Where CBRE Group, Inc. (NYSE:CBRE) Stands In Terms Of Earnings Growth Against Its Industry
Examining CBRE Group, Inc.'s (NYSE:CBRE) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess CBRE's latest performance announced on 30 June 2019 and compare these figures to its longer term trend and industry movements.
Check out our latest analysis for CBRE Group
Could CBRE beat the long-term trend and outperform its industry?
CBRE's trailing twelve-month earnings (from 30 June 2019) of US$1.1b has jumped 45% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 19%, indicating the rate at which CBRE is growing has accelerated. How has it been able to do this? Let's see if it is only attributable to industry tailwinds, or if CBRE Group has experienced some company-specific growth.
In terms of returns from investment, CBRE Group has invested its equity funds well leading to a 20% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.9% exceeds the US Real Estate industry of 4.6%, indicating CBRE Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for CBRE Group’s debt level, has increased over the past 3 years from 13% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 138% to 62% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as CBRE Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research CBRE Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CBRE’s future growth? Take a look at our free research report of analyst consensus for CBRE’s outlook.
Financial Health: Are CBRE’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
