Cushman & Wakefield has gotten torched over the last six months - since November 2024, its stock price has dropped 24.1% to $10.50 per share. This might have investors contemplating their next move.
Is there a buying opportunity in Cushman & Wakefield, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Do We Think Cushman & Wakefield Will Underperform?
Even with the cheaper entry price, we're cautious about Cushman & Wakefield. Here are three reasons why you should be careful with CWK and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Cushman & Wakefield grew its sales at a weak 1.8% compounded annual growth rate. This was below our standards. 
2. EPS Trending Down
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Sadly for Cushman & Wakefield, its EPS declined by 8.6% annually over the last five years while its revenue grew by 1.8%. This tells us the company became less profitable on a per-share basis as it expanded.
3. Previous Growth Initiatives Haven’t Impressed
Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).
Cushman & Wakefield historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 6.4%, somewhat low compared to the best consumer discretionary companies that consistently pump out 25%+.
Final Judgment
We cheer for all companies serving everyday consumers, but in the case of Cushman & Wakefield, we’ll be cheering from the sidelines. After the recent drawdown, the stock trades at 9.4× forward P/E (or $10.50 per share). While this valuation is optically cheap, the potential downside is huge given its shaky fundamentals. There are better investments elsewhere. Let us point you toward the most entrenched endpoint security platform on the market.
Stocks We Like More Than Cushman & Wakefield
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