Cousins Properties (Cousins Properties) Predictability Rank

View and export this data going back to 1992. Start your Free Trial

What is Cousins Properties Predictability Rank?

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Cousins Properties Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Cousins Properties Predictability Rank Related Terms

Thank you for viewing the detailed overview of Cousins Properties's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Cousins Properties (Cousins Properties) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Cousins Properties Inc (NYSE:CUZ) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

CPZ1:Germany

Address

3344 Peachtree Road NE, Suite 1800, Atlanta, GA, USA, 30326-4802

Website

https://www.cousins.com

Cousins Properties Inc is a real estate investment trust principally involved in the ownership, management, and development of properties in the Southern United States. Cousins Properties' real estate portfolio primarily comprises offices and mixed-use developments that encompass both apartment and retail space. Offices make up the vast majority of the portfolio in terms of total square footage. Cousins' assets are mainly located in Texas and Georgia, with North Carolina also playing host to a smaller amount of rental space. The company derives nearly all of its revenue in the form of rental income from its properties, most of which comes from its office locations. A diverse set of tenants in the cities of Houston and Atlanta represent the company's major markets.

Executives

Pamela F Roper	officer: Senior Vice President	3344 PEACHTREE ROAD NE STE 1800, ATLANTA GA 30326
Scott W Fordham	director	5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Dionne Nelson	director	3344 PEACHTREE ROAD, NE, SUITE 1800, ATLANTA GA 30326
Jane Kennedy Hicks	officer: Executive VP, Investments	1820 PEACHTREE RD NW, #502, ATLANTA GA 30309
Hickson Richard G Iv	officer: Executive Vice President	3344 PEACHTREE ROAD NE SUITE 1800, ATLANTA GA 30326
Jeffrey D Symes	officer: SVP, Chief Accounting Officer	545 E. JOHN CARPENTER FWY., SUITE 1300, IRVING TX 75062
Griffin R Kent Jr	director	5950 SHERRY LANE, SUITE 700, DALLAS TX 75225
Gellerstedt Lawrence L Iii	officer: President-Office/Multi-Fam Div	3344 PEACHTREE ROAD, SUITE 1800, ATLANTA GA 30326
John S Mccoll	officer: Senior Vice President	3344 PEACHTREE ROAD NE STE 1800, ATLANTA GA 30326
Edward Manuel Casal	director	3344 PEACHTREE ROAD NE, STE 1800, ATLANTA GA 30326
S Taylor Glover	director	3344 PEACHTREE ROAD NE STE 1800, ATLANTA 2Q 30326
Lillian C Giornelli	director	3344 PEACHTREE ROAD STE 1800, ATLANTA GA 30326
Kelvin L. Davis	director	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Brenda J Mixson	director	P.O.BOX 697, ST. HELENA CA 94574
Charles T Cannada	director	3344 PEACHTREE ROAD STE 1800, ATLANTA GA 30326