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If You Invested $1000 in CBRE Group 10 Years Ago, This Is How Much You'd Have Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in CBRE Group (CBRE - Free Report) ten years ago? It may not have been easy to hold on to CBRE for all that time, but if you did, how much would your investment be worth today?

CBRE Group's Business In-Depth

With that in mind, let's take a look at CBRE Group's main business drivers.

Headquartered in Dallas, TX, CBRE Group, Inc. is a commercial real estate services and investment firm, offering a wide range of services to tenants, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estates in all major metropolitan areas across the globe. The services include facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. With more than 105,000 employees, the company serves clients in more than 100 countries.

CBRE Group reports on three global business segments: Advisory Services, Global Workplace Solutions and Real Estate Investments. However, effective Jan 1, 2021, the company’s organizational structure has been realigned.

Advisory Services offers a broad range of services globally. This includes property leasing, property sales, mortgage services, property management, and valuation.

Global Workplace Solutions (GWS) offers an extensive suite of integrated, contractually-based outsourcing services to occupiers of real estate, including facilities management and project management.

Notably, effective Jan 1, 2021, transaction services were completely moved under the Advisory Services segment, while project management was entirely moved under the Global Workplace Solutions segment. Earlier transaction services and project management were divided between the Global Workplace Solutions segment and the Advisory Services segment.

Real Estate Investments includes investment management services provided globally, development services in the United States and the U.K.; and flexible office space solutions.

At the end of the fourth quarter of 2021, assets under management (AUM) reached a record high for the company and aggregated $141.9 billion, underlining growth of 7% from the third quarter of 2021. This highlights gains in asset valuations and positive net inflows. Importantly, more than 80% of the AUM is invested in assets other than the office.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in CBRE Group ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in April 2012 would be worth $4,847.61, or a 384.76% gain, as of April 5, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 227.57% and gold's return of 10.70% over the same time frame.

Going forward, analysts are expecting more upside for CBRE.

Shares of CBRE Group have outperformed the industry over the past year. The company reported better-than-expected fourth-quarter 2021 adjusted earnings per share (EPS). Quarterly results reflected the benefits of diversifying across asset types, business lines, client types and geographies as well as expanding the company’s resilient business in recent years. A healthy balance sheet and supportive macro environment also benefited CBRE Group. Despite stiff competition and geopolitical tensions, the company is well-poised to ride its growth curve with its wide real estate products and services offerings, healthy outsourcing business, strategic buyouts, technology investments and solid balance-sheet strength. Moreover, the recent estimate revision trend for 2022 EPS indicates a favorable outlook for the company, with estimates moving north.

Shares have gained 6.70% over the past four weeks and there have been 3 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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