Cousins Properties (CUZ) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: 4.92%
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 87.2
• Beta (1Y): 1.19
• Revenue Growth: 6.71%
• EPS Growth: -45.29%
• Country: US
• Employees: 306
• Sector: Real Estate
• Sector Strength: 74
• Industry: REIT - Office
• EPS (TTM): 0.30
• Shares Outstanding: 167,910,020
• 10 Day Avg. Volume: 1,410,602
• 30 Day Avg. Volume: 1,562,311
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.98
• Price to Cash Flow (P/CF): 10.60
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $33.57
• Price Target Upside: 30.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cousins Properties presents a mixed outlook. Strong earnings performance and positive forward guidance are significant strengths, offset by declining revenue and profitability challenges. The stable balance sheet and positive cash flow provide financial resilience, while technical analysis and valuation suggest cautious optimism due to high P/E ratio concerns. The recent earnings call's positive sentiment and strategic investments are encouraging, despite some occupancy and market challenges looming.

Positive Factors

Financial Performance

CUZ's earnings are expected to be stable, with below average downside risk, due to its long lease durations and strong balance sheet.

Market Position

CUZ has outperformed office peers by 12.5% and the RMZ by 14.8%, showing strong market performance.

Stock Potential

CUZ is upgraded to Outperform from Peer Perform, indicating a strong belief in the stock's potential.

Negative Factors

Market Fundamentals

Analyst has less conviction in CUZ's market fundamentals due to increased availability and vacancy rates.

Valuation Concerns

Analyst downgrades CUZ due to its strong performance year-to-date, indicating potential overvaluation.

Cousins Properties Business Overview & Revenue Model

Company Description

Cousins Properties (CUZ) is a real estate investment trust (REIT) that specializes in the acquisition, development, and management of office properties primarily located in high-growth Sun Belt markets in the United States. The company focuses on creating and maintaining high-quality urban office spaces that attract a diverse range of tenants, including corporations, government entities, and other organizations. With a strategic emphasis on major metropolitan areas, Cousins Properties aims to deliver sustainable growth and value to its shareholders.

How the Company Makes Money

Cousins Properties generates revenue primarily through rental income from its portfolio of office properties. The company leases office space to a variety of tenants under long-term lease agreements, which provide a stable and predictable revenue stream. Additionally, Cousins Properties may engage in property development and sales, generating income from selling developed properties or land parcels. The company's focus on high-demand locations in the Sun Belt region contributes to strong occupancy rates and the ability to command premium rental rates. Furthermore, Cousins Properties may form strategic partnerships or joint ventures to enhance its development capabilities and expand its market presence.

Cousins Properties Financial Statement Overview

Summary

Cousins Properties shows a mixed financial profile. The income statement reflects declining revenue and profitability challenges, with a negative net profit margin. However, the balance sheet is stable, supported by moderate leverage and strong equity coverage. The cash flow remains positive, although historical negative free cash flow is a concern.

Income Statement

Cousins Properties shows a declining revenue trend with a significant drop in recent years. The gross profit margin remains high due to cost recovery, but negative EBIT and net income in the latest period highlight profitability challenges. Net profit margin has turned negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable equity base with moderate leverage as shown by a Debt-to-Equity ratio of 0.64. The equity ratio is solid at around 55%, suggesting good asset coverage by equity. However, the recent increase in total debt could signal potential risk if revenue continues to decline.

Cash Flow

Cousins Properties maintains positive operating cash flow, though free cash flow growth is fluctuating, recently turning positive after prior negative years. The operating cash flow to net income ratio is strong, indicating efficient cash conversion from operations despite negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.22M	802.87M	762.29M	755.07M	740.34M
	Gross Profit
7.22M	536.44M	503.92M	495.61M	489.49M
	EBIT
-273.44M	190.90M	183.56M	180.39M	178.08M
	EBITDA
534.10M	504.18M	479.14M	468.49M	466.73M
	Net Income Common Stockholders
-619.00K	82.96M	279.65M	209.37M	172.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.35M	6.05M	5.14M	8.94M	4.29M
	Total Assets
8.80B	7.63B	7.54B	7.31B	7.11B
	Total Debt
3.15B	2.51B	2.33B	2.24B	2.22B
	Net Debt
3.14B	2.50B	2.33B	2.23B	2.22B
	Total Liabilities
3.93B	3.09B	2.89B	2.71B	2.61B
	Stockholders Equity
4.87B	4.52B	4.63B	4.57B	4.47B
Cash Flow		Free Cash Flow
147.50M	368.36M	22.93M	-398.33M	-268.68M
	Operating Cash Flow
400.23M	368.36M	365.17M	389.48M	351.09M
	Investing Cash Flow
-1.31B	-295.74M	-334.50M	-191.07M	-132.46M
	Financing Cash Flow
906.47M	-71.72M	-35.69M	-194.38M	-230.09M

Cousins Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 25.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CUZ, the sentiment is Negative. The current price of 25.71 is below the 20-day moving average (MA) of 28.66, below the 50-day MA of 29.33, and below the 200-day MA of 28.28, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CUZ.

Cousins Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CUZ	68 Neutral	$4.37B	87.20	0.98%	4.92%	6.71%	-45.29%
KRC	63 Neutral	$3.58B	16.96	3.87%	7.20%	0.53%	-1.38%
Sector *	61 Neutral	$4.43B	16.22	-3.23%	11.37%	6.25%	-21.19%
PGRE	60 Neutral	$2.03B	―	-1.46%	3.51%	1.97%	82.20%
DEI	57 Neutral	$2.90B	107.86	1.03%	5.33%	-3.33%	―
HIW	55 Neutral	$2.92B	28.87	4.27%	7.37%	-0.98%	-32.02%
SLG	52 Neutral	$3.82B	644.15	0.71%	5.98%	5.12%	―

Cousins Properties Corporate Events

Cousins Properties Announces Board Changes for 2025

On February 4, 2025, Cousins Properties announced that Lillian C. Giornelli would retire from its Board of Directors at the end of her term, concluding her service since May 1999. Concurrently, the company elected Susan L. Givens, a private investor with a robust background in real estate, to its Board, effective April 1, 2025. This change will maintain the number of directors at nine after the 2025 Annual Shareholder Meeting. Ms. Givens, who has held significant roles in various REITs and investment firms, is expected to bring valuable insights to the Board, enhancing Cousins’ strategic positioning in the real estate sector. The Board’s decision reflects Cousins’ continued focus on leadership with substantial sector experience, aiming to support the company’s growth in the competitive Sun Belt market.