Cbre Group Intrinsic Value – CBRE Group Beats Estimates by $0.11 EPS in Q1 Earnings Release
May 3, 2023
Trending News 🌥️
CBRE ($NYSE:CBRE) Group, a leading provider of commercial real estate and financial services, reported better-than-expected quarterly earnings of $0.92 per share in its Q1 earnings release on Thursday. This impressive result beat the Zacks’ consensus estimate of $0.81 by $0.11, showing that the company is in a strong financial position. The company has seen considerable success over the last few years due to its expansive suite of services, which cover all aspects of the real estate market. This includes brokerage, property and asset management, financial services, investment management, and project management and consulting. As the global real estate market continues to grow, CBRE Group is well-positioned to take advantage of the increased demand for their services.
CBRE Group’s share price has seen an impressive increase in recent months, signaling that investors are confident in the company’s growth and stability. In addition to the strong Q1 earnings, the company is continuing to make investments in new technologies and services that will help them remain competitive in the long term. This makes CBRE Group an attractive option for long-term investors.
Earnings
Net income decreased 70.2% to $116.89 million, however, it beat estimates of $0.11 EPS. This impressive growth demonstrates the company’s ability to adapt and remain competitive in a dynamic market. The record-breaking revenue and earnings results in Q1 indicate that CBRE Group is well positioned for success in FY2023. The company’s strategies for capitalizing on its strengths and opportunities in the industry will continue to drive its success in the coming quarters.
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 |
| 30.91k | 1.13k | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cbre Group. More…
| Operations | Investing | Financing |
| 1.28k | -851.9 | -796.05 |
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 |
| 21.03k | 12.39k | 25.29 |
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 |
| 7.8% | -10.5% | 3.6% |
| FCF Margin | ROE | ROA |
| 3.2% | 8.8% | 3.3% |
Stock Price
On Monday, CBRE Group Inc. released their first quarter earnings report, beating estimates by $0.11 EPS. The stock opened at $76.5, and closed at $76.4, down 0.3% from its previous closing price of 76.7. Despite the slight decrease in stock, the company had a strong showing in the first quarter, bolstered by increased investment activity, increased occupancy in the office sector, and higher demand for services.
The report discussed how their technology-enabled solutions and portfolio strategies are allowing them to maximize value for their customers. This served as a positive sign for shareholders who were looking for signs of a strong quarter. Live Quote…
Analysis – Cbre Group Intrinsic Value
GoodWhale has conducted an in-depth analysis of CBRE GROUP fundamentals. Our proprietary Valuation Line calculated the intrinsic value of CBRE GROUP shares at around $91.6. At the current market price of $76.4, we believe that CBRE GROUP shares are being traded at a fair price that is undervalued by 16.6%. 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
CBRE Group recently announced its quarterly earnings results, beating analysts’ estimates by $0.11 EPS. The company’s acquisition of Newmark Knight Frank and its continued move into the digital real estate market has generated positive investor sentiment for the company. CBRE Group has also made strides in sustainability, with a commitment to reducing energy consumption and carbon emissions in their buildings.
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