CoStar Group Inc (CSGP, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $98.45, CoStar Group Inc has witnessed a daily gain of 3.44%, marked against a three-month change of 12.21%. A thorough analysis, underlined by the GF Score, suggests that CoStar Group Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 8/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 5/10
- Momentum rank: 10/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With high ranks in financial strength, profitability, and exceptional growth and momentum, CoStar Group Inc's GF Value rank is moderate, reflecting a balanced valuation. GuruFocus assigned CoStar Group Inc the GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding CoStar Group Inc Business
CoStar Group Inc, with a market cap of $40.21 billion and sales of $2.455 billion, is a leading provider of commercial real estate data and marketplace listing platforms. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties across various subsectors. The company operates many flagship brands such as CoStar Suite, LoopNet, Apartments.com, BizBuySell, and Lands of America, with more than 80% of its revenue classified as subscription-based. CoStar Group Inc has expanded its presence in Canada, the United Kingdom, Spain, and France, showcasing a strategic approach to growth and market penetration.
Financial Strength Breakdown
According to the Financial Strength rating, CoStar Group Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With an Altman Z-Score of 16.24, CoStar Group Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.45, CoStar Group Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows CoStar Group Inc's impressive standing among its peers in generating profit. With an operating margin of 11.5%, the company's profitability metrics are a testament to its efficient operations and strong market position. This rank reflects CoStar Group Inc's ability to convert revenue into actual profit, which is a critical aspect for investors seeking sustainable returns.
Growth Rank Breakdown
Ranked highly in Growth, CoStar Group Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 11.7%, which outperforms better than 66.47% of 1682 companies in the Real Estate industry. This growth is indicative of CoStar Group Inc's strategic initiatives and its ability to capitalize on market opportunities.
Next Steps
Considering CoStar Group Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for companies with similar robust financial indicators can explore further using the GF Score Screen. CoStar Group Inc's strategic market positioning, consistent revenue growth, and strong financial health make it a compelling choice for value investors seeking growth and stability in their portfolios.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
