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 $92.41, CoStar Group Inc has witnessed a daily loss of 0.1%, marked against a three-month change of 10.59%. 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 growth, and a moderate GF Value rank, 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 is a leading provider of commercial real estate data and marketplace listing platforms. With a market cap of $37.73 billion and sales of $2.53 billion, the company's operating margin stands at 6.42%. 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 has recently expanded its presence in Canada, the United Kingdom, Spain, and France, indicating a strategic growth trajectory.
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 14.78, CoStar Group Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. Additionally, with a favorable Debt-to-Revenue ratio of 0.44, 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. This rank reflects the company's ability to translate its revenues into earnings efficiently, which is a key indicator of its operational effectiveness and market position.
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 62.75% of 1686 companies in the Real Estate industry. This growth is a testament to CoStar Group's innovative strategies and its ability to adapt to market demands.
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 this momentum can explore more companies with strong GF Scores using the GF Score Screen. With its solid foundation and strategic market advancements, CoStar Group Inc stands as a compelling investment opportunity for those looking to diversify their portfolio with a resilient and growing player in the commercial real estate data sector.
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.
