$133.92
arrow_drop_up1.56%Is CBRE a Buy or Sell based on AI Analysis?
Fundamental Analysis
CBRE Group Inc's fundamental analysis reveals several key indicators that investors may find valuable in assessing the company's financial health and performance. With a price-to-earnings ratio (P/E) of 29.26, CBRE's stock price seems to be fairly valued relative to its earnings. Additionally, the company's return on equity (ROE) of 11.62% suggests that it is effectively utilizing shareholders' funds to generate profits. CBRE's gross margin of 17.77% and net margin of 3.09% indicate the company's ability to efficiently manage costs and generate profit from its operations. Furthermore, CBRE's revenue growth of 3.64% and net income of $986M showcase the company's consistent growth and profitability in the real estate sector. On the financial front, CBRE Group Inc's debt-to-equity ratio of 0.54 indicates that the company has a relatively low level of financial leverage, suggesting a conservative approach to financing its operations. The company's current ratio of 1.17 highlights its ability to meet short-term obligations with its current assets. Moreover, CBRE's operating margin of 4.97% and EBITDA of $1.83B demonstrate its operational efficiency and ability to generate earnings before interest, taxes, depreciation, and amortization. Overall, CBRE's strong financial position, profitability, and efficient cost management make it an attractive investment opportunity for those looking to add a stable and growing real estate company to their portfolio.
Positive Development
CBRE Group Inc. continues to deliver strong earnings in Q4 2023, with a revenue increase of 4% on the year. This indicates a resilient business and a strong market position. CBRE has been named the top global brand in commercial real estate by The Lipsey Company for the 23rd consecutive year, indicating a strong reputation and market presence. CBRE's stock outperformed the market despite losses on some days, indicating a strong investor confidence in the company.
Negative Development
CBRE's stock price has seen some fluctuations in the past few weeks, with a decrease from 90.97 to 89.95 from 2024-02-26 to 2024-02-28, indicating some market volatility. CBRE has a relatively high total debt to equity ratio of 0.4358, indicating a high level of debt relative to equity. CBRE's long-term debt to total capital and long-term debt to total equity ratios are relatively high, indicating a significant amount of debt.
Technical Analysis
CBRE Group Inc (CBRE) has a neutral technical rating with a beta of 1.43, indicating that the stock price is moderately sensitive to market movements. The stock's current price is $92.16, with a 52-week high of $96 and a low of $64.63. The stock sector is Real Estate, and over the past year, the sector has seen a significant change of 28.55%. The company's technical indicators suggest a cautious approach, with one buy indicator (ATR) and four hold indicators (RSI, MACD, ADX, and ROC) for the month. In contrast, three sell indicators (CCI, WILLR, and STOCHRSI) have also been identified for the same period. Additionally, CBRE Group Inc has a cumulative multiple of 3, indicating that the stock has undergone one split at a ratio of 3:1 on June 2, 2006. The stock has a neutral analyst recommendation and a technical buy indicator count of one for the month. The company has a total of 29 analysts providing forecasts, with the consensus predicting a neutral stance on the stock. The technical analysis also highlights the stock's average trading volume of 1.42M and an average volume of 2.02M. Overall, the company's technical analysis suggests a cautious approach due to the mixed signals from buy, hold, and sell indicators.
Conclusion and recommendation
Based on the data provided for CBRE Group Inc, it is evident that the company has a strong financial standing with a market cap of $28.17 billion and solid revenue growth of 3.64%. Despite a slight decrease in the stock price recently, the company has shown resilience with positive price changes in the one-month, three-month, and six-month periods. With a neutral analyst recommendation and a peg ratio of 2.37, CBRE Group Inc could potentially offer a good investment opportunity for investors looking for stable growth in the real estate sector. Additionally, the company's strong return on equity of 11.62% and low debt-to-equity ratio of 0.54 further showcase its sound financial health. In conclusion, CBRE Group Inc appears to be a promising investment option for individuals seeking long-term growth in the real estate industry. With a solid revenue base, strong market performance, and positive price change percentages, the company has demonstrated its ability to navigate market fluctuations effectively. Investors may consider adding CBRE Group Inc to their portfolio for potential capital appreciation and steady returns. However, it is essential to conduct further research and monitor market trends to make informed investment decisions.