Stock of the Day

December 1, 2020

CBRE Group (CBRE)

$127.50
+$0.09 (+0.1%)
Market Cap: $37.98B

About CBRE Group

CBRE Group, Inc. operates as a commercial real estate services and investment company in the United States, the United Kingdom, and internationally. The Advisory Services segment offers strategic advice and execution to owners, investors, and occupiers of real estate in connection with leasing of offices, and industrial and retail space; clients fully integrated property sales services under the CBRE Capital Markets brand; clients commercial mortgage and structured financing services; originates and sells commercial mortgage loans; property management services, such as marketing, building engineering, accounting, and financial services on a contractual basis for owners of and investors in office, industrial, and retail properties; and valuation services that include market value appraisals, litigation support, discounted cash flow analyses, and feasibility studies, as well as consulting services, such as property condition reports, hotel advisory, and environmental consulting. The Global Workplace Solutions segment provides facilities management, including day-to-day management of client-occupied space, headquarters, regional offices, administrative offices, data centers and other critical facilities, manufacturing and laboratory facilities, and distribution facilities and retail space; and project management services comprising building consulting, program, and project and cost management services under the Turner & Townsend brand name. The Real Estate Investments segment offers investment management services under the CBRE Investment Management brand to pension funds, insurance companies, sovereign wealth funds, foundations, endowments, and other institutional investors; and development services, such as real estate development and investment activities under the Trammell Crow Company and Telford Homes brands to users and investors in commercial real estate, and for their own account. CBRE Group, Inc. was founded in 1906 and is headquartered in Dallas, Texas.

CBRE Group Bull Case

Here are some ways that investors could benefit from investing in CBRE Group, Inc.:

  • The current stock price is around $129, which reflects a strong market position and potential for growth.
  • CBRE Group, Inc. reported a revenue increase of 12.3% compared to the same quarter last year, indicating robust business performance.
  • The company has a solid return on equity of 16.96%, suggesting effective management and profitability relative to shareholder equity.
  • With a market capitalization of approximately $37.20 billion, CBRE Group, Inc. is well-established and has the resources to invest in growth opportunities.
  • The firm has consistently beaten earnings estimates, with the latest earnings per share reported at $0.86, exceeding expectations and demonstrating financial strength.

CBRE Group Bear Case

Investors should be bearish about investing in CBRE Group, Inc. for these reasons:

  • The stock has experienced a decrease in insider ownership, with recent sales indicating a 1.84% decrease for the CFO, which may raise concerns about confidence in the company's future.
  • CBRE Group, Inc. has a relatively high PE ratio of 39.75, which could suggest that the stock is overvalued compared to its earnings.
  • The company has a beta of 1.30, indicating higher volatility compared to the market, which may pose risks for conservative investors.
  • Insiders have sold a total of 5,396 shares worth $685,649 over the last 90 days, which could signal potential issues or lack of confidence in the stock's future performance.
  • The quick ratio of 1.13 and current ratio of 1.07 suggest that while the company can cover its short-term liabilities, it may not have a strong buffer for unexpected financial challenges.
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