Colliers International Group (CIGI) AI Stock Analysis

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Positive Factors

Growth Potential

Management believes it is possible to double the size of Engineering and Investment Management over the next five years, which would support multiple expansion.

Recurring Revenue

Over 70% of Colliers' consolidated adjusted EBITDA now comes from recurring business lines, highlighting its business resilience.

Valuation

Colliers shares are viewed as attractively valued in light of its organic top-line growth and margin expansion opportunities.

Negative Factors

Brokerage Business

The brokerage business declined by 1% year-over-year, a material deceleration from previous growth.

Earnings Outlook

2025E outlook reflects a slower-than-expected CRE transaction recovery and new fundraising cycle, posing near-term earnings headwinds.

Leasing Revenue

Growth in leasing and capital markets decelerated, with leasing revenue falling by 7%.

Colliers International Group (CIGI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.38B

Dividend Yield0.24%

Average Volume (3M)137.56K

Price to Earnings (P/E)44.3

Beta (1Y)0.91

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees23,000

SectorReal Estate

Sector Strength60

IndustryReal Estate - Services

Share Statistics

EPS (TTM)0.87

Shares Outstanding49,297,832

10 Day Avg. Volume113,920

30 Day Avg. Volume137,562

Financial Highlights & Ratios

PEG Ratio-4.19

Price to Book (P/B)4.77

Price to Sales (P/S)0.00

P/FCF Ratio-2.10K

Enterprise Value/Market Cap1.30

Enterprise Value/Revenue0.44

Enterprise Value/Gross Profit4.19

Enterprise Value/Ebitda3.50

Forecast

1Y Price Target

$159.16

Price Target Upside25.67% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

Colliers International Group Business Overview & Revenue Model

Company DescriptionColliers International Group Inc. provides commercial real estate professional and investment management services to corporate and institutional clients in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers sales brokerage services, including real estate sales, debt origination and placement, equity capital raising, market value opinions, acquisition advisory, and transaction management services; and landlord and tenant representation services. The company provides outsourcing and advisory services, such as corporate and workplace solutions; valuation and advisory services; workplace strategy services; loan servicing; property marketing; research services; and engineering design services for property and building, infrastructure, transportation, environmental and telecommunications end-markets. It also offers property management services comprising building operations and maintenance, facilities management, lease administration, property accounting and financial reporting, contract management and, construction management; and project management services, which include bid document review, construction monitoring and delivery management, contract administration and integrated cost control, development management, facility and engineering functionality, milestone and performance monitoring, quality assurance, risk management and strategic project consulting. In addition, the company provides investment management services that consists of asset management advisory and administration, transaction, and incentive services. The company was founded in 1972 and is headquartered in Toronto, Canada.

How the Company Makes Money

Colliers International Group Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 3.69%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong growth in revenue, engineering, and investment management, alongside challenges in leasing revenue and market uncertainties. The highlights demonstrate significant achievements and strategic expansions, while the lowlights indicate areas of concern and external challenges.

Q1-2025 Updates

Positive Updates

Revenue Growth

Revenues for the first quarter were $1.1 billion, up 16% relative to the prior year period.

Engineering Segment Performance

The Engineering segment showed a 63% net revenue growth, with low teens percentage internal growth and a net margin increase to 8.4%.

Investment Management Milestone

Assets under management exceeded $100 billion for the first time. Investment Management net margin was 46.2%, up from 44.2% last year.

Successful Fundraising

Raised $1.2 billion of new capital commitments during the first quarter, more than double the amount raised in the prior year period.

Free Cash Flow Improvement

Free cash flow exceeded $400 million on a trailing 12-month basis, representing a conversion rate of 136% of adjusted net earnings.

Negative Updates

Leasing Revenue Decline

Leasing revenues were down 5% relative to a strong prior year first quarter that had a couple of larger specialty asset class transactions.

Real Estate Services Margin Decline

Real Estate Services net margin declined modestly to 6.6%, primarily due to continued healthy investments in recruiting and revenue mix.

Market Uncertainty Impact

Ongoing market uncertainty, particularly related to tariffs and macroeconomic conditions, is causing delays in transaction completions.

Company Guidance

In the first quarter of 2025, Colliers International reported strong financial performance, with revenues reaching $1.1 billion, a 16% increase from the previous year, largely driven by the Engineering segment. This segment experienced a notable 63% net revenue growth, supported by both acquisitions and internal growth, and its net margin improved to 8.4%. Investment Management also achieved significant milestones, with assets under management surpassing $100 billion and raising $1.2 billion in new capital commitments, doubling the amount from the previous year. While Real Estate Services saw a modest increase in net revenue, leasing revenues dropped by 5% due to tough comparisons, though a return to growth is expected. Overall, Colliers maintained a solid adjusted EBITDA of $116 million, up 7%, and a free cash flow conversion rate of 136% of adjusted net earnings, despite a slight decline in Real Estate Services net margin to 6.6%. The company reiterated its confident outlook for continued growth and profitability across its three main segments.

Colliers International Group Financial Statement Overview

Summary

Colliers International Group demonstrates solid growth and profitability metrics with strong revenue expansion and operational efficiency. However, high leverage and negative free cash flow growth present potential risks. The company should focus on improving cash flow and managing debt levels to enhance financial stability over the long term.

Income Statement

Positive

Colliers International Group shows a robust financial performance in the TTM period with a Gross Profit Margin of 39.87% and a Net Profit Margin of 2.92%. The Revenue Growth Rate is strong at 13.99% when comparing the latest annual figures, indicating healthy growth. The EBIT Margin stands at 7.61%, and the EBITDA Margin is 12.24%, both showing profitability stability over time. However, a slight decline in EBIT and EBITDA margins from the previous year may indicate operational cost pressures.

Balance Sheet

Positive

The company's Debt-to-Equity Ratio is 1.66, which is relatively high, suggesting a higher reliance on debt financing. The Return on Equity (ROE) is 10.80%, showing a good return for shareholders. The Equity Ratio is 21.95%, indicating a moderate level of equity financing. While the company has strengthened its equity base over recent years, the high leverage level could pose risks if interest rates rise.

Cash Flow

Positive

Colliers' Free Cash Flow Growth Rate is negative, with a significant drop in free cash flow in the TTM period. However, the Operating Cash Flow to Net Income Ratio of 2.62 suggests strong cash generation relative to net income, indicating operational efficiency. The Free Cash Flow to Net Income Ratio is negative due to capital expenditure exceeding operating cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.96B	4.82B	4.34B	4.46B	4.09B	2.79B
	Gross Profit
1.98B	1.92B	1.74B	1.71B	1.57B	1.05B
	EBIT
377.49M	389.21M	300.94M	332.50M	-59.22M	164.58M
	EBITDA
607.43M	618.49M	509.39M	613.89M	24.87M	302.56M
	Net Income Common Stockholders
144.81M	161.72M	65.54M	194.54M	-237.56M	94.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
186.32M	224.83M	204.66M	173.66M	396.75M	156.61M
	Total Assets
6.11B	6.10B	5.48B	5.10B	3.87B	3.29B
	Total Debt
2.23B	2.06B	2.14B	2.10B	1.30B	1.25B
	Net Debt
2.04B	1.88B	1.96B	1.92B	900.00M	1.10B
	Total Liabilities
3.61B	3.62B	3.56B	4.60B	2.75B	2.71B
	Stockholders Equity
1.34B	1.32B	847.99M	493.37M	581.60M	586.11M
Cash Flow		Free Cash Flow
-2.97M	260.92M	81.14M	-650.00K	231.03M	126.13M
	Operating Cash Flow
379.15M	326.01M	165.66M	67.03M	288.98M	166.48M
	Investing Cash Flow
-743.08M	-783.10M	-133.98M	-872.84M	-49.41M	-113.46M
	Financing Cash Flow
395.68M	452.21M	-7.81M	612.92M	18.60M	1.05M

Colliers International Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIGI		$6.38B	44.28	11.57%	0.24%	―	―
Sector *	61 Neutral	$2.83B	10.98	0.41%	8438.90%	5.81%	-21.06%
FSV		$8.00B	61.00	11.61%	0.58%	―	―
MEQ	77 Outperform	C$1.78B	7.26	15.90%	0.07%	16.22%	39.56%
AIF	66 Neutral	C$2.32B	178.14	2.13%	1.15%	-23.26%	-644.01%
SVI	63 Neutral	C$1.51B	―	-23.06%	0.28%	5.77%	-388.17%
BREUF		$103.20M	―		9.16%	―	―

* Real Estate Sector Average

Performance Comparison

CIGI

Colliers International Group

126.65

17.43

15.96%

FSV

FirstService

177.32

28.16

18.88%

TSE:AIF

Altus Group

52.18

5.94

12.85%

TSE:MEQ

Mainstreet Equity

190.98

20.09

11.76%

TSE:SVI

Storagevault Canada

4.14

-0.55

-11.73%

BREUF

Bridgemarq Real Estate Services

10.88

1.92

21.43%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.