Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, commercial real estate brokerage CB Richard Ellis Group (NYSE: CBG) has received a distressing two-star ranking.
With that in mind, let's take a closer look at CB Richard Ellis' business, and see what CAPS investors are saying about the stock right now.
CB Richard Ellis facts
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Headquarters (founded)
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Los Angeles (1906)
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Market Cap
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$2.62 billion
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Industry
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Real Estate Services
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TTM Revenue
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$4.79 billion
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Management
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CEO Brett White (since June 2005)
CFO Robert Sulentic (since February 2009)
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4-Month Return
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311%
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Annual Revenue Growth (average, last five years and TTM)
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21.5% and (20.9%)
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Competitors
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Jones Lang LaSalle (NYSE: JLL)
Grubb & Ellis (NYSE: GBE)
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CAPS Members Bearish on CBG Also Bearish on
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Developers Diversified Realty (NYSE: DDR)
Palm (Nasdaq: PALM)
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CAPS Members Bullish on CBG Also Bullish on
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Bank of America (NYSE: BAC)
Apple (Nasdaq: AAPL)
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Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 56 of the 327 members who have rated CB Richard Ellis -- some 17% -- believe the stock will underperform the S&P 500 going forward. These bears include hallen52 and JakilaTheHunII.
Just last week, hallen52 seemed skeptical over CB Richard Ellis' recent multibagging run:
Bad segment. Loads of debt. No dividend. … Negative [tangible book value]. The market will catch on soon.
In a pitch from last month, JakilaTheHunII also refuses to extend the stock any goodwill:
Their [balance sheet] consist more of receivables, goodwill, and various other items. The goodwill account is MASSIVE! For those not in the know, "goodwill" is simply an accounting concept. It shows the premium a company paid to acquire other companies. This "premium" is pretty much meaningless if the cash flows don't hold up in the future. ...
Just to add fuel to the fire, [CB Richard's] profitability has been severely impacted by the current downturn. …
Seems to me that upside here is somewhat limited and downside is still very significant. Moreover, I believe the rest of the market is undervalued by a bit. Given this, I believe that [CB Richard] is an excellent underperform pick.
What do you think about CB Richard Ellis, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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