• Employees: 140,000
• Sector: Real Estate
• Sector Strength: 77
• Industry: Real Estate - Services
• EPS (TTM): 3.27
• Shares Outstanding: 298,104,860
• 10 Day Avg. Volume: 2,278,039
• 30 Day Avg. Volume: 2,178,342
• PEG Ratio: 21.67
• 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: 1.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.88
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $144.33
• Price Target Upside: 18.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

CBRE's overall stock score reflects its robust financial performance and strategic positioning in the real estate services industry. The company's strong growth and profitability, coupled with strategic restructuring, are key strengths. However, valuation concerns and technical indicators suggest caution, while macroeconomic uncertainties add to potential risks.

Positive Factors

Earnings Growth

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

Financial Performance

CBRE reported strong first-quarter results with net revenue of $5.1 billion, 17% up year-over-year in constant currency and 2% above estimate and consensus.

Stock Valuation

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

Negative Factors

Macroeconomic Conditions

Ongoing macroeconomic uncertainty and market volatility prevented management from raising its guidance to the high end of the range.

Market Volatility

Ongoing macroeconomic uncertainty and market volatility prevented management from raising its guidance to the high end of the range.

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 presents a well-rounded financial performance with strong revenue growth and profitability. The company's solid capital structure, highlighted by moderate leverage and effective equity utilization, supports its financial stability. While the cash flow statement reflects impressive cash generation, a slight decrease in free cash flow growth is noted. Overall, CBRE demonstrates robust financial health, positioning it favorably within the real estate services industry.

Income Statement

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

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

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.

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: Neutral
• Last Price: 121.36
• 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 Neutral. The current price of 121.36 is above the 20-day moving average (MA) of 121.17, below the 50-day MA of 129.25, and below the 200-day MA of 125.75, indicating a bearish trend. The MACD of -2.68 indicates Negative momentum. The RSI at 46.29 is Neutral, neither overbought nor oversold. The STOCH value of 65.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$34.93B	243.66	1.86%	―	11.45%	-63.09%
CBRE	74 Outperform	$35.99B	36.87	12.15%	―	13.14%	1.70%
BEKE	71 Outperform	$25.64B	44.68	5.66%	1.44%	18.14%	-30.84%
JLL	67 Neutral	$10.67B	19.90	8.37%	―	12.87%	142.90%
Sector *	59 Neutral	$2.72B	11.58	0.09%	8782.99%	5.32%	-16.79%
NMRK	59 Neutral	$2.01B	32.30	4.92%	1.08%	10.67%	47.10%
CWK	58 Neutral	$2.04B	15.78	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.