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Colliers International Group (TSE:CIGI)
TSX:CIGI

Colliers International Group (CIGI) AI Stock Analysis

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Colliers International Group

(TSX:CIGI)

Rating:69Neutral
Price Target:
C$187.00
▲(7.87%Upside)
Colliers International Group's stock demonstrates a balanced outlook with strong financial performance and positive earnings call sentiment being the most significant factors. High leverage and negative cash flow growth are key risks, while mixed technical indicators and high valuation pose caution for potential investors.
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. iShares MSCI Canada ETF (EWC)

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 MoneyColliers International Group generates revenue primarily through its service fees and commissions related to its real estate services. The core revenue streams include transaction services, which consist of leasing and sales brokerage fees, management services, which involve property and project management fees, and valuation and advisory services that provide consulting and appraisal fees. Additionally, the company earns from investment management operations, where it manages funds and assets on behalf of institutional and private investors, generating fee-based income. Significant partnerships with corporate clients and a strong presence in key global markets contribute to Colliers' ability to sustain and grow its revenue base.

Colliers International Group Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 2.95%|
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
78
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
70
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
65
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
4.96B4.82B4.34B4.46B4.09B2.79B
Gross Profit
1.98B1.92B1.74B1.71B1.57B1.05B
EBIT
377.49M389.21M300.94M332.50M-59.22M164.58M
EBITDA
607.43M618.49M509.39M613.89M24.87M302.56M
Net Income Common Stockholders
144.81M161.72M65.54M194.54M-237.56M94.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
186.32M224.83M204.66M173.66M396.75M156.61M
Total Assets
6.11B6.10B5.48B5.10B3.87B3.29B
Total Debt
2.23B2.06B2.14B2.10B1.30B1.25B
Net Debt
2.04B1.88B1.96B1.92B900.00M1.10B
Total Liabilities
3.61B3.62B3.56B4.60B2.75B2.71B
Stockholders Equity
1.34B1.32B847.99M493.37M581.60M586.11M
Cash FlowFree Cash Flow
-2.97M260.92M81.14M-650.00K231.03M126.13M
Operating Cash Flow
379.15M326.01M165.66M67.03M288.98M166.48M
Investing Cash Flow
-743.08M-783.10M-133.98M-872.84M-49.41M-113.46M
Financing Cash Flow
395.68M452.21M-7.81M612.92M18.60M1.05M

Colliers International Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price173.35
Price Trends
50DMA
166.35
Positive
100DMA
177.29
Negative
200DMA
189.82
Negative
Market Momentum
MACD
0.79
Negative
RSI
57.65
Neutral
STOCH
86.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CIGI, the sentiment is Neutral. The current price of 173.35 is above the 20-day moving average (MA) of 170.89, above the 50-day MA of 166.35, and below the 200-day MA of 189.82, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 57.65 is Neutral, neither overbought nor oversold. The STOCH value of 86.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CIGI.

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
69
Neutral
$8.75B43.9311.57%0.24%17.07%42.36%
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
FSFSV
$8.02B61.0011.61%0.58%
TSMEQ
77
Outperform
C$1.78B7.2615.90%0.07%16.22%39.56%
TSAIF
66
Neutral
C$2.32B178.142.13%1.15%-23.26%-644.01%
TSSVI
63
Neutral
C$1.51B-23.06%0.28%5.77%-388.17%
$103.20M
9.16%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CIGI
Colliers International Group
173.35
22.75
15.11%
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%

Colliers International Group Corporate Events

Executive/Board ChangesShareholder Meetings
Colliers International Group Announces Director Elections and Shareholder Approvals
Positive
Apr 1, 2025

Colliers International Group Inc. announced the election of ten directors at its virtual annual shareholders meeting. The shareholders also approved the appointment of PricewaterhouseCoopers LLP as the auditor and a non-binding advisory resolution on executive compensation. These decisions reflect Colliers’ commitment to strong governance and strategic growth, reinforcing its position in the professional services and investment management industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.