Colliers International Group Stock Is Believed To Be Significantly Overvalued

GuruFocus.com
·4 min read

- By GF Value

The stock of Colliers International Group (NAS:CIGI, 30-year Financials) is estimated to be significantly overvalued, according to GuruFocus Value calculation. GuruFocus Value is GuruFocus' estimate of the fair value at which the stock should be traded. It is calculated based on the historical multiples that the stock has traded at, the past business growth and analyst estimates of future business performance. If the price of a stock is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher. At its current price of $106.17 per share and the market cap of $4.3 billion, Colliers International Group stock shows every sign of being significantly overvalued. GF Value for Colliers International Group is shown in the chart below.


Colliers International Group Stock Is Believed To Be Significantly Overvalued
Colliers International Group Stock Is Believed To Be Significantly Overvalued

Because Colliers International Group is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth, which averaged 3.9% over the past three years and is estimated to grow 4.22% annually over the next three to five years.

Link: These companies may deliever higher future returns at reduced risk.

It is always important to check the financial strength of a company before buying its stock. Investing in companies with poor financial strength have a higher risk of permanent loss. Looking at the cash-to-debt ratio and interest coverage is a great way to understand the financial strength of a company. Colliers International Group has a cash-to-debt ratio of 0.14, which is worse than 68% of the companies in Real Estate industry. The overall financial strength of Colliers International Group is 4 out of 10, which indicates that the financial strength of Colliers International Group is poor. This is the debt and cash of Colliers International Group over the past years:

Colliers International Group Stock Is Believed To Be Significantly Overvalued
Colliers International Group Stock Is Believed To Be Significantly Overvalued

Investing in profitable companies carries less risk, especially in companies that have demonstrated consistent profitability over the long term. Typically, a company with high profit margins offers better performance potential than a company with low profit margins. Colliers International Group has been profitable 9 years over the past 10 years. During the past 12 months, the company had revenues of $2.8 billion and earnings of $1.17 a share. Its operating margin of 7.43% in the middle range of the companies in Real Estate industry. Overall, GuruFocus ranks Colliers International Group's profitability as fair. This is the revenue and net income of Colliers International Group over the past years:

Colliers International Group Stock Is Believed To Be Significantly Overvalued
Colliers International Group Stock Is Believed To Be Significantly Overvalued

Growth is probably the most important factor in the valuation of a company. GuruFocus research has found that growth is closely correlated with the long term performance of a company's stock. The faster a company is growing, the more likely it is to be creating value for shareholders, especially if the growth is profitable. The 3-year average annual revenue growth rate of Colliers International Group is 3.9%, which ranks in the middle range of the companies in Real Estate industry. The 3-year average EBITDA growth rate is 9.2%, which ranks in the middle range of the companies in Real Estate industry.

One can also evaluate a company's profitability by comparing its return on invested capital (ROIC) to its weighted average cost of capital (WACC). Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. If the return on invested capital exceeds the weighted average cost of capital, the company is likely creating value for its shareholders. During the past 12 months, Colliers International Group's ROIC is 5.14 while its WACC came in at 9.21. The historical ROIC vs WACC comparison of Colliers International Group is shown below:

Colliers International Group Stock Is Believed To Be Significantly Overvalued
Colliers International Group Stock Is Believed To Be Significantly Overvalued

In summary, Colliers International Group (NAS:CIGI, 30-year Financials) stock gives every indication of being significantly overvalued. The company's financial condition is poor and its profitability is fair. Its growth ranks in the middle range of the companies in Real Estate industry. To learn more about Colliers International Group stock, you can check out its 30-year Financials here.

To find out the high quality companies that may deliever above average returns, please check out GuruFocus High Quality Low Capex Screener.

This article first appeared on GuruFocus.

Recommended Stories

  • Did ‘Law & Order’ Just Open the Door for Benson and Stabler to Finally Hook Up?

    NBCThis post contains spoilers for Law & Order: SVU and Law & Order: Organized Crime.Reunited, and it feels so... well, not good, really. On Thursday night, Law & Order finally reunited NBC’s most beloved platonic couple: After a decade apart, Mariska Hargitay’s Olivia Benson and Christopher Meloni’s Elliot Stabler are back on the case. Unfortunately, it took the death of Stabler’s wife, Kathy, at the hands of a mysterious, high-level criminal to make it happen.Thursday marks the premiere of Meloni’s new Law & Order spinoff, Organized Crime. Given the magnitude of Benson and Stabler’s (Babe-ler’s?) reunion, it should come as no surprise that NBC blew the event up into a crossover event with SVU—which opened on Kathy Stabler being wheeled into an ambulance as a stunned Olivia looked on. Apparently, despite the fact that the Stablers have been living overseas, they’ve become a bombing target here in the U.S. Maybe it has something to do with Elliot’s new job?As Stabler explains, he went on a walkabout for a few years after his departure from the NYPD; he began working private security and eventually, he wound up working as an international liaison handling terrorism, sex-trafficking, and organized crime. He came to New York to testify on a case, and Kathy had tagged along. Apparently, the police placard in their rental car tipped off the bomber.Kathy initially survived the attack, but later died in the hospital of a ruptured spleen. Benson and her team are able to track down the suspected bomber, but soon enough he, too, is found dead in his cell from an overdose. The explosive appears to have been an international design.Life After ‘SVU’: Christopher Meloni on ‘They Came Together,’ Stabler, and His Famous BehindSadly for Kathy, her brush with death is mostly just a plot device to bring Benson and Stabler together (and, of course, launch Stabler’s new standalone TV gig). Benson volunteers to lead the bombing investigation, and allows her old partner to accompany her during the first interrogation, where they question a QAnon devotee. It quickly becomes clear, however, that the perpetrator in this case is someone far more sophisticated.A lot has changed since last time Stabler appeared onscreen. In his latter seasons, especially, Meloni’s character became known for his hot temper and propensity for bending the rules—qualities that have not aged well in light of recent discussions of how cop procedurals have promoted harmful ideas about policing. So as Stabler made his grand return, viewers also got a healthy dose of hand-wringing about how “good” or “bad” of a cop he might be now. “Don’t tell me, ‘We don’t do it that way anymore, please,’” Stabler tells Benson at one point. “I’ve been living out of New York, not under a rock.” Vouching for his former colleague to a newer peer, Finn insists, “End of the day, he’s a good cop.”Eventually, Stabler loses his cool over the questions: “I’m pretty sick of people judging me for who I was 12 years ago,” he says. “I was a good cop then, I’m a good cop now.”As Ayanna Bell, the organized crime officer in charge of hunting down the criminal element responsible for his wife’s apparent murderer, shoots back, “Guys who came up when you did, you guys never think you need to change your ways.”But the chief order of business in hour one of this crossover event, naturally, was addressing the distance that’s festered between Stabler and Benson in their decade apart.It’s been 10 years since Benson and Stabler worked a case together. Meloni’s last episode, the Season 12 finale, ended with Stabler shooting the daughter of a rape victim, who’d open fire in the NYPD precinct with a gun she’d purchased off the street. In subsequent episodes, Benson learned her longtime partner had resigned. The two have not spoken since.“Are you sorry for leaving, or are you sorry for walking—for not giving me the courtesy of telling me?” Benson asks. “You were the single most important person in my life. And you just... disappeared.”“I know,” Elliot replies. “I was afraid. If I heard your voice, I wouldn’t have been able to leave.”Stabler and Benson’s partnership was always, erm, shall we say... intense? That fact came up Thursday night as well, as newer squad members, including Amanda Rollins, hint at the ambiguous “thing” the pair notoriously shared. Stabler seems curious when Finn mentions Olivia’s romantic relationships, and tries to glean some information out of his old colleague—only to be told he’ll need to ask himself.At the risk of sounding crass about poor Kathy’s death, her tragic fate does prompt one, yes, very crass question: Are we finally, after all these years, going to see Stabler and Benson kiss? Pretty please?Right now, however, Stabler obviously has bigger fish to fry. Kathy’s murder case is officially out of Benson’s jurisdiction, although that’s no guarantee she’ll stand down. Stabler’s youngest son, Eli, is shattered over his mother’s death and despondent that the family will not be returning to Rome. (Sadly, NBC apparently does not have the funds to give us Law & Order Takes Tuscany.) Stabler himself, meanwhile, has already begun grilling international criminals and chasing down leads, continually referring back to a smuggling case he’d been working in Puglia. Turns out, medical supplies have become a lucrative source of money for organized crime rings during COVID times. At the root of all this, it seems, is Freddie (Dylan McDermott)—the son of a notorious mob boss named Sinatra (yes, Sinatra) whose goons were also behind the Puglia PPE smuggling. Freddie, who also goes by the name Richard Wheatley, enjoys an upper-crust existence, painting himself as a legitimate businessman. Even Sinatra seemed ready to rat his son out to Stabler—but unfortunately, Freddie got to him first and executed him on the Wonder Wheel in Coney Island. Now, the chase is afoot. It seems likely that this case will consume a good portion of Organized Crime’s premiere season, or at least provide its early narrative backbone. But once the fog clears and the gavel inevitably falls, there will be time for other, longer-simmering questions—including, yes, whether after all these years, fans might finally get to see Benson and Stabler reconcile and, eventually, smooch. For now, however, we’ll have to wait and see.Read more at The Daily Beast.Get our top stories in your inbox every day. Sign up now!Daily Beast Membership: Beast Inside goes deeper on the stories that matter to you. Learn more.

  • Matt Gaetz reportedly received talking-to about 'acting professionally' in Congress by House staff during first term, per CNN

    A spokesperson for the Florida representative denied any such conversation took place between Gaetz and then-House Speaker Paul Ryan or his staff.

  • Mom killed 6-year-old with cocaine, other drugs for insurance money, Texas police say

    A Texas mom is charged with capital murder in the death of her 6-year-old son.

  • Taiwan train crash kills 36 in deadliest rail tragedy in decades

    TAIPEI (Reuters) -At least 36 people were killed and some 70 remain trapped in wreckage after a Taiwan train derailed in a tunnel on Friday when it apparently hit a truck. The crash, which also injured more than 40 passengers, is the island's worst rail disaster in at least four decades. The train, an express travelling from Taipei to Taitung carrying many tourists and people heading home at the start of a long weekend, came off the rails north of Hualien in eastern Taiwan, the fire department said.

  • Users are reporting that multiple Microsoft products are down

    Microsoft Office 365's status page said, "We're investigating a potential DNS issue and are evaluating our mitigation options."

  • Donald Trump Jr. and girlfriend Kimberly Guilfoyle buy mansion 20 miles from Mar-a-Lago

    Donald Trump Jr. and his girlfriend Kimberly Guilfoyle are now Florida home owners.

  • The owners of the Ever Given are suing its operators after the massive ship spent 6 days lodged in the Suez Canal

    The owners of the giant container ship filed a lawsuit against the Evergreen Marine Corp. in the High Court in London, according to The Lawyer.

  • Williams had seven seasons left on his UNC contract. It never mentions retirement.

    Williams signed a contract extension in 2018.

  • Myanmar coup: Six-year-old shot 'as she ran into father's arms'

    Khin Myo Chit was killed by security forces in her home, becoming the crackdown's youngest victim.

  • Michael Jordan speaks out on Roy Williams retirement: ‘He meant so much to basketball’

    Observer Exclusive: UNC legend and Charlotte Hornets owner Michael Jordan discusses Roy Williams’ retirement. His favorite Williams memories had nothing to do with basketball.

  • A first kiss, a battle with addiction: Floyd's girlfriend testifies at Chauvin murder trial

    MINNEAPOLIS (Reuters) -George Floyd's girlfriend took the witness stand on Thursday and described their relationship, from a first kiss to date nights at restaurants, but also spoke about how an addiction to painkillers took hold of their life together. Courteney Ross, 45, was the first witness who personally knew Floyd to testify at the trial of Derek Chauvin, the former Minneapolis policeman charged with murdering the man she loved by kneeling on his neck during an arrest last May. In her testimony, Ross described how her romance with Floyd began in 2017 when he offered to pray with her.

  • Camera traps capture educational clips of Costa Rican wildlife

    Video shared on social media showed animals including a white-tailed deer, nine-banded armadillo, common black hawk, tamandua and an ocelot.The video is part of an ongoing project between Guanacaste Wildlife Monitoring and the local Matapalo School that began in 2019, Guanacaste Wildlife Monitoring told Reuters in an email.The students helped place camera traps in forests around the community to record wildlife and learn about the animals and how the camera traps work, Guanacaste Wildlife Monitoring added.

  • Be humble, pope tells priests as he begins services leading to Easter

    Pope Francis urged priests to be humble like Jesus as he began three busy days leading to Easter - all scaled down because of the coronavius pandemic - with a Holy Thursday Mass. Holy Thursday is the day Christians commemorate the day Jesus instituted the priesthood. The pope, leader of the 1.3 billion Roman Catholic Church, said the Mass of the Chrism in a secondary part of St. Peter's Basilica for about 200 people instead of the nearly 10,000 in the past.

  • Swiss robots use UV lights to sanitize planes

    These Swiss robots use UV light to sanitize planesLocation: Zurich, SwitzerlandUVeya is trialing the autonomous robots inside jets from Helvetic AirwaysOne robot can disinfect a single-aisle plane in 13 minutes(SOUNDBITE) (English) UVEYA CO-FOUNDER JODOC ELMIGER, SAYING:"It's quite an old technology but it's quite dangerous. That's why we want to take the worker out of the range of the light, so that's why we made a robot. There are some solutions when you are near the light, that's dangerous, so we really had to make the system autonomous, so we switch it on, leave the machine to make its disinfection all around the plane, and then it stops automatically, so the worker is not in contact with the machine. You will also see it doesn't make any traces, or chemistry. So that's also very important for the traveller, that you know you have a safe place, there is no chemical residue on the seats, on everywhere."

  • Utah Jazz players feared it was 'the end' when their plane's engine failed after hitting a flock of birds

    Jazz guard Mike Conley said it felt like the plane was breaking apart in midair as players sat in silence, unsure of what was happening.

  • Thailand reduces quarantine, paperwork for vaccinated

    Thailand on Thursday began halving the quarantine time for vaccinated visitors as a first step to allowing inoculated people into the country without the need to isolate. The pandemic has devastated Thailand's tourism industry, a key income earner, but strict border measures have left the country relatively unscathed. Tanee Sangrat, the spokesperson of the Ministry of Foreign Affairs, said that travelers — Thais and non-Thais — are no longer required to have fit-to-fly documents issued by Thai consulates from Thursday.

  • A clip of James Charles saying he's 'not physically attracted to older guys' has resurfaced after he apologized amid a sexting scandal

    A clip from "Impaulsive" was making the rounds on social media after James Charles posted a video addressing allegations that he flirted with minors.

  • A church barred a woman from winning a fishing trip because the pastor wanted to avoid a 'false accusation'

    A pastor said "living in the days of sexual scandals and accusations," he avoids positions that could lead to false accusations, which are rare.

  • The 'daughter of Bengal' taking on India's PM

    West Bengal Chief Minister Mamata Banerjee is locked in a fierce election battle with Mr Modi's party.

  • Italy approves new decree to keep cruise ships out of Venice lagoon

    Italy's government has ruled that large cruise ships and container vessels must not pass close to Venice's historic centre and should instead dock in a different location to preserve the famed lagoon. A decree approved late on Wednesday called for public consultations on building a terminal outside the lagoon where passenger vessels over 40,000 tons and container ships can berth without passing in front of Saint Mark's square. "Anyone who has visited Venice in recent years has been shocked to see these ships, hundreds of metres long and as tall as apartment buildings, passing through such fragile places," Culture Minister Dario Franceschini said on Thursday.