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CBRE Group Inc (NYSE:CBG)
Piotroski F-Score
5 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CBRE Group Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.

CBG' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 5

2
9

During the past 13 years, the highest Piotroski F-Score of CBRE Group Inc was 9. The lowest was 2. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Net Income was 114.646 + 67.663 + 105.464 + 107.099 = $395 Mil.
Cash Flow from Operations was 510.468 + -269.966 + 45.982 + 292.462 = $579 Mil.
Revenue was 2233.851 + 1860.842 + 2126.806 + 2275.076 = $8,497 Mil.
Gross Profit was 956.853 + 699.382 + 812.333 + 846.09 = $3,315 Mil.
Average Total Assets from the begining of this year (Sep13)
to the end of this year (Sep14) was
(6177.335 + 6998.414 + 6843.358 + 7471.771 + 7529.954) / 5 = $7004.1664 Mil.
Total Assets at the begining of this year (Sep13) was $6,177 Mil.
Long-Term Debt was $2,084 Mil.
Total Current Assets was $3,461 Mil.
Total Current Liabilities was $2,677 Mil.
Net Income was 172.998 + 37.546 + 69.902 + 94.444 = $375 Mil.

Revenue was 2005.846 + 1475.063 + 1742.014 + 1733.866 = $6,957 Mil.
Gross Profit was 874.276 + 613.847 + 723.187 + 701.518 = $2,913 Mil.
Average Total Assets from the begining of last year (Sep12)
to the end of last year (Sep13) was
(6768.777 + 7809.542 + 6887.64 + 6348.288 + 6177.335) / 5 = $6798.3164 Mil.
Total Assets at the begining of last year (Sep12) was $6,769 Mil.
Long-Term Debt was $1,879 Mil.
Total Current Assets was $2,559 Mil.
Total Current Liabilities was $1,843 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CBRE Group Inc's current net income (TTM) was 395. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

CBRE Group Inc's current cash flow from operations (TTM) was 579. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (Sep13)
=394.872/6177.335
=0.06392271

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=374.89/6768.777
=0.05538519

CBRE Group Inc's return on assets of this year was 0.06392271. CBRE Group Inc's return on assets of last year was 0.05538519. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

CBRE Group Inc's current net income (TTM) was 395. CBRE Group Inc's current cash flow from operations (TTM) was 579. ==> 579 > 395 ==> CFROA > ROA ==> Score 1.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep14)=Long-Term Debt/Average Total Assets from Sep13 to Sep14
=2084.213/7004.1664
=0.2975676

Gearing (Last Year: Sep13)=Long-Term Debt/Average Total Assets from Sep12 to Sep13
=1878.521/6798.3164
=0.2763215

CBRE Group Inc's gearing of this year was 0.2975676. CBRE Group Inc's gearing of last year was 0.2763215. ==> Last year is lower than this year ==> Score 0.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Sep14)=Total Current Assets/Total Current Liabilities
=3461.037/2677.009
=1.29287462

Current Ratio (Last Year: Sep13)=Total Current Assets/Total Current Liabilities
=2558.96/1842.727
=1.38868101

CBRE Group Inc's current ratio of this year was 1.29287462. CBRE Group Inc's current ratio of last year was 1.38868101. ==> Last year's current ratio is higher ==> Score 0.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

CBRE Group Inc's number of shares in issue this year was 334.3. CBRE Group Inc's number of shares in issue last year was 332.1. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=3314.658/8496.575
=0.39011696

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=2912.828/6956.789
=0.41870294

CBRE Group Inc's gross margin of this year was 0.39011696. CBRE Group Inc's gross margin of last year was 0.41870294. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (Sep13)
=8496.575/6177.335
=1.37544346

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Sep12)
=6956.789/6768.777
=1.02777636

CBRE Group Inc's asset turnover of this year was 1.37544346. CBRE Group Inc's asset turnover of last year was 1.02777636. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+1+0+0+0+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

CBRE Group Inc has an F-score of 5 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

CBRE Group Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 111011111
Q2 111011111
Q3 110011100
Q4 111111101
Q5 101001011
Q6 110110110
Q7 001100000
Q8 110001010
Q9 110011101
F-score 875367655

CBRE Group Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
Q1 1111111111
Q2 1111111111
Q3 0001110111
Q4 1001111111
Q5 1111111110
Q6 0010000000
Q7 0000000000
Q8 1111000000
Q9 1000011111
F-score 6456565665
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