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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.67
CSGP's Cash to Debt is ranked higher than
62% of the 959 Companies
in the Global Business Services industry.

( Industry Median: 1.72 vs. CSGP: 1.67 )
CSGP' s 10-Year Cash to Debt Range
Min: 0.65   Max: No Debt
Current: 1.67

Equity to Asset 0.74
CSGP's Equity to Asset is ranked higher than
87% of the 937 Companies
in the Global Business Services industry.

( Industry Median: 0.49 vs. CSGP: 0.74 )
CSGP' s 10-Year Equity to Asset Range
Min: 0.44   Max: 0.92
Current: 0.74

0.44
0.92
Interest Coverage 7.80
CSGP's Interest Coverage is ranked higher than
50% of the 675 Companies
in the Global Business Services industry.

( Industry Median: 21.89 vs. CSGP: 7.80 )
CSGP' s 10-Year Interest Coverage Range
Min: 5.68   Max: 9999.99
Current: 7.8

5.68
9999.99
F-Score: 7
Z-Score: 8.87
M-Score: -2.78
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 12.28
CSGP's Operating margin (%) is ranked higher than
80% of the 950 Companies
in the Global Business Services industry.

( Industry Median: 7.12 vs. CSGP: 12.28 )
CSGP' s 10-Year Operating margin (%) Range
Min: -84.14   Max: 18.73
Current: 12.28

-84.14
18.73
Net-margin (%) 6.74
CSGP's Net-margin (%) is ranked higher than
75% of the 950 Companies
in the Global Business Services industry.

( Industry Median: 4.59 vs. CSGP: 6.74 )
CSGP' s 10-Year Net-margin (%) Range
Min: -84.88   Max: 22.29
Current: 6.74

-84.88
22.29
ROE (%) 3.20
CSGP's ROE (%) is ranked higher than
53% of the 919 Companies
in the Global Business Services industry.

( Industry Median: 10.28 vs. CSGP: 3.20 )
CSGP' s 10-Year ROE (%) Range
Min: -113.79   Max: 11.84
Current: 3.2

-113.79
11.84
ROA (%) 2.37
CSGP's ROA (%) is ranked higher than
59% of the 965 Companies
in the Global Business Services industry.

( Industry Median: 4.48 vs. CSGP: 2.37 )
CSGP' s 10-Year ROA (%) Range
Min: -50   Max: 10.74
Current: 2.37

-50
10.74
ROC (Joel Greenblatt) (%) 93.82
CSGP's ROC (Joel Greenblatt) (%) is ranked higher than
84% of the 960 Companies
in the Global Business Services industry.

( Industry Median: 33.29 vs. CSGP: 93.82 )
CSGP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -335.01   Max: 235.77
Current: 93.82

-335.01
235.77
Revenue Growth (%) 12.70
CSGP's Revenue Growth (%) is ranked higher than
84% of the 727 Companies
in the Global Business Services industry.

( Industry Median: 6.20 vs. CSGP: 12.70 )
CSGP' s 10-Year Revenue Growth (%) Range
Min: -0.5   Max: 41.6
Current: 12.7

-0.5
41.6
EBITDA Growth (%) 23.20
CSGP's EBITDA Growth (%) is ranked higher than
88% of the 605 Companies
in the Global Business Services industry.

( Industry Median: 8.30 vs. CSGP: 23.20 )
CSGP' s 10-Year EBITDA Growth (%) Range
Min: -28.6   Max: 71
Current: 23.2

-28.6
71
EPS Growth (%) 17.90
CSGP's EPS Growth (%) is ranked higher than
81% of the 579 Companies
in the Global Business Services industry.

( Industry Median: 7.80 vs. CSGP: 17.90 )
CSGP' s 10-Year EPS Growth (%) Range
Min: -34.1   Max: 302.1
Current: 17.9

-34.1
302.1
» CSGP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

CSGP Guru Trades in Q1 2013

Murray Stahl 2,000 sh (New)
Mariko Gordon 736,982 sh (unchged)
Chuck Royce 25,000 sh (unchged)
Ron Baron 1,937,126 sh (-0.72%)
Pioneer Investments 100,617 sh (-15.53%)
Jim Simons 74,242 sh (-37.21%)
» More
Q2 2013

CSGP Guru Trades in Q2 2013

Steven Cohen 74,800 sh (New)
Pioneer Investments 101,717 sh (+1.09%)
Ron Baron 1,940,606 sh (+0.18%)
Murray Stahl 2,000 sh (unchged)
Chuck Royce 25,000 sh (unchged)
Mariko Gordon 674,390 sh (-8.49%)
Jim Simons 28,026 sh (-62.25%)
» More
Q3 2013

CSGP Guru Trades in Q3 2013

Ron Baron 1,975,161 sh (+1.78%)
Murray Stahl 2,000 sh (unchged)
Chuck Royce 25,000 sh (unchged)
Pioneer Investments 91,600 sh (-9.95%)
Mariko Gordon 513,866 sh (-23.8%)
Jim Simons 1,494 sh (-94.67%)
Steven Cohen 1,515 sh (-97.97%)
» More
Q4 2013

CSGP Guru Trades in Q4 2013

Paul Tudor Jones 2,731 sh (New)
Jim Simons 20,298 sh (+1258.63%)
Steven Cohen 4,689 sh (+209.5%)
Ron Baron 2,003,125 sh (+1.42%)
Chuck Royce 25,000 sh (unchged)
Murray Stahl 2,000 sh (unchged)
Pioneer Investments 86,188 sh (-5.91%)
Mariko Gordon 427,500 sh (-16.81%)
» More
» Details

Insider Trades

Latest Guru Trades with CSGP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mariko Gordon 2013-12-31 Reduce -16.81%0.67%$161.29 - $186.62 $ 162.34-8%427500
Mariko Gordon 2013-09-30 Reduce -23.8%1%$131.88 - $170.09 $ 162.346%513866
Mariko Gordon 2013-06-30 Reduce -8.49%0.35%$105.73 - $129.51 $ 162.3444%674390
Jean-Marie Eveillard 2012-06-30 Sold Out 0.01%$67.48 - $82.68 $ 162.34124%0
Jean-Marie Eveillard 2012-03-31 Add 373.46%$56.67 - $69.87 $ 162.34184%19270
Jean-Marie Eveillard 2011-12-31 New Buy$49.22 - $68.39 $ 162.34167%4070
Premium More recent guru trades are included for Premium Members only!!
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Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on CoStar Group, Inc.

Baron Funds Comments on CoStar Group Inc. - Nov 22, 2013

Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance in the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-mar gin reve nue. (Neal Rosenberg)

From Ron Baron’s Baron Funds third quarter 2013 letter.


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Baron Funds Comments on CoStar Group Inc. - Nov 21, 2013

Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance during the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-margin revenue. (Neal Rosenberg)

From Ron Baron’s Baron Funds third quarter 2013 report.


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Baron Funds Comments on CoStar Group Inc. - Nov 06, 2013

Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance in the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-margin revenue. (Neal Rosenberg)

From Ron Baron's Baron Funds third quarter 2013 report.


Check out Ron Baron latest stock trades

Ron Baron Comments on CoStar Group Inc. - Apr 24, 2013

CoStar Group, Inc. (CSGP), a leading real estate database company, has assembled and trained a 900 person nationwide research staff over more than 20 years to obtain that data. This was an unusually expensive undertaking. Now, as the primary source of this information, CoStar is able to monetize its proprietary database and earn high returns.

From Ron Baron’s Baron Funds first quarter 2013 investor letter.


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Baron Funds Comments on CoStar Group - Aug 24, 2012

From Baron Funds' second quarter commentary:

CoStar Group, Inc. (CSGP) shares continued to outperform in the second quarter, driven by outstanding financial results, accelerating business momentum, and FTC approval of the acquisition of LoopNet. CoStar generated record quarterly gross new sales, which we estimate grew by almost 25% annually, fueled by rising demand for its CoStarGo Ipad application. Retention rates improved to 94% for the quarter, an all-time high for the company, including 98% retention rates for customers that have been CoStar subscribers for more than 5 years, and 88% retention rates for the company's newer customers. The company has been investing aggressively to enhance its product functionality and broaden its sales coverage, which have been key drivers of accelerating results.

CoStar closed its acquisition of LoopNet early in the second quarter after a full year of antitrust review. The acquisition adds the U.S.' largest marketing services platform to CoStar's market-leading information services tools, which we expect will lead to significant cross-selling opportunities. We estimate that site-level overlap between CoStar and LoopNet is less than 25%, and user overlap is currently in the single digits. Once the tools are integrated, legacy LoopNet users will be able to access enhanced data and analytics from the CoStar platform, and legacy CoStar customers will be able to seamlessly market their CRE properties on the LoopNet marketplace. We believe that selling a bundled service will enable CoStar management to transition LoopNet customers from monthly subscriptions to annual subscriptions, as well as reduce overall churn as the integrated product becomes more engrained in workflows. Finally, we believe that the integration will result in better data quality across both platforms, with lower aggregate research costs due to shared infrastructure and LoopNet's user-provided data model. (Neal Rosenberg)

Check out Ron Baron latest stock trades

Top Ranked Articles about CoStar Group, Inc.

Baron Funds Comments on CoStar Group Inc.
Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance in the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-mar gin reve nue. (Neal Rosenberg) Read more...
Baron Funds Comments on CoStar Group Inc.
Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance during the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-margin revenue. (Neal Rosenberg) Read more...
Baron Funds Comments on CoStar Group Inc.
Shares of CoStar Group, Inc. (CSGP), the leading provider of commercial real estate data in the U.S. and U.K., contributed to performance in the third quarter, driven by outstanding financial results, accelerating business momentum, and growing synergies from its LoopNet acquisition. CoStar continued to generate record quarterly bookings, which we estimate grew by over 75% in the most recently reported period. We continue to be excited by the LoopNet acquisition, which represents a potential opportunity of more than $600 million of recurring, high-margin revenue. (Neal Rosenberg) Read more...
Ron Baron Comments on CoStar Group Inc.
CoStar Group, Inc. (CSGP), a leading real estate database company, has assembled and trained a 900 person nationwide research staff over more than 20 years to obtain that data. This was an unusually expensive undertaking. Now, as the primary source of this information, CoStar is able to monetize its proprietary database and earn high returns. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 156.00
CSGP's P/E(ttm) is ranked lower than
74% of the 766 Companies
in the Global Business Services industry.

( Industry Median: 20.70 vs. CSGP: 156.00 )
CSGP' s 10-Year P/E(ttm) Range
Min: 19.28   Max: 10537.5
Current: 156

19.28
10537.5
P/B 5.10
CSGP's P/B is ranked lower than
64% of the 899 Companies
in the Global Business Services industry.

( Industry Median: 2.50 vs. CSGP: 5.10 )
CSGP' s 10-Year P/B Range
Min: 1.61   Max: 6.47
Current: 5.1

1.61
6.47
P/S 10.38
CSGP's P/S is ranked lower than
89% of the 948 Companies
in the Global Business Services industry.

( Industry Median: 1.32 vs. CSGP: 10.38 )
CSGP' s 10-Year P/S Range
Min: 2.34   Max: 13.5
Current: 10.38

2.34
13.5
PFCF 51.40
CSGP's PFCF is ranked lower than
75% of the 611 Companies
in the Global Business Services industry.

( Industry Median: 17.63 vs. CSGP: 51.40 )
CSGP' s 10-Year PFCF Range
Min: 12.44   Max: 149.33
Current: 51.4

12.44
149.33
EV-to-EBIT 83.30
CSGP's EV-to-EBIT is ranked lower than
79% of the 843 Companies
in the Global Business Services industry.

( Industry Median: 15.40 vs. CSGP: 83.30 )
CSGP' s 10-Year EV-to-EBIT Range
Min: 6.7   Max: 235085.2
Current: 83.3

6.7
235085.2
PEG 15.60
CSGP's PEG is ranked lower than
69% of the 457 Companies
in the Global Business Services industry.

( Industry Median: 2.16 vs. CSGP: 15.60 )
CSGP' s 10-Year PEG Range
Min: 0.66   Max: 506.71
Current: 15.6

0.66
506.71
Shiller P/E 188.70
CSGP's Shiller P/E is ranked lower than
78% of the 469 Companies
in the Global Business Services industry.

( Industry Median: 24.20 vs. CSGP: 188.70 )
CSGP' s 10-Year Shiller P/E Range
Min: 30.51   Max: 542
Current: 188.7

30.51
542

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 70.90
CSGP's Price/Tangible Book is ranked lower than
91% of the 678 Companies
in the Global Business Services industry.

( Industry Median: 3.60 vs. CSGP: 70.90 )
CSGP' s 10-Year Price/Tangible Book Range
Min: 2.79   Max: 80.6
Current: 70.9

2.79
80.6
Price/DCF (Projected) 4.10
CSGP's Price/DCF (Projected) is ranked lower than
78% of the 514 Companies
in the Global Business Services industry.

( Industry Median: 1.40 vs. CSGP: 4.10 )
CSGP' s 10-Year Price/DCF (Projected) Range
Min: 1.12   Max: 12.03
Current: 4.1

1.12
12.03
Price/Median PS Value 1.70
CSGP's Price/Median PS Value is ranked lower than
70% of the 897 Companies
in the Global Business Services industry.

( Industry Median: 1.10 vs. CSGP: 1.70 )
CSGP' s 10-Year Price/Median PS Value Range
Min: 0.51   Max: 2.37
Current: 1.7

0.51
2.37
Price/Graham Number 22.10
CSGP's Price/Graham Number is ranked lower than
89% of the 567 Companies
in the Global Business Services industry.

( Industry Median: 1.80 vs. CSGP: 22.10 )
CSGP' s 10-Year Price/Graham Number Range
Min: 1.81   Max: 49.06
Current: 22.1

1.81
49.06
Earnings Yield (Greenblatt) 1.20
CSGP's Earnings Yield (Greenblatt) is ranked lower than
71% of the 848 Companies
in the Global Business Services industry.

( Industry Median: 6.60 vs. CSGP: 1.20 )
CSGP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 14.9
Current: 1.2

0.3
14.9
Forward Rate of Return (Yacktman) 0.17
CSGP's Forward Rate of Return (Yacktman) is ranked higher than
58% of the 660 Companies
in the Global Business Services industry.

( Industry Median: 6.90 vs. CSGP: 0.17 )
CSGP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -10.2   Max: 35.8
Current: 0.17

-10.2
35.8

Business Description

Industry: Business Services » Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY » details
CoStar Group, Inc., a Delaware corporation was founded in 1987, is the provider of information, marketing and analytic services to the commercial real estate industry in the United States and United Kingdom. The Company offers its customers online access to the database of commercial real estate information, which has been researched and verified by its team of researchers, currently covering the U.S., as well as London and other parts of the U.K. and parts of France. Based on its unique database, the Company provides information, marketing and analytic services to the commercial real estate and related business community and operates within two segments, U.S. and International. The Company's information, marketing and analytic services are typically distributed to its clients under subscription-based license agreements, which typically have a minimum term of one year and renew automatically. In 2007 it began to manage its business geographically in two operating segments, with the Company's main areas of measurement and decision-making being the U.S. and International, which includes the U.K. and France. It also intends to continue to grow and expand the coverage of its service offerings within its International segment. It intends to introduce a consistent worldwide platform of service offerings. The Company has spent more than 25 years building and acquiring a database of commercial real estate information, which includes information on leasing, sales, comparable sales, tenants, and demand statistics, as well as digital images. The Company has developed a sophisticated data collection organization utilizing a multi-faceted research process. In 2012, its full time researchers and contractors drove millions of miles, conducted hundreds of thousands of on-site building inspections, and conducted millions of interviews of brokers, owners and tenants. The Company's suite of information, marketing and analytic services is branded and marketed to its customers. Its services are derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing and using its information. The Company's main marketing methods include: service demonstrations; face to face networking; web-based marketing; direct marketing; communication via its corporate website and news services; participation in trade show and industry events; print advertising in trade magazines and other business publications; client referrals; and CoStar Advisor(tm), the Company's newsletter, which is distributed to its clients and prospects. The Company competes directly and indirectly for customers with the following companies: LoopNet, Inc., Cityfeet.com, Inc., Reed Business Information Limited, officespace.com, MrOfficeSpace.com, TenantWise, Inc., WorkplaceIQ and RealPoint LLC; Black's Guide, CBRE Economic Advisors, Marshall & Swift, Yale Robbins, Inc., Reis, Inc., Real Capital Analytics, Inc. and The Smith Guide, Inc. The Comp

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