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 $80.34, CoStar Group Inc has witnessed a daily gain of 0.07%, marked against a three-month change of 4.27%. 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: 10/10
- Momentum rank: 4/10
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 a high GF Score of 92 out of 100, CoStar Group Inc 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. Its data offering contains in-depth analytical information on over 5 million commercial real estate properties related to various subsectors including office, retail, hotels, multifamily, healthcare, industrial, self-storage, and data centers. It 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. The company recently expanded its presence in Canada, the United Kingdom, Spain, and France. With a market cap of $32.93 billion and sales of $2.67 billion, CoStar Group Inc continues to solidify its position in the industry.
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 13.33, CoStar Group Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.42, 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 high rank indicates the company's ability to efficiently convert sales into profits, a critical factor for long-term sustainability and growth. The company's operating margin of 1.09% reflects its operational efficiency and cost management strategies, which are essential for maintaining profitability in a competitive market.
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 60.34% of 1,669 companies in the Real Estate industry. This growth trajectory underscores CoStar Group Inc's strategic initiatives and market expansion efforts, positioning it well for future success.
Conclusion
CoStar Group Inc's financial strength, profitability, and growth metrics, as highlighted by its impressive GF Score, underscore the firm's unparalleled position for potential outperformance. The company's strategic expansion and robust financial management make it a compelling choice for investors seeking long-term growth opportunities. As CoStar Group Inc continues to innovate and expand its market presence, it remains a key player to watch in the commercial real estate data industry. For those interested in exploring more companies with strong GF Scores, GuruFocus Premium members can utilize 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.
