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Colliers International Group (TSE:CIGI)
TSX:CIGI
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Colliers International Group
(TSX:CIGI)64Neutral
Positive Factors
Business Expansion
Colliers' recent expansion into engineering is viewed positively as it provides differentiation relative to its CRE services peers.
Market Rebound
Capital Markets rebounded, with increased transaction activity positively impacting revenue across all geographies and most asset classes.
Negative Factors
Earnings Headwinds
The 2025E outlook reflects a slower-than-expected CRE transaction recovery and new fundraising cycle, posing near-term earnings headwinds.
Colliers International Group (CIGI) vs. S&P 500 (SPY)
Market Cap
$9.21B
Dividend Yield0.24%
Average Volume (3M)68.67K
Price to Earnings (P/E)41.2
Beta (1Y)1.10
Revenue Growth13.08%
EPS Growth146.40%
CountryCA
Employees19,230
SectorReal Estate
Sector Strength72
IndustryReal Estate
Share Statistics
EPS (TTM)4.40
Shares Outstanding49,284,980
10 Day Avg. Volume72,986
30 Day Avg. Volume68,674
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)N/A
Price to Sales (P/S)1.34
Price to Cash Flow (P/CF)7.50
P/FCF Ratio6.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$242.55Price Target Upside33.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Colliers International Group Business Overview & Revenue Model
Company DescriptionColliers International Group Inc. (CIGI) is a leading diversified professional services and investment management company. With operations in over 60 countries, Colliers provides a comprehensive range of services to real estate occupiers, owners, and investors globally. The company operates in sectors such as office, industrial, retail, multifamily, hotel, and residential real estate. Core services include property sales and leasing, outsourcing and advisory services, property management, project management, and investment management.
How the Company Makes MoneyColliers International Group generates revenue through a diverse range of services within the real estate sector. Key revenue streams include transaction-based fees for property sales and leasing, which involve broker commissions. The company also earns from recurring fees in property management, where it manages real estate assets on behalf of clients. Additionally, Colliers provides project management services, earning fees for overseeing construction and development projects. Outsourcing and advisory services contribute to revenue through strategic consulting and corporate solutions for real estate occupiers and investors. Another significant revenue source is investment management, where Colliers earns management fees and performance fees from managing real estate investment funds. Partnerships with institutional investors and corporations further bolster its earnings by expanding its service offerings and client base.
Colliers International Group Financial Statement Overview
Summary
Colliers International shows strong revenue growth and improving profitability metrics. The balance sheet has moderate leverage with improved equity levels, but debt is a concern. Cash flow statements indicate strong operating cash generation but pressures from high capital expenditures.Income Statement
Colliers International has shown strong revenue growth with a rate of 11.23% from 2023 to 2024. The gross profit margin is healthy at 39.85%, indicating efficient cost management. Notably, the net profit margin also improved significantly to 3.35%, reflecting enhanced profitability. The EBIT and EBITDA margins have increased to 8.07% and 12.83%, respectively, showcasing improved operational efficiency. However, the company had a negative net income in 2021, which may indicate past volatility.82
Very Positive
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 1.55, showing a moderate leverage level. The return on equity (ROE) has improved to 12.21%, indicating effective use of equity. The equity ratio stands at 21.72%, suggesting moderate reliance on equity financing. While equity has strengthened, the company maintains significant debt, posing a potential risk in adverse economic conditions.75
Positive
Cash Flow
Operating cash flow has seen substantial growth, but free cash flow has turned negative in 2024, primarily due to high capital expenditures. The operating cash flow to net income ratio is favorable at 2.02, demonstrating effective cash generation relative to net earnings. However, the negative free cash flow to net income ratio indicates challenges in converting earnings to free cash.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.82B | 4.34B | 4.46B | 4.09B | 2.79B | Gross Profit |
| 1.92B | 1.74B | 1.71B | 1.57B | 1.05B | EBIT |
| 389.21M | 300.94M | 332.50M | -59.22M | 164.58M | EBITDA |
| 618.49M | 509.39M | 613.89M | 24.87M | 302.56M | Net Income Common Stockholders |
| 161.72M | 65.54M | 194.54M | -237.56M | 94.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 224.83M | 204.66M | 173.66M | 396.75M | 156.61M | Total Assets |
| 6.10B | 5.48B | 5.10B | 3.87B | 3.29B | Total Debt |
| 2.06B | 2.14B | 2.10B | 1.30B | 1.25B | Net Debt |
| 1.88B | 1.96B | 1.92B | 900.00M | 1.10B | Total Liabilities |
| 3.62B | 3.56B | 4.60B | 3.29B | 2.71B | Stockholders Equity |
| 1.32B | 847.99M | 493.37M | 585.27M | 586.11M |
| Cash Flow | Free Cash Flow | |||
| -58.33M | 81.14M | -650.00K | 231.03M | 126.13M | Operating Cash Flow |
| 326.01M | 165.66M | 67.03M | 288.98M | 166.48M | Investing Cash Flow |
| -783.10M | -133.98M | -872.84M | -49.41M | -113.46M | Financing Cash Flow |
| 452.21M | -7.81M | 612.92M | 18.60M | 1.05M |
Colliers International Group Technical Analysis
Negative
181.99
Price Trends
193.57
Negative
201.16
Negative
188.63
Negative
Market Momentum
-4.28
Negative
39.12
Neutral
57.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CIGI, the sentiment is Negative. The current price of 181.99 is below the 20-day moving average (MA) of 187.78, below the 50-day MA of 193.57, and below the 200-day MA of 188.63, indicating a bearish trend. The MACD of -4.28 indicates Negative momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CIGI.
Colliers International Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Performance Comparison
TSE:CIGI
Colliers International Group
181.99
23.95
15.16%
TSE:BRE
Brookfield Real Estate RV
13.73
0.77
5.92%
Colliers International Group Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -12.72% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call showcased significant revenue growth across various segments, particularly in engineering and real estate services. There were strategic plans for future expansion, supported by a strong financial position and positive outlook for fundraising and asset management. However, flat margins in investment management, challenges in certain Asian markets, and currency exchange rate impacts presented notable challenges.Highlights
Record Revenue Growth
Revenues for the fourth quarter were $1.5 billion, up 22% relative to the prior year period, with 10% local currency internal growth.
Engineering Segment Expansion
Engineering revenues grew by 61%, driven by acquisitions and high single-digit internal growth. The new engineering platform includes 8,000 professionals supported by a strong recurring revenue base.
Strong Performance in Real Estate Services
Real estate services operations had 13% revenue growth, with capital markets up 25%, driven by sharp increases in transaction activity in office and industrial asset classes.
Investment Management Growth
Investment management experienced a 6% revenue increase, excluding past due performance fees, with $1.3 billion of new capital commitments during the quarter.
Solid Financial Position
Leverage ratio was two times at December 31, with $1.2 billion of capacity for future growth, and a deleveraging trend expected to continue.
Positive AUM and Fundraising Outlook
Assets under management reached $98.9 billion, with expectations to raise between $5 and $8 billion of new capital in 2025.
Lowlights
Flat Investment Management Margins
Investment management division margins were flat, with ongoing investments in fundraising and integration impacting profitability.
Challenges in Asian Markets
Macroeconomic declines in China, Hong Kong, and South Korea offset capital markets growth in Australia.
Engineering Margin Decline
Engineering net revenue margin decreased slightly to 12.8% from 13.5% due to weather-related seasonality in newly acquired businesses.
Currency Exchange Rate Impact
Prevailing foreign exchange rates are expected to have a 2-3% negative impact on reported results.
Company Guidance
During the earnings call for the fourth fiscal period of 2024, Colliers International Group Inc. reported a substantial 22% increase in revenues, reaching $1.5 billion. The growth was led by the engineering segment, which saw a remarkable 61% rise in revenues, with acquisitions and internal growth contributing significantly. Adjusted EBITDA rose by 14% to $225 million. The company also achieved a 13% revenue growth in real estate services, capital markets specifically surging by 25%, driven by heightened transaction activity in office and industrial asset classes in Europe and the Americas. Furthermore, leasing revenues increased by 14% across various asset classes. Looking ahead to 2025, Colliers anticipates high single-digit to low teens percentage growth in revenues and low teens growth in adjusted EBITDA and EPS. They also plan to raise $5 to $8 billion in new capital for their investment management division. The company is focused on streamlining operations to enhance synergies and expects significant growth in engineering revenues, projected to rise by about 30%, with a notable margin expansion anticipated.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.