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Cushman & Wakefield (CWK)
:CWK
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Cushman & Wakefield
(NYSE:CWK)
74Outperform
Positive Factors
Earnings
Cushman & Wakefield reported a beat on first-quarter results.
Growth Potential
The expected share price return is projected to be 12.0%, indicating potential growth.
Negative Factors
Business Challenges
There are near-term headwinds around volatile business lines affecting the company's performance.
Target Price
The target price for CWK has been decreased to $12 from $16, reflecting some expected challenges.
Cushman & Wakefield (CWK) vs. S&P 500 (SPY)
Market Cap
$2.40B
Dividend YieldN/A
Average Volume (3M)2.83M
Price to Earnings (P/E)14.8
Beta (1Y)1.74
Revenue Growth1.24%
EPS Growth1205.18%
CountryUS
Employees52,000
SectorReal Estate
Sector Strength65
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding231,287,410
10 Day Avg. Volume1,809,393
30 Day Avg. Volume2,834,873
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)1.33
Price to Sales (P/S)0.00
P/FCF Ratio17.45
Enterprise Value/Market Cap2.10
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda2.50
Forecast
1Y Price Target
$11.80Price Target Upside15.23% Upside
Rating ConsensusHold
Number of Analyst Covering6
Cushman & Wakefield Business Overview & Revenue Model
Company DescriptionCushman & Wakefield plc, together with its subsidiaries, provides commercial real estate services under the Cushman & Wakefield brand in the United States, Australia, the United Kingdom, and internationally. The company operates through Americas; Europe, Middle East, and Africa; and Asia Pacific segments. It offers integrated facilities management, project and development, portfolio administration, transaction management, and strategic consulting services; property management services, including client accounting, engineering and operations, lease compliance administration, project and development, and sustainability services; and self-performed facilities services, which include janitorial, maintenance, critical environment management, landscaping, and office services. The company also provides owner representation and tenant representation leasing services; capital market services, including investment sales and equity, and debt and structured financing for real estate purchase and sales transactions; and appraisal management, investment management, valuation advisory, portfolio advisory, diligence advisory, dispute analysis and litigation support, financial reporting, and property and/or portfolio valuation services on real estate debt and equity decisions. Cushman & Wakefield has strategic partnerships with Vanke Service (Hong Kong) Co., Limited. It serves real estate owners and occupiers, such as tenants, investors, and multi-national corporations. Cushman & Wakefield plc was founded in 1784 and is based in London, the United Kingdom.
How the Company Makes MoneyCushman & Wakefield generates revenue through several key streams. Primarily, it earns fees from its property management and facility management services, where it oversees the operations of client properties and facilities. Leasing services also contribute significantly, with the firm earning commissions by facilitating transactions between landlords and tenants. Additionally, Cushman & Wakefield derives income from advisory services, where it provides strategic insights and professional guidance to clients on real estate investments and transactions. Investment management services further augment its earnings by managing real estate investment portfolios for clients and earning management fees. Furthermore, the company's valuation services, which involve assessing the worth of properties, provide another revenue source. Strategic partnerships and collaborations with other real estate entities and financial institutions also play a role in enhancing its revenue streams.
Cushman & Wakefield Financial Statement Overview
Summary
Cushman & Wakefield exhibits a solid financial foundation with stable income statement performance, a strong balance sheet, and reasonable cash flow management. Profitability margins are moderate, and the company maintains a conservative leverage position. However, revenue and cash flow fluctuations suggest areas for potential improvement.Income Statement
Cushman & Wakefield's income statement shows a robust performance with improved net income in the TTM (Trailing-Twelve-Months) compared to previous years. The gross profit margin stands at 37.99% with a net profit margin of 1.70%, indicating a moderate profitability level. Revenue has shown modest growth over the periods, though it experienced fluctuations. The EBIT margin at 4.02% and EBITDA margin at 4.92% suggest a stable operating efficiency.75
Positive
Balance Sheet
The balance sheet depicts a solid equity position with a debt-to-equity ratio of 0.20, indicating a conservative leverage strategy. The return on equity (ROE) is at 9.12%, reflecting a moderate return for shareholders. The equity ratio is 23.97%, suggesting a stable financial structure with adequate asset backing. Overall, the company maintains a healthy leverage and equity balance, though the total liabilities remain significant.70
Positive
Cash Flow
Cushman & Wakefield's cash flow analysis reveals stable operating cash flows with a TTM free cash flow of $140.6 million. The operating cash flow to net income ratio is 1.06, and the free cash flow to net income ratio is 0.87, reflecting a decent cash conversion ability. However, the free cash flow growth rate has been inconsistent, indicating potential volatility in cash generation.68
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.55B | 9.45B | 9.49B | 10.11B | 9.39B | 7.84B | Gross Profit |
| 1.73B | 1.73B | 1.65B | 1.95B | 1.94B | 1.39B | EBIT |
| 383.90M | 338.90M | 205.60M | 535.10M | 497.00M | 61.10M | EBITDA |
| 569.40M | 501.90M | 494.50M | 780.20M | 795.70M | 267.60M | Net Income Common Stockholders |
| 162.00M | 131.30M | -35.40M | 196.40M | 250.00M | -220.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 623.20M | 793.30M | 767.70M | 644.50M | 770.70M | 1.07B | Total Assets |
| 7.41B | 7.55B | 7.77B | 7.95B | 7.89B | 7.34B | Total Debt |
| 3.27B | 3.31B | 3.57B | 3.60B | 3.66B | 3.68B | Net Debt |
| 2.65B | 2.52B | 2.80B | 2.95B | 2.89B | 2.61B | Total Liabilities |
| 5.63B | 5.79B | 6.10B | 6.29B | 6.44B | 6.24B | Stockholders Equity |
| 1.78B | 1.75B | 1.68B | 1.66B | 1.45B | 1.09B |
| Cash Flow | Free Cash Flow | ||||
| 136.00M | 167.00M | 101.20M | -1.60M | 495.70M | -79.20M | Operating Cash Flow |
| 171.10M | 208.00M | 152.20M | 49.10M | 549.50M | -38.20M | Investing Cash Flow |
| 112.60M | 81.20M | 48.90M | -120.70M | -749.50M | -257.80M | Financing Cash Flow |
| -221.80M | -253.40M | -120.80M | -79.30M | -65.80M | 571.90M |
Cushman & Wakefield Technical Analysis
Neutral
10.24
Price Trends
9.73
Positive
11.23
Negative
12.38
Negative
Market Momentum
0.29
Negative
55.02
Neutral
39.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWK, the sentiment is Neutral. The current price of 10.24 is above the 20-day moving average (MA) of 9.91, above the 50-day MA of 9.73, and below the 200-day MA of 12.38, indicating a neutral trend. The MACD of 0.29 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 39.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CWK.
Cushman & Wakefield Risk Analysis
Cushman & Wakefield disclosed 31 risk factors in its most recent earnings report. Cushman & Wakefield 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
Cushman & Wakefield Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.99B | 20.69 | 8.16% | ― | 13.63% | 78.40% | |
76 Outperform | $38.90B | 39.19 | 12.15% | ― | 13.14% | 1.70% | |
74 Outperform | $2.40B | 14.80 | 9.53% | ― | 1.24% | 1205.18% | |
67 Neutral | $1.26B | ― | -6.44% | 2.49% | 6.69% | -137.52% | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
58 Neutral | $2.14B | 29.46 | 5.32% | 1.03% | 13.87% | 90.42% | |
53 Neutral | $1.14B | ― | -1.09% | 1.70% | 14.79% | 82.32% |
* Real Estate Sector Average
Performance Comparison
CWK
Cushman & Wakefield
10.24
-0.72
-6.57%
CBRE
CBRE Group
128.32
37.90
41.92%
JLL
Jones Lang Lasalle
228.76
28.73
14.36%
MMI
Marcus & Millichap
29.20
-4.33
-12.91%
EXPI
eXp World Holdings
8.02
-4.23
-34.53%
NMRK
Newmark Group
11.39
1.00
9.62%
Cushman & Wakefield Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 13.65%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call for Cushman & Wakefield highlighted strong revenue growth, leverage reduction, and positive performance in leasing and capital markets. However, there were challenges in the EMEA region, particularly in leasing and services revenue. Overall, the sentiment is skewed towards positive due to significant growth and strategic achievements.Q1-2025 Updates
Positive Updates
Revenue and Growth Metrics
Fee revenue reached $1.5 billion, an increase of 4%, with organic fee revenue growing 6%. Adjusted EBITDA rose 24% to $96 million, with a 100 basis points year-over-year margin improvement.
Leverage Reduction
Cushman & Wakefield reduced leverage by paying down an additional $25 million in debt. Since the CEO took over, the company has repaid $230 million in debt and successfully refinanced and repriced its debt five times.
Leasing and Capital Markets Performance
Leasing business grew by 9%, with Americas leasing increasing by 14%. Capital markets grew 11% globally, driven by strong performance in the APAC region (59% growth) and EMEA (17% growth).
Service Line Achievements
Organic services fee revenue grew by 6% in the Americas, driven by strength in facilities management and facility services. The APAC services business demonstrated resiliency, with new sizable contracts coming online.
Negative Updates
Weakness in EMEA Leasing
EMEA leasing contracted by 26% due to a difficult comparison against the previous year, which had several large leasing deals.
Soft Services Revenue in EMEA
EMEA services experienced a reduction in project management work, impacting overall performance in the region.
Company Guidance
During Cushman & Wakefield's first quarter 2025 earnings call, the company reported strong financial performance with several key metrics highlighted. Revenue across all service lines increased, achieving mid-single-digit organic growth in their services business, two quarters ahead of target. The company improved its adjusted EBITDA margin by 100 basis points year-over-year and reduced leverage by paying down an additional $25 million in debt, totaling $230 million since the CEO, Michelle MacKay, assumed her role. Fee revenue reached $1.5 billion, marking a 4% increase with organic fee revenue growing by 6%. Adjusted EBITDA rose 24% to $96 million, and adjusted EPS increased to $0.09 from breakeven last year. The company's net leverage stands at 3.9x EBITDA, and they reported having $1.7 billion in liquidity with no funded debt maturities until 2028. Cushman & Wakefield also achieved an 11% growth in capital markets, with the Americas capital markets growing by 4% and leasing business expanding by 9%. The company maintains its guidance for the full year, expecting mid-single-digit growth in leasing, capital markets, and services.Cushman & Wakefield Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Cushman & Wakefield Shareholders Approve Key Proposals
Neutral
May 16, 2025
On May 15, 2025, Cushman & Wakefield held its annual general meeting where shareholders approved several key proposals. These included the election of directors, ratification of KPMG LLP as the independent auditor, and approval of executive compensation plans. The decisions reflect the company’s ongoing governance and strategic planning efforts, impacting its operational and financial oversight.
The most recent analyst rating on (CWK) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Cushman & Wakefield stock, see the CWK Stock Forecast page.
Spark’s Take on CWK Stock
According to Spark, TipRanks’ AI Analyst, CWK is a Outperform.
Cushman & Wakefield earns a solid score of 74, driven by a combination of robust financial performance, positive earnings momentum, and a fair valuation. The company’s strategic leverage reduction and consistent revenue growth stand out as key strengths, while technical indicators suggest potential short-term gains despite a longer-term bearish trend. Challenges in EMEA leasing highlight areas for improvement but do not significantly detract from the overall positive outlook.
To see Spark’s full report on CWK stock, click here.
Business Operations and Strategy
Cushman & Wakefield Plans Redomiciliation to Bermuda
Neutral
Mar 28, 2025
On March 28, 2025, Cushman & Wakefield announced a proposal to change its jurisdiction of incorporation from England and Wales to Bermuda. This redomiciliation aims to reduce administrative burdens and align corporate governance with the expectations of its U.S. shareholder base. The company assures that this move will have limited impact on its operations, subsidiaries, and financial statements, maintaining its commitment to its businesses in the U.K. and Europe. The redomiciliation process requires shareholder approval and is expected to be completed in the second half of 2025.
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.