NEW YORK ( TheStreet) -- CBRE Group (NYSE: CBG) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- CBG's revenue growth trails the industry average of 23.0%. Since the same quarter one year prior, revenues slightly increased by 6.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- CBRE GROUP INC's earnings per share declined by 23.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CBRE GROUP INC increased its bottom line by earning $0.73 versus $0.60 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.73).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Management & Development industry and the overall market, CBRE GROUP INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CBRE GROUP INC is currently extremely low, coming in at 12.90%. Regardless of CBG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.50% trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Management & Development industry. The net income has decreased by 16.2% when compared to the same quarter one year ago, dropping from $95.14 million to $79.76 million.
-- Written by a member of TheStreet RatingsStaff