Cbre Group Stock Fair Value – CBRE GROUP Reports Total Revenue of USD 7719.9 Million and Net Income of USD 201.4 Million for Q2 FY 2023
July 29, 2023
🌥️Earnings Overview
CBRE GROUP ($NYSE:CBRE) reported total revenue of USD 7719.9 million and net income of USD 201.4 million for the second quarter of fiscal year 2023, ending June 30 2023. This marked a 0.7% decrease in revenue and a 58.7% decrease in net income compared to the same quarter from the prior year.
Stock Price
This news caused shares to drop 5.8% from their prior closing price of 88.4, opening at $87.5 and closing at $83.2. This was primarily driven by organic growth from increased leasing and other services revenue in the Americas, Asia Pacific, and EMEA regions. This impressive performance was driven by strong demand for office and industrial real estate services, and is likely to continue as CBRE Group looks to capitalize on the recovery in the real estate services industry. It appears that the stock market reacted negatively due to investor fears that CBRE Group would not be able to maintain its momentum of strong revenue growth going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cbre Group. More…
| Total Revenues | Net Income | Net Margin |
| 30.86k | 846.05 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cbre Group. More…
| Operations | Investing | Financing |
| 812.55 | -872.83 | 69.18 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cbre Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 21.73k | 12.84k | 26.05 |
Key Ratios Snapshot
Some of the financial key ratios for Cbre Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.3% | -8.2% | 2.5% |
| FCF Margin | ROE | ROA |
| 1.7% | 6.1% | 2.2% |
Analysis – Cbre Group Stock Fair Value
At GoodWhale, we conducted a thorough analysis of CBRE GROUP‘s fundamentals. Using our proprietary Valuation Line, we concluded that the intrinsic value of a CBRE GROUP share is around $92.8. Currently, the stock is traded at $83.2, which is below its intrinsic value and therefore presents an opportunity to purchase at a fair price which is undervalued by 10.4%. More…
Peers
CBRE Group Inc is the world’s largest commercial real estate services firm, with 2018 revenue of $23.9 billion and more than 90,000 employees in over 700 offices worldwide. The company provides a broad range of services to occupiers and investors, including leasing, property and facilities management, investment sales and capital markets, valuation, consulting, research and appraisal, and mortgage banking. CBRE’s competitors in the commercial real estate services industry include Jones Lang LaSalle Inc, Newmark Group Inc, and Cushman & Wakefield PLC. These companies are all large, global firms with a broad range of services and a significant presence in the commercial real estate market.
– Jones Lang LaSalle Inc ($NYSE:JLL)
JLL is a professional services and investment management company specializing in real estate. It has a market cap of $7.43B and a ROE of 13.87%. The company has over 230 offices in 80 countries and offers a variety of services such as property management, facilities management, project and development management, lease administration, and investment management.
– Newmark Group Inc ($NASDAQ:NMRK)
The Newmark Group is a publicly traded company with a market capitalization of 1.51 billion as of 2022. The company has a return on equity of 35.51%. The Newmark Group is a provider of commercial real estate services in the United States. The company offers a range of services, including leasing, property and facilities management, lending, valuation, consulting, and capital markets services.
– Cushman & Wakefield PLC ($NYSE:CWK)
Cushman & Wakefield PLC is a commercial real estate services company. It has a market cap of 2.5B as of 2022 and a Return on Equity of 27.74%. The company provides services such as property management, leasing, capital markets, valuation, and other advisory services.
Summary
Analysts are concerned about CBRE GROUP‘s financial performance in the second quarter of fiscal year 2023. Total revenue decreased by 0.7% compared to the same quarter last year, and net income decreased by 58.7%. These figures caused the stock price to drop the same day.
In order to reassert investor confidence, CBRE GROUP must demonstrate a rebound in its profits and show an improved outlook for the next quarter. Analysts will be closely watching to see if the company can turn things around.
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