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112.03 (1y: +55%)
Market Cap 3.26 B P/E(ttm) 1600.20
Enterprise Value 3.26 B P/B 3.90
CSGP- NAS (USA)
CoStar Group, Inc.
  • Currently 1/5
Business Predictability Rank: 1-Star
Back Testing Results:
Average gain of all 1-Star stocks: 1.1% per year.
% of Stocks that are in still loss if held for 10yrs: 45%.
Read more:
What is Predictability Rank?
Performances of real portfolio
Top Ranked Predictable Companies
$112.03
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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 : 5/10

vs
industry		 vs
history
Cash to Debt 0.915
CSGP's Cash to Debt is ranked lower than
64% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 6.30 vs. CSGP: 0.915 )
CSGP' s 10-Year Cash to Debt Range
Min: 0.92   Max: No Debt
Current: 0.92
Equity to Asset -0.054
CSGP's Equity to Asset is ranked lower than
81% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 0.37 vs. CSGP: -0.054 )
CSGP' s 10-Year Equity to Asset Range
Min: -0.05   Max: 0.71
Current: -0.05
-0.05
0.71
Interest Coverage 6.4
CSGP's Interest Coverage is ranked higher than
66% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 61.10 vs. CSGP: 6.4 )
CSGP' s 10-Year Interest Coverage Range
Min: 6   Max: No Debt
Current: 6.4
F-Score: 5
Z-Score: 6.24
M-Score: -2.11
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 : 4/10

vs
industry		 vs
history
Operating margin (%) 7.80
CSGP's Operating margin (%) is ranked higher than
61% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 6.70 vs. CSGP: 7.80 )
CSGP' s 10-Year Operating margin (%) Range
Min: -84.1   Max: 18.7
Current: 7.8
-84.1
18.7
Net-margin (%) 2.8
CSGP's Net-margin (%) is ranked higher than
66% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 4.40 vs. CSGP: 2.8 )
CSGP' s 10-Year Net-margin (%) Range
Min: -84.9   Max: 22.3
Current: 2.8
-84.9
22.3
ROE (%) 1.2
CSGP's ROE (%) is ranked lower than
64% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 8.80 vs. CSGP: 1.2 )
CSGP' s 10-Year ROE (%) Range
Min: -39.3   Max: 11.8
Current: 1.2
-39.3
11.8
ROA (%) 0.9
CSGP's ROA (%) is ranked lower than
60% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 4.00 vs. CSGP: 0.9 )
CSGP' s 10-Year ROA (%) Range
Min: -34   Max: 10.7
Current: 0.9
-34
10.7
ROC (Joel Greenblatt) (%) 484.00
CSGP's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 20.00 vs. CSGP: 484.00 )
CSGP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -1541.6   Max: 800.1
Current: 484
-1541.6
800.1
Revenue Growth (%) 5.4
CSGP's Revenue Growth (%) is ranked higher than
69% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 3.10 vs. CSGP: 5.4 )
CSGP' s 10-Year Revenue Growth (%) Range
Min: -0.4   Max: 18.2
Current: 5.4
-0.4
18.2
EBITDA Growth (%) -1.1
CSGP's EBITDA Growth (%) is ranked higher than
69% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 0.30 vs. CSGP: -1.1 )
CSGP' s 10-Year EBITDA Growth (%) Range
Min: -15.5   Max: 30.4
Current: -1.1
-15.5
30.4
EPS Growth (%) -20.8
CSGP's EPS Growth (%) is ranked higher than
70% of the 429 Companies
in the Global Business Services industry.

( Industry Median: -1.30 vs. CSGP: -20.8 )
CSGP' s 10-Year EPS Growth (%) Range
Min: -26.9   Max: 183.9
Current: -20.8
-26.9
183.9
» CSGP's 10-Y Financials

Financials


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

» Details

Guru Trades
Q2 2012

CSGP Guru Trades in Q2 2012

Chuck Royce 25,000 sh (unchged)
Jean-Marie Eveillard Sold Out
Steven Cohen Sold Out
Jeremy Grantham Sold Out
Ron Baron 1,994,600 sh (-1.99%)
Jim Simons 129,742 sh (-18.3%)
Pioneer Investments 162,268 sh (-21.51%)
» More
Q3 2012

CSGP Guru Trades in Q3 2012

Jim Simons 138,342 sh (+6.63%)
Chuck Royce 25,000 sh (unchged)
Ron Baron 1,953,590 sh (-2.06%)
Pioneer Investments 113,072 sh (-30.32%)
» More
Q4 2012

CSGP Guru Trades in Q4 2012

Pioneer Investments 119,117 sh (+5.35%)
Chuck Royce 25,000 sh (unchged)
Ron Baron 1,951,191 sh (-0.12%)
Jim Simons 118,242 sh (-14.53%)
» More
Q1 2013

CSGP Guru Trades in Q1 2013

Murray Stahl 2,000 sh (New)
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
» Details

Insider Trades

Latest Guru Trades with CSGP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Jean-Marie Eveillard 2012-06-30 Sold Out 0.01%$67.48 - $82.68 $ 112.0354%0
Jean-Marie Eveillard 2012-03-31 Add 373.46%$56.67 - $69.87 $ 112.0396%19270
Jean-Marie Eveillard 2011-12-31 New Buy$49.22 - $68.39 $ 112.0384%4070
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on CoStar Group, Inc.

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)

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Top Ranked Articles about CoStar Group, Inc.

Ron Baron Comments on CoStar Group Inc.
April 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. Read more...
Baron Funds Comments on CoStar Group
August 24, 2012
From Baron Funds' second quarter commentary: Read more...

Ratios

vs
industry		 vs
history
P/E(ttm) 1600.20
CSGP's P/E(ttm) is ranked lower than
56% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 20.30 vs. CSGP: 1600.20 )
CSGP' s 10-Year P/E(ttm) Range
Min: 19.33   Max: 2107.5
Current: 1600.2
19.33
2107.5
P/B 3.90
CSGP's P/B is ranked lower than
68% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 1.74 vs. CSGP: 3.90 )
CSGP' s 10-Year P/B Range
Min: 1.59   Max: 6.54
Current: 3.9
1.59
6.54
P/S 8.00
CSGP's P/S is ranked lower than
93% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 1.00 vs. CSGP: 8.00 )
CSGP' s 10-Year P/S Range
Min: 2.34   Max: 18.32
Current: 8
2.34
18.32
PFCF 41.10
CSGP's PFCF is ranked lower than
76% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 14.07 vs. CSGP: 41.10 )
CSGP' s 10-Year PFCF Range
Min: 12.44   Max: 408.33
Current: 41.1
12.44
408.33
EV-to-EBIT 200
CSGP's EV-to-EBIT is ranked lower than
56% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 13.30 vs. CSGP: 200 )
CSGP' s 10-Year EV-to-EBIT Range
Min: 6.7   Max: 235085
Current: 200
6.7
235085
Shiller P/E 139.2
CSGP's Shiller P/E is ranked higher than
85% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 21.70 vs. CSGP: 139.2 )
CSGP' s 10-Year Shiller P/E Range
Min: 30.14   Max: 542
Current: 139.2
30.14
542

Valuation & Return

vs
industry		 vs
history
Price/Net Current Asset Value 339.5
CSGP's Price/Net Current Asset Value is ranked higher than
99% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 9.00 vs. CSGP: 339.5 )
CSGP' s 10-Year Price/Net Current Asset Value Range
Min: 36.6   Max: 255.3
Current: 339.5
36.6
255.3
Price/DCF (Projected) 3.3
CSGP's Price/DCF (Projected) is ranked higher than
96% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 1.15 vs. CSGP: 3.3 )
CSGP' s 10-Year Price/DCF (Projected) Range
Min: 1.1   Max: 11.9
Current: 3.3
1.1
11.9
Price/Median PS Value 1.4
CSGP's Price/Median PS Value is ranked higher than
89% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 0.90 vs. CSGP: 1.4 )
CSGP' s 10-Year Price/Median PS Value Range
Min: 0.5   Max: 1.4
Current: 1.4
0.5
1.4
Earnings Yield (Greenblatt) 0.50
CSGP's Earnings Yield (Greenblatt) is ranked higher than
62% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 7.70 vs. CSGP: 0.50 )
CSGP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.3   Max: 14.9
Current: 0.5
0.3
14.9
Forward Rate of Return (Yacktman) -10.81
CSGP's Forward Rate of Return (Yacktman) is ranked higher than
72% of the 429 Companies
in the Global Business Services industry.

( Industry Median: 7.50 vs. CSGP: -10.81 )
CSGP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -10.7   Max: 43.8
Current: -10.81
-10.7
43.8

Business Description

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. CoStar has spent more than 22 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 2011, 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. Its 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 Company has filed t
Company Website
SEC Reports
Industry: Business Services
Compare:ADP, G, ENV, CMPGY, SGSOY
» More Articles for CSGP

Headlines

Articles On GuruFocus.com
Ron Baron Comments on CoStar Group Inc. Apr 24 2013 
Ron Baron Discusses Start in Investing, Stock Holdings in Q1 2013 Letter Apr 24 2013 
Baron Funds Comments on CoStar Group Aug 24 2012 
LoopNet Shares Jump 7%, But Don’t Get Too Excited Feb 10 2011 
CoStar Group Inc. (CSGP) President and CEO Andrew C Florance sells 9,883 Shares Aug 11 2010 
CoStar Group Inc. (CSGP) President and CEO Andrew C Florance sells 46,540 Shares Oct 29 2009 

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