Switch to:
CBRE Group Inc (NYSE:CBG)
Piotroski F-Score
4 (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 4 indicating the company's financial situation is typical for a stable company.

CBG' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Max: 8
Current: 4

2
8

During the past 13 years, the highest Piotroski F-Score of CBRE Group Inc was 8. 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 (Jun16) TTM:Last Year (Jun15) TTM:
Net Income was 149.123 + 180.043 + 82.167 + 121.668 = $533 Mil.
Cash Flow from Operations was 184.601 + 509.487 + -328.64 + 118.623 = $484 Mil.
Revenue was 2712.559 + 3700.242 + 2846.734 + 3207.537 = $12,467 Mil.
Gross Profit was 938.899 + 1169.721 + 833.121 + 953.304 = $3,895 Mil.
Average Total Assets from the begining of this year (Jun15)
to the end of this year (Jun16) was
(7460.259 + 9555.464 + 11017.943 + 9835.135 + 9922.572) / 5 = $9558.2746 Mil.
Total Assets at the begining of this year (Jun15) was $7,460 Mil.
Long-Term Debt was $2,625 Mil.
Total Current Assets was $4,246 Mil.
Total Current Liabilities was $3,743 Mil.
Net Income was 107.099 + 204.277 + 92.937 + 125.029 = $529 Mil.

Revenue was 2275.076 + 2787.194 + 2052.503 + 2390.506 = $9,505 Mil.
Gross Profit was 846.09 + 1080.851 + 761.726 + 902.532 = $3,591 Mil.
Average Total Assets from the begining of last year (Jun14)
to the end of last year (Jun15) was
(7471.771 + 7529.954 + 7568.01 + 7625.66 + 7460.259) / 5 = $7531.1308 Mil.
Total Assets at the begining of last year (Jun14) was $7,472 Mil.
Long-Term Debt was $1,734 Mil.
Total Current Assets was $3,343 Mil.
Total Current Liabilities was $2,595 Mil.

Profitability

Question 1. 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 533. ==> Positive ==> Score 1.

Question 2. 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 484. ==> Positive ==> Score 1.

Question 3. 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 (Jun15)
=533.001/7460.259
=0.07144537

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=529.342/7471.771
=0.07084559

CBRE Group Inc's return on assets of this year was 0.07144537. CBRE Group Inc's return on assets of last year was 0.07084559. ==> This year is higher. ==> Score 1.

Question 4. 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 533. CBRE Group Inc's current cash flow from operations (TTM) was 484. ==> 484 <= 533 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. 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: Jun16)=Long-Term Debt/Average Total Assets from Jun15 to Jun16
=2624.977/9558.2746
=0.27462875

Gearing (Last Year: Jun15)=Long-Term Debt/Average Total Assets from Jun14 to Jun15
=1734.35/7531.1308
=0.23029078

CBRE Group Inc's gearing of this year was 0.27462875. CBRE Group Inc's gearing of last year was 0.23029078. ==> Last year is lower than this year ==> Score 0.

Question 6. 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: Jun16)=Total Current Assets/Total Current Liabilities
=4246.081/3742.649
=1.13451221

Current Ratio (Last Year: Jun15)=Total Current Assets/Total Current Liabilities
=3342.956/2594.774
=1.28834187

CBRE Group Inc's current ratio of this year was 1.13451221. CBRE Group Inc's current ratio of last year was 1.28834187. ==> Last year's current ratio is higher ==> Score 0.

Question 7. 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 338.1. CBRE Group Inc's number of shares in issue last year was 336.2. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. 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
=3895.045/12467.072
=0.31242661

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=3591.199/9505.279
=0.377811

CBRE Group Inc's gross margin of this year was 0.31242661. CBRE Group Inc's gross margin of last year was 0.377811. ==> Last year's gross margin is higher ==> Score 0.

Question 9. 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 (Jun15)
=12467.072/7460.259
=1.67113126

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (Jun14)
=9505.279/7471.771
=1.27215877

CBRE Group Inc's asset turnover of this year was 1.67113126. CBRE Group Inc's asset turnover of last year was 1.27215877. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+0+0+1
=4

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

CBRE Group Inc has an F-score of 4 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
Question 1 1101111111
Question 2 1101111111
Question 3 1001110011
Question 4 1111110111
Question 5 0100101110
Question 6 1011011010
Question 7 0110000000
Question 8 1000101000
Question 9 1001110111
F-score 7536765575

CBRE Group Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
Question 1 1111111111
Question 2 1111111111
Question 3 1111111101
Question 4 1111111100
Question 5 1101110000
Question 6 0001110000
Question 7 0000000000
Question 8 0000000000
Question 9 1111110111
F-score 6657774534
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK