The total return for CBRE Group (NYSE:CBRE) investors has risen faster than earnings growth over the last five years

CBRE Group Inc Class A +1.64%

CBRE Group Inc Class A

CBRE

161.47

+1.64%

CBRE Group, Inc. (NYSE:CBRE) shareholders might be concerned after seeing the share price drop 23% in the last quarter. On the other hand the returns over the last half decade have not been bad. The share price is up 74%, which is better than the market return of 69%.

Although CBRE Group has shed US$1.2b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for CBRE Group

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Over half a decade, CBRE Group managed to grow its earnings per share at 5.1% a year. This EPS growth is slower than the share price growth of 12% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
NYSE:CBRE Earnings Per Share Growth October 22nd 2023

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

CBRE Group shareholders are down 2.6% for the year, but the market itself is up 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 12%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for CBRE Group you should be aware of.

Of course CBRE Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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