CBRE Group Inc - Class A (CBRE) Financial Statements

Analyzing CBRE through the GoodMoat Quality Indicators reveals a profile with clear strengths and weaknesses. The company demonstrates solid revenue growth of 11.8% YoY, which is a positive sign. Its Return on Equity (ROE) of 13.0% is respectable, though it falls below the framework's high-quality threshold of 15-20%. The primary concerns lie in profitability and cash flow. The operating margin of 3.2% and profit margin of 2.9% are very low, indicating a highly competitive, service-oriented business with minimal pricing power. Free cash flow generation is modest, with a yield of only 2.0%, which is below the framework's >10-15% FCF margin benchmark. The balance sheet carries significant leverage, with a Debt/Equity ratio of 1.13, exceeding the favourable target of less than 1.0x Debt/EBITDA. This level of debt is a key risk factor. From a growth perspective, the 11.8% revenue growth is healthy but not in the 'accelerating or sustained above 20%' category the framework associates with high-growth companies. Overall, the financials point to a large, scaled operator in a cyclical industry, but one that lacks the high-margin, cash-generative, and low-leverage profile of a classic high-quality compounder. The low margins and high debt are significant constraints on financial quality.