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 $91.69, CoStar Group Inc has witnessed a daily gain of 8.35%, marked against a three-month change of 9.68%. 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: 7/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 9/10
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, CoStar Group Inc's slightly lower GF Value rank does not significantly detract from its overall impressive GF Score of 93 out of 100, which signals the highest outperformance potential.
Understanding CoStar Group Inc Business
CoStar Group Inc is a leading provider of commercial real estate data and marketplace listing platforms. With a market cap of $37.44 billion and sales of $2.455 billion, the company boasts an operating margin of 11.5%. CoStar Group's data offering contains in-depth analytical information on over 5 million commercial real estate properties across various subsectors. Its portfolio of flagship brands includes CoStar Suite, LoopNet, Apartments.com, BizBuySell, and Lands of America, with more than 80% of its revenue classified as subscription-based. The company's recent expansion into Canada, the United Kingdom, Spain, and France underscores its commitment to growth and international presence.
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 14.59, CoStar Group Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. Additionally, a favorable Debt-to-Revenue ratio of 0.45 solidifies its financial health, indicating strategic handling of debt.
Profitability Rank Breakdown
The Profitability Rank reflects CoStar Group Inc's impressive ability to generate profit, standing out among its peers. This rank is a testament to the company's efficient operations and strong market position, which contribute to its overall financial performance.
Growth Rank Breakdown
CoStar Group Inc's high Growth rank demonstrates the company's commitment to expanding its business. The 3-Year Revenue Growth Rate of 11.7% outperforms 62.77% of 1,687 companies in the Real Estate industry, indicating a strong trajectory for future development.
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 seeking to capitalize on such robust financial health and market leadership may find CoStar Group Inc an attractive option. With its strong GF Score, CoStar Group Inc is poised to continue its trajectory of growth and profitability, making it a compelling consideration for value investors.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
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.
