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Cushman & Wakefield (CWK)
:CWK
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Cushman & Wakefield
(NYSE:CWK)
58Neutral
Positive Factors
Debt Management
The company fully prepaid the remaining principal balance on its term loans due in 2025.
Earnings Performance
Earnings per share for 2026 are expected to increase, suggesting improved future performance.
Future Growth
The expected share price return is projected to be 12.0%, indicating potential growth.
Negative Factors
Business Volatility
There are near-term headwinds around volatile business lines affecting the company's performance.
Price Target
The target price for CWK has been decreased to $12 from $16, reflecting some expected challenges.
Revenue Decline
Fee revenue declined due to lower capital markets and services fee revenue.
Cushman & Wakefield (CWK) vs. S&P 500 (SPY)
Market Cap
$2.17B
Dividend YieldN/A
Average Volume (3M)2.03M
Price to Earnings (P/E)16.1
Beta (1Y)2.13
Revenue Growth-0.50%
EPS GrowthN/A
CountryUS
Employees52,000
SectorReal Estate
Sector Strength63
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding229,726,870
10 Day Avg. Volume1,696,619
30 Day Avg. Volume2,026,789
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.25
Price to Cash Flow (P/CF)5.20
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.75Price Target Upside52.78% Upside
Rating ConsensusHold
Number of Analyst Covering4
Cushman & Wakefield Business Overview & Revenue Model
Company DescriptionCushman & Wakefield (CWK) is a leading global real estate services firm that specializes in providing a wide range of property-related services to its clients. The company operates in various sectors including office, industrial, retail, multifamily, and hospitality. Its core services encompass property management, facility management, investment management, valuation, leasing, and advisory services. With a presence in over 60 countries, Cushman & Wakefield serves a diverse client base, including corporations, institutions, investors, and occupiers, helping them enhance the value of their real estate assets.
How the Company Makes MoneyCushman & Wakefield generates revenue through several key streams. Primarily, it earns fees from its property management and facility management services, where it oversees the operations of client properties and facilities. Leasing services also contribute significantly, with the firm earning commissions by facilitating transactions between landlords and tenants. Additionally, Cushman & Wakefield derives income from advisory services, where it provides strategic insights and professional guidance to clients on real estate investments and transactions. Investment management services further augment its earnings by managing real estate investment portfolios for clients and earning management fees. Furthermore, the company's valuation services, which involve assessing the worth of properties, provide another revenue source. Strategic partnerships and collaborations with other real estate entities and financial institutions also play a role in enhancing its revenue streams.
Cushman & Wakefield Financial Statement Overview
Summary
Cushman & Wakefield presents a mixed financial picture. Strong gross profit margins and a stable balance sheet with low leverage are positives. However, low net profit margins and declining free cash flow highlight areas for improvement. Enhanced cost control and cash flow management could improve profitability and financial flexibility in the future.Income Statement
Cushman & Wakefield's TTM (Trailing-Twelve-Months) income statement shows a gross profit margin of 40.18% and a net profit margin of 1.39%. Despite a reduction in revenue from the previous year, the company improved its gross profit margin significantly. However, the net profit margin is relatively low, indicating that while the company is generating substantial revenue, the net income remains modest. EBIT and EBITDA margins of 3.78% and 4.24% respectively suggest moderate profitability. Continued focus on cost management could enhance net profitability.60
Neutral
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 23.24%, indicating a solid financial footing. A low debt-to-equity ratio of 0.21 suggests conservative leverage use, which is favorable for stability. The return on equity (ROE) is 7.48%, indicating efficient use of equity to generate profits, although there is room for improvement. Overall, the balance sheet portrays financial stability with moderate leverage.65
Positive
Cash Flow
The cash flow statement reveals a decline in free cash flow from the previous year, with a growth rate of -39.65%. The operating cash flow to net income ratio is 0.71, suggesting reasonable cash generation relative to net income. However, the free cash flow to net income ratio is 0.47, indicating that a significant portion of net income is not translating into free cash flow. Improved cash flow management could bolster financial flexibility.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 9.45B | 9.49B | 10.11B | 9.39B | 7.84B | Gross Profit |
| 1.73B | 1.65B | 1.95B | 1.94B | 1.39B | EBIT |
| 338.90M | 205.60M | 535.10M | 497.00M | 61.10M | EBITDA |
| 614.40M | 494.50M | 780.20M | 795.70M | 267.60M | Net Income Common Stockholders |
| 131.30M | -35.40M | 196.40M | 250.00M | -220.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 793.30M | 767.70M | 644.50M | 770.70M | 1.07B | Total Assets |
| 7.55B | 7.77B | 7.95B | 7.89B | 7.34B | Total Debt |
| 373.50M | 3.57B | 3.60B | 3.66B | 3.68B | Net Debt |
| -419.80M | 2.80B | 2.95B | 2.89B | 2.61B | Total Liabilities |
| 5.79B | 6.10B | 6.29B | 6.44B | 6.24B | Stockholders Equity |
| 1.75B | 1.68B | 1.66B | 1.45B | 1.09B |
| Cash Flow | Free Cash Flow | |||
| 208.00M | 101.20M | -1.60M | 495.70M | -79.20M | Operating Cash Flow |
| 208.00M | 152.20M | 49.10M | 549.50M | -38.20M | Investing Cash Flow |
| 81.20M | 48.90M | -120.70M | -749.50M | -257.80M | Financing Cash Flow |
| -253.40M | -120.80M | -79.30M | -65.80M | 571.90M |
Cushman & Wakefield Technical Analysis
Negative
9.00
Price Trends
11.80
Negative
12.87
Negative
12.74
Negative
Market Momentum
-0.48
Negative
31.29
Neutral
20.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWK, the sentiment is Negative. The current price of 9 is below the 20-day moving average (MA) of 10.46, below the 50-day MA of 11.80, and below the 200-day MA of 12.74, indicating a bearish trend. The MACD of -0.48 indicates Negative momentum. The RSI at 31.29 is Neutral, neither overbought nor oversold. The STOCH value of 20.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWK.
Cushman & Wakefield Risk Analysis
Cushman & Wakefield disclosed 31 risk factors in its most recent earnings report. Cushman & Wakefield reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cushman & Wakefield Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $37.16B | 37.55 | 11.61% | ― | 11.95% | -1.25% | |
68 Neutral | $8.30B | 37.15 | 14.89% | 0.26% | 13.08% | 146.40% | |
68 Neutral | $10.99B | 19.46 | 8.37% | ― | 12.87% | 142.90% | |
61 Neutral | $767.83M | 13.30 | 17.79% | 6.45% | -3.68% | 990.23% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
58 Neutral | $2.17B | 16.14 | 7.65% | ― | -0.50% | ― | |
46 Neutral | $162.78M | ― | -31.77% | ― | -14.70% | 1.10% |
* Real Estate Sector Average
Performance Comparison
CWK
Cushman & Wakefield
9.00
-1.98
-18.03%
CBRE
CBRE Group
118.08
21.57
22.35%
JLL
Jones Lang Lasalle
219.58
22.03
11.15%
SRG
Seritage
2.72
-6.96
-71.90%
TSE:CIGI
Colliers International Group
159.99
-0.86
-0.54%
CBL
CBL & Associates Properties
23.80
3.13
15.14%
Cushman & Wakefield Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -30.88% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call depicted a company experiencing strong momentum in capital markets and leasing revenue growth, supported by strategic investments in talent and a solid balance sheet. However, some challenges remain in certain regions and service lines, with notable declines in China and EMEA leasing. Overall, the positive aspects slightly outweighed the negatives, indicating optimism for future growth.Highlights
Record Capital Markets Revenue Growth
Cushman & Wakefield concluded 2024 with unparalleled momentum, reporting the highest capital markets revenue growth since the first quarter of 2022. Capital markets revenue was up 36% globally in Q4.
Strong Free Cash Flow and Balance Sheet Improvement
The company produced one of the highest free cash flow conversion percentages in its history, with $167 million of free cash flow for the year, $66 million higher than 2023. The leverage ratio improved to 3.8 times from 4.3 times at the end of 2023.
Leasing Revenue Growth and Positive Office Trends
Five straight quarters of year-over-year leasing revenue growth were reported. Nearly half of the markets tracked registered positive absorption in Q4, and sublease space is trending lower.
Improved Earnings and EBITDA
Full-year fee revenue of $6.6 billion was up 1%, and adjusted EBITDA expanded 3% to $582 million. Adjusted EPS was $0.91, up 8% from last year.
Strategic Talent Acquisition
The company has seen a significant increase in top-tier talent retention and recruitment, including the hiring of Myles Treaster and ten new capital markets professionals.
Lowlights
Challenges in China and EMEA Leasing Contraction
APAC leasing faced challenges in China despite strong results in Australia and India. EMEA leasing contracted 15% in Q4 due to a tough comparison against last year's growth.
Reduced Earnings from Equity Method Investments
For the full year, earnings from equity method investments declined $21 million, primarily due to reduced transaction volumes in the Greystone joint venture.
Service Line Revenue Challenges
APAC services declined 7% in Q4 due to prior year one-time project revenue, and EMEA services only grew 1% after completing margin improvement transitions.
Company Guidance
During Cushman & Wakefield's Fourth Quarter 2024 Earnings Conference Call, the company provided optimistic guidance for 2025. They reported a 1% increase in fee revenue to $6.6 billion and a 3% growth in adjusted EBITDA to $582 million for 2024, with an improved EBITDA margin of 8.8%. The company anticipates continued growth, fueled by investments in talent and platform expansion, aiming for mid-single-digit growth in services by midyear 2025. Leasing revenue is expected to remain strong, with a positive outlook for leasing driven by resilient global economies and a return to office trends. Capital markets are projected to accelerate from the mid-single-digit growth rate of 2024, depending on interest rate volatility and investor sentiment. The company also highlighted a strategic focus on talent retention and recruitment, alongside organic and tuck-in growth, to drive sustainable long-term growth.Cushman & Wakefield Corporate Events
Business Operations and Strategy
Cushman & Wakefield Plans Redomiciliation to Bermuda
Neutral
Mar 28, 2025
On March 28, 2025, Cushman & Wakefield announced a proposal to change its jurisdiction of incorporation from England and Wales to Bermuda. This redomiciliation aims to reduce administrative burdens and align corporate governance with the expectations of its U.S. shareholder base. The company assures that this move will have limited impact on its operations, subsidiaries, and financial statements, maintaining its commitment to its businesses in the U.K. and Europe. The redomiciliation process requires shareholder approval and is expected to be completed in the second half of 2025.
Private Placements and FinancingBusiness Operations and Strategy
Cushman & Wakefield Reprices Loan for Financial Growth
Positive
Jan 22, 2025
Cushman & Wakefield announced on January 23, 2025, that they successfully repriced their Term Loan issued in June 2024, reducing the interest rate by 25 basis points to Term SOFR plus 2.75%. This financial move is part of their strategy to maintain a strong financial foundation for future growth opportunities, with all other loan terms remaining unchanged. The repricing reflects the company’s robust financial management and commitment to its stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.